The shares of this Navratna PSU stock engaged in providing nationwide broadband telecom and multimedia network services, came into focus after bagging an order worth Rs 288 crores from East Central Railways.
Stock Performance
With a market capitalization of Rs 9,966.74 crore, RailTel Corporation of India Ltd rose over 3 percent on Monday’s trading session and made an intraday high of Rs 315.35 per share compared to its previous closing price of Rs 305.30 per share. The stock retraced from its day’s high and was trading at Rs 309.55 which is 1.4 percent higher than the previous closing price.
What Happened
In an exchange filing, Railtel Corporation announced the receipt of a work order worth Rs 288.18 crore from the East Central Railway, for the provision of Kavach (indigenous Train Collision Avoidance System) across 502.2 route kilometers of low-density railway tracks of the East Central Railway, to be executed before February 20, 2027.
Company Overview
RailTel Corporation of India Limited is a neutral telecom infrastructure provider with a Pan-India optic fiber network along railway tracks. It offers telecom and project services, including managed data, leased lines, VPNs (Virtual Private Network), data centers, and NLD (National Long-Distance) voice carriage. The company’s OFC network covers urban and rural areas, providing passenger services like on-demand content and Wi-Fi at railway stations.
Order Book
In Q3 FY25, the company received orders worth Rs 790 crore. For the nine month period, this number stood at Rs 1,960 crore. The current total order book of Railtel Corporation accounts for about Rs 5,280 crore.
Financial Performance
In the latest quarter, RailTel reported a 15 percent YoY increase in its revenue from Rs 668 crore to Rs 768 crore. On a quarterly basis however, there was a 9 percent decline from Rs 843 crore in Q2 FY25.
This was accompanied by a 4 percent YoY increase in net profits from Rs 62 crore to Rs 65 crore. On a quarterly basis, the company saw a 11 percent decrease in profits from Rs 73 crore in Q2 FY25.
Written by Shwetha Sairam
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