
RailTel Corporation of India share price rallied as much as 5.57% to ₹325.40 apiece on NSE in Wednesday's trading session after the company announced that it had secured a domestic order from Mahanadi Coalfields, a subsidiary of Coal India.
RailTel share price opened at ₹311 apiece on NSE today, as compared to previous close of ₹307.95 on Tuesday.
In a post-market exchange filing on Tuesday, Navratna PSU RailTel announced that it has received an order worth around ₹107.61 crore from Mahanadi Coalfields to establish an MPLS VPN network for Mahanadi Coalfields on a rental basis for 60 months. The project is scheduled to be completed by June 30, 2031.
The latest order comes after RailTel disclosed earlier on Tuesday that it had secured a Letter of Intent (LoI) from the Thane Municipal Corporation for a domestic contract worth ₹13.60 crore. Under the agreement, RailTel will serve as the technology partner for the development, upgradation, implementation, operation, and maintenance of the DigiThane Citizen Engagement Platform over a 10-year period, with the contract running until June 28, 2036.
Earlier this week, the state-owned company also announced that it had bagged a ₹27.06 crore domestic contract to develop an end-to-end online portal for the Goa Labour Welfare Board.
RailTel reported a 25% year-on-year (YoY) increase in consolidated net profit for the March quarter, with profit rising to ₹142 crore from ₹114 crore in the corresponding period last year.
The company's revenue grew 28% year-on-year to ₹1,669 crore, compared with ₹1,308 crore a year ago. EBITDA climbed 30% to ₹233 crore from ₹180 crore, while the EBITDA margin remained unchanged at 14%.
The board has recommended a final dividend of ₹1.25 per equity share, equivalent to 12.5% of the paid-up share capital, for FY26. This is in addition to the interim dividends totaling ₹2 per share that were paid during the financial year.
RailTel share price has remained volatile amid weak market sentiments. The railway stock has gained 3.21% in a month, however, has descended 13.38% on year-to-date (YTD) basis.
Furthermore, the stock has fallen over 25% in a year. Meanwhille, RailTel share price has delivered multibagger returns of 146% in three years and 129.25% in five years.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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