Railtel Share Price Rises 3.5% Following New Order from Northern Railway

RailTel Corporation's share price increased 3.5% during early trading on Monday, March 10, following the receipt of a work order from Northern Railway. Despite this gain, the stock remains 50% below its all-time high recorded in July 2024.

The stock reached an intraday high of ₹309.10. However, it had dropped to a 52-week low of ₹265.30 on March 3, 2025, marking a recovery of 16.5%. Over the past year, RailTel's share price has declined by 29%. So far in March, the stock has gained nearly 7% after experiencing a 30.85% drop in February. In contrast, January saw a minimal change with a 0.6% increase.

New Order from Northern Railway

Northern Railway has awarded RailTel Corporation a contract for Indoor and Outdoor Double Distant Signalling Work. This order, classified under domestic contracts, has a total value of ₹28.29 crore. As per the terms outlined in the purchase order, the project is set for completion by September 6, 2026. The work order was officially received on March 7, 2025.

Company Financials

RailTel Corporation reported notable financial changes in Q3FY25 compared to the same period last year:

• Revenue: ₹767.6 crore, reflecting a 14.8% year-on-year (Y-o-Y) increase from ₹668.4 crore in Q3FY24.
• EBITDA: ₹121 crore, showing a 6.6% decline from ₹129.7 crore in Q3FY24.
• EBITDA Margin: Contracted to 15.8% from 19.4% in the previous year's corresponding quarter.
• Net Profit: ₹65 crore, up 4.7% Y-o-Y from ₹62.1 crore in Q3FY24.

About RailTel Corporation

RailTel Corporation, a Navaratna PSU, specializes in broadband and VPN services. Founded in September 2000, the company plays a key role in developing a nationwide broadband, telecom, and multimedia network. Additionally, it focuses on improving train control operations and safety mechanisms for Indian Railways. RailTel's network spans nearly 5,000 railway stations, linking major commercial centres across India.

Summary

RailTel Corporation's share price rose 3.5% after it secured a ₹28.29 crore contract from Northern Railway for signalling work. Despite recent gains, the stock remains significantly below its peak. The company has reported strong revenue growth but a decline in EBITDA margins. With its extensive railway network coverage, RailTel continues to focus on enhancing telecommunications and safety infrastructure.