RailTel Share Price Gains 4.46% After Winning Rs. 455 Crore Rail Project

Overview

• RailTel share price jumped on a contract win of Rs. 454.95 crore from West Central Railway. Over 97 lakh company shares were traded today, showing active investor interest.

• RailTel’s Q3 revenue surged 19%, yet net profit actually contracted. This made analysts cautious, with the majority giving the stock a ‘Sell’ rating on Moneycontrol.

• The stock is still nearly 30% below its 52-week high. To be on a long-term upward momentum, the Indian company would have to improve its margins.

RailTel share price surged 4.46% to Rs. 347 at press time. The hike came as the PSU (Public Sector Unit) company announced a major order win from Indian Railways. After opening at Rs. 346, it tested an intraday high of Rs. 358.60, effectively clearing many short-term resistance levels. Earlier, the stock had closed at Rs. 332.20. Today’s price action was a clear volume breakout. The stock saw over 97 lakh shares change hands.

Here’s an in-depth analysis of the RailTel share price today based on Moneycontrol data. 

Rs. 454.95 Crore West Central Railway Order Lifts Sentiment

The main reason behind the stock rally was RailTel’s announcement of a Rs. 454.95 crore contract from West Central Railway. The order is related to railway communication and digital infrastructure work. It will be executed over 960 days, with completion targeted by September 2028. This long-term project means steady revenue till the targeted deadline. Investors welcomed the update as it shows strength in the Indian PSU’s core business.

RailTel Share Price Performance and Key Levels

Despite the strong upward move, RailTel stock is still trading well below its 52-week high of June 2025 of Rs. 478.95. However, the stock has shown a solid recovery from its 52-week low of Rs. 265.50, touched in March 2025. From those levels, the stock has gained around 35%, showing a gradual improvement in market confidence. The stock’s VWAP stood at Rs. 352.77, indicating that most buying took place at higher price levels.

RailTel share price chart on Moneycontrol showed gains of 4.30% during the afternoon trade:

RailTel Q3 Results: Profit Down, Revenue Up

While the price action is bullish, the Indian company’s fundamentals show challenges. RailTel reported mixed results for the December quarter. Its net profit fell 4.1% year-on-year to Rs. 62.4 crore, compared to Rs. 65.1 crore earlier. This suggests that while the PSU is winning more work, its cost of doing business is rising.

Although its revenue performance is strong. RailTel’s revenue grew 19% year-on-year to Rs. 913 crore, up from Rs. 768 crore in the same quarter last year. EBITDA also rose to Rs. 133 crore, although margins slipped slightly. To sustain this rally, RailTel need to show that it can protect its margins, not just grow its top line.

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Expansion Beyond Railways 

RailTel has been expanding into digital services. Earlier, the company won a Rs. 56.71 crore order for a hospital management information system project in Assam. This shows RailTel’s efforts to grow beyond its traditional railway-focused business. Such diversification could help cut down the dependence on a single sector over time.

Valuation and Market View

RailTel stock traded at a TTM PE of 34.99 and a price-to-book ratio of 5.27 at the time of writing. Its market capitalisation stood at Rs. 11,128 crore. It means that the stock isn't cheap compared to its historical average.
Despite today’s rally, RailTel shares are up only around 2% over the past one year. Hence, showing that the stock has been range-bound for long periods. While revenue growth is steady, earnings have been uneven, which keeps analysts cautious. Analysts on Moneycontrol gave the stock a ‘Sell’ rating. 

Investor Outlook 

Indian investors today have given RailTel shares a clear thumbs up based on its order-winning prowess. While short-term moves may be volatile. The consistent order inflow and timely execution of the West Central Railway will be key to sustaining gains in the long-run. Investors should keep an eye on upcoming quarters for margin improvement and further contract wins, as these would decide the next direction for RailTel share price.

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FAQs

1. How did RailTel shares perform in the Indian stock market today?

RailTel share price surged 4.46% to Rs. 347 at press time. The stock gained after the company announced a large order from West Central Railway worth Rs. 454.95 crore. Strong trading volumes also supported the rise, with more than 97 lakh shares traded during the session. Investors reacted positively to the long-term revenue visibility from the order win.

2. Why did RailTel shares rise today?

RailTel shares rose mainly because of the new railway order. The Rs. 454.95 crore contract will be executed over nearly three years. Hence, providing steady business until September 2028. For a PSU company, such long-term projects reduce uncertainty and improve future revenue clarity, which encourages fresh buying interest in the stock.

3. How did RailTel perform in Q3 FY26?

RailTel’s Q3 results showed mixed performance. The company’s revenue grew 19% year-on-year to Rs. 913 crore. However, net profit slipped 4.1% to Rs. 62.4 crore due to higher costs and lower margins. This gap between revenue growth and profit growth is a key concern for investors.

4. Is RailTel stock expensive at current prices?

At Rs. 347, RailTel trades at a TTM PE of nearly 35 and a price-to-book ratio above 5. These levels suggest the stock is not cheap compared to many PSU peers. While the order book is strong, uneven earnings and margin pressure make valuations look stretched, which is why analysts are cautious.

5. What should investors watch next for RailTel?

Investors should track margin improvement and execution of the West Central Railway order. Any fresh large contracts could support the stock further. At the same time, upcoming quarterly results will be important to see whether rising revenue can translate into stable profit growth. These factors will decide the next move in RailTel shares.