AI Stock Jumps 4% After Securing Order from Govt. of Telangana for Attendance Systems

Synopsis: AI stock jumps 4% after securing Telangana government orders to deploy AI-based facial recognition attendance systems for 1 million students. The SaaS-based, three-year contracts ensure recurring revenue, boosting the stock and strengthening its e-governance footprint.

The shares of this company are the Largest AI based FRS (Facial Recognition System) SaaS player in the Indian Government sector that specialises in enterprise and digital-transformation solutions are in the spotlight after it rose by 4% in today’s session after securing an order from Telangana Technology Services. 

With a market capitalisation of Rs. 429 cr, the shares of RNIT AI Solutions Ltd were trading at Rs. 54 per share, increasing 4% in today’s market session, making a high of Rs. 54.50, up from its previous close of Rs. 52.33 per share. The stock has gained 10% year-to-date, risen 4% over the past six months, and is up 1% in the last month.

About the order 

RNIT AI Solutions Limited has informed about receiving multiple work orders and highlights a significant business development that reflects the company’s growing role in government-backed digital projects.

The work orders have been awarded by Telangana Technology Services Limited, a key technology arm of the Government of Telangana. The contracts are domestic in nature and relate to public sector digital infrastructure. 

Scope of Work

The project involves the implementation and maintenance of AI-based facial recognition attendance management systems. These solutions will be deployed across ITI institutions, the State Board of Technical Education and Training (SBTET), and the Collegiate Education Department as part of an e-governance initiative in higher education.

The deployment is extensive, covering approximately 1 million(10 lakh) users across the state of Telangana. This indicates a large-scale rollout and reflects the increasing adoption of AI technologies in government education systems.

Each of the work orders is for a period of three years, including both implementation and maintenance. This provides steady revenue visibility for the company over the medium term.

The contracts operate under a Software-as-a-Service (SaaS) model, where revenue is generated through transaction-based pricing. Billing will be done monthly based on usage, with payments linked to predefined service-level agreements, ensuring a recurring revenue stream.

This development strengthens RNIT’s footprint in the government e-governance sector and marks its expansion into another state. It reinforces the company’s position as a provider of AI-driven solutions in the higher education domain.

RNIT AI Solutions Ltd is an India-based technology company focused on artificial intelligence–driven governance and enterprise transformation solutions. It provides services such as AI-based facial recognition systems, data analytics, IoT, and digital transformation platforms for government and corporate clients. 

The company reported a 72% YoY increase in sales, rising to Rs. 13.9 cr in Q3FY26  from Rs. 8.08 cr in Q3FY25, while EBITDA grew sharply by 165% to Rs. 5.88 cr from Rs. 2.22 cr, indicating improved operational efficiency. Net profit also surged 150% to Rs. 3.60 cr from Rs. 1.44 cr and EPS increased 137% to Rs. 0.45 from Rs. 0.19. 

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