Railtel Corporation of India Ltd logo

Railtel Corporation of India Ltd

RAILTEL NSE

RailTel was incorporated in 2000, with the objective of creating nationwide broadband and VPN services, telecom, and multimedia network, to modernize the train control operation and safety system of Indian Railways. It is a "Navratna" PSU of the Government of India. At present, RailTel's network passes through around 6,000 stations across the country, covering all major commercial centers.[1]

AI Verdict: HOLD Confidence: 5%

Railtel has strong revenue growth of 30% CAGR over 3 years and is virtually debt-free, but the stock trades at a PE of 30.1x with 100% sell ratings from analysts and a -20% one-year price decline. The high debtor days of 175 and government-dependent revenue model warrant caution despite solid fundamentals.

Key Fundamentals

MicrocapTelecom ServicesTelecom
Market Cap
₹10,196 Cr
Volatility
Moderate
P/E Ratio
29.11
EBITDA
₹417 Cr
Return on Equity
11.47%
Debt to Equity
0.02
Book Value
₹70.47
EPS
₹5.84
52W High
₹436.5
52W Low
₹245

Technical Indicators

Key Insights

Strengths

4
  • Company is almost debt free.
  • Company has delivered good profit growth of 21.0% CAGR over last 5 years
  • Company has been maintaining a healthy dividend payout of 25.6%
  • Company's median sales growth is 23.4% of last 10 years

Weaknesses

1
  • Company has high debtors of 175 days.

Growth Rate

Revenue Growth
26.91% ↘
Net Income Growth
-9.48% ↘
Cash Flow Change
-8.10% ↘
ROE
-16.22% ↘
ROCE
-16.54% ↘
EBITDA Margin (Avg.)
-17.01% ↘

AI Analysis — Bull vs Bear

Anthropic anthropic claude-opus-4.6 26d ago
HOLD
Risk medium

Railtel has strong revenue growth of 30% CAGR over 3 years and is virtually debt-free, but the stock trades at a PE of 30.1x with 100% sell ratings from analysts and a -20% one-year price decline. The high debtor days of 175 and government-dependent revenue model warrant caution despite solid fundamentals.

Bull Case 8
  • Company is almost debt-free, providing financial flexibility and low interest burden in a capital-intensive telecom sector
  • Compounded sales growth of 30% CAGR over 3 years demonstrates strong revenue momentum driven by government digitization projects
  • Compounded profit growth of 21% CAGR over 5 years shows consistent bottom-line expansion
  • ROE of 17% in the last year is healthy and improving from the 10-year average of 13%, indicating better capital efficiency
  • TTM sales growth of 23% indicates continued business traction even in the most recent period
  • Median sales growth of 23.4% over 10 years reflects a long-term structural growth story tied to India's digital infrastructure buildout
  • Market cap of Rs 10,368 crore positions it as a mid-cap with room for re-rating if execution continues
  • 3-year stock CAGR of 40% shows the market has historically rewarded the company's growth trajectory
Bear Case 8
  • 100% of analyst ratings (2 out of 2) are sell recommendations, signaling professional consensus on overvaluation
  • Stock has declined -20% over the past 1 year, indicating significant negative momentum and possible de-rating
  • High debtor days of 175 means nearly 6 months of receivables outstanding, creating working capital stress and cash flow risk
  • PE ratio of 30.1x is elevated for a government-services company with limited pricing power and lumpy order flows
  • Price-to-book of 4.61x is rich for a PSU telecom infrastructure company, leaving limited margin of safety
  • Dividend yield of only 0.62% offers minimal income support during periods of capital depreciation
  • TTM profit growth of 16% is decelerating compared to the 3-year CAGR of 24%, suggesting margin pressure or base effect normalization
  • Heavy dependence on government contracts introduces concentration risk and potential payment delays reflected in the 175-day debtor cycle

This is AI-generated analysis, not financial advice. Do your own due diligence.

AI News Digest

Anthropic anthropic claude-opus-4.6 20d ago
Headwinds 1
  • Exchange fine for board non-compliance May 29

    NSE and BSE each imposed ₹5,31,000 fine on RailTel for Q4FY26 board composition non-compliance. Company says director appointments are controlled by Government of India, leaving the issue unresolved.

Positives 5
  • Strong FY26 results, 23% revenue growth May 6

    RailTel posted 23% revenue growth in FY26 with ₹202 Cr data center revenue, ₹11,466 Cr order book, 20% growth guidance for FY27, and ₹300 Cr capex planned.

  • ₹31.21 Cr Newspace India order May 23

    Secured ₹31.21 Cr order from Newspace India Limited for IT Infrastructure upgradation, to be executed by January 2027.

  • ₹24.91 Cr AI/ML insurance order May 9

    Won ₹24.91 Cr purchase order from New India Assurance for an AI/ML-based health insurance fraud monitoring solution, expanding into insurtech.

  • AI surveillance at New Delhi station May 14

    Secured order from Ministry of Railways for AI-based Surveillance System at New Delhi Railway Station; financial consideration yet to be finalised.

  • ₹15.67 Cr railway signalling order May 17

    Won ₹15.67 Cr order from Sr. Dste, Jodhpur for railway double distant signalling work, to be executed by May 2027.

TL;DR: RailTel is on a strong growth trajectory with 23% FY26 revenue growth, a robust ₹11,466 Cr order book, and a steady stream of new AI/ML and infrastructure wins across railways, insurance, and space sectors. The only headwind is a minor exchange fine for board composition non-compliance, which is a governance overhang but not operationally material. The order momentum and diversification into AI-based solutions suggest the positive trend is strengthening heading into FY27.

Quarterly Results

  Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Sales
697
468
599
668
833
558
843
768
1,308
744
951
913
1,669
Expenses
600
377
472
539
716
455
714
646
1,129
628
797
780
1,436
Operating Profit
98
90
127
130
117
103
129
121
180
116
154
133
233
OPM %
14%
19%
21%
19%
14%
19%
15%
16%
14%
16%
16%
15%
14%
Other Income
46
-1
2
-4
31
2
5
12
32
18
-2
1
8
Interest
1
1
1
0
4
1
1
1
1
1
1
1
2
Depreciation
41
37
38
41
43
38
40
43
60
44
47
49
49
PBT
102
51
90
84
102
67
94
90
151
89
105
85
190
Tax %
26%
25%
25%
26%
24%
27%
23%
27%
25%
26%
28%
27%
25%
Net Profit
75
38
68
62
78
49
73
65
113
66
76
62
142
EPS in Rs
2.34
1.2
2.12
1.94
2.42
1.52
2.26
2.03
3.53
2.06
2.37
1.94
4.42
Figures in ₹ Crores

Profit & Loss

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Sales
482
572
851
984
986
1,081
1,337
1,522
1,957
2,568
3,478
4,277
Expenses
298
367
595
710
685
747
1,010
1,154
1,578
2,103
2,943
3,641
Operating Profit
184
206
256
273
301
333
328
368
379
464
535
636
OPM %
38%
36%
30%
28%
31%
31%
24%
24%
19%
18%
15%
15%
Other Income
72
70
52
41
-6
-18
28
76
35
28
52
26
Interest
0
1
1
2
5
4
2
4
6
6
4
4
Depreciation
90
81
116
119
112
131
159
160
154
158
180
189
PBT
166
194
191
194
179
181
195
280
254
328
402
470
Tax %
27%
47%
33%
19%
39%
24%
28%
25%
26%
25%
25%
26%
Net Profit
121
102
128
156
110
138
140
208
188
246
300
346
EPS in Rs
3.77
3.18
3.99
4.87
3.42
4.31
4.37
6.49
5.87
7.67
9.34
10.79
Div. Payout %
14%
22%
40%
12%
58%
49%
50%
37%
43%
37%
31%
9%
Figures in ₹ Crores

Balance Sheet

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Equity Capital
—
321
321
321
321
321
321
321
321
321
321
321
Reserves
—
763
838
928
963
1,040
1,082
1,195
1,328
1,506
1,679
1,941
Borrowings
—
0
0
0
1
43
0
32
42
46
45
64
Other Liabilities
—
1,126
1,155
1,010
870
852
1,213
1,212
1,658
2,177
3,117
3,505
Total Liabilities
—
2,211
2,315
2,259
2,156
2,256
2,616
2,759
3,349
4,050
5,161
5,830
Fixed Assets
—
711
694
688
790
789
760
775
821
913
1,081
1,281
CWIP
—
262
360
364
300
253
215
164
157
130
124
81
Investments
—
10
0
10
17
10
10
40
40
90
39
0
Other Assets
—
1,228
1,261
1,197
1,049
1,204
1,632
1,781
2,330
2,916
3,917
4,468
Total Assets
—
2,211
2,315
2,259
2,156
2,256
2,616
2,759
3,349
4,050
5,161
5,830
Figures in ₹ Crores

Cash Flow

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Operating
—
—
—
—
—
154
374
258
284
556
255
316
Investing
—
—
—
—
—
-48
-135
-213
-203
-419
-82
-77
Financing
—
—
—
—
—
-62
-110
-104
-79
-77
-113
-150
Net Cash Flow
—
—
—
—
—
43
130
-59
3
60
60
89
Free Cash Flow
—
—
—
—
—
76
294
142
107
347
-70
-10
CFO/OP
—
—
—
—
—
57
128
83
83
126
55
56
Figures in ₹ Crores

Ratios

  Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026
Debtor Days
—
164
160
173
169
160
208
160
195
180
166
175
Cash Conversion Cycle
—
164
160
173
169
160
208
160
195
180
166
175
Working Capital Days
—
-66
-91
1
-17
15
-6
7
50
-21
30
34
ROCE %
—
—
17%
16%
17%
17%
14%
16%
16%
20%
22%
23%

Shareholding Pattern

As of Mar 2026
Promoters 72.84%
Public 20.47%
FIIs 3.72%
Others 1.98%
DIIs 0.99%
Total 100.00%
  Feb 2021Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025Mar 2026
Promoters
72.84%
72.84%
72.84%
72.84%
72.84%
72.84%
72.84%
72.84%
72.84%
72.84%
72.84%
72.84%
72.84%
72.84%
72.84%
72.84%
72.84%
72.84%
72.84%
72.84%
72.84%
72.84%
FIIs
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
1.46%
1.45%
2.20%
2.15%
3.05%
3.34%
3.33%
3.68%
3.55%
3.68%
3.72%
DIIs
6.10%
5.23%
4.24%
3.46%
2.57%
2.12%
2.44%
4.77%
4.19%
4.12%
2.19%
3.55%
3.40%
2.64%
2.86%
0.60%
0.36%
0.46%
0.78%
0.78%
0.84%
0.99%
Government
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Public
13.03%
14.85%
16.55%
17.35%
18.65%
21.02%
20.50%
19.63%
18.87%
19.11%
20.01%
18.94%
18.08%
19.02%
19.55%
21.25%
21.44%
21.25%
20.65%
20.88%
20.71%
20.47%
Others
8.03%
7.08%
6.37%
6.35%
5.93%
4.02%
4.22%
2.75%
4.10%
3.92%
4.96%
3.20%
4.23%
3.29%
2.60%
2.26%
2.02%
2.11%
2.04%
1.95%
1.92%
1.98%
No. of Shareholders
0
9
2,83,164
2,92,150
2,94,143
2,98,618
3,09,317
3,05,235
2,94,380
2,74,320
2,73,786
2,97,202
3,07,246
3,76,802
4,37,008
5,15,406
5,21,892
5,40,217
5,16,521
5,10,401
4,99,192
4,92,275

Documents

Frequently Asked Questions about Railtel Corporation of India Ltd

What does Railtel Corporation of India Ltd do?
RailTel was incorporated in 2000, with the objective of creating nationwide broadband and VPN services, telecom, and multimedia network, to modernize the train control operation and safety system of Indian Railways. It is a "Navratna" PSU of the Government of India. At present, RailTel's network ...
Where is Railtel Corporation of India Ltd (RAILTEL) listed?
Railtel Corporation of India Ltd is listed on the Indian stock exchanges. It is listed on NSE: RAILTEL and BSE: 543265. You can view its live share price, financials, and ratios on Tapetide.
Which sector does Railtel Corporation of India Ltd belong to?
Railtel Corporation of India Ltd operates in the Telecommunication sector within the Telecom - Services industry. Sector classification helps investors compare companies affected by similar economic conditions and regulatory changes.
What is the market capitalisation of Railtel Corporation of India Ltd?
Railtel Corporation of India Ltd has a market capitalisation of approximately ₹10196.21 Cr. Based on this, it is classified as a Mid Cap stock.
What is the PE ratio of Railtel Corporation of India Ltd?
The Price-to-Earnings (PE) ratio of Railtel Corporation of India Ltd is 29.11. The PE ratio compares a company's share price to its earnings per share and is commonly used to assess whether a stock is overvalued or undervalued relative to its peers.
What is the 52-week high and low of Railtel Corporation of India Ltd?
Over the past 52 weeks, Railtel Corporation of India Ltd has traded between a low of ₹245 and a high of ₹436.5. This range helps investors understand the stock's price volatility and recent trading levels.
Does Railtel Corporation of India Ltd pay dividends?
Yes, Railtel Corporation of India Ltd has a dividend yield of 0.63%. Dividend yield indicates the annual dividend income relative to the share price. A consistent dividend history can signal financial stability.
What is the Return on Equity (ROE) of Railtel Corporation of India Ltd?
Railtel Corporation of India Ltd has a Return on Equity (ROE) of 11.47%. ROE measures how effectively a company uses shareholders' equity to generate profits. A higher ROE generally indicates better capital efficiency.
How can I research Railtel Corporation of India Ltd on Tapetide?
On Tapetide, you can view Railtel Corporation of India Ltd's live share price, quarterly results, profit & loss statements, balance sheet, cash flow, key ratios, shareholding pattern, technical indicators, analyst ratings, and forecasts — all on a single page without needing to sign up.

Company Information

RailTel was incorporated in 2000, with the objective of creating nationwide broadband and VPN services, telecom, and multimedia network, to modernize the train control operation and safety system of Indian Railways. It is a "Navratna" PSU of the Government of India. At present, RailTel's network passes through around 6,000 stations across the country, covering all major commercial centers.[1]

Website railtel.in
Listed 2021-02-26
Face Value ₹ 10
Issued Size 32,09,38,407

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