Synopsis:
This Navratna PSU has secured Rs. 136 crore domestic order from the Defence Sector for providing Telecom P2P Lease Line services, to be executed by January 2027, strengthening its presence in defence communication infrastructure.
This company has an objective of creating nationwide broadband and VPN services, telecom, and multimedia network, to modernise the train control operation and safety system of Indian Railways is now in the spotlight after securing an order worth of Rs. 136 cr.
With market capitalization of Rs. 11,851 cr, the shares of RailTel Corporation of India Ltd are currently trading at Rs. 368 per share, from its previous close of Rs. 371.50 per share. The stock has fallen by 9% so far this year and is down 12% over the past year.
About the order
RailTel Corporation of India Ltd has announced the receipt of a major work order worth Rs. 136 crore from a Defence Sector customer for providing Telecom P2P (Point-to-Point) Lease Line services.
The order, categorized as a domestic contract, involves the hiring of communication links and is to be executed by January 29, 2027. The work order was officially received on October 30, 2025, at 3:00 PM.
RailTel clarified that this transaction does not involve any related party interest and that no promoter or group company has any stake in the awarding entity. This development highlights RailTel’s growing presence in providing advanced telecom infrastructure solutions to critical sectors such as defence, reinforcing its position as a key player in India’s digital and communication ecosystem.
About the company
RailTel Corporation of India Ltd is a public sector enterprise under the Ministry of Railways that provides broadband and telecom infrastructure services across India. Established in 2000, RailTel owns one of the largest neutral telecom networks in the country, built along the railway tracks using optical fiber. The company offers a wide range of services including VPNs, data centers, cloud services, Wi-Fi at railway stations, and digital solutions for government and enterprise clients.
The company reported a robust order book of Rs. 7,197 crore, including around Rs. 500 crore from Kavach projects. Order inflows in Q1 FY26 stood at Rs. 721 crore, a sharp rise compared to Rs. 218 crore in Q1 FY25, reflecting strong business momentum.
The management has provided a revenue growth guidance of around 25% for FY26, noting the impact of a higher base, and expects to maintain operating margins in the range of 11–12% for the year.
For Q2FY26, the company reported a 13% increase in sales to Rs. 951 crore compared to Rs. 843 crore in Q2FY25. EBITDA rose 19% to Rs. 154 crore from Rs. 129 crore, while net profit increased 5% to Rs. 76.1 crore versus Rs. 72.6 crore a year earlier. Earnings per share (EPS) also improved by 5%, reaching Rs. 2.37 compared to Rs. 2.26 in the previous year. The company has a ROCE of 21.8% and ROE of 16.5%, indicating strong financial performance.
Written by Manideep Appana
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