Thanks, Operator. We are pleased to welcome the management of RailTel Corporation of India Limited to discuss their quarter four results, and also would convey our thanks to RailTel management as well as participant to attend this call on a holiday.

Joining us today from the RailTel leadership team is Mr. Sanjai Kumar, who is the Chairman and Managing Director; Mr.

V. Rama Manohar Rao, Director, Finance; Mr.

Manoj Tandon, Director, Projects, Operation and Maintenance; Mr. Yashpal Singh Tomar, Director, Network, Planning and Marketing; and along with Tomar Sir is Mr.

Batra ji, who is ED [unclear]. Thank you, gentlemen, for joining us today, and I will now hand over the call to Sanjai Sir for his opening remark, and post that we'll have Q&A.

Thank you, and over to you, Sir.

A very good morning to all. It gives me immense pleasure to interact with you on the company's performance in the backdrop of Q4 financial results for FY26 as well as audited financial results for FY25-26, which were declared by the company on 30th April 2026.

The company achieved operating revenue of ₹1,669 crores in Q4 of FY26 as against ₹913 crores in Q3 of FY26, registering the Q-on-Q growth of 83%. The telecom segment contributed ₹449 crores, and project segment contributed ₹1,220 crores in company's operating turnover.

As regards the total revenue, the Q-on-Q growth is 82%, with ₹1,680 crores in Q4 of FY26 as compared to ₹924 crores in Q3 of FY26. The profit before tax in Q4 of FY26 is ₹190 crores as against ₹85 crores in Q3 of FY26, with Q-on-Q growth of 123%.

The profit after tax in Q4 of FY26 is ₹142 crores as against ₹62 crores in Q3 of FY26, registering a Q-on-Q growth of 127%. The company achieved total income of ₹4,328 crores in FY26 against ₹3,551 crores during the corresponding previous year, with a growth of 22%.

Profit after tax for FY26 is ₹346 crores as against ₹300 crores in the financial year 24-25, with growth of 17%. Earning per share for year ending 31st March 2026 stands at ₹10.79 as against ₹9.34 during previous financial year.

Board of Directors have recommended final dividend of ₹1.25 per share in addition to ₹2 per share paid by the company as interim dividend for FY25-26. The company's order book as on 30/4/2026 was ₹11,466 crores, compared to ₹8,563 crores as on 31st December 2025, reflecting 34% growth in Q4.

We remain committed to pursuing growth and creating value for our esteemed investors. We are also exploring new opportunities in order to realize our true potential.

I thank you for your trust and collective vision for the future of this company. Thank you.

Yeah.

Good morning, Sir. Thanks for this opportunity and congratulation on a very, very strong set of numbers.

I think we have exceeded our guidance and the expectation. I got few questions.

Sir, can you just repeat the order book for the year end 31st March 2026, please?

This is

as on date. If you want to know 31st March, otherwise 30th April it is 11,400 [unclear]—

Because we track quarterly, it will be very helpful if you can give for the year end.

Okay. I think around 700 crores will be minus out of it.

Okay?

This quarter we have received about 700 plus crores new orders. That will be, you can say, roughly 10,600 or so, 600-700 or so.

Got it. That's helpful.

Second question on the telecom business. I think till last quarter, we were a little disappointed.

This quarter, again, telecom has come back very strongly. Can you help us explain what has driven such a strong growth in telecom business?

It's grown 24% QoQ and 25% YoY.

If we talk of telecom income, actually now we were executing one project for railways, which is video surveillance. Now that project is in commissioning stage.

There is requirement for providing connectivity to railways for the basically functioning of those CCTV cameras and all. That is one.

Then we have, as I've been telling you earlier also, that we are focusing, making strategies, how to increase our telecom income, whatever extent we can, though there is a lot of pressure. Those results have also started I think coming out.

I think that these two reasons majorly I see that overall we could perform this year slightly better than the previous year, overall if I see.

Got it. This what we have received for the video surveillance, it's a recurring revenue or it's a one-time revenue?

It will be recurring revenue. Certainly, telecom generally is recurring revenue unless it is in IRU form.

Yeah. Recurring.

That's helpful.

Now this is a new base, right? We will grow again 10-11% hopefully next year on this base.

That will be a fair understanding?

This you can say yes, but then there are other telecom market pressures where the prices are continuously in enterprise business on the south side. Still, I would say that we are committed to perform better this year overall.

Got it.

We are focusing on IP-1, we are focusing on ISP, we are focusing on NLD, all the three segments.

I thought we were looking big time in data center. Will that revenue not help offset the pressure in the enterprise business?

Certainly. That is not telecom income.

If you say the telecom income including data center, yes. This year, we have done ₹202 crores from data center business, which is also a good growth and this year we wish that we will be doing even better, much better.

Sir,

this data center revenue is recognized in projects?

No. It is right now part of telecom.

Actually, I thought you are talking about pure telecom income, which is NLD, ISP, and IP-1. If you put whatever we have segmentation done, overall telecom includes data center, yes, that data center growth is also contributed to this overall growth.

What was the data center revenue last year, Sir?

₹127 [crores].

Oh, it's very sharp jump. This Data Center 3 in Noida, what we have put, that's ramping?

Data center also, I've been emphasizing on this that data center is our growth driver in future. That is where we are putting most of our energy.

This growth has come from where

as in— Mostly these are hosted applications in our data center. We are providing them data center services.

Mostly these are government customers, PSU customers, state governments, central government. Okay.

Also railways.

E-office,

railways,

various kind of services they are taking, yes.

Do we provide DC to the railways as well?

Yeah. Their Hospital Management Information System is completely hosted with us.

Their e-office applications with us.

Got it. Sir, can you help us with the revenue breakup between NLD, ILD, and IP-1 for this quarter?

Yeah. This is ₹182 crores from NLD, ₹120 crores from ISP, and ₹30 crores from IP-1, making it ₹332 crores total.

₹332 crores. Got it.

Sir, just another bookkeeping question. Can you help us understand how much of the order book is from the railways?

It's around 20

21%.

It's around 21%.

21%.

21%. Got it.

When we say revenue from the telecom, we don't include data center in it, correct?

No. Presently, it is included.

Data center and ICT income also is part of telecom segment, which is being published by us. Telecom includes ICT and data center.

Basically

telecom segment revenue for this quarter was ₹449 crores. What was the breakup—

Yes, total. Out of that, pure telecom income was ₹332 crores.

Yeah.

Okay. What was the rest, ₹117 crores?

That includes data center and few digital services like Aadhaar authentication kind of services, which we are providing.

Actually, that piece appears to be growing quite fast as in data center, Aadhaar authentication, and all.

Yes. That shows the digital growth being taken by the country basically.

We are part of that journey. As this digitization wave is percolating into the every part of our life, certainly, this income is growing.

Data center is part of it, data center services part of it, and then various services connected like nowadays exams are being conducted through biometric.

Correct.

That is part of the digital wave which is happening all across the country.

In Aadhaar authentication, what service exactly are we providing?

For example, I just mentioned you about exams. When a candidate reaches at the examination center, there is a chance of impersonation.

Correct. Then

his biometrics are already captured, his Aadhaar number is already there, and it can be on immediately when he reaches half an one and a half hours before the exam starts, it is basically confirmed that he is not a impersonated candidate. That is a kind of service, Aadhaar authentication.

We provide it for the exams and even for the private sector

or— NEET, JEE, it is—

Yeah. It is purely for the government?

No, it is for government.

Okay.

See, recruitment exams generally conducted by state governments and central government, UPSC, NTA, and NEET and JEE, both the exams biometric authentication happening through us.

Okay. Got it.

This Aadhaar authentication, we don't intend it to reach out to private player? Are there any plan to even go beyond the government entities for—

No. We are open.

Generally, they have I think private, if you talk of, kind of KYC happening by banks, they are doing it,

but

I think they have their own wings.

Banking, mobile SIMs, and all.

I think there we have not been approached by anybody, but if the opportunity comes to us, we have skills.

See,

people are going in person, visiting the new bank holders and all.

In one case we are doing KYC for bank. Standard Chartered.

Standard Chartered, okay. Director, Projects has shared that in one case, Standard Chartered Bank started doing KYC with us.

Do we have any big plan for this business? It appears to be a very lucrative opportunity and highly profitable, right?

It is margins, yes, because there's small value denominator basically because per person is the count. You were right.

We are continuously approaching various government agencies because they are the lowest hanging for us. Easily, because we are PSU, they easily have trust, confidence.

They require it. Private players, whosoever they are, they have their own means.

Yes, our teams have approached, as I told you, Standard Chartered Bank is one of the bank who have started doing with us. Since this government market is already big, we are doing our every bit.

That is how it is a good contributor.

Margin in telecom segment coming so strong in this quarter is purely because of operating leverage because revenue was quite steep?

Yes. See, if I say quarterly, I see always it on average in an annual financial statement.

Yes, there may be slight aberration if you see the margins in telecom, but overall, it has always been there in the range of 35% to 40%. It has always been in that range only.

There may be slight aberration from previous quarters in this quarter, but overall, if you see in an annual statement, it is almost in the same range. I think it is 39% for this year, 39% I think.

39.5%. 39.5%.

Yeah.

Got it. Will this heavy 4Q, because a lot of them pay you at the end of the year or you do the billing at the end of the year, generally this seasonality will they be there now, or we don't see such seasonality in the telecom revenue, because Q4 generally is strong for us, right?

Q4 overall if we see in project terms, it has been there. Seasonality in telecom is not a common feature, but projects, yes.

Telecom generally has to be same in all quarters. This quarter, this time has happened due to this VSS, video surveillance project.

This is one of kind of instance.

It will be henceforth recognized every quarter, right?

Yes.

Got it. Now coming to project, we are scaling quite well in terms of both revenue and order book.

Just wanted to—

One more fact before you go ahead, one more fact I would like to share. See, because we have been providing this video surveillance services and we were in the stage of commissioning few quarters ahead of this, basically Q2 and Q3 also.

Some of the billing would have happened once those services are accepted, some services we might bill for the previous quarters also.

Okay. Because

once the services are accepted by the customer, previous quarters' services are also billed in this quarter. That also will have a delta effect on this.

Next question.

Oh. How much would be

that? Exact numbers I won't have, but yes, there is an element of—

There is some accrued revenue from the previous quarter

because in

this quarter they approved, right? Yes.

Yeah. Then

going into FY—

This trend might continue for few new quarters also, because as and when they have started using these services, but once they are accepted by the customer, then only we can bill.

Got it. Now we are doubling the order book this year at least at the end of the year, and we have executed a lot more as well.

How should we see FY27 from the project revenue and order book?

Order book, we are very optimistic and we expect that this trend will continue this year also because the kind of participation in various tenders and our teams getting tuned to the tendering things now for last three, four years, they are also gaining experience, less number of errors happening in participation in tenders and all. Certainly, I wish and I expect that there will be improvement, and this trend at least will continue.

That is the thing. Then if you see the revenue part, I think ₹3,000 to ₹3,500 crores of income at least should get converted into revenue this year.

That's quite a strong number we're talking. And—

From project, yeah. Please.

What exactly are the large project we are eyeing next year, or if you can give some insight into what are the large project, railway and non-railway, that we are looking up in FY27, large in size? See,

as I've been telling that we are focusing more on data center side. Data center certainly will be there, but the comparison with data center and projects will be slightly different.

Railway tenders, yes, we are focusing on railway tenders also, signaling, as far as signaling because signaling now we have gained a lot of experience for past two to three years. Kavach, no new tenders are seen at least for now from railways, but we have already three orders with us, and we have to deliver those during last two to three years.

Apart from railways, there is a lot of demand coming from state governments and public sector undertakings, central government organizations for their on-prem data centers, their SOC. These kind of activities, which are though not directly related to data center services which we are providing, but basically building their data centers, I see a lot of traction happening this year and this is where I feel that this year we should get good number of orders.

Got it, Sir. Any update on the LTE deployment by the railway and for us an opportunity in terms of—

I don't have any latest update.

There is nothing happening on that side, right?

I won't say anything about it, but presently I am not aware of. As soon as I become aware, I can of course share.

I think voice—

Hello?

Thank you. Sir, just wanted to understand last on the data center that 102 edge data center we were building in, how has been the deployment last year, and how are we seeing that deployment for the next year?

Last year, we commissioned two. One is in Delhi, in Gurgaon, and the other one is in Mumbai.

These are two small data centers. Mumbai has been done recently, in March only, and Delhi is already operational.

This year, we are eyeing at least three: Indore, Ujjain, Chandigarh, and Visakhapatnam. These three we are looking at at least this year.

Maybe a few more come.

Okay.

Yeah.

Are there any delays to edge data center? I thought we were looking like three, four last year and a material— See,

actually, ultimately, it is business which will drive.

Correct.

Right now, though we have been hearing about edge data centers for quite some time, but in a true sense, we have not seen any growth overall pan-India basis all operators when I see. I think this momentum will take maybe one one or two more years when the demand for edge data centers will really get converted into the proliferation of these edge data centers in tier-2, tier-3 cities.

Even now what we have seen that first two edge data centers are not in tier-2, tier-3 towns. Now this phase this year, I think we will be going to that stage.

Mumbai and Delhi, they are not tier-2, tier-3. As in true sense, I wouldn't say they are edge data centers, but they are smaller ones and they will serve those kind of services which will be of smaller scale.

We can say that these are edge data centers. I think that growth is not happening in general also.

Okay.

In India.

My last question on the capex that we are planning for the next year?

It will be around ₹300 crore.

And—

Our budgeting we have made planned capex, yes.

Three ₹300 crores. What will be the main area of the capex for next year?

Mostly it is data center, and partly telecom, and some other smaller power and all that.

Got it. All right, Sir.

Very helpful, and again congratulation for a very strong set of number and best of luck for the coming quarters.

Thank you. Thank you very much, and I think you must have covered most of the questions related to investors' queries in their mind.

Thank you very much for this diversity of questions also.

Sir, thank you for the opportunity, and very good set of numbers for the year. Sir, as I joined the call a little late, my question may be repetitive.

First question is, Sir, of the current financial year of '26 total revenue, what is the contribution coming from data center and the current order book position and the data center-related work, what is the size?

Okay. Your first question is related to data center revenue, right?

Yeah.

Contributing to the overall revenue is ₹202 crores. Total order book is 11,440 ₹46, sorry, yeah, ₹11,466 crores.

Out of this, data center, I have not really worked out how much data center is there, but we can, I think, let you know through your this thing. Right now, I'm not aware of the exact numbers out of this order book.

Okay. The second, Sir, in our project business, I know in the previous instances you guided 5-6% kind of margin, what is the stable margin trajectory at a budget level you want to operate the project business?

The project business margins we are continuously striving to remain in the 4% to 5% bracket.

4% to 5% band. All right, Sir.

Thank you.

Okay. Thank you.

Good morning, Sir. Congratulations for the very good set of numbers.

I just want to have the attention regarding the order executed till yet because, as you have given the information that whatever the orders—

Just a minute, your voice is not coming loud and—

Hello, Sir. Now it is coming?

It's still

hello.

Please.

Yeah. Sir, just I want to know that you have already given the information regarding the order book as of April 30th.

Just could you please mention that what order book you have executed till yet out of that?

No, order book means not executed as yet.

No, Sir, whatever the orders you have executed, I'm talking about of FY26 total.

That is the revenue that all that gets converted into revenue. Whatever I'm saying, ₹11,466 crore is unexecuted.

It's not converted into any revenue. This will be converted during the future course of time.

Okay. What order you have executed this year?

That is the revenue. That numbers I can't tell you because that is the Q1 of this year, those numbers are not yet declared for Q1.

Last year's revenue you have already seen. Last year revenue you know.

Uh-huh, okay, Sir. As soon as

Q1 results are out, we will get to know the Q1 numbers. Yeah.

Yes,

yeah, sure, Sir. The second one is, could you please give the update on the guideline which you have given earlier, what is the progress till yet or what is your planning?

Our growth guidance will be around 20% for this financial year.

We have met the earlier guidance.

Last year also, we have already met our earlier guidelines also.

Sir. There is no change in guideline, am I right?

Yeah.

Okay. I would say

I would say that since the absolute number of revenue is increasing, growth, which was in the range of 25% kind of number percent numbers earlier years, previous years, will certainly now be around 20%. Last year, we did 22%.

Yeah.

Okay. Sir, any capex plan?

Planned capex is around ₹300 crore.

Okay. In which vertical, Sir?

Business vertical?

Most of it will be in data center and our telecom network basically.

Yeah. Sir, just one thing, could you please give your business vertical that in which domain you are working?

There are the domain which are actually contributing the revenue.

There are two broad domains: telecom and project business. Telecom is one, which includes data center.

The other one is project, where other various IT/ICT projects are being executed by us. Sir,

just could you please mention that I am not able to understand that project side? Telecom I'm able to understand that what are the businesses and this.

Just on project side, could you please elaborate a little bit?

I think it will take a lot of time to give you all these details. I'm sure you can go through because it is not a small thing your questions I think more of a fundamental nature, other investors would be waiting.

Projects

are kind of CCTV projects, IT projects, smart city projects, railway signaling projects, data centers creation for other organizations, making their data centers, implementing Hospital Management Information System kind of projects. These are all kind of projects.

Sir. Got it.

Thanks.

Sir, thanks for the opportunity, and congratulations on great set of results. I think maybe a couple of clarifications only.

Is it fair to say that data center margin trajectory is a little bit on the higher side vis-a-vis NLD, ISP when we report the numbers or that what you're seeing in our working?

No. Data center margins will not be higher than pure telecom margin.

They won't be. Okay.

Fine. Sure.

And—

Let me correct this. Presently, yes, let me correct.

I have confirmed it from our ED, Finance. He's saying yes, right now, yes, but I think I cannot comment upon the future trajectory because we are yet evolving in data center business.

At this stage, they are good margins. Sir.

Because reason is, we have seen pretty strong up move in the quarter four margin, though you did mention there could be prior period one-off, but I think one trajectory change that we are seeing in our numbers is that data center revenues are increasing, and the margins are also seeing a change. We're just trying to correlate to that, any relevance and how exactly to see the numbers.

Yes, I think earlier we were planning to have maybe if the business segment itself is becoming big, data center, can we have a separate sort of numbers that will also be helpful to the investors in general for data centers?

We're planning.

Okay. Sure, Sir.

Next I think in terms of the data center capacity as such, though you did mention probably we are adding up Indore, Ujjain, and Visakhapatnam. In terms of trajectory, can you mention current operational capacity FY26 is this megawatt, and how exactly in terms of megawatt this number is changing, say, by FY27 end or maybe '28?

That will also help investors in terms of our growth.

Yeah. If we talk of data center, we are working out on a very comprehensive and hybrid kind of strategy in data center segment.

It is actually a capital-heavy sector because you require a lot of capex to invest in data center. We have already shared with the investors earlier as well that we have developed partnership models, wherein players like who have developed their real estate ready for data centers, there are partners who are investing in building our data centers, and we have our own data centers.

Though all three kind of basically approach we are taking. If we talk of capacity this year, this year maybe we have added one data center already last year in Mumbai, which is a small though, and one smaller one we have also set up at Noida data center site, which is a smaller one, 500 kilowatt only.

Roughly we will be having 3 megawatt this year. Means we have already have 3 megawatt, and 5 megawatt capacity should be ready by May next year.

Apart from this, as I told you that we already have readily available data center space with our partners who have created this real estate passive infrastructure. Depends mostly on the customer whether they are comfortable in our own data center or in data center real estate property owned by somebody else.

We are entering into lease agreements with these real estate owners. That is also happening so that our customers are more comfortable.

That is all we are trying to do, and we are working really hard to focus on data center segment.

Sure, Sir. Though you did mention on our guidance and historically I think we have seen you surprised on a positive side in terms of actual delivery.

I think one thing in terms of segmental breakup in terms of guidance, if one look, project side, you are mentioning we could be doing almost ₹3,500 odd crores revenue. Telecom side, I think we have done pretty strong set of revenue growth in quarter four.

Trajectory, it could be there, at least in the base quarter we don't have. Number-wise, it could be there in FY27.

Will that be fair to understand in terms of the numbers?

I think more or less you are correct.

Okay. Sure, Sir.

I think this is a bit from my side, and I'll come back in the queue, Sir.

Thank you.