The order, received on August 19, is for establishing the MPLS VPN network for Western Coalfields on a rental basis for 60 months. The contract is scheduled to be executed by September 20, 2031, according to a regulatory filing.
The order has been awarded by a domestic entity and does not involve any interest of RailTel’s promoter or promoter group in the awarding entity. The company also said the contract does not fall under related-party transactions.
The latest order adds to RailTel’s order pipeline as the company targets 20-25% revenue growth in FY27. Earlier this month, Chairman and Managing Director Sanjai Kumar said telecom revenue is expected to grow 7-8% in FY27, while the project business, supported by a strong order book, is expected to grow 40-50%.
Kumar had also said the company’s revenue mix between projects and telecom, currently around 60:40, could shift to 70:30. Such a shift could put pressure on overall margins even as individual segment margins remain steady.
Q1 results
RailTel, a Navratna public sector enterprise under the Ministry of Railways, reported a flat net profit of ₹66 crore for the quarter ended June 30, despite double-digit growth in revenue and operating profit.
Revenue from operations rose 20.1% year-on-year to ₹893.2 crore in the June quarter from ₹743.8 crore a year earlier.Shares of RailTel Corporation of India ended lower on Thursday, August 20, by 2.26% at ₹280.75 on the NSE.
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