RailTel Corp shares gain above 9% in early trade with 3 order wins

RailTel Corp shares gain above 9% in early trade with 3 order wins

Shares of Railtel Corporation of India gained as much as 9.43 percent in early trading hours, on Saturday, February 01. This comes with the corporation's three major order wins from Maharashtra State Power Generation, Department Of Education Samagra Shiksha and from a defense PSU.

Currently, the stocks are trading at Rs 419.1, up 3.07 percent, at 10:27 am on NSE.

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The receipt of multiple substantial work orders by the company have brought in positive impact on the share prices. RailTel has secured a work order from Maharashtra State Power Generation Company Limited for IT network restructuring, valued at Rs. 1,04,15,95,094 (including tax). This project is expected to bolster the company's revenue and strengthen its market position in the IT infrastructure domain.

Similarly, it has also received a work order from the Department of Education Samagra Shiksha for supply and service, amounting to Rs. 15,98,40,000 (including tax), further expanding its footprint in government projects. The third is a significant work order from a defense PSU for setting up a Data Center (DC) and Disaster Recovery (DR) Center, valued at Rs. 1,00,32,62,309 (including tax), which is poised to enhance its presence in the defense sector and boost investor confidence.

With the much-anticipated Union Budget, railway stocks were seen buzzing and gaining on January 30 and have somewhat maintained a positive momentum. The broader market sentiment surrounding RailTel has been positively influenced by expectations of increased capital expenditure (capex) for Indian Railways in the upcoming Union Budget 2025-26.

Therefore, railway stocks, including RailTel, Rail Vikas Nigam Ltd (RVNL), and Titagarh Rail Systems, are being closely watched to note any significant effects from the budget announcement today, February 1.

According to sources cited by Moneycontrol, the government is expected to increase the railway budget by 15-18 percent for FY26, aimed at accelerating the rollout of key infrastructure projects such as Vande Bharat trains and high-speed bullet trainsets. This expected increase in funding, with gross budgetary support to the Ministry of Railways projected to rise to around Rs 2.9 lakh crore to Rs 3 lakh crore, is expected to provide substantial growth opportunities for companies like RailTel.