RailTel Shares Surge 8% on ₹4,550 Crore Railway Order Bonanza

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AuthorIshaan Verma|Published at:
RailTel Shares Surge 8% on ₹4,550 Crore Railway Order Bonanza
Overview

RailTel Corporation of India Ltd shares climbed nearly 8% Tuesday after securing a substantial ₹4,550 crore order from West Central Railway. The contract mandates execution over 960 days, concluding by September 24, 2028. This surge follows a 2.53% rise on Monday. Despite a 4% dip in net profit to ₹62.4 crore for Q3 FY26, the company reported a strong 19% revenue growth to ₹913.4 crore.

Landmark Order Fuels RailTel Stock Rally

RailTel Corporation of India Ltd. saw its stock price leap nearly 8% on Tuesday, February 10, following the announcement of a significant order win. The company disclosed it had secured a contract valued at approximately ₹4,550 crore from West Central Railway on Monday. This award signifies a major business development for the state-owned telecommunications infrastructure provider.

The Letter of Acceptance (LoA) places the estimated order size at ₹4,54,94,74,871. Execution of this extensive project is slated to take 960 days, with the completion deadline set for September 24, 2028. This long-term project provides RailTel with a substantial revenue stream and solidifies its position in the railway sector.

Market Responds Positively

The stock has been on an upward trajectory for two consecutive sessions. It closed Monday's trading day 2.53% higher at ₹332.20 per share. By 10:09 AM on Tuesday, RailTel's shares were trading 7.19% up at ₹356.10. While the company's year-to-date performance shows a marginal loss of about 4.04%, this recent order has boosted investor confidence, leading to a nearly 3% gain over the past year.

Q3 Financials Show Growth Amidst Profit Dip

In its recently released third-quarter financial results for FY26, RailTel reported a net profit of ₹62.4 crore, a 4% decrease year-on-year from ₹65 crore. However, this profit decline was accompanied by robust revenue growth. Total revenue for the quarter rose by 19% to ₹913.4 crore, up from ₹767.6 crore in the same period last year. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also saw a healthy increase of 10% to ₹133 crore from ₹121 crore.

The company's operations are divided into two primary segments: telecom services and project work services. The combined revenue from these segments reached ₹913.45 crore in Q3 FY26, an increase from ₹767 crore in Q3 FY25. Revenue from telecom services contributed ₹349.5 crore, while project work services accounted for ₹564 crore of the total revenue.

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