Navratna stock in focus after receiving order from Mumbai Municipal for disaster management

Synopsis: RailTel Corporation secured Rs. 35.44 crore order from Mumbai’s municipal corporation to deploy comprehensive communication system for Disaster Management Department. Full story inside.

A leading telecom infrastructure provider specializing in railway communication networks has secured a significant contract from Mumbai’s municipal corporation. The company will deploy an advanced communication system for the city’s Disaster Management Department, marking another milestone in its expansion beyond core railway operations.

Railtel Corporation of India Limited‘s stock, with a market capitalisation of Rs. 10,655 crores, rose to Rs. 334, hitting a high of up to 0.52 percent from its previous closing price of Rs. 332.25. However, the stock over the past year has given a return of 25.5 percent.

Order Update

Company has received a Letter of Acceptance from the Municipal Corporation of Greater Mumbai (MCGM) for providing a comprehensive communication solution to the Disaster Management Department. The domestic order is valued at Rs. 35.44 crore. The work order was formally received on 11th December 2025, and the contract does not involve any related party transactions or promoter group interest.​​

The project involves designing, installing, and maintaining an integrated communication system to enhance disaster preparedness and response capabilities for Mumbai’s civic body. This order strengthens RailTel’s growing partnership with MCGM, as the company has previously secured several significant contracts from Mumbai’s municipal authorities, including a Rs. 351.95 crore Healthcare Management Information System project. The comprehensive communication solution will support the Disaster Management Department in coordinating emergency responses more effectively across the city.​​

Company Order Book

RailTel Corporation reported a robust order book of Rs. 8,251 crores as of October 30, 2025, with state governments contributing the largest share at approximately Rs. 3,700 crores (45%), followed by Railways at Rs. 2,000 crores (25%). Other significant segments include PSUs with slightly over Rs. 900 crores, other government departments at Rs. 750+ crores, and the financial sector along with railway PSUs contributing around Rs. 350 crores each. 

The company demonstrated strong momentum in FY26, securing total orders worth Rs. 3,317 crores up to September 30, 2025 surpassing the entire FY25 order intake and nearly tripling H1 FY25 figures. Two marquee orders drove this performance: a Rs. 822 crore contract from Bihar State Government for school lab installations (the company’s largest-ever order) and a Kavach order from East Central Railways.

The order mix reveals that project business dominates the order book, while telecom orders account for 13-14% of the total. However, this comparison is nuanced as telecom contracts typically span one year versus 3-5 years for project orders. 

The company maintains a healthy win rate of approximately 20% on tender submissions, having bid for roughly Rs. 15,000 crores worth of tenders over the last two quarters to secure the Rs. 3,000+ crores in new orders.

Q2 Financial Highlights

The company reported revenue of Rs. 951 crore in Q2FY26, marking a 12.8% YoY growth from Rs. 843 crore in Q2FY25 and a strong 27.8% QoQ jump from Rs. 744 crore in Q1FY26. This sequential acceleration demonstrates robust momentum in the current fiscal year. Over the past three years, the company has delivered an impressive sales CAGR of 32%, reflecting consistent top-line expansion.

Net profit stood at Rs. 76 crore in Q2FY26, up 4.1% YoY from Rs. 73 crore in Q2FY25 and 15.2% QoQ from Rs. 66 crore in Q1FY26. The company has maintained healthy profitability with a 3-year profit CAGR of 23%, while ROE has grown at a 15% CAGR over the same period, indicating efficient capital deployment and sustainable return generation.

Written By Fazal Ul Vahab C H

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