RailTel Posts Strong Q4FY25 Result, Net Profit increases by 46.3%, Share Price jumps 9%

RailTel Corporation of India, the Navratna public sector undertaking, has reported a significant growth in its financial performance for the fourth quarter of the fiscal year 2024-25. The railway PSU, known for its broadband and VPN services and its role in modernising Indian Railways' network and safety systems, announced a notable surge in both net profit and revenue from operations. The company’s shares are currently trading with an increase of 9% at ₹322.80. 

Net Profit Jumps 46.3% on Strong Operational Gains

Net profit for Q4 FY25 increased by 46.3 percent, reaching ₹113.4 crore, up from ₹77.53 crore reported in the corresponding quarter of FY24. RailTel's revenue from operations increased by 57 percent year-on-year to ₹1,308.28 crore in Q4 FY25, significantly higher than the ₹832.7 crore recorded in the fourth quarter of FY24.

Sequential Improvement Seen Over Q3 FY25 Metrics

On the operational front, earnings before interest, taxes, depreciation, and amortization (EBITDA) also saw strong growth, increasing by 53.8 percent to ₹180 crore in the March quarter, compared to ₹117 crore a year earlier. Despite the strong growth in absolute EBITDA, the EBITDA margin experienced a slight contraction. The margin for Q4 FY25 stood at 13.73 per cent, a slip of 27 basis points from the 14 per cent reported in the same period last year.

In the December quarter of FY25, RailTel had posted a net profit of ₹65 crore and revenue of ₹767.6 crore. EBITDA in Q3 FY25 was ₹121 crore, with a margin of 15.8 per cent. The Q4 figures thus represent a substantial sequential jump in top-line and bottom-line performance.

Strong Market Reaction Post-Results Announcement

Following the announcement of the results on Thursday, May 1, RailTel's share price saw movement. On Friday, shares of RailTel Corporation of India climbed as much as 10 percent to ₹326.80 on the BSE, indicating a positive market reaction to the strong Q4 numbers.

RailTel, a railway PSU with a market cap of ₹9,507.80 crore, has seen mixed market performance, down 27% year-to-date and 19% over the past year, despite a 7% gain in the last month. Over the long term, the stock has delivered strong returns, with gains of 174% in three years and 215% in five years.

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