Synopsis:
RailTel Corporation has received a Rs. 14.94 crore work order from the Ministry of Home Affairs for the SITC of an IP-based CCTV system.
The shares of Navratna PSU, which specializes in offering a wide range of services, including data communication, network management, system integration, and more, are in focus upon receiving a work order from the Ministry of Home Affairs.
With a market capitalization of Rs. 11,205.56 Crores on Thursday, the shares of Railtel Corporation of India Ltd jumped upto 1.2 percent after making a high of Rs. 352.55 compared to its previous closing price of Rs. 348.30.
What Happened
Railtel Corporation of India Ltd, which is engaged in providing nationwide broadband telecom and multimedia network services across India, has received a work order from the Ministry of Home Affairs.
The order for the supply, installation, and commissioning (SITC) of an IP-based CCTV surveillance system, valued at Rs. 14,94,94,227 (excluding tax), which is approximately Rs. 15 Crores, and the project is to be completed by September 30, 2025.
Financials & Others
The company’s revenue rose by 33.27 percent from Rs. 558 crores to Rs. 744 crores in Q1FY25-26. Meanwhile, Net profit rose from Rs. 49 crores to Rs. 66 crores during the same period.
The company has a strong financial position with a healthy dividend payout ratio of 37%. It is nearly debt-free, with a low debt-to-equity ratio of 0.02. The company also shows strong returns, with a Return on Capital Employed (ROCE) of 21.8% and a Return on Equity (ROE) of 16.5%.
RailTel Corporation of India Ltd. is a Navratna Public Sector Undertaking under the Ministry of Railways, Government of India, and is one of the largest neutral telecom infrastructure providers in the country. Established in September 2000, RailTel was created to modernise the train control, operation, and safety systems of Indian Railways by deploying an extensive nationwide broadband, telecom, and multimedia network.
The company’s service portfolio includes broadband, VPN, HD video conferencing, data center operations, cyber security, tower colocation, station Wi-Fi, hospital management information systems, and various ICT solutions for government and private institutions.
The company has a strong order book of Rs. 7,197 crore, with approximately Rs. 500 crore related to Kavach projects. The order inflow for Q1 FY26 stood at Rs. 721 crore, a significant increase from Rs. 218 crore in Q1 FY25. For FY26, the management is expecting around 25% revenue growth, considering the rising base, and has provided a margin guidance of 11-12% for the year.
The company plans to expand its data center capacity with a 5MW facility in Noida, set to be operational within the next two years, scalable up to 10MW. Additionally, it aims to launch 4-5 new Edge data centers this year, each with a capacity of around 0.2MW. The expected revenue from Edge data centers is Rs. 10 crore in FY26.
Written by Sridhar J
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