3i Infotech Faces Contract Termination from RailTel for WiFi Monetisation Project

3i Infotech Limited , a leading technology company, has received a termination notice from RailTel Corporation of India Limited for its WiFi Monetisation Project. The notice, dated November 14, 2025, calls for immediate termination of the contract, a move that 3i Infotech is contesting.

Project Details and Termination

The WiFi Monetisation Project, a significant venture for 3i Infotech, involved a consortium led by the company. The project participants included:

M/s. 3i Infotech Limited (Lead Bidder)
M/s. Yellow Integrated Content & Communication LLP
M/s. Forensics Intelligence Surveillance and Security Technologies Private Limited

Company's Response

3i Infotech has stated that it disputes the termination of the contract. The company is currently evaluating legal remedies available in response to this cancellation. This development could potentially impact the company's future projects and financial outlook.

Impact and Next Steps

While the full extent of the impact remains to be seen, the termination of such a significant project could have implications for 3i Infotech's business operations and financial performance. Stakeholders will be closely watching the company's next moves, particularly regarding any legal actions it might pursue.

Additional Company Update

In a separate development, 3i Infotech has recently allotted shares under its Employee Stock Option Scheme (ESOS). The details are as follows:

ESOS Details	Number of Shares	Exercise Price (in Rs.)
ESOS 2018	1,360	10.00

This allotment under the ESOS 2018 scheme indicates the company's ongoing efforts to incentivize and retain its workforce, even as it faces challenges with the RailTel contract termination.

As the situation unfolds, investors and industry observers will be keenly monitoring 3i Infotech's response to the contract termination and its potential impact on the company's future prospects.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+3.12%	-0.92%	-7.06%	-29.96%	-43.69%	+260.00%

3i Infotech Limited (INE748C01038), a leading provider of digital transformation and technology solutions, has announced its financial results for the second quarter, showcasing significant growth and operational improvements.

Financial Highlights

The company reported a consolidated revenue of ₹174.90 crore for Q2, marking a 2.5% increase quarter-on-quarter (QoQ). More impressively, 3i Infotech demonstrated substantial profitability improvements:

Metric	Q2	QoQ Growth	YoY Growth
Operating EBITDA	₹31.40 crore	74%	941%
PAT	₹18.90 crore	151%	155%
Operating EBITDA Margin	18%	-	-

The company's ability to significantly enhance its profitability metrics reflects improved operational efficiency and effective cost management strategies.

Geographical and Segment Performance

3i Infotech's performance across different regions and business segments showed:

Geographical Distribution: The United States and India emerged as top-performing regions, contributing 46% and 43% of the total revenue, respectively.
Business Segments: The Application-Automation-Analytics (AAA) vertical remained the primary growth driver, generating ₹123.00 crore in revenue. This was followed by Infrastructure Services (IS) at ₹34.60 crore and Digital Business Process Services (Digital BPS) at ₹16.80 crore.
Industry Contribution: The Information Technology (IT) sector was the highest revenue contributor at 46%, followed by BFSI at 37%.

Strategic Developments

The company made several key announcements and strategic moves during the quarter:

Leadership Changes:
- Mr. Raj Ahuja was redesignated from Acting CEO to Group CEO.
- Mr. Kalpesh Shah was appointed as the new Chief Financial Officer and Key Managerial Personnel.
- Mr. Vaibhav Somani stepped down from his role as Acting Chief Financial Officer.
Client Acquisition: 3i Infotech onboarded 14 new clients across key industries, primarily from the US market. This included a notable Indian player in the fast-growing quick commerce space.
Strategic Alliance: The company formed a partnership with HCL Software to strengthen its digital transformation capabilities across India, the US, the Middle East, and Southeast Asia.
Employee Base: The quarter closed with over 4,000 employees and an attrition rate of 16%, which is in line with industry standards.
Rights Issue: The company successfully completed a rights issue, which was oversubscribed by 1.47 times, indicating strong shareholder confidence.

Management Commentary

Mr. Raj Ahuja, Group CEO of 3i Infotech Limited, commented on the results: "This quarter's performance truly reinforces our belief that we're on the right path. The strong growth we've achieved reflects the clarity in our strategy and the passion with which our teams are executing it."

He added, "Over the past few quarters, we've built a cohesive leadership team and a unified way of working, all centered on a single ambition: to accelerate our next phase of profitable growth. With this solid foundation, we're now focused on deepening partnerships with our clients, expanding our digital and AI-led capabilities, and delivering consistent, sustainable value to everyone connected with 3i Infotech - our clients, our people, and our shareholders."

The robust Q2 results demonstrate 3i Infotech's resilience and strategic focus on profitability and growth. With its strengthened leadership team and clear strategic direction, the company appears well-positioned to capitalize on opportunities in the digital transformation and technology solutions space.