Synopsis:
RailTel won a Rs. 57.49 crore order from the Bihar State Educational Infrastructure Development Corporation to set up Smart Classrooms and ICT Labs under PM-USHA, with execution by March 2026.

This Railway PSU stock, engaged in building nationwide broadband, telecom, and multimedia networks, upgrading train control systems, improving safety, and offering digital infrastructure solutions across India, jumped 4 percent after securing an order worth Rs.  57.49 Cr from the Bihar State Educational Infrastructure Development Corporation Limited.

With a market capitalization of Rs. 12,840.75 crores, the share of Railtel Corporation of India Limited has reached an intraday high of Rs. 413.10 per equity share, rising nearly 4.13 percent from its previous day’s close price of Rs. 396.70. Since then, the stock has retreated and is currently trading at Rs. 400.10 per equity share. 

What is the News?

RailTel Corporation of India Limited has secured a major order from Bihar State Educational Infrastructure Development Corporation Limited for the development of hybrid Smart Classrooms and ICT Labs at various colleges and universities in Bihar under the PM-USHA Scheme. 

The domestic order is valued at approximately Rs. 57.49 crore and is to be executed by March 16, 2026. This project highlights RailTel’s growing role in advancing digital infrastructure in the education sector while strengthening its presence in government-led digital initiatives.

Order Book

As of June 2025, RailTel Corporation of India Limited holds a solid order book of Rs. 7,197 crore, which includes around Rs. 500 crore for Kavach projects. The company achieved a strong Q1 FY26 order inflow of Rs. 721 crore, sharply higher than Rs. 218 crore in Q1 FY25, showing sustained growth and market trust in its services.

Management Guidance and Capex

RailTel Corporation of India Limited anticipates strong growth in FY26, with management forecasting nearly 25 percent revenue growth, supported by a rising base and solid order inflows, while sustaining operating margins in the healthy 11–12 percent range throughout the year.

The company recorded capital expenditure of Rs. 66 crore in Q1 FY26, against a full-year target of Rs. 350 crore. Its investments mainly focus on data centers and telecom equipment, with further spending planned on power plants, optical fiber networks, and software development, driving ongoing infrastructure growth and modernization projects.

Company Overview

RailTel Corporation of India Limited, a Navratna PSU under the Ministry of Railways, was set up in September 2000. Its main goal is to build broadband, telecom, and multimedia networks across the country while improving railway safety and train control systems.

Recent quarter results

Coming into financial highlights, Railtel Corporation of India Limited’s revenue has increased from Rs. 558 crore in Q1 FY25 to Rs. 744 crore in Q1 FY26, which has grown by 33.33 percent. The net profit has also grown by 34.69 percent from Rs. 49 crore in Q1 FY25 to Rs. 66 crore in Q1 FY26. Railtel Corporation of India Limited’s revenue and net profit have grown at a CAGR of 26.33 percent and 16.80 percent, respectively, over the last five years.

In terms of return ratios, the company’s ROCE and ROE stand at 21.8 percent and 16.5 percent, respectively. Railtel Corporation of India Limited has an earnings per share (EPS) of Rs. 9.34, and its debt-to-equity ratio is 0.02x.

Written By – Nikhil Naik

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