RailTel's 14.73% margin trails the telecom peer median
Depreciation reduced the conversion of operating profit into pre-tax profit, while the results were filed after market close.
Filed 30 Jul 2026, 17:31 IST · after market close · Railtel Corporation of India Ltd (RAILTEL)
Key takeaways
- RailTel's standalone Q1FY27 operating margin was 14.73%, below the 19.42% median for six reporting telecom peers.
- Depreciation of Rs 50.39 cr was the main bridge between operating profit of Rs 131.57 cr and profit before tax of Rs 89.44 cr.
- The standalone results were filed after market close on 30 July 2026, leaving no immediate market reaction to assess.
Price around the results
Operating profit did not fully convert into pre-tax profit
RailTel reported standalone revenue of Rs 893.27 cr and operating profit of Rs 131.57 cr in Q1FY27. Depreciation of Rs 50.39 cr was the largest charge below operating profit, with interest at Rs 1.03 cr; other income of Rs 9.29 cr partly offset these items. The resulting profit before tax was Rs 89.44 cr, followed by net profit of Rs 65.78 cr.
Margin lagged six telecom peers
RailTel's operating margin of 14.73% was 4.69 percentage points below the 19.42% median among six telecom peers that had reported the same quarter. It ranked third from the bottom in that comparison. The tax rate was 26.45%, so the reported net profit also reflects the tax charge rather than only operating performance.
No post-results market response yet
The standalone results were filed at 17:31 IST on 30 July 2026, after the market close.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹893 cr |
| Other income | ₹9 cr |
| Expenses | ₹762 cr |
| Operating profit | ₹132 cr |
| Operating margin (%) | 14.73% |
| Interest | ₹1 cr |
| Depreciation | ₹50 cr |
| Profit before tax | ₹89 cr |
| Tax | ₹24 cr |
| Net profit | ₹66 cr |
| EPS (₹) | ₹2.05 |
Operating margin of 14.73% compares with a Telecommunication sector median of 19.42% across 6 peers that have reported Q1FY27.
What to watch
- Whether operating margin moves up from 14.73% toward the 19.42% telecom-peer median.
- Whether depreciation remains a material gap between operating profit of Rs 131.57 cr and profit before tax of Rs 89.44 cr.
- Whether the tax rate remains near 26.45% in the next reported quarter.