Tuesday, July 7, 2026

Railtel Corp shares decline after Q2 results, dividend announcement

Date:

Shares of RailTel Corporation of India Ltd. declined on Thursday, October 30, after the company reported its second quarter earnings and declared an interim dividend post-market hours on Wednesday.The company reported a 4.7% increase in its second quarter net profit to ₹76 crore from ₹73 crore in the previous year.

Its revenue for the second quarter increased 12.8% to ₹951.3 crore from ₹843.5 crore last year. Growth during the quarter was led by the project work services business, which, however, is a low margin business.

RailTel’s earnings before interest, tax, depreciation and amortisation (EBITDA) increased 19.4% to ₹154.4 crore from ₹129.3 crore in the second quarter last fiscal.
Its EBITDA margin expanded to 16.2% from 15.3% in the year-ago period. Operating cash flow for the company was negative at the end of the September quarter due to adverse working capital requirements.Revenue from the telecom services business grew by 9% from last year to ₹367.5 crore, while its Earnings Before Interest and Tax increased by 23% to ₹102.5 crore. EBIT margin for this business expanded to 27.9% from 24.6% last year.

The Project Work Services business saw revenue growth of 16% and EBIT growth of 35% year-on-year. Margins also expanded to 3.9% from 3.4% last year.

RailTel’s board of directors also declared an interim dividend of 10% of the paid-up share capital, equivalent to 1 per share. The board approved Tuesday, November 4, as the record date for the same. The payment of dividend warrants is scheduled from November 25, 2025.

RailTel shares were down 0.6% at ₹373.9 apiece around 9.50 am. The stock has gained 26.3% in the last six months but has declined 7.7% this year, so far.

Also Read: United Breweries Q2 profit drops 64% on stronger monsoon, soft beer market; misses estimates

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