Shares of RailTel Ltd plunged 3.5% on 8th January after touching a day’s high of Rs 370.25, despite the company saying it has secured a Rs 101.82 crore work order from the Public Financial Management System (PFMS) to set up and manage critical IT infrastructure.

RailTel said in a regulatory filing that the order involves setting up and managing IT infrastructure. This includes data centres (DCs), disaster recovery (DR) facilities, security operations centres (SOCs), and data centre colocation.

The project, awarded by a domestic entity, is scheduled to run until 7th January, 2031. RailTel clarified that there is no promoter or group interest in the awarding entity. Moreover, it is not a related-party transaction.

The order adds to RailTel’s growing portfolio of government IT and digital infrastructure projects. This boosts its presence in data centre, cloud, cybersecurity, and managed services for public sector clients.

Last week, RailTel also received a Rs 567 crore order from the Assam Health Infrastructure Development & Management Society (Ahidms). The project is due by 31st January, 2032.

For Q2FY26, RailTel reported a 4.7% year-over-year rise in net profit at Rs 76 crore. This was up from Rs 73 crore in the same quarter last year.

Revenue increased 12.8% to Rs 951.3 crore from Rs 843.5 crore in Q2FY25. Meanwhile, EBITDA rose 19.4% to Rs 154.4 crore. Also, the EBITDA margin improved to 16.2% from 15.3% a year ago.

At 12:05 PM, shares of RailTel were trading 3.34% lower at Rs 356.40 on NSE.

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