Navratna railway stock jumps after receiving ₹163 Cr order from Ircon International

During Tuesday’s trading session, the shares of a “Navratna” PSU of the Government of India and one of the leading telecommunications infrastructure providers are in focus on BSE, after the company secured a work order worth around Rs. 162.6 crores from Ircon International.

Price Movement

With a market capitalisation of Rs. 9,694 crores, the shares of RailTel Corporation of India Limited surged nearly 2 percent to hit an intraday high at Rs. 308.3 on BSE, as against its previous closing price of Rs. 302.7. The stock has delivered negative returns of over 22 percent in one year, while about 9 percent of positive returns in one month.

What’s the News

As per the latest regulatory filings with the stock exchanges, RailTel Corporation of India Limited has been awarded a work order from Ircon International Limited, valued at nearly Rs. 162.6 crores.

This project involves the implementation of an Integrated Tunnel Communication system, including the Railway General Telecommunication arrangement, for the Sivok-Rangpo New BG Rail Line project under NF Railway. The execution deadline for the order is set for 28th March 2026.

About the Awarding Entity

Ircon International Limited commenced its business in 1976 as a railway construction company and diversified progressively since 1985 as an integrated engineering and construction PSU specialising in large and technologically complex infrastructure projects in various sectors such as railways, highways, etc.

Also read: PSU defence stock jumps 8% after receiving ₹62,700 Cr order from Ministry of Defence

Previous Orders

20th March: RailTel Corporation secured a work order from the Ministry of Defence for Optical Fiber Cable (OFC) laying work, amounting to nearly Rs. 16.9 crores.

23rd March: The company received an order worth around Rs. 25.2 crores from Hindustan Petroleum Corporation Limited (HPCL) for MPLS/ILL links for a five-year period. This rate contract covers the renewal of existing MPLS/ILL links as well as the provisioning of new connections over the five-year duration, subject to feasibility confirmation.

Financials & Order Book

RailTel Corporation reported a significant growth in the revenue from operations, experiencing a rise of nearly 15 percent YoY, increasing from Rs. 668 crores in Q3 FY24 to Rs. 768 crores in Q3 FY25.

Similarly, during the same period, the company’s net profit increased from Rs. 62 crores to Rs. 65 crores, representing a marginal rise of around 5 percent YoY. As of January 2024, the total order book of RailTel Corporation stood at Rs. 5,280 crores.

About the Company

Incorporated in 2000, RailTel Corporation of India Limited is a “Navratna” Central Public Sector Enterprise and one of the largest neutral telecom infrastructure providers in India, owning a Pan-India optic fibre network on exclusive Right of Way (ROW) along the Railway track.

RailTel is at the forefront of providing nationwide Broadband Telecom & Multimedia Networks in all parts of the country in addition to the modernization of Train operations and administration network systems.

Written by Shivani Singh

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