RailTel shares jump 8% after defense contract win

RailTel Corporation's shares rose by 8% after the company announced a new contract worth ₹16.8 crore from the Ministry of Defence. This project involves laying Optical Fiber Cable and is expected to be completed by March 2026. The deal improves RailTel’s reputation as a telecom infrastructure provider. The announcement led to a surge in RailTel’s stock price, reaching ₹321.60 at its intraday high. However, the shares remain 48% lower than their highest point of ₹618.00, which occurred in July 2024. Earlier this month, the stock also hit a 52-week low of ₹265.30. The contract win is part of a larger trend for RailTel. The company recently secured a ₹37 crore project from Madhya Pradesh State Electronics Development Corporation and a ₹288 crore deal to implement a train safety system called Kavach across certain railway tracks. In its latest financial report, RailTel showed a 4.68% increase in net profit, reaching ₹65.05 crore for the third quarter of FY25. Revenue from operations increased by 14.85%, indicating strong business performance. Despite some fluctuations in its stock price over the past year, RailTel is gaining attention due to its steady contract wins and improving financial results. Investors are optimistic, though the stock still has a way to go to reach its previous highs.