Shares of RailTel Corporation of India Ltd. experienced a notable surge in Wednesday's trading session, climbing 4.28 percent to Rs 289. This positive movement followed the announcement that the company had secured a significant work order from the Employees' Provident Fund Organisation (EPFO).
EPFO Contract Details Boost RailTel
The latest contract, valued at approximately Rs 166.80 crore (including taxes), is an extension of an existing work order. Under this agreement, RailTel will continue to provide Infrastructure-as-a-Service (IaaS) to the EPFO for an additional year. Despite the day's gain, the company's shares remain down 22.04 percent on a year-to-date basis.
Prior to this EPFO development, RailTel had also secured a separate five-year contract worth around Rs 63 crore (excluding taxes) from the Deendayal Port Authority (DPA). This order involves the design, supply, installation, testing, commissioning, and subsequent operation and maintenance of an Integrated Gate Automation System (IGAS) at Kandla.
Financial Performance Overview
In the first quarter of fiscal year 2027, RailTel reported a marginal year-on-year decline in consolidated net profit, which stood at Rs 65.8 crore, down 0.5 percent from Rs 66.1 crore in the corresponding quarter of the previous fiscal. However, the company's operational revenue showed robust growth, increasing by 20.1 percent year-on-year to Rs 893 crore, up from Rs 744 crore.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) also rose by 13.6 percent year-on-year to Rs 132 crore, compared to Rs 116 crore in the prior year. The EBITDA margin for the quarter was 14.7 percent, a slight decrease from 15.6 percent previously.
About RailTel Corporation
RailTel is recognized as a Navratna public sector undertaking (PSU) operating under the Ministry of Railways. The company is instrumental in India's digital infrastructure, managing an extensive pan-India optical fiber network. It specializes in providing a wide array of information and communications technology (ICT) and telecom infrastructure services. As of June 2026, the government maintained a significant stake, holding 72.84 percent of RailTel Corporation.