Synopsis: RailTel Corporation of India Ltd shares rose 8% upon receiving a Letter of Acceptance from Dy. Cste/Project/Jbp, West Central Railway, for a domestic project. Valued at ₹454.95 crore, the project spans 960 days, ending 24th September 2028.
The shares of the small-cap Navratna PSU under the Ministry of Railways, specializing in nationwide broadband, telecom, and multimedia networks, are in focus after securing an order from Western Central Railways.
With a market capitalization of Rs. 11,313.08 Crores on the Day’s Trade, the shares of RailTel Corporation of India Ltd rose by 7.8 percent, reaching a high of Rs. 358.30 compared to its previous close of Rs. 332.30.
What Happened
RailTel Corporation of India Ltd, engaged in nationwide broadband, telecom, and multimedia networks, has received a Letter of Acceptance (LoA) from Dy. Cste/Project/Jbp, West Central Railway. This is for a domestic project with a completion period of 960 days, ending on 24th September 2028, and the estimated value of the order is Rs. 454 Crores
Financials
The company’s revenue rose by 19 percent from Rs. 768 crores in December 2024 to Rs. 913 crores in December 2025. Meanwhile, Net profit declined from Rs. 65 crores to Rs. 62 crores in the same period.
The company demonstrates solid financial health, highlighted by a ROCE of 21.8% and a ROE of 16.5%, indicating efficient use of capital and equity to generate profits. Its debt-to-equity ratio of 0.03 reflects a very low reliance on debt, keeping financial risk minimal, while a consistent dividend payout of 37% shows a commitment to returning value to shareholders.
Over the last decade, the company has achieved a median sales growth of 18.8%, showcasing steady and sustainable revenue expansion. This combination of strong profitability, low leverage, and consistent growth positions the company as financially stable and attractive for long-term investors.
RailTel Corporation of India Ltd. is a Navratna Public Sector Undertaking under the Ministry of Railways, Government of India, and is one of the largest neutral telecom infrastructure providers in the country. Established in September 2000, RailTel was created to modernise the train control, operation, and safety systems of Indian Railways by deploying an extensive nationwide broadband, telecom, and multimedia network.
The company’s service portfolio includes broadband, VPN, HD video conferencing, data center operations, cyber security, tower colocation, station Wi-Fi, hospital management information systems, and various ICT solutions for government and private institutions.
The company’s order book is robust at Rs. 8,497 crores, which will provide the required thrust for future growth. However, generally, Management says Q4 is heavy, so it will come on a high base and achieve 20% growth for the full year.
The management said that the overall margin, including EBIT, is expected to be around 10% to 11%. Specifically, project margins would range between 4% to 5%, while the telecom segment is projected to achieve margins of approximately 20% to 21%. Consequently, the overall net margin is estimated to be close to 10% to 11%.
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