Thanks Swapnali, and good morning, everyone, and welcome to the analyst interaction with the management of RailTel Corporation. From the management team of RailTel, we have with us Mr.

Sanjai Kumar ji, who is Chairman and Managing Director; Mr. V.

Rama Manohara Rao ji, who is Director, Finance; Mr. Manoj Tandon ji, who is Director, Projects, Operation and Maintenance; and along with him is Mr.

Yashpal Singh Tomar ji, who is Director, Network Planning and Marketing. I think results is already published, and I think we can have a brief from the management on the gone-by quarter or any other commentary, and then we'll have lines open for Q&A.

Thank you, and over to you, Sanjai sir.

Very good morning to everybody. It gives me a great pleasure to interact with you on the company's performance in the backdrop of Q3 financial results for FY '26, which were declared by the company on 2nd February 2026.

The company achieved operating revenue of ₹913 crore in quarter three of FY '26 as against ₹768 crores in Q3 of FY '25, registering the year-on-year growth of 19%. The telecom segment contributed ₹349 crores and project segment contributed ₹564 crores in company's operating turnover.

The profit before tax in Q3 FY '26 is slightly lower as compared to PBT in Q3 FY '25 due to execution of slightly more number of low-margin projects in this quarter. However, company is confident to achieve the overall revenue and profits as per the previous projections.

The company achieved the total income of ₹2,648 crores during previous 9 months period ended on 31/12/2025, registering 19% year-on-year growth. The profit before tax in 9 months period ended on December 25 is ₹280 crore as against ₹251 crores in corresponding period of previous years year, registering an year-on-year growth of 12%.

Earning per share in 9 months period ended on December 25 stands at ₹6.37 as against ₹5.81 of 9 months period ended on December 24, registering a year-on-year growth of 10%. The company's order book is robust at ₹8,497 crore, which will give a required thrust for future growth.

Thank you very much.

Yes, please.

Good afternoon, sir. Thanks for opportunity.

I got few question. First on the bookkeeping side, can you give us a revenue breakup for the three segments within telecom business?

Yes. Right now we have two segments,

Okay.

telecom and project. Hello?

No, within telecom, NLD, ISP, and IP-1.

Acha, okay. Within telecom, right.

Just a minute. It is ₹155 crore from NLD, ₹113 crore from ISP, and ₹25 crore from IP-1.

This is the breakup of core telecom income. Other than telecom income, we have ICT revenue of ₹54 crore, which includes data center and other income, and other operating income of ₹3 crore, total put together is ₹350 crore.

That's very clear. Sir, just one question on the telecom business, particularly.

Now, this year has appears to be slightly weaker than earlier what we thought from the revenue growth perspective, and this quarter again appears to be one lower at 3 odd percent kind of a growth in the telecom business. How should we see this growth panning out for next year?

What really is causing this slowness in the telecom business?

See, yes, basically in telecom market, I would say that there have been constant pressure on pricing. That was one major reason for I would say dampened growth seen.

Then, due to our continuous efforts, as I told during previous quarterly meeting discussions, interaction with investors also, that we have increased our focus on telecom also, and those efforts have now started showing results. I believe that in coming quarters, may not be Q4, but at least from quarters in the next financial year, we will start seeing results in telecom sector also.

Yes, right now whatever you said is truth. In 9 months, if you see overall, there has been 5% growth.

Based on what I said right now, that we have now tried to find out how can we increase our telecom income, and we have accordingly increased our efforts, and those efforts will certainly bring dividends. We should be able to maintain our growth guidance in telecom income in 8% to 9% of range.

Got it. Can you brief us what efforts are we doing in terms of accelerating the telecom revenue?

Yes. See, one is we have to listen to the market call that you have to reduce your tariffs.

Somewhere we were earlier not ready to reduce tariffs beyond a certain limit. Then, for that, we need to increase the network capacity and all that, and I believe we as a management think that this will certainly have impact on our strategy.

We are concentrating on NLD traffic, which is actually have been generally mute. Railwire segment is continuously under pressure, margins are getting thin, but we are getting now momentum in growth in numbers also, subscriber numbers if we see, right now we are inching towards 6 lakh subscribers.

Railwire also, we believe that we will make some impact, but our focus is mainly on NLD business.

Got it. For this, do we need to do more capex to increase the capacity on the fiber?

Because generally, we have been doing capex equal into depreciation. No, the

capex was already underway, and we were only to increase the line cards and all that, so that does not matter much. We were already underway preparing for this, that's why some time is taken, and you must have seen that we have already done a lot of capex during last 2 years in our telecom network.

Yeah.

Within the telecom, we also thought this data center what we have done deal with Techno, that would also start contributing. Is there any delay in that contribution as well?

See, the data center which is supposed to be major contributor, is likely to be ready by March '27 because that is under construction. Yes, we have started smaller-scale activities in edge data centers at two, three locations like in Gurgaon, in Mumbai, and one is also now ready for starting work in Indore.

Those will be small ones, and there we should get business numbers. Apart from that, our agreements with Anant Raj and other like TCS and the likes, there also we are finding some traction, and we should get numbers in the next financial year from these activities, in data center account.

Next on the project business, any new deal wins in the Kavach railway project and in deployment of 4G, 5G?

See, in deployment of Kavach, one tender we have already participated, and results of that tender is yet to be declared. Otherwise, there is status quo as far as the PO received is concerned.

We already have two older orders which are in East Central Railway at amounting to total ₹468 crores, and work is going on at site in against these two orders. One tender is still undecided.

We are waiting for the results to come.

Deployment of telecom services, towers and all, anything

on that? That is part of the Kavach order.

Towers

and all that thing, erection of towers, is already happening.

Okay.

Yeah.

Now coming to the guidance, you said that this year you still believe that you can do the guided number, which was around 20% growth at the top line and at the bottom line. For the 9 months, at least, it doesn't look like we are on track.

What gives us the confidence that for the full year, we should be able to do a 20% growth? Should Q4 be much stronger for us?

See, if you see even previous years also, Q4 generally has been heaviest of the all four quarters,

and

Q3 has been slightly muted. Q2 and Q4 are the numbers bringing quarters, Q4 certainly is going to be better.

Because if you see the 9 months overall numbers, you will find the trend also, 9 months put together. Q3 Q4 is certainly going to make its whatever trend has been going from last two, three years, Q3 is going to be heavier.

Got it. Generally, Q4 is heavy, it will come on a high base.

To achieve a 20% growth for the full year, we need to do a significantly higher in the Q4.

Yes. Certainly, yes.

Okay. Just one last question to understand the projects business margin.

It has been quite volatile, right, ranging from decently 6%, 7% margin earlier now to consistently doing 3%, 4%. Do you think there is a reset in the margin, and the new margin should be anywhere between 4% and 5% in the expectation for us?

I think as far as I remember, I've been maintaining margin in 4% to 5% in last few quarters'

interaction.

Yes, I have been, because, yes, when you increase the volume, certainly all the works you're not going to get in higher margin. Actually we have slightly change our strategy also because many times you have to add value to the project, you should sometimes take a call.

Sometimes you need to enter a new sector, you have to take a call. Sometimes there's a very fast turnaround in a project so that your cash flows are supported, you have to take a call.

All those factors certainly matter.

Got it.

Yes,

is

one, yeah. No,

just trying to understand. This is the new normal, right, now?

Yes.

Got it, sir. That's very helpful, and best of luck for the coming quarters.

Thank you for the opportunity. Sir, my question is how are we going to be benefiting from this recent budget announcement for increasing safety of railways,

what

are our

avenues? Just wait, your voice is not very clear.

Am I clear now? Is it clear now?

Better. Better.

Better.

My question is how are we going to benefit from this budget proposal on safety equipments on this railway safety, what are the avenues for us in this sector?

See, budget is just presented, we are also observing what finer details come out. I think it will be appropriate only after those deliberations happen and we get the finer details to react on to that.

Okay. Sir, what would be your guidance for this coming this this year would be the next year would be, for FY

'26, '27? 20 20% growth guidance.

20%

on the sales side, and the on margin side, net margin would be in line to 7%?

Net margins, yes, You are talking of project margin or you're talking of overall margin?

Overall margins.

Overall margin should be 10% to 11% EBITDA I'm talking of.

Net would be 5% around, right?

No. I didn't say that.

Project will be in the range of 4% to 5%. Telecom is going to be there in the range of 20%, 21%.

Overall will be somewhere around 10% to 11%. Is that clear?

Yes, sir. Thank you, and all the best.

Sir, thanks for the opportunity. Sir, in terms of the telecom services, you mentioned others data center revenue ₹56 crore this year, same period last year this number would have been how much, sir?

Last year?

Sir.

Last year, it was ₹51 crore. Data center, yeah, ICT revenue, others and data center put together.

Others was ₹18 crore last year. This year it is ₹15 crore.

Okay. Got it.

Similarly, sir, in terms of project services also, can you give a breakup of Indian Railway and others in the revenue?

Railway projects, if we talk of, it is ₹112 crore this quarter, and other than railways is ₹452 crores.

Okay. Sorry, sir, similarly, for the same period last year available, sir?

Last year for the same period, it was ₹123 crores from railway projects, and other than railway projects, it was ₹307 crores.

Okay. Got it.

The projects order book that is there of so in terms of railway and non-railway, can you also provide it?

Just a minute. Projects from railways.

Railway projects order book if I talk of, it is around ₹1,000 crore is from railway stream, and then other than railways 5, 511. Talking of projects, 5,000 is non-railway and 1,000, close to 1,000 is railway.

I'm talking of project income only, does not include telecom income.

Okay. Is it fair to say I think we mentioned order book in the range of ₹8,000 odd crore, 10 and the remaining is telecom?

There's telecom income, there is railway signaling projects I would say, I think so if we count signaling projects also, it is 1,700 put together, and telecom is around ₹400 plus crores from railways, and other than railways also there is telecom. All put together is 8,400 plus.

Okay. Sir, generally, when we do a breakup railway, non-railway, telecom is a part of railway, we consider that, right?

See, these are all basically bifurcations. Whatever way you want, you can.

Project income and telecom income, these are the two scenarios. Within the telecom, we generally do not bifurcate into railway telecom and other than telecom, that is not normally we are not taking this way.

We are only bifurcating projects, railway and non-railway.

Got it, sir. I think that's pretty much from my side, sir.

I'll come back in the queue.

Am I audible, sir?

Yes, please.

Sir, recently we got some school order. What was that?

Can you just give some details of it? Was it canceled again, but what is our scope in that area would be?

In Bihar, we've got one, yeah.

Yeah. You are talking about canceled order?

You are talking about new order?

New order and canceled both. Bihar, we got some school order, and they were canceled, and then we got

Basically education in Bihar, they are working on many fronts, they are setting up new laboratories in schools. One project is related to laboratories, setting up of physics, chemistry, and biology laboratories.

That is staying, and already work is in progress. The other one is basically around smart class, that was about smart class.

We really don't know reason behind the cancellation. It's because of their own internal decision.

Mm-hmm. Ha, we have not been told also.

They have withdrawn those orders.

Sir, what would be our margins in the smart class business would be? What kind of margin we get?

Smart class is

in the range of 4% to 5% only,

same. 4% to 5%.

Yeah. Right.

Sir, we had some hospital project also, which was done on pilot basis. Is there any scope there, hospital management?

Which one?

RailTel did some hospital management project sometimes ago on a pilot basis.

Hospital management for whom?

On a pilot basis for the government hospitals, were done some years ago, Sanjay Kumar (Chairman and Managing Director):

No. We have rolled out a very huge hospital management information system for Indian Railways.

There are more than 700 hospitals and dispensaries, railway dispensaries, where we have already rolled out 4, 5 years back. Recently, we have completed for Brihanmumbai Corporation also, which is also a very sizeable value of work again for the same, HMIS.

I don't remember any POC you are talking of. I just don't really recall.

It's the same project maybe I'm talking about which you're talking about.

Ha, okay. Those are full-fledged projects, they are not POC.

Their margin is at 50%, right, that thing?

Yeah. Sir.

Thank you, and all the best, sir. Thank you.