RailTel share price gains 4% on THIS order update despite stock market sell-off: Check details

RailTel Shares Defy Market Gloom, Rise 4% After Fresh Order Win

June 18, 2025 | Mumbai:
In a rare display of resilience amid a broader market downturn, RailTel Corporation of India Ltd saw its share price climb nearly 4% in intraday trade on Tuesday. The rally came on the back of a significant order win from the Centre for Railway Information Systems (CRIS), reaffirming RailTel’s strong fundamentals and consistent contract inflows.

Despite the Nifty 50 and Sensex witnessing a sharp correction due to global macroeconomic jitters, RailTel’s stock stood out as a bright spot in an otherwise red screen.

Order Details: Boost From CRIS

RailTel announced that it has received a work order worth ₹76.19 crore (including taxes) from CRIS. The project involves setting up a secured optical fiber cable (OFC) communication system along India’s vital railway routes. The contract is part of the Indian Railways’ ongoing digital transformation and safety infrastructure upgrades.

The order includes the design, supply, installation, and commissioning of the OFC-based communication network between multiple sections across key railway zones.

"This project strengthens RailTel’s positioning as a strategic technology partner for Indian Railways," the company said in an exchange filing.

Stock Performance: Bucking the Trend

RailTel shares opened at ₹398.10 on the NSE, up from the previous close of ₹383.10, and surged to a high of ₹398.55 before paring some gains to trade around ₹395 in afternoon trade — still up over 3.1%. The stock has now delivered over 40% returns year-to-date, outperforming the broader Nifty 50 index, which is down 2.8% in the same period.

According to BSE data, over 12 lakh shares changed hands by mid-session, compared to a 30-day average volume of around 4 lakh, indicating robust investor interest.

Analyst Views: Long-Term Growth Story Intact

Market experts say the order is strategically important, as it reaffirms RailTel’s deep integration with the Indian Railways and positions the company well for future government-led digitization projects.

“This order is not just about the ₹76 crore value, but the reaffirmation of RailTel's role in the railway digitization mission,” said Rajat Aggarwal, telecom and infra analyst at Equirus Capital.
“Investors are rewarding companies with stable earnings visibility amid uncertain global cues.”

Another analyst, Meera Chawla of Axis Securities, believes RailTel’s consistent order pipeline could result in double-digit revenue growth in FY26.

RailTel’s Strategic Role in India’s Digital Infrastructure

RailTel, a Mini Ratna (Category-I) public sector undertaking under the Ministry of Railways, is responsible for deploying and maintaining a pan-India telecom and IT network for Indian Railways and other clients. With a strong focus on telecom infrastructure, smart governance, cloud solutions, and cybersecurity, RailTel has emerged as a critical player in the government’s Digital India campaign.

The company operates one of the largest neutral telecom networks in the country with over 61,000 km of optic fiber cable spread across towns and cities, including rural and remote areas.

Broader Market Context: Global Pressure, Local Winners

The rally in RailTel shares comes on a day when the benchmark indices took a hit due to fears of sticky inflation in the US, a likely delay in Fed rate cuts, and cautious global investor sentiment. The Nifty 50 was down 0.85% and the Sensex slipped nearly 600 points in morning trade.

Despite the weak macro cues, selective buying was visible in PSU stocks, defence sector, and railway-linked companies, hinting at continued confidence in government-led infrastructure plays.

“PSUs linked to infrastructure and technology are witnessing valuation rerating due to consistent order flows and higher allocation in the Union Budget,” said Anil Mishra, Head of Equities, IDBI Capital.

Investor Outlook: Is RailTel Still a Buy?

Following the announcement, brokerages remain positive on RailTel’s prospects. With the upcoming Union Budget 2025 expected to maintain focus on railway modernization, connectivity, and safety systems, the company is likely to remain a preferred vendor.

Key triggers for RailTel in the coming quarters include:

• Execution of ongoing government projects.

• Increased demand for data centers and cybersecurity services.

• Strategic collaborations in Smart Cities and public Wi-Fi infrastructure.

That said, valuation remains a concern, as the stock now trades at 28x FY25 estimated earnings, which some analysts view as stretched.

“Short-term investors should be cautious given the recent run-up, but long-term prospects are compelling,” noted Ritu Jain, independent investment advisor.

RailTel’s 4% surge in a falling market highlights the company’s resilient business model, strong order book, and investor faith in PSU technology and infra players. While broader market volatility may continue, RailTel appears poised to benefit from India’s digital push, railway capex, and public sector reforms — making it a stock to watch closely in the mid to long term.