Synopsis:
RailTel Corporation of India, a small-cap “Navratna” PSU, is in focus after securing a new work order worth Rs. 166.38 crore from BSNL.
A small-cap PSU company that is engaged in the supply of telecom infrastructure, IT solutions and other services throughout India is in the spotlight after receiving a new work order worth Rs. 166.38 crore.
With the market capitalization of Rs. 11,568 crore, the shares of Railtel Corporation of India Ltd is trading at Rs. 360.45, up by 1.82 percent from its previous day’s close price of Rs. 354 per equity share, and it has reached a high of Rs. 365.55 in the same trading day.
Work Order
RailTel Corporation of India has received a services contract worth approximately ₹166.38 crore from Bharat Sanchar Nigam Limited (BSNL), as per the Advance Work Order (AWO). The contract is to be executed by July 31, 2028.
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Other Updates
RailTel’s current orderbook stands at Rs. 7,197 crore out of which ~Rs. 500 crore are related to Kavach projects. For FY26, RailTel Corporation of India has budgeted Rs. 350 crore for capital expenditures, mainly for data centers and telecom equipment. Smaller sums have been set aside for power plants, optical fiber, and software.
About the Company & Others
Founded in September 2000, RailTel Corporation is a “Navratna” PSU and one of the biggest suppliers of telecom infrastructure in India. Its extensive nationwide network comprises more than 11,000 Points of Presence (PoPs), including 6,112 at train stations.
RailTel runs a vast optical fiber network that spans more than 62,000 km and 21,000 km in urban areas. The business provides telecom infrastructure, data centers, cloud services, cybersecurity, and IT solutions. It is also profitable and debt-free. It has important licenses such as IP-1, NLD, ISP, and ILD.
Approximately 58 percent of the company’s customers are from rural areas, making it the fourth largest provider in terms of rural subscriber base. The company also offers RailWire broadband, which is ranked as the 12th largest provider in India.
With over 800 skilled professionals, mainly from railway signaling and telecom backgrounds, and an average employee age of less than 40 years, RailTel is one of the youngest and most dynamic government organizations in the sector.
A return on equity (ROE) of about 16.5 percent and a return on capital employed (ROCE) of about 21.8 percent demonstrate the company’s position. At the moment, the company’s P/E ratio is 36.1x as compared to its industry P/E 26.9x.
For Q1 FY26, its revenue from operations grew by 33.33 percent from Rs. 588 crore in Q1 FY25 to Rs. 744 crore in FY25, accompanied by profits of Rs. 66 crore in Q1 FY26 compared to 49 crore in Q1 FY25. The debt-to-equity ratio stands at 0.02.
Written by Akshay Sanghavi
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