RailTel Corporation of India shares came under focus following the announcement of three major order cancellations from the Bihar Education Project Council. The cancelled orders, collectively valued at Rs 609.55 crore, represent a significant development for the telecommunications infrastructure company.

Order Cancellation Details

The three cancelled work orders encompassed various education infrastructure projects across Bihar state. All cancellations were attributed to unavoidable reasons as communicated by the customer, according to the company's stock exchange filings.

Project Impact

The cancellations affect RailTel's previously disclosed Letters of Acceptance for these projects. With the formal cancellation, project execution under these agreements will no longer proceed. The orders were originally issued by the State Project Director of the Bihar Education Project Council and formed part of the state's education infrastructure development initiatives.

The largest single cancellation involved the Rs 257.50 crore order for smart classroom installations at government secondary and senior secondary schools. The middle school smart classroom project, valued at Rs 262.14 crore, represented the second-largest cancelled order.

Stock Performance

RailTel shares have experienced recent weakness in the market. The stock closed 1.00% lower at Rs 340.25 on Tuesday's trading session. The broader trend shows continued pressure, with the stock declining 8.12% over the past week and registering a 7.30% decline over the last two weeks.

Market Implications

The order cancellations remove a significant portion of RailTel's project pipeline in the education sector. The company had previously disclosed these Letters of Acceptance as part of its regulatory obligations, indicating their material nature to the business. The cancellations span across different educational levels, from primary schools to senior secondary institutions, representing a comprehensive education infrastructure program that will no longer proceed.

RailTel Corporation of India faces a significant setback as the company disclosed the cancellation of multiple work orders from the Bihar Education Project Council, with a combined value of approximately ₹609.56 crore. The telecommunications infrastructure provider informed stock exchanges about these developments, which represent substantial lost business opportunities in the education sector.

Major Project Cancellations

The cancelled orders encompass several key education infrastructure projects across Bihar:

Smart Classroom Project Details

RailTel had previously received a Letter of Acceptance (LoA) from the Bihar Education Project Council for the procurement, supply and installation of smart classrooms in government middle schools across Bihar. This project, valued at ₹262.14 crore, was expected to modernize educational infrastructure in the state's government school system.

The company has now informed exchanges that the customer cancelled the work order due to unavoidable reasons, without providing specific details about the circumstances leading to the cancellation.

Additional Order Losses

Beyond the smart classroom project, RailTel disclosed the loss of additional orders from the same customer. The company lost an order worth ₹89.92 crore related to the supply of teaching learning material for Classes I to V in government schools across Bihar.

Furthermore, the State Project Director of the Bihar Education Project Council cancelled another LoA and work order for a separate project valued at ₹257.50 crore, adding to the company's total order losses.

Stock Performance Impact

RailTel Corporation shares ended 0.80% lower on Tuesday at ₹340.80, reflecting market reaction to the order cancellations. The stock has declined 9% so far in 2026, indicating broader challenges facing the company in the current market environment.