Railtel Corporation of India Ltd
Railtel Corporation of India Ltd
TelecomKey Fundamentals
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BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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39 extracted metrics + investor summaries across FY15–FY26.
Tapetide Score
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Technical Indicators
Key Insights
Strengths
4- Company is almost debt free.
- Company has delivered good profit growth of 21.0% CAGR over last 5 years
- Company has been maintaining a healthy dividend payout of 32.6%
- Company's median sales growth is 23.4% of last 10 years
Weaknesses
1- Company has high debtors of 175 days.
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 42d agoRailtel Corporation of India Ltd is a nearly debt-free PSU telecom company with a market cap of ₹9,928 Cr, trading at a PE of 29.2x. The company has delivered strong compounded sales growth of 26% CAGR over 5 years and profit growth of 21% CAGR over the same period, though its stock has declined 25% over the last 1 year and carries high debtor days of 175.
- Company is virtually debt-free, giving it a clean balance sheet and financial flexibility for capex-intensive telecom projects
- Compounded sales growth of 26% CAGR over 5 years and 22% CAGR over 10 years demonstrates sustained revenue momentum
- Compounded profit growth of 21% CAGR over 5 years indicates strong operating leverage and improving profitability
- Return on Equity of 17% in the last year, improving from 13% over 10 years to 16% over 3 years, shows rising capital efficiency
- TTM sales growth of 23% shows continued top-line acceleration in the most recent period
- Median sales growth of 23.4% over the last 10 years reflects consistency rather than lumpy performance
- Healthy dividend payout ratio of 25.6% provides income while still retaining capital for growth
- Price-to-book ratio of 4.47x combined with 17% ROE suggests the company is generating returns above cost of equity for shareholders
- High debtor days of 175 indicate significant working capital stress and delayed collections, typical risk for government-dependent revenue
- Stock has declined 25% over the last 1 year, reflecting market repricing of the business despite operational growth
- PE of 29.2x is elevated for a PSU telecom company, leaving limited margin of safety if growth slows
- TTM profit growth of 16% lags behind TTM sales growth of 23%, suggesting possible margin compression or rising costs
- Dividend yield of only 0.64% is low relative to other PSU peers and offers limited downside protection
- Revenue heavily dependent on government contracts and Indian Railways capex cycles, creating concentration risk
- 5-year stock CAGR of 17% trails the 5-year profit CAGR of 21%, indicating PE de-rating over the period
- Price-to-book of 4.47x is high for a PSU, and any slowdown in ROE from the current 17% could compress this multiple further
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 42d ago- ₹334.52 Cr e-Office upgrade order Jun 23
Received purchase order from Ministry of Railways worth ₹334.52 crore (excl. tax) for e-Office version 7.x upgrade across Zonal Railways. Execution deadline is June 22, 2031.
- ₹107.6 Cr Mahanadi Coalfields order Jun 30
Secured ₹107.6 crore order from Mahanadi Coalfields for MPLS VPN network with a 60-month contract duration.
- ₹82.04 Cr railway signalling works Jun 8
Letter of Acceptance worth ₹82.04 crore from Haryana Rail Infrastructure Development Corp for S&T works on Dhulawat-Manesar-New Patli section, to be executed by Nov 27, 2027.
- ₹52.57 Cr disaster recovery infra Jun 17
Secured ₹52.57 crore order for disaster recovery IT infrastructure with 5 years of maintenance included.
- ₹29.83 Cr SD-WAN devices order Jun 25
Won ₹29.83 crore order from Southern Power Distribution Company of AP for SD-WAN devices.
- ₹27.06 Cr Goa portal development Jun 29
Secured ₹27.06 crore work order from Goa Labour Welfare Board for end-to-end online portal, execution by Aug 23, 2026.
- ₹16.20 Cr Haryana HSWAN O&M Jul 2
Won O&M contract worth ₹16.20 crore from Haryana State Electronics Development Corp for managing state WAN until Dec 31, 2027.
- ₹15.78 Cr MPLS bandwidth upgrade Jun 15
Secured ₹15.78 crore order from Munitions India for MPLS bandwidth upgradation.
- ₹13.6 Cr DigiThane citizen platform Jul 1
Received Letter of Intent from Thane Municipal Corporation for DigiThane Citizen Engagement Platform worth ₹13.6 crore over a 10-year period ending June 28, 2036.
- Senior management appointments Jul 1
Vishwanath Bharatula promoted to Principal Executive Director and Harish Pawaria appointed as ED/Northern Region effective July 1, 2026, following superannuation of two executives.
- Govt holds 72.84% stake unchanged Jun 17
Government of India held 23.37 crore equity shares in RailTel as of March 31, 2026, with no shares encumbered during FY26.
TL;DR: RailTel is on an aggressive order-winning streak, securing over ₹680 crore in new contracts within a single month across diverse segments including railways, defence, state governments, and municipal bodies. The order pipeline is well-diversified between IT infrastructure, networking (MPLS/SD-WAN), and digital platforms. No visible headwinds in recent news flow. If execution keeps pace with order inflows, the revenue growth trajectory looks firmly positive going into FY27.
Quarterly Results
| Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 468 | 599 | 668 | 833 | 558 | 843 | 768 | 1,308 | 744 | 951 | 913 | 1,669 | 893 |
| Expenses | 377 | 472 | 539 | 716 | 455 | 714 | 646 | 1,129 | 628 | 797 | 780 | 1,436 | 762 |
| Operating Profit | 90 | 127 | 130 | 117 | 103 | 129 | 121 | 180 | 116 | 154 | 133 | 233 | 132 |
| OPM % | 19% | 21% | 19% | 14% | 19% | 15% | 16% | 14% | 16% | 16% | 15% | 14% | 15% |
| Other Income | -1 | 2 | -4 | 31 | 2 | 5 | 12 | 32 | 18 | -2 | 1 | 8 | 9 |
| Interest | 1 | 1 | 0 | 4 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 1 |
| Depreciation | 37 | 38 | 41 | 43 | 38 | 40 | 43 | 60 | 44 | 47 | 49 | 49 | 50 |
| PBT | 51 | 90 | 84 | 102 | 67 | 94 | 90 | 151 | 89 | 105 | 85 | 190 | 89 |
| Tax % | 25% | 25% | 26% | 24% | 27% | 23% | 27% | 25% | 26% | 28% | 27% | 25% | 26% |
| Net Profit | 38 | 68 | 62 | 78 | 49 | 73 | 65 | 113 | 66 | 76 | 62 | 142 | 66 |
| EPS in Rs | 1.2 | 2.12 | 1.94 | 2.42 | 1.52 | 2.26 | 2.03 | 3.53 | 2.06 | 2.37 | 1.94 | 4.42 | 2.05 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 482 | 572 | 851 | 984 | 986 | 1,081 | 1,337 | 1,522 | 1,957 | 2,568 | 3,478 | 4,277 | 4,427 |
| Expenses | 298 | 367 | 595 | 710 | 685 | 747 | 1,010 | 1,154 | 1,578 | 2,103 | 2,943 | 3,640 | 3,775 |
| Operating Profit | 184 | 206 | 256 | 273 | 301 | 333 | 328 | 368 | 379 | 464 | 535 | 638 | 652 |
| OPM % | 38% | 36% | 30% | 28% | 31% | 31% | 24% | 24% | 19% | 18% | 15% | 15% | 15% |
| Other Income | 72 | 70 | 52 | 41 | -6 | -18 | 28 | 76 | 35 | 28 | 52 | 26 | 17 |
| Interest | 0 | 1 | 1 | 2 | 5 | 4 | 2 | 4 | 6 | 6 | 4 | 5 | 4 |
| Depreciation | 90 | 81 | 116 | 119 | 112 | 131 | 159 | 160 | 154 | 158 | 180 | 189 | 196 |
| PBT | 166 | 194 | 191 | 194 | 179 | 181 | 195 | 280 | 254 | 328 | 402 | 470 | 470 |
| Tax % | 27% | 47% | 33% | 19% | 39% | 24% | 28% | 25% | 26% | 25% | 25% | 26% | — |
| Net Profit | 121 | 102 | 128 | 156 | 110 | 138 | 140 | 208 | 188 | 246 | 300 | 346 | 346 |
| EPS in Rs | 3.77 | 3.18 | 3.99 | 4.87 | 3.42 | 4.31 | 4.37 | 6.49 | 5.87 | 7.67 | 9.34 | 10.79 | 10.78 |
| Div. Payout % | 14% | 22% | 40% | 12% | 58% | 49% | 50% | 37% | 43% | 37% | 31% | 30% | — |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | — | 321 | 321 | 321 | 321 | 321 | 321 | 321 | 321 | 321 | 321 | 321 |
| Reserves | — | 763 | 838 | 928 | 963 | 1,040 | 1,082 | 1,195 | 1,328 | 1,506 | 1,679 | 1,941 |
| Borrowings | — | 0 | 0 | 0 | 1 | 43 | 0 | 32 | 42 | 46 | 45 | 64 |
| Other Liabilities | — | 1,126 | 1,155 | 1,010 | 870 | 852 | 1,213 | 1,212 | 1,658 | 2,177 | 3,117 | 3,505 |
| Total Liabilities | — | 2,211 | 2,315 | 2,259 | 2,156 | 2,256 | 2,616 | 2,759 | 3,349 | 4,050 | 5,161 | 5,830 |
| Fixed Assets | — | 711 | 694 | 688 | 790 | 789 | 760 | 775 | 821 | 913 | 1,081 | 1,281 |
| CWIP | — | 262 | 360 | 364 | 300 | 253 | 215 | 164 | 157 | 130 | 124 | 81 |
| Investments | — | 10 | 0 | 10 | 17 | 10 | 10 | 40 | 40 | 90 | 39 | 0 |
| Other Assets | — | 1,228 | 1,261 | 1,197 | 1,049 | 1,204 | 1,632 | 1,781 | 2,330 | 2,916 | 3,917 | 4,468 |
| Total Assets | — | 2,211 | 2,315 | 2,259 | 2,156 | 2,256 | 2,616 | 2,759 | 3,349 | 4,050 | 5,161 | 5,830 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | — | — | — | — | — | 154 | 374 | 258 | 284 | 556 | 255 | 316 |
| Investing | — | — | — | — | — | -48 | -135 | -213 | -203 | -419 | -82 | -77 |
| Financing | — | — | — | — | — | -62 | -110 | -104 | -79 | -77 | -113 | -150 |
| Net Cash Flow | — | — | — | — | — | 43 | 130 | -59 | 3 | 60 | 60 | 89 |
| Free Cash Flow | — | — | — | — | — | 76 | 294 | 142 | 107 | 347 | -70 | 44 |
| CFO/OP | — | — | — | — | — | 57 | 128 | 83 | 83 | 126 | 55 | 56 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | — | 164 | 160 | 173 | 169 | 160 | 208 | 160 | 195 | 180 | 166 | 175 |
| Cash Conversion Cycle | — | 164 | 160 | 173 | 169 | 160 | 208 | 160 | 195 | 180 | 166 | 175 |
| Working Capital Days | — | -66 | -91 | 1 | -17 | 15 | -6 | 7 | 50 | -21 | 30 | 34 |
| ROCE % | — | — | 17% | 16% | 17% | 17% | 14% | 16% | 16% | 20% | 22% | 23% |
Documents
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Company Information
RailTel was incorporated in 2000, with the objective of creating nationwide broadband and VPN services, telecom, and multimedia network, to modernize the train control operation and safety system of Indian Railways. It is a "Navratna" PSU of the Government of India. At present, RailTel's network passes through around 6,000 stations across the country, covering all major commercial centers.[1]