RailTel Secures ₹101 Cr PFMS Order, Bolsters IT Infrastructure Business

TECH

Overview

RailTel Corporation of India secured a ₹101.82 crore order from the Public Financial Management System for critical IT infrastructure setup and management, including data center and security operations services. This contract, valid until January 2031, further enhances RailTel's strong track record in government digital projects. The company also reported robust financial growth in Q2FY26, with net profit up 4.7% and revenue rising 12.8%, signaling continued expansion.

New Infrastructure Contract

RailTel Corporation of India Ltd announced on Thursday it has secured a ₹101.82 crore work order from the Public Financial Management System (PFMS). The contract mandates the establishment and management of critical IT infrastructure, including data centre, disaster recovery facilities, security operations centre services, and colocation.

Data and Context

The project, awarded by a domestic entity, has a long-term timeline extending until January 7, 2031. This significant win underscores RailTel's growing prominence in executing large-scale government IT and digital transformation projects. It reinforces the company's capabilities across data centre operations, cloud services, cybersecurity, and managed services tailored for public sector clients.

Recent Wins and Financials

This order follows closely on the heels of a ₹567 crore contract awarded to RailTel last week by the Assam Health Infrastructure Development & Management Society. The company's financial performance also shows strength. For the second quarter of fiscal year 2026, RailTel reported a 4.7% year-on-year increase in net profit to ₹76 crore. Revenue climbed 12.8% to ₹951.3 crore, with EBITDA growing 19.4% to ₹154.4 crore. The EBITDA margin improved to 16.2% from 15.3% in the prior year's corresponding quarter.

Market Reaction

Shares of RailTel Corporation of India Ltd. were trading down 1.19% at ₹364.30 on Thursday morning, despite the positive order inflow and financial results. The stock has seen considerable gains, rising 14.92% over the past month.

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