Synopsis:
The stock gained after securing ₹103.45 crore in new orders, adding to a strong order book and robust Q1FY26 results. With rising demand, healthy margins, capex plans, and growing opportunities in smart city and railway projects, growth momentum remains strong.
The shares of the prominent telecom infrastructure gained up to 2 percent in today’s trading session after the company bagged two prestigious work orders from domestic clients worth Rs 103.45 crore.
With a market capitalization of Rs 12,003.10 crore, the shares of RailTel Corporation of India Ltd were trading at Rs 374.00 per share, increasing around 2.97 percent as compared to the previous closing price of Rs 363.20 apiece.
Significant Order
The shares of RailTel Corporation of India Ltd have seen positive movement after securing a significant Rs 70.94 crore contract from Nashik Municipal Smart City Development Corporation to build and manage the Nashik and Trimbakeshwar city network backbone. The project involves supply, installation, testing, and commissioning, with operations and maintenance services, and is targeted for completion by December 31, 2026.
Further, the company also bagged a Rs 32.51 crore order from Panvel Municipal Corporation for the Panvel Safe City Project. RailTel will provide SD-WAN-based internet lease lines and MPLS connectivity across key locations. The scope includes supply, installation, and long-term service, with project completion scheduled for March 19, 2031.
Also read: 4 Multibagger transformer stocks with 154% CAGR in last 5 years to add to your watchlist
Financial & Operational Highlights
RailTel delivered strong financial growth in Q1FY26, with revenue rising 33 percent year-on-year to Rs 744 crore, supported by robust order execution. Net profit also surged 35 percent to Rs 66 crore, highlighting operational efficiency and healthy margins. The results reflect sustained demand, strong execution capabilities, and positive momentum for future performance.
RailTel reported a strong Q1FY26 with order inflows of Rs 721 crore, significantly higher than Rs 218 crore last year, boosting its order book to Rs 7,197 crore, including Rs 500 crore from Kavach projects. Management guided for 25 percent revenue growth in FY26, supported by robust demand, while maintaining healthy operating margins in the 11–12 percent range.
RailTel’s telecom segment remains muted due to sluggish industry growth, but continues to play a strategic role by enabling IT/ICT opportunities. The project segment drives momentum with high double-digit growth, supported by railway and state government orders. Around 30% of the order book is railway-linked, with rising traction in Kavach, signaling, and Smart City initiatives.
RailTel’s Kavach projects, worth about Rs 500 crore in the current order book, form part of a larger Rs 1,100 crore opportunity. Execution spans 18–24 months, with major revenue impact expected in FY27–28. Fieldwork has commenced, and full revenue recognition remains with RailTel, reinforcing turnover growth, while subcontracted expenses are reflected separately in costs.
RailTel plans Rs 350 crore capex in FY26, with ₹66 crore already spent in Q1, prioritizing data centers and telecom equipment, alongside investments in power, fiber, and software. Maintenance remains opex. The company has cautiously entered international markets, exploring IT, ICT, telecom, and railways, though management stressed efforts are nascent with no material financial contribution yet.
RailTel is a government-owned company providing nationwide Telecom and IT solutions, including its popular retail broadband service, RailWire, by using the Indian Railways’ extensive network. Its main goal is to become the most preferred provider of telecom solutions and services that support the growth of a knowledge-based economy in India.
Written by Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
