RailTel Share Price Soars on Major Railway Contract Win
RailTel Corporation of India witnessed a significant surge in its share price, climbing as much as 7.5% during intra-day trading on Tuesday. This upward movement came directly after the public sector undertaking announced it had received a substantial new order from West Central Railway.
Details of the Lucrative Railway Contract
The company confirmed in an exchange filing that it received a Letter of Acceptance from the Deputy Chief Signal and Telecommunication Engineer/Project/Jabalpur of West Central Railway. This contract is valued at an impressive ₹454.95 crore and is scheduled for execution over a period of 960 days. The project is targeted for completion by September 24, 2028.
This order significantly strengthens RailTel's revenue visibility over the medium term and adds to its growing order book. It reinforces the company's established role in executing large-scale railway communication and digital infrastructure projects across India's vast rail network.
Recent Order Wins and Business Expansion
This is not RailTel's only recent contract success. Earlier in January, the company secured another Letter of Acceptance from the Assam Health Infrastructure Development & Management Society. That contract involved the procurement, implementation, and maintenance of a comprehensive Hospital Management Information System, with an estimated value of ₹56.71 crore.
The AHIDMS order marked a strategic expansion for RailTel, demonstrating its growing capabilities beyond core railway-focused projects into the healthcare IT and digital solutions space. This diversification highlights the company's adaptive business strategy.
Q3 Financial Performance Overview
RailTel Corporation reported its December quarter results for FY26 last week, presenting a mixed financial picture. The company registered a 4.1% year-on-year decline in net profit, with profit after tax standing at ₹62.4 crore compared to ₹65.1 crore in the same quarter last year.
Despite this profitability dip, RailTel delivered robust revenue growth. Revenue surged 19% year-on-year to ₹913 crore from ₹768 crore in the year-ago period. EBITDA also showed positive momentum, increasing 10.1% to ₹133 crore from ₹121 crore.
However, margins experienced some moderation during the quarter. The EBITDA margin declined to 14.6% from 15.8% a year earlier, reflecting certain cost pressures or investment phases.
Stock Performance and Market Position
Following the announcement of the railway order win, RailTel shares surged to hit an intra-day high of ₹357.50 on the BSE. Despite this sharp rally, the PSU stock remains more than 25% below its 52-week high of ₹478.80, which was recorded in June 2025.
Conversely, the stock has demonstrated a strong rebound from its 52-week low of ₹265.30, touched in March 2025, gaining approximately 35% from those levels. In more recent periods, RailTel shares have shown relatively muted movement.
- The stock is up just 2% over the past year
- It has gained 1% over the last three months
- It has risen around 3% in the last month
This latest contract win and the subsequent market reaction highlight RailTel's ongoing relevance in India's infrastructure development sector and its potential for sustained growth through strategic project acquisitions.
