RailTel Secures Coalfields Internet Deal

25 Jul 2025 , 12:00 PM

RailTel Corporation of India Ltd., announced on Thursday that it has secured a ₹40.2 crore work order from Central Coalfields Limited. The contract involves provisioning of high-speed internet services with a bandwidth of 8.4 Gbps and is scheduled for execution by November 23, 2025.

The order, which includes taxes, adds to RailTel’s growing pipeline of government-backed digital infrastructure projects, reinforcing its role in the Centre’s digital connectivity initiatives. Separately, RailTel reported a robust set of numbers for the fourth quarter, with net profit rising 46% year-on-year to ₹113.45 crore.

Revenue for the quarter came in at ₹1,308 crore, up 57% from the corresponding period last year, driven by strong project execution. EBITDA for the quarter stood at ₹179.63 crore. This reflects a 54% increase on a year-on-year basis. However, EBITDA margins narrowed slightly to 13.7%, down from 14% last year. This is due to a sharp spike in project-related expenses, which surged by 86%.

The company’s Project Work Services vertical delivered standout performance, with revenue nearly doubling to ₹949.53 crore from the year-ago quarter. Its telecom services segment also posted growth, with revenue rising 7% year-on-year to ₹358.75 crore.

Retail investor interest in RailTel has increased steadily. As of March 2025, around 5.3 lakh small shareholders, defined as those holding up to ₹2 lakh in authorised share capital, collectively owned a 20.11% stake in the company.
This marks a significant increase from March 2024, when 3.68 lakh small shareholders held a 16% stake. The Government of India, however, remains the majority stakeholder, holding 72% as of the end of the March quarter.

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