Shares of RailTel Corporation of India Ltd soared 6% on 19 August after the company received a Rs 166.80 crore work order from the Employees’ Provident Fund Organisation (EPFO). 

The order involves an extension of RailTel’s existing Infrastructure-as-a-Service (IaaS) contract and is expected to support the company’s growing digital infrastructure business.

Under the contract, RailTel will continue providing Infrastructure-as-a-Service to EPFO for another year. The order includes additional components and is scheduled to be executed by February 9, 2027. The contract was received on August 17 and is a domestic order with no related-party transaction involved.

The order is important because IaaS allows organisations to use computing infrastructure such as servers, storage and networking resources without having to build and maintain the entire infrastructure themselves. RailTel has been expanding beyond its traditional railway telecom operations into areas such as cloud services, data centres, IT infrastructure and digital government projects.

The latest win also adds to RailTel’s recent flow of government technology orders. The company received a Rs 119.19 crore Department of Posts cloud services order on August 10, while it had earlier secured a Rs 334 crore e-office upgradation order from Indian Railways in June.

RailTel’s growing order pipeline provides visibility for its project business. However, investors are also watching profitability closely. In Q1 FY27, standalone revenue from operations rose 20.09% year-on-year to Rs 893.27 crore, while profit after tax was almost flat at Rs 65.78 crore, indicating pressure on margins despite strong revenue growth.

The latest order nevertheless strengthens RailTel’s position as a technology and digital infrastructure provider for government institutions. Continued wins in cloud, IT and digital transformation could help the company diversify its revenue base beyond railway telecom services.

At 12:21 pm, the shares of RailTel Corporation were trading 3.63% higher at Rs 287.20 on NSE.

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