Sell RailTel Corporation of India; target of Rs 255: ICICI Securities

sell

ICICI Securities research report on RailTel Corporation of India

Railtel Corporation of India (Railtel) Q1FY26 adjusted net profit grew 2.8% YoY; and as expected revenue growth driven by projects business tends to drive profits slower. Telecom services’ revenue remains weak, impacted by higher competitive intensity. Railtel is hopeful of the data centre business. Projects business’ outlook remains strong with a 50% rise in its order book (OB), and a huge opportunity from railways’ investment in Kavach, and captive network instalment. The company has reiterated revenue growth guidance of 25% for FY26 with stable margins at 11–12%.

Outlook

We cut our FY26–27E EPS by 6% each on slower telecom services revenue and lower our TP to INR 255 (from INR 270) with an unchanged P/E multiple of 20x FY27E. Retain SELL.

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RailTel Corporation of India - 29072025 - icici