RailTel FY26 Results: 22% Income Growth, ₹11,466 Cr Book

What RailTel reported and why it matters

RailTel Corporation of India reported its audited FY26 results after a Board meeting held on April 30, 2026. The numbers show a sharp rise in scale, led by a strong close to the year and faster execution in its project business. A day later, on May 1, 2026, RailTel held its Q4 FY26 earnings conference call organised by PL Capital, where Chairman and Managing Director Sanjai Kumar shared operating details and guidance.

For investors tracking government-facing telecom and digital infrastructure plays, two datapoints stood out: the jump in Q4 operating revenue and the size of the order book. RailTel also highlighted its data centre business as a key growth area, with capacity expansion plans and a hybrid execution model.

FY26 audited financial snapshot

RailTel’s FY26 performance showed broad-based growth across income, profit, and earnings per share. Revenue from operations rose to ₹4,277.48 crore from ₹3,477.50 crore in FY25. Total income increased to ₹4,327.63 crore from ₹3,551.04 crore.

Profitability also improved. Net profit came in at ₹346.32 crore versus ₹299.81 crore a year earlier, while profit before tax rose to ₹469.58 crore from ₹401.78 crore. Earnings per share increased to ₹10.79 from ₹9.34.

Q4 FY26: a sharp sequential step-up

On the earnings call, management said RailTel achieved operating revenue of ₹1,669 crore in Q4 FY26 compared with ₹913 crore in Q3 FY26, a 83% quarter-on-quarter rise. The quarter’s operating turnover was split between Telecom at ₹449 crore and Project at ₹1,220 crore.

Profit before tax for Q4 FY26 was ₹190 crore versus ₹85 crore in Q3 FY26, a 123% sequential increase. Profit after tax rose 127% quarter-on-quarter to ₹142 crore.

On a year-on-year basis, Q4 FY26 revenue from operations was ₹1,668.86 crore versus ₹1,308.28 crore in Q4 FY25. Q4 net profit was ₹141.75 crore versus ₹113.45 crore, and EPS increased to ₹4.42 from ₹3.53.

Segment performance: projects led growth in FY26

RailTel operates through Telecom Services and Project Work Services. In FY26, Telecom Services revenue was ₹1,500.69 crore, up from ₹1,362.53 crore in FY25. Project Work Services revenue was ₹2,776.79 crore versus ₹2,114.97 crore, indicating faster growth in execution-led projects.

Management clarified that the Telecom segment includes data centre and ICT income along with the core telecom lines such as NLD, ISP, and IP1. For Q4 FY26, pure Telecom income was ₹332 crore, comprising ₹182 crore from NLD, ₹120 crore from ISP, and ₹30 crore from IP1.

The remaining ₹117 crore within the Telecom segment in Q4 FY26 included data centre services and digital services such as Aadhaar authentication. RailTel said the Telecom segment margin for FY26 was about 39%, consistent with its historical 35% to 40% range.

Data centre business: revenue growth and capacity roadmap

RailTel reported data centre revenue of ₹202 crore in FY26, up from ₹127 crore in FY25. The company said it currently has about 3 megawatts of operational data centre capacity and is targeting 5 megawatts by May of the following year.

Two edge data centres were commissioned during FY26, one in Delhi (Gurgaon) and one in Mumbai. RailTel also flagged plans to expand to Indore, Ujjain, Chandigarh, and Visakhapatnam. Management described a hybrid approach combining owned facilities, partnership models with real estate owners, and lease arrangements.

RailTel also serves government and PSU clients through hosted applications, hospital management information systems, e-office platforms, and Aadhaar-based biometric authentication services for exams including NEET and JEE. It said it plans to disclose data centre segment financials separately in the future.

Order book jumps to ₹11,466 crore

As of April 30, 2026, RailTel’s order book stood at ₹11,466 crore, compared with ₹8,563 crore as of December 31, 2025. Management described this as 34% growth in Q4.

The company estimated the order book as of March 31, 2026 at about ₹10,600 to ₹10,700 crore, and said around ₹700 crore of new orders were received during Q4. Railways accounted for about 21% of the current order book.

RailTel also said it has three Kavach signalling orders under execution over the next 2 to 3 years, and is pursuing opportunities in state government and PSU data centre construction and Security Operations Centers (SOC).

Dividend and FY27 capex plan

RailTel’s Board recommended a final dividend of ₹1.25 per share. For investment plans, management guided for capital expenditure of ₹300 crore for the current year, primarily for data centre expansion and the telecom network.

Guidance: revenue growth, project scale, and telecom outlook

Management guided overall revenue growth of about 20% for the current financial year, in line with the 22% growth achieved in FY26. For the project business, it guided revenue of ₹3,000 crore to ₹3,500 crore for the current financial year, with project segment margins targeted at 4% to 5%.

Separately, RailTel said it expects 8% to 9% income growth in the telecom segment in FY27, supported mainly by improving performance in the NLD business. It also said it has partnered with Techno Electric & Engineering Company Limited to roll out nearly 102 edge data centres across the country.

Broader sector context and capacity commentary

RailTel cited a view that India’s edge data centre capacity is expected to triple from 60 to 70MW in 2024 to about 200 to 210MW by 2027, based on ICRA projections mentioned in the context. It also noted Techno Digital’s plan of overall investment of up to $1 billion to develop data centres, including Chennai (36MW), Kolkata (13MW), and with RailTel in Noida (16MW), cumulatively representing 65MW capacity.

Key numbers table

Market impact and what to track next

The FY26 print and Q4 ramp-up underline RailTel’s dependence on project execution for near-term growth, while telecom and data centres remain recurring-revenue levers. The order book level of ₹11,466 crore provides visibility on project-led billing, with Railways at about 21% of the mix and the balance coming from other clients.

Near-term focus areas flagged by management include: scaling data centre capacity from about 3MW to 5MW, deploying edge sites beyond Gurgaon and Mumbai, and delivering on the ₹3,000 to ₹3,500 crore project revenue guidance with 4% to 5% margin targets. Updates on the timing of data centre readiness and the pace of new order inflows will likely be the key operational markers after the FY26 results.