This Navratna PSU stock engaged in providing nationwide broadband, VPN services, telecom, and multimedia networks, modernizing Indian Railways’ train control and safety systems, jumped 8 percent after securing an order worth Rs. 17 crore from the Ministry of Defence for Optical Fiber Cable (OFC) Laying Work.
Stock Price Movement:
With a market capitalization of Rs. 10,184.98 crores, the share of Railtel Corporation of India Limited has reached an intraday high of Rs. 321.60 per equity share, rising nearly around 8.16 percent from its previous day’s close price of Rs. 297.35. Since then, the stock has retreated and is currently trading at Rs. 317.35 per equity share.
What Happened:
RailTel Corporation of India Ltd. has secured a major work order from the Ministry of Defence for Optical Fiber Cable (OFC) Laying Work worth Rs. 16.89 crore. The project is domestic and must be completed by March 17, 2026. This contract strengthens RailTel’s role in enhancing communication infrastructure for defense operations.
Order Book:
As of January 2025, RailTel Corporation of India Limited had an order book worth Rs. 5,280 crore, reflecting a strong project pipeline. This ensures consistent revenue growth and reinforces the company’s position in the railway and telecom infrastructure sectors.
Segment Analysis:
RailTel operates in two main areas: telecom and projects. In FY24, telecom made up 49 percent of its revenue, with national long-distance services contributing 23 percent, internet services 17 percent, and infrastructure services 9 percent. The projects segment contributed 50 percent of total revenue and is expected to grow further.
Recent quarter results:
RailTel Corporation of India Limited’s revenue increased by 14.97 percent, rising from Rs. 668 crore in Q3 FY24 to Rs. 768 crore in Q3 FY25. Net profit also grew by 4.83 percent, from Rs. 62 crore to Rs. 65 crore during the same period, highlighting the company’s strong financial performance and steady business growth.
Written By – Nikhil Naik
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