RailTel Corporation of India Limited stands as one of India's largest neutral telecom infrastructure providers, operating under the Ministry of Railways as a Navratna public sector undertaking since August 2024. The company was incorporated in 2000 with the objective of creating nationwide broadband and VPN services, telecom, and multimedia network, to modernize the train control operation and safety system of Indian Railways.
The company commands a significant presence in the Indian telecommunications landscape, owning a Pan-India optic fiber cable network (OFC) which can serve up to 70% of the country's population. RailTel's RailWire broadband service is ranked as the 13th largest broadband provider with over 5.8 lakhs subscribers that is the 4th largest in subscriber count in rural areas of India.
RailTel's core strength lies in its extensive network infrastructure that leverages railway corridors across India. The company's network passes through around 6,000 stations across the country, covering all major commercial centers. The company's optic fiber network spans more than 61,000 route kilometers including 6,108 railway stations throughout India, with nationwide coverage extending over 21,000 kilometers.
The company operates through two primary business segments: Telecom Services and Project Work Services. It provides a range of telecom services to its customers, including managed data services, leased line, virtual private network, Internet leased line, data center, tower collocation, rack and space, and national long-distance (NLD) for voice carriage. The Project Work Services segment encompasses various national projects including optical fiber network implementations and IT services.
RailTel has been instrumental in executing several critical projects of national importance. The company has executed critical projects of national importance such as BharatNet, National Knowledge Network (NKN), and railway signaling. The company has executed various mission-mode projects for the Government of India including the National Knowledge Network, Bharat Net (formerly known as the National Optical Fibre Network), and the optical fiber-based connectivity project in North East India funded by the Universal Service Obligation Fund (USOF).
One of RailTel's flagship initiatives is its Wi-Fi services at railway stations. RailTel's RailWire Wi-Fi is currently operational in 6,108 stations, representing one of the world's largest and fastest public Wi-Fi systems, catering to nearly 2 million unique logins every day. The Wi-Fi service is free for the first 30 minutes of daily usage at a speed of 1 Mbps, following which a nominal fee is to be paid.
As of recent market data, RailTel's market capitalization stands at ₹13,258 Crore. The company has demonstrated strong financial growth, particularly in recent quarters.
- Revenue: Operating revenue of ₹3,478 Crore for FY25, registering a robust 35% growth over FY24.
- Net Profit: Annual profit of ₹300 Crore.
- Market Performance: Market cap down 20.5% in 1 year.
- Promoter Holding: 72.8% promoter holding.
- Revenue: Operating income of ₹1,308 Crore, marking an impressive sequential growth of 70% quarter-on-quarter.
- Net Profit: Profit after tax of ₹113 Crore for the quarter, representing a 74% QoQ growth in profitability.
- Year-on-Year Growth: Net profit increased by 46.3% to ₹113.4 Crore, up from ₹77.53 Crore in Q4 FY24, while revenue from operations increased by 57% year-on-year to ₹1,308.28 Crore.
The company has maintained consistent growth momentum across quarters, with Q2 FY25 showing operating income of ₹844 Crore with 51% quarter-on-quarter increase, PBT of ₹94 Crore reflecting 41% QoQ growth, and PAT of ₹73 Crore.
RailTel's stock is listed on both major Indian stock exchanges: NSE with the symbol RAILTEL and BSE with the code 543265. The stock has experienced significant volatility, with a decrease of 0.32% over the past 6 months and 12.37% decline over the last year. However, the stock has gained nearly 250% over the last three years.
Key valuation metrics include:
- P/E Ratio: 42.68 as of July 2025.
- Price-to-Book Ratio: 0.15.
- 52-Week Range: Low of ₹265.5 and high of ₹559.4.
- Dividend Yield: Current dividend yield is 0.23%.
RailTel continues to secure significant contracts across various sectors. Recent notable orders include ₹15.85 Crore AI billboard order from Cuttack Development Authority for execution by November 2025, and multiple government contracts for managed bandwidth services and educational equipment supply.
The company's strategic positioning as a Navratna PSU, combined with its extensive network infrastructure and growing digital services portfolio, positions it well for continued growth in India's expanding digital economy. RailTel's performance in FY25 underscores its strong operational capabilities and continued focus on delivering value through digital infrastructure and telecom services, with a healthy order book and strong momentum for sustained growth.
