RailTel Corporation of India, a public sector undertaking under the Ministry of Railways, has secured a ₹16.8 crore contract from the Ministry of Defence for laying Optical Fiber Cable (OFC). The project, expected to be completed by March 2026, boosted RailTel’s stock by 8%. This contract adds to RailTel’s growing portfolio of government projects, reinforcing its position as a key telecom infrastructure provider.
RailTel Corporation of India, a public sector undertaking (PSU) under the Ministry of Railways, has secured a ₹16.8 crore contract from the Ministry of Defence for laying Optical Fiber Cable (OFC). The project, expected to be completed by March 2026, aims to enhance communication infrastructure for the ministry. Following the announcement, RailTel’s stock surged by 8%, reflecting investor confidence in the company’s growing government contract portfolio.
Strategic Expansion in Government Projects
RailTel revealed in an exchange filing that it had received a work order valued at ₹16,89,38,002 (including tax) for the OFC project. This contract further strengthens RailTel’s position as a leading telecom infrastructure provider in India, reinforcing its role in advancing digital connectivity for critical government sectors.
Series of Contract Wins
The latest contract win comes as part of a string of recent deals for RailTel. Earlier this month, the company secured a ₹37 crore project from the Madhya Pradesh State Electronics Development Corporation. Additionally, RailTel recently bagged a ₹288 crore contract from East Central Railway to implement Kavach, an indigenous Train Collision Avoidance System, across 502.2 route kilometers of low-density railway tracks. This initiative is expected to significantly improve railway safety measures.
Financial Performance and Stock Movement
RailTel’s strong financial performance has further fueled investor interest. The company reported a 4.68% rise in standalone net profit to ₹65.05 crore in Q3 FY25, compared to ₹62.15 crore in the same quarter last year. Revenue from operations also increased by 14.85% to ₹767.62 crore, reflecting its expanding business operations.
Following the defence contract announcement, RailTel’s stock surged 8.1% to an intraday high of ₹321.60. However, the stock remains 48% below its 52-week high of ₹618.00, recorded in July 2024. Despite recent losses, RailTel has rebounded in March, gaining 10% so far after a 31% decline in February.
With consistent contract wins and strong financial growth, RailTel continues to strengthen its market position. Analysts suggest that sustained government project acquisitions could drive further stock recovery and long-term expansion for the company.
