RailTel Secures Multiple Contracts: Rs 217 Crore Safe City Project in Bihar and Rs 185.7 Crore Telecom Services for AAI

1 min read     Updated on 05 Aug 2025, 08:49 AM
scanxBy ScanX News Team
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Overview

RailTel Corporation of India has won two significant domestic contracts. The first, valued at Rs 216.82 crore, is for implementing the Bihar Safe City Project, awarded by Bihar State Electronics Development Corporation Ltd. The second, worth Rs 185.71 crore, is from the Airports Authority of India for providing MPLS-VPN services at airports and offices. Both contracts have execution deadlines in 2030 and work order receipts in 2025. These projects are expected to enhance RailTel's portfolio and potentially boost its financial performance in the coming years.

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*this image is generated using AI for illustrative purposes only.

RailTel Corporation of India Ltd. (RailTel) has clinched two significant contracts, showcasing its strong position in the domestic market for technology and infrastructure projects.

Bihar Safe City Project

Contract Details

  • Project Value: Rs 216.82 crore (including tax)
  • Awarding Entity: Bihar State Electronics Development Corporation Ltd
  • Project Nature: Implementation of Mukhyamantree Surakshit Sushaasit Shahar (Safe City)
  • Contract Type: Domestic
  • Execution Deadline: August 4, 2030
  • Work Order Receipt: August 4, 2025

Project Significance

The Safe City project is a crucial initiative aimed at enhancing urban security and governance in Bihar. RailTel's involvement in this project underscores its expanding role in providing technological solutions for smart city development and public safety infrastructure.

Airports Authority of India (AAI) Telecom Services Contract

Contract Details

  • Project Value: Rs 185.71 crore (including tax)
  • Awarding Entity: Airports Authority of India
  • Project Nature: Providing MPLS-VPN services at AAI airports and offices
  • Contract Type: Domestic
  • Execution Deadline: August 31, 2030
  • Work Order Receipt: August 4, 2025

Company Disclosure

RailTel has officially disclosed information about both contracts in compliance with SEBI regulations. Key points from the disclosures include:

  • Both contracts are purely domestic in nature
  • There are no related party transactions involved
  • The promoter/promoter group has no interest in the awarding entities

Market Impact

These substantial contracts are expected to bolster RailTel's project portfolio and potentially impact its financial performance positively over the coming years. The long-term nature of both projects, with execution periods extending to 2030, suggests steady revenue streams for the company.

RailTel's success in securing these contracts may be seen as a testament to its capabilities in executing large-scale, technology-driven projects in the public sector. As urban safety and airport infrastructure continue to be priorities for government entities, similar opportunities may arise for RailTel in other regions, potentially leading to further growth in these segments.

Investors and market analysts will likely watch closely how these projects contribute to RailTel's overall business performance and its positioning in the smart city, public safety solutions, and telecom services markets.

Historical Stock Returns for Railtel Corporation of India

1 Day5 Days1 Month6 Months1 Year5 Years
-1.17%-0.10%-14.11%+2.31%-22.82%+191.43%
Railtel Corporation of India
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RailTel Shares Surge 3.3% on Securing Rs 166.38 Crore BSNL Contract

1 min read     Updated on 04 Aug 2025, 09:54 AM
scanxBy ScanX News Team
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Overview

RailTel Corporation of India's stock rose 3.3% to Rs 365.50 after securing a Rs 166.38 crore contract from BSNL. The service-based contract runs until July 31, 2028. Despite this positive news, RailTel's stock shows mixed performance across different timeframes, with a 19.39% gain over three months but declines in shorter and longer periods.

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*this image is generated using AI for illustrative purposes only.

RailTel Corporation of India 's stock witnessed a significant uptick, climbing 3.3% to reach Rs 365.50 following the announcement of a substantial contract win from Bharat Sanchar Nigam Limited (BSNL).

Contract Details

The state-owned telecom infrastructure provider has secured an advance work order from BSNL valued at Rs 166.38 crore. This service-based contract is set to be executed over a period ending July 31, 2028. Notably, the company confirmed that this agreement does not involve any related party transactions.

Stock Performance

While the recent contract news has boosted investor sentiment, RailTel's stock performance presents a mixed picture:

Time Frame Performance
3 Months +19.39%
1 Month -17.06%
Year-to-Date -12.66%
1 Year -28.68%

The stock has shown resilience in the medium term with a robust 19.39% gain over the past three months. However, it has faced headwinds in shorter and longer timeframes, with notable declines across monthly, year-to-date, and annual periods.

Market Implications

The substantial contract from BSNL underscores RailTel's strong position in the telecom infrastructure sector and its ability to secure significant government projects. This development may potentially bolster the company's revenue stream over the next five years, providing a degree of visibility to its future earnings.

Investors appear to be responding positively to this news, as evidenced by the immediate stock price increase. However, the mixed performance over various time horizons suggests that market participants are balancing this positive development against broader market conditions and the company's overall financial health.

As RailTel moves forward with this new contract, market observers will likely keep a close eye on its execution and the potential impact on the company's financial performance in the coming quarters.

Historical Stock Returns for Railtel Corporation of India

1 Day5 Days1 Month6 Months1 Year5 Years
-1.17%-0.10%-14.11%+2.31%-22.82%+191.43%
Railtel Corporation of India
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