Revenue jumps 28.31% QoQ, but negative other income limits profit growth
Standalone operating margin improved as costs grew slower than revenue, but higher depreciation, interest and negative other income kept net profit growth to +4.23%.
Filed 25 Oct 2026, 14:24 IST · after market close · Railtel Corporation of India Ltd (RAILTEL)
Key takeaways
- Standalone revenue rose 28.31% QoQ as expenses grew 27.37%, lifting operating margin by 0.63 percentage points.
- Net profit increased just 4.23% QoQ because negative other income equalled -31.69% of pre-tax profit.
- RailTel's 15.36% operating margin was 9.45 percentage points below the 24.81% median of five reporting telecom peers.
Price around the results
Revenue growth brought modest operating leverage
RailTel's standalone revenue rose 28.31% QoQ to Rs 1,146.14 cr, while expenses grew 27.37% to Rs 970.14 cr. Because costs grew more slowly than revenue, operating profit increased 33.77% and operating margin widened by 0.63 percentage points to 15.36%. This was the first sequential comparison available in the reported trend, so it does not establish a multi-quarter direction.
Other income and interest restrained profit conversion
Pre-tax profit grew only 3.20% QoQ, well below operating profit growth, as other income swung from Rs 9.29 cr to negative Rs 29.25 cr and represented -31.69% of pre-tax profit. Interest expense rose 43.69%, while depreciation increased 5.12%. The tax rate fell 0.73 percentage points to 25.72%, providing a modest lift to net profit growth of 4.23%.
Margin remains below the telecom peer median
RailTel's 15.36% operating margin was 9.45 percentage points below the 24.81% median for five telecom peers that had reported the quarter. It ranked second from the bottom on this measure. The comparison points to a weaker operating margin despite the sequential improvement.
The stock opened lower after the after-close filing
The results were filed after market close, and the stock fell 2.18% in the following session after opening 1.70% lower. Its relative return was -2.86%, while trading volume was 1.24 times the reference level.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,146 cr | ₹893 cr | +28.31% |
| Other income | ₹-29 cr | ₹9 cr | — |
| Expenses | ₹970 cr | ₹762 cr | +27.37% |
| Operating profit | ₹176 cr | ₹132 cr | +33.77% |
| Operating margin (%) | 15.36% | 14.73% | — |
| Interest | ₹1 cr | ₹1 cr | +43.69% |
| Depreciation | ₹53 cr | ₹50 cr | +5.12% |
| Profit before tax | ₹92 cr | ₹89 cr | +3.20% |
| Tax | ₹24 cr | ₹24 cr | +0.34% |
| Net profit | ₹69 cr | ₹66 cr | +4.23% |
| EPS (₹) | ₹2.14 | ₹2.05 | +4.39% |
Operating margin of 15.36% compares with a Telecommunication sector median of 24.81% across 5 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.18% | -2.86% |
Volume on the results session was 1.24× its 20-day average.
What to watch
- Whether operating margin holds above 15.36% after the 0.63-percentage-point QoQ improvement.
- Whether pre-tax profit growth moves beyond 3.20% QoQ as other income recovers from negative Rs 29.25 cr.
- Whether the 9.45-percentage-point gap to the 24.81% telecom peer median narrows.