RailTel Share Price Soars Over 30% in May Receiving ₹25 Crore Order from Andhra Pradesh Police

RailTel Share Price Soars Over 30% in May After ₹25 Crore Order from Andhra Pradesh Police

Market Performance

RailTel share price witnessed a remarkable surge in May 2025, gaining over 30% within the month. This sharp uptrend follows a significant government order and solid Q4 earnings, reinforcing investor confidence.

  • April 2025: Share price dipped by 2%
  • March 2025: Gained 7.6%
  • February 2025: Dropped 30.8%
  • January 2025: Marginal rise of 0.6%
  • 12-Month Performance: Down by 10%
  • Past 3 Years Return: Over 170%
  • 5-Year Return: Approx. 200%

Main News: ₹25 Crore Order from Andhra Pradesh Police

On May 27, 2025, RailTel Corporation of India secured a significant contract worth ₹25.12 Crore (inclusive of taxes) from the Office of the Inspector General of Police (Technical Services), Andhra Pradesh.

Key Highlights:

  • The project involves supplying, installing, and maintaining integrated security solutions for edge devices.
  • This domestic, non-railway order is under the "arrears billing" category.
  • Scheduled completion date: June 25, 2025
  • No promoter group or related party involvement, ensuring transparency and clean governance.

This development strengthens RailTel's position in India's security and surveillance infrastructure sector and further diversifies its non-railway revenue.

Company Details

RailTel, a Navratna PSU, was elevated on August 30, 2024. Known for its broadband and VPN services, RailTel is a crucial player in India's digital infrastructure expansion.

Network Reach:

  • Covers 5,000+ railway stations across India.
  • Provides connectivity to major commercial and administrative hubs.
  • Supports several state-level digital transformation projects.

Q4 FY25 Financial Highlights

RailTel's robust financial performance in Q4 FY25 has further fueled investor interest.

Revenue

  • ₹1,308.28 Crore
  • YoY Growth: 57%
  • (Q4 FY24 Revenue: ₹832.7 Crore)

EBITDA

  • ₹180 Crore
  • YoY Growth: 53.8%
  • (Q4 FY24 EBITDA: ₹117 Crore)

EBITDA Margins

  • 13.73% (slightly down from 14%)
  • 27 basis points decrease YoY

Net Profit

  • ₹113.4 Crore
  • YoY Growth: 46.3%
  • (Q4 FY24 Net Profit: ₹77.53 Crore)

Despite a minor dip in EBITDA margins, the overall financial health of RailTel remains strong, showcasing efficient operations and growth potential.

Summary

The RailTel share price surged 30% in May 2025, driven by a ₹25 Crore contract win from the Andhra Pradesh Police and an impressive financial performance in Q4 FY25. With a growing digital infrastructure and surveillance footprint, RailTel continues to strengthen its position as a high-performing PSU. The stock's long-term returns of over 170% in three years underline its resilience and growth-driven trajectory.

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