Synopsis:
RailTel Corporation of India Ltd gained after the company bagged orders worth ~Rs. 732.06 crore from the Bihar Education Project Council. The contracts cover installation of smart classrooms, ICT labs, ISM labs, and supply of teaching materials across government schools in Bihar, and comprehensive cyber security intelligence services for IRCTC, with execution timelines up to March 2026 and September 2028
A telecom and ICT services stock was in focus after securing multiple large-value contracts in Bihar’s education sector and from IRCTC. Investor sentiment improved as the orders, together worth Rs. 732.06 crore, underscored the company’s strong positioning in government-led digital education initiatives.
RailTel Corporation of India Ltd, with a market capitalization of Rs. 11,736.72 crore, opened at Rs. 359.95 against its previous close of Rs. 345.80. The stock touched an intraday high of Rs. 367.50, marking a rise of 6.28 percent from the previous close.
What’s the News?
The company received a Letter of Acceptance from the State Project Director (Spd) Bihar Education Project Council for the procurement, supply, and installation of smart classrooms at government middle schools. The contract, valued at Rs. 262.14 crore, will be executed by March 31, 2026.
A second contract, also from the Bihar Education Project Council, involves the supply, installation, testing, and commissioning (SITC) of ICT labs across government schools. This project carries an order value of Rs. 44.2 crore and is scheduled for completion by March 31, 2026.
In another development, the company secured a Rs. 89.9 crore contract from the same council for the supply of teaching and learning materials for classes I to V in government schools across Bihar. This order too has a completion deadline of March 31, 2026.
RailTel further received a Rs. 257.5 crore order from the Bihar Education Project Council for procurement, supply, and installation of smart classrooms at government secondary and senior secondary schools. The project will be executed by March 31, 2026.
Additionally, RailTel bagged a Rs. 59.8 crore work order for the supply, installation, testing, and commissioning (SITC) of ISM labs in Bihar. Unlike the other contracts, this project has a shorter timeline, with a scheduled execution by December 31, 2025.
The company has also secured a work order from Indian Railway Catering and Tourism Corporation Limited (IRCTC) for providing Comprehensive Cyber Security Intelligence Services valued at Rs. 18.56 crore. The contract spans a total period of three years, with payments scheduled on an annual basis and a 5 percent Performance Bank Guarantee (PBG) applicable. The order is scheduled to be executed by September 30, 2028.
Also Read: Which Indian Tyre Stocks Will Benefit in FY26? Here’s What Analysts Say
Financial Snapshot
On a sequential basis, RailTel reported revenue of Rs. 744 crore in Q1FY26, down 43.1 percent from Rs. 1,308 crore in Q4FY25. Operating profit stood at Rs. 116 crore, declining 35.6 percent from Rs. 180 crore. Profit before tax came in at Rs. 89 crore, lower by 41.1 percent from Rs. 151 crore. Net profit dropped 41.6 percent to Rs. 66 crore from Rs. 113 crore in the previous quarter.
On a year-on-year basis, the company delivered strong growth. Revenue rose 33.4 percent from Rs. 558 crore in Q1FY25 to Rs. 744 crore in Q1FY26. Operating profit grew 12.6 percent from Rs. 103 crore to Rs. 116 crore. Profit before tax increased 32.8 percent from Rs. 67 crore to Rs. 89 crore, while net profit jumped 34.7 percent from Rs. 49 crore to Rs. 66 crore.
Order Book as on June 30th, 2025
During the quarter ended June 30, 2025, the company secured fresh orders worth Rs. 721 crores, compared to Rs. 218 crores booked in the first quarter of FY24-25. The company currently holds a strong order book of Rs. 7,197 crores, of which nearly Rs. 500 crores pertain to Kavach projects.
About the Company
Incorporated in 2000, RailTel is a Central Public Sector Enterprise under the Ministry of Railways and a leading provider of ICT and telecom infrastructure services in India. With a pan-India optic fiber network, the company caters to Indian Railways, government ministries, corporates, educational institutions, and financial services. Its portfolio includes telecom services, ICT projects, and consultancy, with a presence across sectors such as defense, health, banking, smart cities, and insurance.
Written By Manan Gangwar
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.
