A leading telecommunications infrastructure provider has secured a significant maintenance contract in the technology sector. The recent work order highlights the company’s ongoing commitment to expanding its service portfolio and maintaining critical electronic infrastructure. The contract, valued at Rs 24.5 crore, represents an important milestone for the organisation.
Share Price Movement
The share price of RailTel Corporation of India Limited went down by 2.36 percent to Rs. 431.45 per share on Tuesday, an increase from its previous close of Rs. 441.90 per share. The market capitalisation now stands at approximately Rs. 13,846 crore as of December 10, 2024.
What happened
Haryana State Electronics Development Corporation Limited has given RailTel Corporation of India a major work order worth Rs. 24.5 crores for CAMC (Comprehensive Annual Maintenance Contract), with a contract to be executed by 31st December 2024.
Q2 Financial Highlights
According to its recent filing, in the quarter ending September 2024, RailTel Corporation of India’s consolidated revenue from operations has increased by 40.7 percent YOY from Rs. 599 crore in Q2 FY24 to Rs. 843 crore in Q2 FY25 and increased by 51.07 percent QoQ from Rs. 558 crore in Q4 FY24.
The company’s consolidated net profit has increased by 7.3 percent, from Rs. 68 crore in Q2 FY24 to Rs. 73 crore in Q2 FY25. As compared to the last quarter of 2025, the company’s net profit has increased by 48.9 percent QoQ from Rs. 49 crore.
Market Outlook
The Indian telecom industry is divided into wireless, wireline, and enterprise services. While wireline services include traditional landline and broadband, wireless covers mobile, SMS, and OTT platforms. Despite a decline in market share, landline telephony remains crucial for both business and residential use.
Fixed broadband, offering high-speed internet, is provided by key players like BSNL, Jio, and Airtel. The industry outlook remains positive with ongoing investments in infrastructure, high demand for data services, and an expanding digital ecosystem, supporting growth and technological advancements.
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Shareholding Pattern
As of the September 2024 shareholding pattern, RailTel Corporation of India Limited is primarily held by the promoters at 72.84 percent, foreign institutional investors hold 3.05 percent, and the public with 23.51 percent.
About Company
RailTel Corporation of India Limited, a prominent “Navratna” public sector undertaking (PSU) under the Ministry of Railways, was established in September 2000. Recognised as one of the largest neutral telecom infrastructure providers in India, the company focuses on broadband and multimedia services. Its extensive Pan-India optical fibre network spans over 62,000 route kilometres, connecting major towns and rural areas and reaching approximately 70% of the Indian population.
Headquartered in New Delhi, RailTel Corporation was incorporated in 2000. The company operates in the telecommunications services industry, offering a wide range of services including broadband telecom, virtual private networks (VPN), data centre services, HD video conferencing, internet leased lines, consultancy services, and network infrastructure.
RailTel’s optical fibre network is structured with an access layer, edge layer, and backbone layer, supporting high-capacity data transmission. Key projects like BharatNet and the National Knowledge Network (NKN) have furthered connectivity and digital access across India.
RailTel has evolved from a bandwidth provider to an integrated Information and Communication Technology (ICT) services provider. Its flagship RailWire Broadband connects rural areas with high-speed internet. The company also provides data centre services, managed data services, and modern signalling services for railways.
Recent developments include RailTel’s recognition as a “Navratna” company in August 2024, underscoring its strategic importance in the Indian telecom sector. RailTel continues to expand its service offerings and infrastructure to meet the evolving demands of the digital age, playing a pivotal role in India’s telecommunications landscape.
Written By Fazal Ul Vahab C H
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