RailTel Share Price Rises Over 9% After Securing ₹25.15 Crore Order from HPCL

Market Performance

RailTel Corporation of India witnessed a sharp increase in its share price, rising over 9% on March 24, 2025. This rise followed the announcement of a new work order from Hindustan Petroleum Corporation Limited (HPCL). At 9:35 AM, the company's share price was trading 8.64% higher at ₹336.50 per share on the BSE.

Over the past week, RailTel's share price increased by 22.5%, gaining 10% in the last month. On a year-to-date (YTD) basis, the stock declined by 16.5% and dropped 27% over the past six months. In the previous year, the stock experienced a decrease of 6%. Despite short-term fluctuations, RailTel's share price has risen 240% over two years and 278% over three years.

New Work Order from HPCL

RailTel Corporation of India announced receiving a work order valued at ₹25.15 crore (excluding tax) from Hindustan Petroleum Corporation Limited. The order is a five-year rate contract for renewing existing MPLS/ILL links and establishing new connections, subject to feasibility. The contract period extends from April 1, 2025, to March 31, 2030.

Additionally, on March 20, 2025, RailTel reported receiving another work order from the Ministry of Defence. This order, valued at ₹16.89 crores (including tax), involves optical fibre cable (OFC) laying work.

On March 12, 2025, RailTel's Board of Directors declared a second interim dividend of ₹1 per equity share, representing 10% of the paid-up share capital. The record date for the dividend is set for April 2, 2025, with payment scheduled for April 9, 2025.

Summary

RailTel Corporation of India experienced a significant rise in its share price following the announcement of a ₹25.15 crore work order from HPCL. The contract covers five years for renewing and establishing new telecom connections. This development follows another work order from the Ministry of Defence for OFC laying work valued at ₹16.89 crore. Despite recent declines in share price over the short term, RailTel has delivered substantial long-term returns and declared a second interim dividend for shareholders.