RailTel secured two orders worth ₹186.51 crore on October 16. The company got a major contract from the Railway Recruitment Board for exam services and another from Health Insurance TPA for IT security. These wins help the firm as it keeps its 20-25% revenue growth guidance for fiscal year 2027.
RailTel secured two orders totaling ₹186.51 crore, including an RRB exam services contract and an IT security deal, bolstering its robust pipeline. Amid recent wins across sectors, the PSU maintains 20-25% FY27 revenue growth guidance, driven by expanding project businesses.
RailTel Corporation of India has received two work orders worth a combined ₹186.51 crore, including a major contract from the Railway Recruitment Board (RRB), Secunderabad, for recruitment examination services and another for IT infrastructure and cybersecurity solutions.
The larger order, estimated at ₹167.52 crore excluding taxes, is for AM-RMS services covering the pre-examination and post-examination stages of RRB recruitment through various Centralised Employment Notifications (CENs). The contract is scheduled to run until October 15, 2031.
The second order, worth ₹18.99 crore including taxes, has been awarded by Health Insurance TPA of India Ltd for IT infrastructure and cybersecurity solutions over three years. The contract is scheduled to run until October 16, 2029.
Both orders were received on October 16, according to the company's regulatory filing.
RailTel shares closed at ₹255.05 on the BSE on Friday, October 16, up 0.57%.
More orders bolster RailTel's project pipeline
The latest wins follow a series of contracts secured by the railway PSU in recent months.
On October 13, RailTel received a work order worth ₹49 crore, including taxes, from the Odisha government's Higher Education Department to develop 83 digital application modules under a Comprehensive Digital Governance Platform.
In August, RailTel secured a ₹165 crore contract, including taxes, from Western Coalfields to establish a Multiprotocol Label Switching Virtual Private Network (MPLS VPN) on a rental basis for 60 months. The contract is scheduled to run until September 20, 2031.
The company also received a ₹166.8 crore order from the Employees' Provident Fund Organisation (EPFO) in August. The contract extended an existing Infra-as-a-Service arrangement through RailTel by one year, with additional components, until February 9, 2027.
RailTel retains 20-25% FY27 revenue growth guidance
Speaking to CNBC-TV18 last month, RailTel Chairman and Managing Director Sanjai Kumar reiterated the company's revenue growth guidance of 20-25% for financial year 2026-27 (FY27), following 20% growth in the April-June quarter.
Kumar said telecom revenue is expected to grow 7-8% in FY27, while the project business, supported by a strong order book, is projected to expand 40-50% annually.
He also indicated that the revenue mix between projects and telecom, currently around 60:40, could shift to 70:30. While the project business is expected to drive growth, the changing mix could put pressure on overall margins even if margins within individual segments remain stable.
RailTel Corporation of India is a Navratna public sector enterprise under the Ministry of Railways, with operations spanning telecom infrastructure, digital services and technology-led project execution.