Govt-Owned Stock Bags Rs 120 Crore in Contracts – Is It Undervalued?
A major government-backed firm is making big moves in connectivity and digital solutions.
RailTel Corporation of India has secured three significant orders totaling over Rs 120 crore. The latest contracts include a Rs 14.71 crore order from the Airports Authority of India (AAI) in Chennai and two major supply orders worth Rs 69.20 crore and Rs 36.94 crore from the Bihar Education Project Council (BEPC). These projects reinforce RailTel’s position as a key technology and infrastructure provider in India.
Contract with Airports Authority of India
RailTel has received a work order from AAI Chennai for the Supply, Installation, Testing, and Commissioning (SITC) of servers, storage, software, and networking for the SCCTV System. The contract, valued at Rs 14.71 crore, includes three years of onsite warranty and an additional three years of Comprehensive Annual Maintenance Contract (CAMC). The project is scheduled for completion by July 14, 2025.
Rs 69.20 Crore BEPC Order for ISM Labs
RailTel has also secured a Rs 69.20 crore order from the Bihar Education Project Council (BEPC) for the supply, installation, and training required to operationalize ISM Labs in schools. The contract is expected to be executed by April 4, 2025. This project will enhance digital learning infrastructure in Bihar’s education system.
Rs 36.94 Crore BEPC Order for Teaching Materials
Another order from BEPC, valued at Rs 36.94 crore, involves the supply of additional teaching and learning materials for students in classes I to V for the 2024-25 academic year. This project is set to be completed by February 28, 2025.
RailTel’s Business Overview
RailTel, a "Navratna" PSU under the Government of India, provides broadband, VPN, and telecom infrastructure services. Its network covers over 6,000 railway stations, offering nationwide connectivity. RailTel also operates two Tier-III certified data centers and is expanding with 102 edge data centers across India.
Capex and Expansion Plans
In FY24, RailTel incurred a capex of Rs 199 crore on optical fiber cable (OFC) and telecom-related assets. For FY25, it plans to invest Rs 296 crore. Additionally, the company is setting up a 30 MW data center in Noida under a partnership model, with an investment opportunity of Rs 1,500 crore.
Strengthening India’s Digital Infrastructure
These recent order wins align with RailTel’s commitment to strengthening India's digital infrastructure across education, security, and telecom sectors. The company continues to leverage its expertise to drive growth and expand its service offerings.
Disclaimer: The article is for informational purposes only and not investment advice.