Synopsis:
RailTel Corporation, a Navratna PSU, won a ₹18.2 crore Karnataka e-governance order for OEM support of KSWAN 2.0 routers and switches, enhancing digital connectivity.
A leading provider of telecom and network infrastructure services, this Navratna PSU has secured a major contract from Karnataka’s Center for E-Governance. The project involves offering OEM support for KSWAN 2.0 routers and switches, marking a significant expansion in its digital connectivity portfolio.
RailTel Corporation of India Limited’s stock, with a market capitalisation of Rs. 12,418 crores, rose to Rs. 391.25, hitting a high of up to 2 percent from its previous closing price of Rs. 383.60. However, the stock over the past year has given a negative return of 4.5 percent.
Order Update
RailTel Corporation of India has announced that it received a Letter of Intent (LoI) from the Center for E-Governance, Karnataka, for a significant domestic contract. The order involves providing back-to-back OEM support for the existing KSWAN 2.0 routers and switches. This contract, valued at around Rs. 18.22 crore, will be executed by November 8, 2025.
According to the official disclosure, there is no promoter or promoter group interest in this contract, and it does not fall under related party transactions. The work order was received on October 8, 2025.
Order Book
As of June 2025, RailTel has a strong order book worth Rs. 7,197 crore, which includes around Rs. 500 crore from Kavach projects. In Q1 FY26, the company received new orders worth Rs. 721 crore, compared to Rs. 218 crore in Q1 FY25, showing strong growth and increasing market confidence.
Management Guidance and Capex
The Company expects strong growth in FY26, with management forecasting a 25% increase in revenue. This growth will be supported by a healthy order book and operating margins of 11–12%.
In Q1 FY26, the company spent Rs. 66 crore on capital expenditure, out of its planned Rs. 350 crore for the year. The investments are focused on expanding and upgrading its infrastructure through data centers, telecom equipment, power systems, optical fiber networks, and software development.
Also read: Should you buy or sell this Tata Group stock after announcing Q2 results?
Company Overview
RailTel Corporation of India Limited, a Navratna PSU under the Ministry of Railways, was established in September 2000. Its mission is to develop nationwide broadband, telecom, and multimedia networks while modernizing train control systems and enhancing safety across Indian Railways.
Q1 Financial Highlights
Railtel Corporation of India Limited reported strong financial performance in Q1 FY26. Its revenue rose by 33.33% to Rs. 744 crore from Rs. 558 crore in Q1 FY25. Net profit also increased by 34.69%, reaching Rs. 66 crore compared to Rs. 49 crore in the same quarter last year.
Over the last five years, the company’s revenue and net profit have grown at a CAGR of 26% and 13%, respectively. Railtel has maintained solid return ratios, with ROCE at 21.8% and ROE at 16.5%.
Written By Fazal Ul Vahab C H
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