RailTel Corporation shares rose after the company secured a ₹90 crores work order from the Institute of Road Transport to implement an ERP system.
Railtel Corporation of India Limited announced it had secured a major work order valued at ₹90.08 crores. The order was awarded by the Institute of Road Transport ( IRT).
The project involves designing, developing, supplying, implementing, operating, and maintaining an Enterprise Resource Planning (ERP) system. This system will be deployed across three major transport corporations in Tamil Nadu.
These include the Metropolitan Transport Corporation Limited (Chennai), Tamil Nadu State Transport Corporation Limited (TNSTC) (Coimbatore), and Tamil Nadu State Transport Corporation Limited (TNSTC) (Madurai).
The project is expected to be completed by October 18, 2026.
No related-party transaction involved
RailTel Corporation clarified that the awarding organisation has no promoter-related ties with the company. This contract is not considered a related-party transaction.
The order further strengthens RailTel's portfolio in the field of digital transformation for public sector clients. The company continues to expand its operations beyond its traditional railway-focused projects.
Other recent orders secured
Earlier this month, on April 17, 2025, RailTel Corporation secured another order from UTI Infrastructure Technology and Services Limited (UTIITSL). This contract involves providing managed cloud services for three years.
The value of the contract is ₹19.84 crores. The contract covers managed hosting, data security, and operational support services.
In March 2025, RailTel also secured an order worth ₹25.15 crores from Hindustan Petroleum Corporation Limited (HPCL). This five-year project is for the renewal of existing Multiprotocol Label Switching (MPLS) and Internet Leased Line (ILL) links and includes new connections subject to feasibility. These orders demonstrate RailTel's steady progress in expanding its service offerings across different government and public sector entities.
Share price movement after the announcement
Following the announcement of the new contract, RailTel Corporation's shares gained in early trading on April 28, 2025.
The market capitalisation of RailTel Corporation stands at ₹9,766.16 crores. The stock has experienced significant price fluctuations over the past year.
Impact on RailTel's growth strategy
The new orders align with RailTel's strategy to diversify its revenue streams. RailTel has been focusing on extending its digital services to various government sectors beyond Indian Railways.
The company has been expanding its managed services, cloud solutions, and system integration offerings. These services cater to different sectors, including oil and gas, transport, education, and healthcare.
Financial details and revenue model
RailTel's revenue model now includes a significant portion of non-railway digital services. The company provides services such as connectivity solutions, managed hosting, data centre services, and ERP implementations.
Regular contracts in new sectors are expected to support RailTel's financial performance. This also offers an opportunity for the company to maintain a strong order book over the short-term and long-term periods.
At 12:45 PM on April 28, 2025, the shares of RailTel Corporation were trading at ₹307.78 per share on the Bombay Stock Exchange (BSE).
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