RailTel Corporation of India bags new order worth Rs 162.73 crore from Navodaya Vidyalaya Samiti (NVS)

RailTel Corporation of India has secured a lucrative contract worth Rs. 162.73 crore (including taxes) from Navodaya Vidyalaya Samiti (NVS). This project involves supplying and implementing integrated infrastructure and IT solutions for schools under the PM SHRI Scheme. The 180-day contract is a significant domestic win for RailTel, further boosting its presence in the education sector.

Notably, neither RailTel nor its affiliates have any vested interest in NVS, and the deal adheres to arm’s length principles. This timely announcement underscores RailTel’s commitment to transparency and its ongoing contribution to improving educational infrastructure in India.

Earlier, RailTel Corporation secured a significant work order worth Rs 82.42 crore from South Central Railway for building comprehensive ground infrastructure for 4G LTE-R in 523 kilometres of Secunderabad division. The domestic contract, with a completion deadline of September 8, 2025, involves no involvement from RailTel’s promoters or related parties and adheres to arm’s length principles.

RailTel, a profitable, debt-free Indian government telecom company, provides a range of services like video conferencing, data centres, broadband, and leased lines. They boast an exclusive fibre optic network covering 70% of India’s population and generate revenue through projects like the National Optical Fiber Network and orders from Indian Railways, Coal India, and others. RailTel aims to expand its data center business and future plans include adding more enterprise services like e-office and edge data center solutions.

The company, boasting a market cap of over Rs 14,000 crore, has consistently rewarded shareholders with a healthy 43.6% dividend payout. Moreover, its financial health shines through its positive quarterly, nine-month, half-yearly, and annual results, painting a picture of consistent profitability and stability.

RailTel stock surged nearly 10% today, hitting a 52-week high of Rs 459.30. The price soared amidst heavy trading volume, exceeding 2.5 times the average. The rally started strong, reaching an intraday high of Rs 459.30, before dipping slightly to settle at Rs 437.25, still a significant gain. This impressive performance indicates growing investor confidence in the company’s prospects.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.