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

• Market Cap: ₹110.47B
• Dividend Yield: 0.83%
• Average Volume (3M): 90.70K
• Price to Earnings (P/E): 34.8
• Beta (1Y): 1.90
• Revenue Growth: 37.80%
• EPS Growth: 23.69%
• Country: IN
• Employees: 478
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): 2.00
• Shares Outstanding: 320,938,420
• 10 Day Avg. Volume: 93,031
• 30 Day Avg. Volume: 90,700
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹398.00
• Price Target Upside: 15.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ₹398.00 ▲(15.56% Upside)

RailTel's strong financial performance is countered by bearish technical indicators and a high valuation. While the company's financial health is solid, the current market momentum suggests caution. Investors should monitor cash flow management and wait for more favorable technical signals.

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

Company Description

RailTel Corporation of India Ltd. (RAILTEL) is a government-owned enterprise operating under the Ministry of Railways in India. The company is a leading provider of information and communications technology (ICT) services, focusing on telecommunications infrastructure primarily for the railway sector. RailTel leverages its extensive fiber optic network, which spans across the railway tracks, to offer high-speed broadband and VPN services, data center and hosting services, and a range of managed services to both enterprise and retail customers.

How the Company Makes Money

RailTel Corporation of India Ltd. generates revenue through multiple streams. A significant portion of its income comes from leasing its extensive fiber optic network to telecom operators and internet service providers, enabling them to expand their service coverage. Additionally, RailTel earns money by providing high-speed internet services to railway passengers and through managed services such as network and data center management. The company also partners with various government agencies and corporations to offer ICT solutions, including e-office services and digital transformation projects. RailTel's strategic partnerships and collaborations with public and private sector entities further bolster its revenue by allowing it to tap into diverse market opportunities.

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. The income statement is particularly strong, but concerns exist regarding cash flow due to rising capital expenditures.

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	34.77B	34.77B	25.68B	19.51B	15.48B	13.78B
Gross Profit	5.77B	5.77B	5.05B	2.74B	5.90B	5.69B
EBITDA	5.38B	5.33B	4.78B	4.04B	4.32B	3.37B
Net Income	3.00B	3.00B	2.46B	1.88B	2.09B	1.42B
Balance Sheet
Total Assets	51.61B	51.61B	40.50B	33.39B	28.58B	27.10B
Cash, Cash Equivalents and Short-Term Investments	5.66B	5.66B	6.44B	4.87B	3.66B	5.83B
Total Debt	445.40M	445.40M	456.20M	417.90M	315.10M	301.80M
Total Liabilities	31.62B	31.62B	22.22B	16.90B	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: 344.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 344.4 is below the 20-day moving average (MA) of 348.58, below the 50-day MA of 379.74, and below the 200-day MA of 366.24, indicating a bearish trend. The MACD of -9.33 indicates Negative momentum. The RSI at 41.61 is Neutral, neither overbought nor oversold. The STOCH value of 47.07 is Neutral, 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	₹193.67B	18.78		1.18%	-1.10%	1.86%
SCI	70 Outperform	₹98.77B	10.90		3.15%	0.87%	13.45%
JWL	66 Neutral	₹137.75B	42.61		0.71%	-6.04%	-14.09%
RAILTEL	60 Neutral	₹110.47B	34.82		0.83%	37.80%	23.69%
Sector *	56 Neutral	$13.56B	12.83	10.03%	0.92%	7.13%	-12.93%
SAMMAANCAP	52 Neutral	₹114.56B	―		―	-1.00%	-236.83%
TTML	45 Neutral	₹112.15B	―		―	3.18%	-2.10%

RailTel Corp. of India Ltd. Corporate Events

RailTel Announces AGM Notice and Reports Strong Financials

RailTel Corporation of India Ltd. announced the publication of its 25th Annual General Meeting notice and annual report in leading newspapers. The company reported strong financial performance for the quarter ending June 30, 2025, with significant increases in total income and net profit compared to the previous year, highlighting its robust market position.