RailTel Announces Interim Dividend Amid Market Challenges and 30% Stock Decline
RailTel Corporation of India, a state-run railway PSU, has declared an interim dividend of ₹1 per share for the financial year 2024-25. This dividend comes after the company’s stock has fallen by nearly 30% in 2025, providing some relief to shareholders.
Dividend Details and Payment Schedule
The board of RailTel Corporation announced in a recent exchange filing that the second interim dividend will be paid to eligible shareholders by April 9, 2025. To qualify for this payout, investors must hold shares by the record date, which has been set for April 2, 2025.
In November of the previous year, RailTel had also declared a similar interim dividend of ₹1 per share.
What Does Ex-Dividend Mean for Investors?
As the company prepares to pay out the dividend, it’s important to note that RailTel shares will trade ex-dividend either on or just before the record date. This means that any investor purchasing shares after the ex-dividend date will not be eligible to receive the upcoming dividend payment.
Recent Performance and Future Outlook
Despite the dividend payout, RailTel’s stock has faced significant challenges, dropping nearly 30% in 2025 alone. In the latest financial results for the December quarter, the company reported a 15% increase in revenue. However, its EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) fell by almost 7%, and profit margins also narrowed compared to last year.
On a positive note, RailTel announced a major win in February 2025, securing multiple orders worth ₹220 crore from various entities. This could provide a boost to the company’s performance in the coming quarters.
Current Stock Performance
As of Wednesday, shares of RailTel Corporation were trading slightly lower, down by 0.67%, at ₹291.10.
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