RailTel Corp. of India Ltd. (RAILTEL) AI Stock Analysis

• Market Cap: ₹110.32B
• Dividend Yield: 0.79%
• Average Volume (3M): 197.01K
• Price to Earnings (P/E): 34.4
• Beta (1Y): 2.08
• Revenue Growth: 29.92%
• EPS Growth: 22.87%
• Country: IN
• Employees: 478
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): 2.90
• Shares Outstanding: 320,938,420
• 10 Day Avg. Volume: 69,142
• 30 Day Avg. Volume: 197,011
• PEG Ratio: 1.48
• Price to Book (P/B): 4.84
• Price to Sales (P/S): 2.78
• P/FCF Ratio: -138.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: ₹398.00 ▲(7.47% Upside)

RailTel's overall stock score is driven by strong financial performance, despite some concerns over cash flow due to rising capital expenditures. Technical analysis indicates mixed signals, and the valuation suggests the stock may be overvalued. The absence of earnings call and corporate events data limits additional insights.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Stable Margins

Stable and improving profit margins reflect efficient cost management and operational effectiveness, supporting long-term profitability.

Low Financial Leverage

Low financial leverage reduces risk and enhances financial flexibility, allowing for strategic investments and growth opportunities.

Negative Factors

Rising Capital Expenditures

Increased capital spending can strain cash flow, potentially limiting the company's ability to invest in growth or return capital to shareholders.

Declining Equity Ratio

A declining equity ratio may indicate increased financial risk, as the company becomes more reliant on debt to finance its operations.

Negative Free Cash Flow Trend

A negative trend in free cash flow can limit the company's ability to fund new projects or pay dividends, impacting long-term financial health.

RailTel Corp. of India Ltd. Business Overview & Revenue Model

Company Description

RailTel Corporation of India Limited provides broadband telecom and multimedia networks and services in India and internationally. The company operates through Telecom Services and Project Work Services segments. It offers E-office, HD video conferencing, data center, RailWire broadband, cyber security, leased line, virtual private network, internet leased line, consultancy, signaling, rack and space collocation, tower collocation, NLD voice carriage, and aadhaar based services. The company also provides project services, including station Wi-Fi, content on demand, railway display network, national optical fiber network, and national knowledge network services, as well as hospital management information and video surveillance systems. It serves telecom operators, Internet service providers, MSOs, enterprises, banks, government institutions/departments, public sector undertaking, educational institutions/universities, etc. The company was incorporated in 2000 and is based in New Delhi, India.

How the Company Makes Money

RAILTEL generates revenue through multiple streams, primarily by providing telecom and broadband services to customers, which include railway users, state and central government departments, and private enterprises. Key revenue streams include leasing its fiber optic infrastructure to telecom operators, offering internet services and high-speed broadband connectivity, and providing managed services for data centers. The company also earns income from advertising and digital services at railway stations. Significant partnerships with other telecom providers and collaborations on smart city projects further enhance its revenue opportunities, while government initiatives promoting digital infrastructure contribute to its overall earnings.

RailTel Corp. of India Ltd. Financial Statement Overview

Summary

RailTel demonstrates strong financial health with consistent revenue and profit growth, stable margins, and low financial leverage. However, rising capital expenditures pose a risk to free cash flow.

Income Statement

RailTel's income statement shows a strong financial performance with consistent revenue growth over the years, increasing from 11,280.5M in 2020 to 34,775M in 2025. The gross profit margin has been stable, and net profit margin improved significantly, indicating efficient cost management and increased profitability. The EBIT and EBITDA margins also show healthy operational performance.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio, signifying low financial leverage and risk. The return on equity indicates good profitability relative to shareholder equity. However, the equity ratio has shown a slight decline, which suggests a growing reliance on liabilities.

Cash Flow

Cash flow metrics reflect a solid operating cash flow to net income ratio, demonstrating strong cash generation. However, there is a negative trend in free cash flow growth due to increasing capital expenditures, which may pose a risk if not managed effectively.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	36.63B	34.77B	25.68B	19.64B	15.48B	13.78B
Gross Profit	5.99B	5.77B	5.05B	4.21B	4.04B	4.42B
EBITDA	5.21B	5.16B	4.47B	3.60B	3.49B	3.11B
Net Income	3.17B	3.00B	2.46B	1.89B	2.09B	1.42B
Balance Sheet
Total Assets	0.00	51.61B	40.50B	33.39B	28.58B	27.10B
Cash, Cash Equivalents and Short-Term Investments	7.98B	7.98B	6.44B	4.87B	3.66B	5.83B
Total Debt	0.00	445.40M	456.20M	417.90M	315.10M	301.80M
Total Liabilities	-20.00B	31.62B	22.22B	17.00B	13.31B	12.97B
Stockholders Equity	20.00B	20.00B	18.27B	16.49B	15.27B	14.13B
Cash Flow
Free Cash Flow	0.00	-697.10M	3.47B	524.70M	1.48B	2.59B
Operating Cash Flow	0.00	2.55B	5.56B	2.30B	2.64B	3.49B
Investing Cash Flow	0.00	-823.10M	-4.19B	-1.50B	-2.23B	-1.23B
Financing Cash Flow	0.00	-1.13B	-774.20M	-785.10M	-1.04B	-1.10B

RailTel Corp. of India Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 370.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RAILTEL, the sentiment is Negative. The current price of 370.35 is above the 20-day moving average (MA) of 354.23, above the 50-day MA of 349.19, and above the 200-day MA of 363.70, indicating a bearish trend. The MACD of 4.75 indicates Positive momentum. The RSI at 43.49 is Neutral, neither overbought nor oversold. The STOCH value of 16.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RAILTEL.

RailTel Corp. of India Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NAVA	74 Outperform	₹164.74B	17.98	―	2.09%	1.03%	-17.68%
SCI	70 Outperform	₹99.98B	12.44	―	4.43%	-7.39%	-21.53%
RAILTEL	66 Neutral	₹110.32B	34.40	―	0.79%	29.92%	22.87%
JWL	59 Neutral	₹124.74B	44.57	―	0.68%	-14.89%	-26.18%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
SAMMAANCAP	52 Neutral	₹120.13B	8.94	―	―	-4.78%	―
TTML	46 Neutral	₹91.65B	-7.11	―	―	-5.82%	0.28%

RailTel Corp. of India Ltd. Corporate Events

RailTel Reshuffles Senior Management, Reclassifies Three Principal Executive Directors

RailTel Corporation of India Ltd. has notified the stock exchanges of changes in its senior management structure following the re-designation of three Principal Executive Directors. Dr. Sharad Sharma, Deepak Prakash Garg and Ramphool Chandel have been re-designated from their roles as Principal Executive Directors and, as a result, will no longer be classified as senior management under SEBI’s Listing Regulations with effect from 10 January 2026, though all three will continue in the company in Executive Director positions with specific regional and functional responsibilities. The reshuffle reflects an internal realignment of roles rather than exits, indicating continuity in operational leadership while formal senior management composition, as defined by securities regulations, is being streamlined for compliance and governance purposes.

RailTel Wins ₹19.84 Crore Data Centre Project for Ethiopian Foreign Ministry

RailTel Corporation of India Ltd. has secured a major international project from India’s Ministry of External Affairs to provide project implementation services for establishing a data centre inside the existing building of the Ministry of Foreign Affairs of the Federal Democratic Republic of Ethiopia in Addis Ababa. The work order, valued at approximately Rs 19.84 crore and to be executed by December 25, 2029, strengthens RailTel’s overseas project portfolio and underscores its growing role as a key digital infrastructure partner for government-led technology initiatives, with potential long-term benefits for its global footprint and revenue visibility.

RailTel Secures Major Contract with Indian Government

RailTel Corporation of India Ltd. has secured a significant domestic contract from the Office Of The Registrar General & Census Commissioner, India, valued at approximately INR 1.48 billion. This contract involves the procurement of comprehensive AMC services for servers, storages, network, and network security devices, along with the renewal of licenses, to be executed by December 21, 2030. This order underscores RailTel’s strong positioning in the Indian telecommunications sector, enhancing its service portfolio and potentially boosting its financial performance.

RailTel Secures Major International Contract for AI-Enabled Laptops

RailTel Corporation of India Ltd. has secured a significant international contract from the Ministry of External Affairs to act as the Project Implementing Agency for the procurement and supply of 2000 AI-enabled laptops. This contract, valued at approximately INR 14.4 crore, is expected to be executed by March 2026 and highlights RailTel’s growing presence in international markets, potentially enhancing its industry positioning and stakeholder value.

RailTel Secures Major Contract for Mumbai Regional Information System

RailTel Corporation of India Ltd. has secured a significant contract from the Mumbai Metropolitan Region Development Authority valued at approximately Rs. 48.78 crore. The contract involves acting as a System Integrator for the design, development, and implementation of a Regional Information System and Urban Observatory in Mumbai, with a completion deadline set for December 2027. This order enhances RailTel’s position in the domestic market, showcasing its capability in handling large-scale infrastructure projects, and is expected to positively impact its operational and financial performance.

RailTel Corporation Announces Financial Results and Interim Dividend

RailTel Corporation of India Limited announced its unaudited financial results for the quarter and half-year ending September 30, 2025, which were approved by the Board of Directors. The company declared an interim dividend of 10% of paid-up share capital, with a record date set for November 4, 2025, and payment scheduled for November 25, 2025. Additionally, the Board disclosed related party transactions for the same period, reflecting compliance with SEBI regulations. These announcements indicate RailTel’s ongoing commitment to shareholder returns and regulatory transparency, potentially strengthening its market position and stakeholder confidence.

RailTel Declares Interim Dividend and Approves Financial Results

RailTel Corporation of India Limited announced that its Board of Directors has declared an interim dividend of Re. 1 per equity share, reflecting a 10% payout of the paid-up share capital. Additionally, the company has approved its unaudited financial results for the quarter and half-year ending September 30, 2025, and disclosed related party transactions. These developments indicate RailTel’s commitment to shareholder returns and transparency, potentially enhancing its market position and stakeholder confidence.

RailTel Announces Financial Results and Interim Dividend

RailTel Corporation of India Limited announced the approval of its unaudited financial results for the quarter and half-year ending September 30, 2025, by its Board of Directors. Additionally, the company declared an interim dividend of 10% of paid-up share capital, with a record date set for November 4, 2025, and payment scheduled for November 25, 2025. These developments reflect RailTel’s ongoing commitment to shareholder value and transparency in financial reporting.

RailTel Submits Share Capital Audit Report for September 2025 Quarter

RailTel Corporation of India Limited has submitted a Reconciliation of Share Capital Audit Report for the quarter ending September 30, 2025, in compliance with SEBI regulations. This report, verified by a practicing company secretary, ensures transparency and regulatory compliance, potentially impacting investor confidence and market positioning.

RailTel Submits SEBI Compliance Certificate for Q2 2025

RailTel Corporation of India Ltd. has submitted a certificate under SEBI regulations for the quarter ending September 30, 2025, confirming no requests for dematerialization or rematerialization of shares were received. This submission ensures compliance with regulatory requirements and reflects the company’s ongoing commitment to maintaining transparency and trust with its stakeholders.