Synopsis: RailTel Corporation of India Limited has secured a Rs. 107.61 crore work order from Mahanadi Coalfields Limited (MCL) for establishing an MPLS VPN network on a rental basis for five years. The order strengthens the company’s order book while reinforcing its presence in enterprise digital connectivity and network infrastructure services.
Shares of RailTel Corporation of India Limited are likely to remain in focus after the company announced that it has secured a major work order worth approximately Rs. 107.61 crore from Mahanadi Coalfields Limited (MCL) for establishing a secure MPLS VPN network.
RailTel Corporation of India Limited has a total market capitalization of approximately Rs. 10,306.94 crore. The company’s shares were trading at Rs. 321.10 apiece on the stock exchange, up by 4.27 percent during the session. The stock has surged 0.53 percent over the last five trading sessions, while it has surged 3.15 percent over the last month. The stock touched a 52-week high of Rs. 434 and a 52-week low of Rs. 245.
According to the company’s exchange filing, RailTel has received a work order from Mahanadi Coalfields Limited, a subsidiary of Coal India Limited, for the establishment of a Multi-Protocol Label Switching (MPLS) Virtual Private Network (VPN) on a rental basis. The project will be executed over a period of 60 months, with completion scheduled by June 30, 2031.
The total value of the work order stands at approximately Rs. 107.61 crore, including taxes. The company clarified that the contract has been awarded by a domestic entity and does not involve any promoter interest or related-party transaction.
The order significantly strengthens RailTel’s enterprise ICT business, where the company provides broadband connectivity, VPN services, cloud infrastructure, cybersecurity, system integration, and digital communication solutions. MPLS VPN networks are widely used by large enterprises and government organizations as they provide highly secure, reliable, and dedicated communication links between multiple locations while ensuring low latency and uninterrupted data transmission.
For coal mining companies such as Mahanadi Coalfields, a robust MPLS VPN network enables seamless communication between headquarters, mines, regional offices, and operational sites. Such networks support real-time monitoring, centralized operations, surveillance systems, enterprise applications, digital documentation, and secure data transfer, thereby improving operational efficiency and business continuity.
India’s digital infrastructure spending continues to accelerate as both public sector enterprises and private companies increasingly invest in secure communication networks, cloud adoption, automation, and digital transformation. The growing adoption of enterprise networking solutions is expected to create long-term opportunities for telecom infrastructure and ICT service providers such as RailTel.
For investors, the Rs. 107.61 crore work order enhances RailTel’s revenue visibility while highlighting its ability to secure large-value contracts from leading public sector enterprises. Long-duration contracts spanning five years also provide stable recurring revenue, strengthening the company’s order pipeline and supporting long-term earnings visibility.
Incorporated in 2000, RailTel Corporation of India Limited is a Navratna Public Sector Enterprise under the Ministry of Railways. The company provides broadband, telecom, cloud, data centre, cybersecurity, system integration, and ICT services while operating one of India’s largest optic fibre networks, covering nearly 6,000 railway stations across the country.
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