Railway Stock Falls 3% After Cancellation of Multiple Projects Worth ₹609 Cr

Synopsis:-  The stock fell nearly 3% after the cancellation of Bihar-based education projects worth  Rs 609.56 crore, impacting near-term visibility. However, a robust  Rs 8,251 crore order book, strong FY26 order inflows, and data centre capacity expansion beyond 10 MW provide medium-term growth support.

The shares of the largest neutral telecom infrastructure providers plummeted up to 3 percent in today’s trading session after the company disclosed the cancellation of multiple Bihar-based education projects worth about  Rs 609.56 crore

With a market capitalisation of Rs 10,916.72 crore, the shares of RailTel Corporation of India Ltd were trading at Rs 340.15 per share, decreasing around 0.03 percent as compared to the previous closing price of Rs 370.70 apiece.

Significant order

The shares of RailTel Corporation of India Ltd have seen bearish movement after the cancellation of multiple Bihar-based education projects worth about  Rs 609.56 crore. The cancelled orders include smart classrooms and teaching-learning material supply. While the cancellations impact near-term order visibility, they were attributed to customer-side reasons, not execution issues.

Recently, the company bagged a letter of acceptance from Assam Health Infrastructure Development & Management Society worth Rs 56.71 crore for the Procurement, Implementation, and Maintenance of the Hospital Management Information System (HMIS). The execution time period for this order is till 31 Jan 2032.

Financials

The company posted a steady Q2FY26 performance, with revenue rising 13% year-on-year to  Rs 951 crore, reflecting healthy topline momentum. However, net profit growth remained modest at 4.1% to  Rs 76 crore, indicating margin pressure or higher costs despite improved sales execution.

Over the last one year, RailTel’s operating performance has improved steadily. Operating profit rose from  Rs 129 crore in Sep 2024 to  Rs 154 crore in Sep 2025, reflecting stronger scale and execution. OPM inched up from 15% to 16%, showing modest margin expansion despite cost pressures, supported by higher revenue and operating leverage.

RailTel Corporation of India Ltd’s order book stands strong at  Rs 8,251 crore, providing healthy revenue visibility. Orders worth  Rs 3,317 crore received in the current financial year till September 2025 already exceed the entire FY24–25 inflows and are nearly three times the orders secured in H1 FY24–25, signalling sharp momentum in project wins.

RailTel’s data centre business is entering a strong expansion phase. With a current capacity of around 5 MW, the company plans to scale beyond 10 MW, demonstrating confidence in demand. Right now, revenues from data centres are  Rs 150 crore and are expected to grow 30–40% year-on-year, making data centres a key medium-term growth driver.

RailTel Corporation of India Ltd is a Government of India enterprise and a leading provider of telecom and ICT infrastructure. Leveraging its nationwide optical fibre network along railway routes, RailTel delivers broadband, data centre, and digital solutions to government bodies, enterprises, and service providers across India.

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