Shares of RailTel Corporation of India rose 4% to Rs 373 on Thursday after the public sector telecom infrastructure provider secured two new government contracts worth nearly Rs 50 crore in Kerala and Odisha.
RailTel said it received a Rs 34.99 crore contract from the Kerala State Information Technology Mission to provide data centre operation services and maintenance of the State Data Centres for five years. Separately, the company won a Rs 15.42 crore contract from the Higher Education Department of Odisha for the design and development of CMS-based bilingual websites for colleges under the department.
Among India’s largest neutral telecom infrastructure providers, RailTel operates a fiber optic network of over 62,000 km along railway tracks and an additional 21,000 km citywide network.
Earnings Snapshot:
For the June quarter, RailTel posted a 36% rise in net profit to Rs 66 crore, compared to Rs 49 crore a year earlier. Revenue from operations surged 33% to Rs 744 crore during the quarter, against Rs 558 crore in the same period last year. EBITDA stood at Rs 116 crore, up 11.5% from Rs 104 crore a year ago. However, operating margin slipped to 15.6% from 18.6%.
Market Performance:
RailTel shares have declined 10% so far in 2025, underperforming the Nifty 50 index, which gained 5% during the same period. Technically, the stock is trading below five of its eight key simple moving averages (20-day, 30-day, 50-day, 100-day, and 200-day), while staying above its 5-day, 10-day, and 150-day SMAs. The Relative Strength Index (RSI) stands at 40.9, suggesting the stock is neither overbought nor oversold.
Disclaimer: This article is for informational purposes only and should not be considered financial or investment advice. Readers are advised to consult a qualified financial advisor before making any investment decisions.
