Railtel Corporation of India saw its shares drop 5% after releasing its Q3 earnings report. As of 9:33 AM, the shares were trading 4.67% lower at Rs 347.00.
Despite a year-on-year (YoY) net profit increase of 4.7%, climbing to Rs 65 crore from Rs 62.1 crore in Q3 FY24, the stock took a hit due to declining EBITDA and margin pressures.
The company’s revenue from operations surged 14.8% YoY to Rs 767.6 crore in Q3, up from Rs 668.4 crore in the same quarter last year. However, EBITDA slipped 6.6% YoY to Rs 121 crore from Rs 129.7 crore, leading to a contraction in the EBITDA margin to 15.8%, compared to 19.4% in Q3 FY24. This decline in profitability metrics dampened investor sentiment, resulting in the stock’s downward trajectory.
RailTel shares opened at ₹364.95 today, hitting a high of ₹371.25 and a low of ₹344.55 during the session. The stock’s 52-week high stands at ₹617.80, while the 52-week low is ₹301.40.
In the meantime, Railtel announced a major contract win on January 24. The company secured a Rs 9.44 crore project (including tax) from the Chhattisgarh Environment Conservation Board (CECB). The project involves supplying, commissioning, and maintaining real-time data acquisition systems for monitoring Continuous Ambient Air Quality Monitoring Systems (CAAQMS), Continuous Emission Monitoring Systems (CEMS), and Effluent Quality Monitoring Systems (EQMS) across Chhattisgarh. Scheduled for completion by July 16, 2028, this initiative is expected to boost environmental monitoring capabilities in the region.
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