RailTel Corporation of India, a Navratna PSU, has secured a ₹25 crore contract from Andhra Pradesh Police for integrated security solutions. The announcement, made on May 27, 2025, follows a stellar Q4 FY25 performance with strong revenue and profit growth. The stock surged over 30% in May, reinforcing investor confidence.
RailTel Corporation of India, a Navratna public sector undertaking (PSU) under the Ministry of Railways, has been awarded a contract worth over ₹25 crore by the Andhra Pradesh Police. The order pertains to the supply, installation, and maintenance of integrated security solutions for edge devices deployed across the police department.
The company, which provides broadband, VPN, and digital network services across India, disclosed the development in a regulatory filing dated May 27, 2025. The work order was issued by the Office of the Inspector General of Police (Technical Services), Andhra Pradesh, with a project deadline of June 25, 2025. The order is valued at ₹25,12,94,570 including taxes and falls under the “arrears billing” category.
This marks a significant step in RailTel’s efforts to expand beyond its core railway network into state-level digital transformation and surveillance infrastructure. Notably, the project involves no related party transactions and demonstrates RailTel’s commitment to clean governance practices.
Financial Performance Boosts Market Confidence
This order comes on the heels of RailTel’s impressive fourth-quarter financial results for FY25. The company posted a 46.3% year-on-year increase in net profit, reaching ₹113.4 crore. Revenue from operations surged 57% to ₹1,308.28 crore, up from ₹832.7 crore a year earlier.
Operational metrics also showed strong performance, with EBITDA rising 53.8% to ₹180 crore. While the EBITDA margin saw a slight dip to 13.73%, the company’s robust topline growth has enhanced its financial standing.
Stock Surges in May
Following the announcement and strong Q4 earnings, RailTel’s stock has seen a sharp rally. In May 2025 alone, the stock jumped more than 30%, rebounding from a 2% decline in April. The railway PSU has delivered a 170% return over the last three years and 200% over five years, reaffirming its long-term wealth creation potential despite short-term volatility.
Having achieved Navratna status on August 30, 2024, RailTel continues to play a key role in strengthening India’s digital backbone. Its network spans over 5,000 railway stations and connects critical commercial and administrative hubs across the nation.
