Down 50% from peak, RailTel shares climb 3.5% on new order win

Shares of RailTel Corporation jumped 3.5 percent in morning deals on Monday, March 10 after it received a work order from Northern Railway worth ₹28.29 crore.

Northern Railway has awarded a contract for Indoor and Outdoor Double Distant Signalling Work to the railway firm, which falls under the category of domestic contracts. The terms and conditions of the order are as per the purchase order (PO). The contract is scheduled for execution by September 6, 2026, with a total order value of INR 28,29,14,088. The award has been granted to a domestic entity, with no involvement of an international party. The official receipt of the work order was recorded on March 7, 2025.

Stock Price Trend

The stock rose as much as 3.5 percent to its intra-day high of ₹309.10. The scrip is down 50 percent from its record high of ₹309.10, hit in July 2024. Meanwhile, it has advanced 16.5 percent from its 52-week low of ₹265.30, recorded earlier this month on March 3, 2025.

In the last 1 year, the PSU stock has lost 29 percent. Moreover, it has added almost 7 percent in March so far after a 30.85 percent decline in February. In January, it was flat, up 0.6 percent.

Financial Performance

RailTel Corporation reported a 4.7 percent year-on-year (Y-o-Y) increase in net profit, reaching ₹65 crore in Q3FY25, compared to ₹62.1 crore in the same period last year. Revenue from operations saw a strong growth of 14.8 percent Y-o-Y, rising to ₹767.6 crore in Q3FY25 from ₹668.4 crore in Q3FY24.

Despite the revenue growth, the company's earnings before interest, tax, depreciation, and amortization (Ebitda) declined by 6.6 percent Y-o-Y to ₹121 crore, down from ₹129.7 crore in Q3FY24. Consequently, the Ebitda margin contracted to 15.8 percent from 19.4 percent in the corresponding quarter of the previous year.

RailTel Corporation, a Navaratna Public Sector Undertaking (PSU), specializes in broadband and virtual private network (VPN) services. Established in September 2000, the company is focused on building a nationwide broadband, telecom, and multimedia network while also enhancing train control operations and safety systems for Indian Railways. RailTel's extensive network covers nearly 5,000 railway stations across India, connecting key commercial hubs across the country.

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