Praruh Technologies secures Rs 33.51 crore order from RailTel
Praruh Technologies Limited has secured a significant purchase order worth Rs 33.51 crore from RailTel Corporation of India Ltd for the supply and installation of internal gateways and security equipment. The project, which involves 1,201 units of various network hardware, must be executed within 180 days and supports RailTel's MPLS-based broadband network expansion across multiple regions in India.
*this image is generated using AI for illustrative purposes only.
Praruh Technologies Limited has secured a purchase order worth Rs 33,51,45,948.76 from RailTel Corporation of India Ltd for the supply, installation, and commissioning of internal gateways and IT security equipment. The order, disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, involves the deployment of network infrastructure to support RailTel's long-haul broadband telecom network based on MPLS technology. The project aims to meet increasing bandwidth demand while ensuring compatibility and flexibility in transporting various traffic types, including IP data, voice, and video.
The contract stipulates that the work must be executed within 180 days from the date of issue of the Letter of Acceptance (LOA). Praruh Technologies stated that none of its promoters have any interest in RailTel Corporation of India Ltd, and the transaction does not fall under the category of related party transactions. The order was awarded following a tender process identified as RailTel/Tender/OT/CO/TP/2025-26/ Internet Gateway and Security System/06 dated November 12, 2025.
Order Details
The scope of work encompasses the supply, installation, integration, and commissioning of various network components. The equipment includes routers, software licenses, installation kits, rack servers, desktops, laptops, next-generation firewalls, network management systems, switches, and optical transceivers. The total quantity of items to be supplied under the order is 1,201 units.
| Description | Value (Rs) |
|---|---|
| Total Amount (Excl All Taxes) | 22,72,17,592.16 |
| Total Amount (Incl All Taxes) | 26,81,16,758.76 |
| Broad Consideration (as per disclosure) | 33,51,45,948.76 |
Project Timeline and Terms
The delivery and execution schedule indicates a need-by date of November 25, 2026, for the initial consignments. The locations for delivery span multiple regions, including Delhi, Maharashtra, Tamil Nadu, West Bengal, and others, covering various RailTel operating units such as the Corporate Region (CO), Northern Region (NR), Southern Region (SR), Western Region (WR), and Eastern Region (ER).
The terms and conditions of the order require the successful bidder to furnish a Performance Bank Guarantee or Insurance Surety Bond equivalent to 10% of the PO/LOA value within 30 days of the issue of the LOA. Additionally, the contract includes provisions for a Long Term Maintenance Support (Annual Maintenance Contract) for a period of 5 years from the date of completion of the warranty. A separate LOA for the AMC, valued at Rs 6,70,29,190, is to be issued three months prior to the completion of the warranty period.
Historical Stock Returns for Praruh Technologies
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +11.63% | +11.63% | +11.11% | +11.42% | -6.61% | -6.61% |
How will this significant order impact Praruh Technologies' revenue and profit margins in the upcoming fiscal year?
Does Praruh Technologies have the existing capacity to meet the 180-day execution deadline, or will they need to ramp up hiring?
What is the strategy for managing the cash flow requirements associated with the 10% performance bank guarantee?
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