RailTel Share Price Up 3.44% to Rs. 351.85 After FSSAI Deal, Despite Rs. 609-Crore Order Loss

Overview:

• RailTel share price rose 3.44% to Rs. 351.85 after hitting an intraday low.

• The stock moved between Rs. 332.45 and Rs. 356.25 as buying returned later.

• A Rs. 16 crore FSSAI contract lifted sentiment despite Rs. 609.56 crore cancellations.

RailTel Corporation of India’s share price showed a strong recovery on January 14 after starting the day on a weak note. The PSU stock was trading at Rs. 351.85, up 3.44%, as buyers stepped in following early losses on Rs. 609.56 crore order losses. Although the investor sentiment picked up after the news of the FSSAI deal win became public.

Let’s explore the RailTel share price analysis in detail to understand where the stock momentum may head next, based on Moneycontrol data.

RailTel Share Price Movement 

RailTel opened lower at Rs. 333.35, compared with its previous close of Rs. 340.15, reflecting cautious sentiment at the start of trade. The stock slipped further to a day’s low of Rs. 332.45, extending early selling pressure.

As the session progressed, buying interest improved and helped the stock recover sharply. RailTel touched a day’s high of Rs. 356.25 before easing slightly. Trading above its VWAP of Rs. 346.23 suggested that buyers dominated the session after the initial decline.

RailTel share price chart on Moneycontrol shows gains of 3.23% at press time:

Trading Volume and Market Capitalisation

RailTel stock saw healthy participation, with 24.78 lakh shares traded during the session. The total traded value stood at Rs. 8,720.83 lakh, indicating active interest from market participants. At the current price, the public sector unit’s (PSU) market capitalisation is Rs. 11,293 crore. Despite the day’s recovery, the stock is volatile, reflected in its beta of 1.90, which signals higher-than-average price swings.

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FSSAI Cloud Contract Lifts Sentiment

Positive sentiment was supported by RailTel’s announcement of a Rs. 16 crore cloud services contract from the Food Safety and Standards Authority of India (FSSAI), as reported by TipRanks. The multi-year deal will be executed until January 2029, strengthening RailTel’s role in providing digital and cloud services to central government agencies. Although the contract size is modest, it highlights steady business flow in the PSU’s government-focused technology segment.

Order Cancellation Still a Key Concern

Investor caution remains due to the cancellation of orders worth Rs. 609.56 crore by the Bihar Education Project Council. These projects, related to smart classrooms and educational supplies, were awarded in September 2025 but later withdrawn for unavoidable reasons. This development had earlier pushed the stock down and continues to weigh on near-term sentiment despite the day’s recovery.

Valuation and Long-Term Price Trend

RailTel trades at a TTM P/E of 35.23 and a price-to-book value of 5.35. The stock has a 52-week high of Rs. 478.95 and a 52-week low of Rs. 265.50, underlining wide price movement over the past year. While RailTel has declined about 9% in 2026 so far, it has delivered strong long-term returns, gaining over 150% in the past three years.

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Outlook for RailTel Shares

RailTel’s rebound to Rs. 351.85 shows that investors are selectively buying the stock after recent declines. However, sustained upside will likely depend on new large-order wins and clarity on project execution. Until then, the stock may continue to see sharp swings driven by news flow. Investors should keep an eye on RailTel’s corporate updates and global cues. 

FAQs

1. Why did RailTel's share price rise today?

RailTel shares gained as buyers stepped in after early losses. The recovery was supported by the announcement of a new Rs. 16 crore cloud services contract from FSSAI, which helped improve short-term investor confidence despite existing concerns.

2. What was RailTel’s intraday price movement?

The stock opened lower at Rs. 333.35, slipped to a low of Rs. 332.45, and later recovered strongly. It touched an intraday high of Rs. 356.25 before settling near Rs. 351.85 by mid-session.

3. How important is the FSSAI contract for RailTel?

FSSAI is a smaller value deal relative to RailTel but provides a continuing contract through to January 2029. It offers greater visibility into RailTel's position in government cloud services and growing confidence in the PSU’s digital infrastructure capabilities. 

4. Why are investors still cautious about RailTel?

Investors have continued to remain cautious due to the cancellation of more than Rs. 609.56 crores worth of education-related orders in Bihar. The cancellations raised concerns about RailTel's execution risk and short-term revenue visibility.

5. What is the outlook for RailTel shares?

RailTel shares could exhibit some volatility for a short time. A sustained upside for RailTel shares will depend on significant new order wins, successful execution of those projects, and clarity on the additional contracts RailTel will sign with the government.