RailTel Shares Surge After Securing Order from HPCL Worth ₹25 Crore

RailTel Corporation of India has witnessed a sharp rally in its stock price following a significant order win. However, despite this short-term surge, the company has faced considerable volatility over the past 6 months.

Stock Performance and Recent Movement 

RailTel Corporation of India saw its shares climb 10% to ₹339 on 24 March after securing a ₹25.15 crore order from Hindustan Petroleum Corporation (HPCL). Despite this rally, the railway PSU has faced a challenging 6 months, plunging over 28%, while the Nifty 50 declined 9% during the same period. 

At its record high, RailTel’s stock had soared more than 6.5 times its IPO price of ₹94, but later dropped sharply, hitting a recent low of ₹265 on 3 March, a 57% decline from its peak.

The newly awarded contract spans 5 years, covering the renewal of existing MPLS and ILL links, alongside the addition of new connections based on feasibility. The contract period runs from 1 April 2025 to 31 March 2030. This follows RailTel’s recent ₹16.89 crore work order from the Ministry of Defence for optical fibre cable (OFC) laying.

Financial Performance 

In Q3FY25, RailTel reported a 5% year-on-year increase in net profit, reaching ₹65 crore. Revenue rose 15% YoY to Rs 768 crore, but EBITDA declined 6.6% YoY to ₹121 crore, compared to ₹129.7 crore in Q3FY24. This resulted in an EBITDA margin contraction to 15.8% from 19.4% in the previous year’s quarter.

Conclusion

RailTel’s recent contract wins highlight its growth prospects, yet the stock has witnessed significant volatility. While financial performance shows a mixed trend, investor sentiment remains cautious.

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