RailTel Corporation of India , a Navratna PSU under the Government of India's Ministry of Railways, has secured a significant purchase order from The New India Assurance Company Ltd. The order pertains to the procurement of an AI/ML Based Solution for Monitoring and Investigation of Fraud, Waste & Abuse of Health Insurance Claims, valued at Rs. 24,91,19,240/- including tax. The disclosure was made pursuant to Regulation 30 read with Part A (B) of Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Order Details

The purchase order was received on 07-May-26 at 18:01 and is to be fully executed by 06-May-29. The contract is domestic in nature and has been awarded by a domestic entity. The key parameters of the order are summarised below:

Regulatory Compliance

The intimation was filed by RailTel Corporation of India in accordance with SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The company confirmed that neither the promoter nor the promoter group nor any group companies have any interest in The New India Assurance Company Ltd. Additionally, the order does not fall within the scope of related party transactions. The disclosure was approved by the Executive Director and communicated by J. S. Marwah, Company Secretary and Compliance Officer (Membership No. FCS 8075), from RailTel's Registered and Corporate Office at East Kidwai Nagar, New Delhi.

RailTel Corporation of India has delivered strong financial performance for FY26, showcasing robust growth across all key metrics. The telecommunications infrastructure company reported comprehensive audited results demonstrating strong business fundamentals and operational excellence following the Board of Directors meeting held on April 30, 2026. Subsequently, the company hosted its Q4 FY26 Earnings Conference Call on May 1, 2026, organised by PL Capital, where Chairman and Managing Director Sanjai Kumar shared detailed business insights with analysts and investors.

Financial Performance Overview

The company's FY26 performance reflects substantial growth momentum, with significant improvements in revenue, profitability, and operational efficiency. The audited results were approved by the Board of Directors on April 30, 2026, following recommendation from the Audit Committee.

Q4 FY26 Quarterly Performance

The fourth quarter demonstrated strong sequential momentum. Speaking on the earnings call, CMD Sanjai Kumar highlighted that the company achieved operating revenue of INR1,669 crores in Q4 FY26 as against INR913 crores in Q3 FY26, registering a quarter-on-quarter growth of 83%. The Telecom segment contributed INR449 crores and the Project segment contributed INR1,220 crores to operating turnover in Q4 FY26. Profit before tax in Q4 FY26 stood at INR190 crores against INR85 crores in Q3 FY26, reflecting a Q-o-Q growth of 123%, while profit after tax grew 127% Q-o-Q to INR142 crores.

Segment-wise Performance Analysis

The company operates through two primary segments — Telecom Services and Project Work Services. Telecom Services generated revenue of ₹1,50,069 lakhs in FY26 compared to ₹1,36,253 lakhs in FY25, while Project Work Services contributed ₹2,77,679 lakhs versus ₹2,11,497 lakhs in the previous year. During the earnings call, management clarified that the Telecom segment includes data center and ICT income in addition to pure Telecom revenues comprising NLD, ISP, and IP1 services. For Q4 FY26, pure Telecom income stood at INR332 crores, comprising INR182 crores from NLD, INR120 crores from ISP, and INR30 crores from IP1. The remaining INR117 crores within the Telecom segment included data center services and digital services such as Aadhaar authentication. The Telecom segment margin for FY26 was approximately 39%, consistent with the company's historical range of 35% to 40%.

Data Center Business: A Key Growth Driver

Management identified the data center business as a key growth driver, with data center revenue reaching INR202 crores in FY26, up sharply from INR127 crores in the previous year. The company currently has approximately 3 megawatts of operational data center capacity, with a target of 5 megawatts by May of the following year. Two edge data centers were commissioned during FY26 — one in Delhi (Gurgaon) and one in Mumbai — with plans to expand to Indore, Ujjain, Chandigarh, and Visakhapatnam. RailTel is pursuing a hybrid strategy for data center expansion, combining its own facilities, partnership models with real estate owners, and lease arrangements. The company also serves government and PSU clients through hosted applications, hospital management information systems, e-office platforms, and Aadhaar-based biometric authentication services for examinations including NEET and JEE. Management indicated plans to separately disclose data center segment financials in the future.

Order Book and Business Outlook

The company's order book as of April 30, 2026, stood at INR11,466 crores, compared to INR8,563 crores as of December 31, 2025, reflecting 34% growth in Q4. Management estimated the order book as of March 31, 2026, at approximately INR10,600–10,700 crores, with around INR700 crores in new orders received during Q4. Railways accounted for approximately 21% of the current order book. For the project business, management guided revenue of INR3,000 crores to INR3,500 crores for the current financial year, with project segment margins targeted in the 4% to 5% range. The company has three Kavach signaling orders under execution over the next 2 to 3 years, and is actively pursuing opportunities in state government and PSU data center construction and Security Operations Centers (SOC). Overall revenue growth guidance for the current financial year was set at approximately 20%, consistent with the 22% growth achieved in FY26. Planned capital expenditure for the current year is INR300 crores, primarily directed towards data center expansion and the Telecom network.

Board Meeting Outcomes and Dividend Declaration

Pursuant to Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015, the Board meeting commenced at 1430 Hrs and concluded at 1700 Hrs on April 30, 2026. The Board recommended a final dividend of 12.5% of paid-up share capital, equivalent to ₹1.25 per share for FY26. This final dividend is in addition to the interim dividend of ₹2.00 per share already paid during the financial year. The final dividend is subject to shareholder approval at the upcoming Annual General Meeting and will be paid within 30 days of declaration.

Balance Sheet Strength

The company's financial position remained robust with total assets of ₹5,83,000 lakhs as of March 31, 2026, compared to ₹5,16,121 lakhs in the previous year. Total equity increased to ₹2,26,161 lakhs from ₹1,99,962 lakhs, reflecting strong capital base and retained earnings growth.