Indian PSU investors are cheering as RailTel Corporation’s March quarter numbers crash expectations, triggering a swift 12% rally in its stock.
In a solid show of financial strength, RailTel Q4 profit jump caught the market’s eye with a remarkable 46.3% year-on-year rise in net profit. The PSU reported a net profit of ₹113.4 crore, up from ₹77.53 crore in the same quarter last year. This robust performance highlights RailTel’s improved operational efficiency and growing business traction, especially in government and infrastructure tech projects.
In today’s early session, shares of RailTel Corporation of India were trading at ₹333.25, gaining 12.55% intraday. The sentiment around the stock turned bullish soon after the earnings release, with investors eyeing the company’s strong revenue jump and long-term growth potential.
RailTel’s Revenue Rockets 57% in Q4 FY25
RailTel’s operating revenue rose sharply to ₹1,308.28 crore in Q4 FY25, up from ₹832.7 crore last year. This 57% surge showcases the company’s project execution strength and the growing demand for its broadband and ICT solutions.
Despite higher execution costs — expenses jumped by 86% — RailTel managed to grow its EBITDA by 53.8% to ₹180 crore. However, the EBITDA margin slipped slightly to 13.73%, down from 14% YoY. This minor dip stems from higher project-related costs, a common trend in infrastructure-heavy quarters.
Small Shareholder Activity Reflects Profit Booking
Interestingly, the number of small shareholders dipped this quarter. As of March 2024, around 3.68 lakh investors holding up to ₹2 lakh worth of shares collectively owned 16% in the firm. That’s down from 5.3 lakh shareholders holding 20.11% at the end of December 2023. This suggests that some retail investors may have booked profits after the stock’s strong recent rally.
What Lies Ahead for RailTel Investors?
The recent quarterly numbers suggest RailTel is entering a higher growth phase. Backed by digitalisation projects and smart city contracts, the firm is well-positioned to ride the next wave of infrastructure upgrades. For traders and investors, RailTel’s sharp earnings spike is a bullish signal. However, keep an eye on execution costs in upcoming quarters, as they could impact margins.
With strong fundamentals, a government backing, and earnings momentum, RailTel may continue to remain a smart pick in the PSU pack.
Disclaimer: The views and investment insights provided here are based on publicly available information and do not constitute financial advice. Readers are advised to conduct their own research or consult certified financial experts before making investment decisions.
