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RailTel Corp. of India Ltd.
(RAILTEL)
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Rating:60Neutral
Price Target:
₹273.00
▼(-5.34% Downside)
Action:Reiterated
Date:08/06/26
The score is primarily supported by strong growth and a conservatively financed balance sheet, but it is held back by inconsistent cash generation and margin compression. Technicals are currently weak (below major moving averages with negative MACD), and valuation appears only moderately supportive given the P/E and modest dividend yield.
Positive Factors
Strong revenue growth
Revenue has more than tripled across the period, demonstrating sustained demand for RailTel’s connectivity, network integration, and ICT services. Continued expansion provides operating scale and supports reinvestment in infrastructure and managed-service capabilities over the next several quarters.
Negative Factors
Material margin compression
The sharp decline in gross margin shows that revenue growth is not translating into profitability at the earlier rate. Persistent cost or pricing pressure could reduce earnings resilience, constrain reinvestment capacity, and weaken the long-term benefit of RailTel’s expanding scale.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue growth
Revenue has more than tripled across the period, demonstrating sustained demand for RailTel’s connectivity, network integration, and ICT services. Continued expansion provides operating scale and supports reinvestment in infrastructure and managed-service capabilities over the next several quarters.
Read all positive factors
RailTel Corp. of India Ltd. (RAILTEL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹83.40B
Dividend Yield1.25%
Average Volume (3M)65.54K
Price to Earnings (P/E)24.1
Beta (1Y)1.97
Revenue Growth20.85%
EPS Growth9.07%
CountryIN
Employees595
SectorGeneral
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)10.79
Shares Outstanding320,938,420
10 Day Avg. Volume50,279
30 Day Avg. Volume65,542
Financial Highlights & Ratios
PEG Ratio1.47
Price to Book (P/B)3.49
Price to Sales (P/S)1.85
P/FCF Ratio208.03
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)12.9
Revenue Forecast (FY)₹50.41B
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. The company operates through Telecom Services and Project Work Services segments. It also offers e-office, HD video conferencing, data a...
How the Company Makes Money
RailTel makes money primarily by selling telecom bandwidth and ICT/network services delivered over its nationwide optical fiber backbone and associated last-mile infrastructure.
Key revenue streams typically include:
1) Bandwidth and leased line/...
RailTel Corp. of India Ltd. Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
88
Very Positive
Cash Flow
46
Neutral
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 42.77B | 34.77B | 25.68B | 19.64B | 15.48B |
| Gross Profit | 5.10B | 5.77B | 5.05B | 4.21B | 4.04B |
| EBITDA | 6.62B | 5.16B | 4.47B | 3.60B | 3.49B |
| Net Income | 3.46B | 3.00B | 2.46B | 1.89B | 2.09B |
Balance Sheet | |||||
| Total Assets | 58.30B | 51.61B | 40.50B | 33.39B | 28.58B |
| Cash, Cash Equivalents and Short-Term Investments | 6.54B | 7.98B | 6.44B | 4.87B | 3.66B |
| Total Debt | 637.20M | 445.40M | 456.20M | 417.90M | 315.10M |
| Total Liabilities | 35.68B | 31.62B | 22.22B | 17.00B | 13.31B |
| Stockholders Equity | 22.62B | 20.00B | 18.27B | 16.49B | 15.27B |
Cash Flow | |||||
| Free Cash Flow | 379.70M | -697.10M | 3.47B | 524.70M | 1.48B |
| Operating Cash Flow | 3.64B | 2.55B | 5.56B | 2.30B | 2.64B |
| Investing Cash Flow | -1.25B | -823.10M | -4.19B | -1.50B | -2.23B |
| Financing Cash Flow | -1.50B | -1.13B | -774.20M | -785.10M | -1.04B |
RailTel Corp. of India Ltd. Technical Analysis
Negative
288.40
Price Trends
285.75
Negative
302.53
Negative
311.11
Negative
Market Momentum
-6.79
Positive
26.93
Positive
5.95
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 288.4 is above the 20-day moving average (MA) of 275.14, above the 50-day MA of 285.75, and below the 200-day MA of 311.11, indicating a bearish trend. The MACD of -6.79 indicates Positive momentum. The RSI at 26.93 is Positive, neither overbought nor oversold. The STOCH value of 5.95 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | ₹11.43T | 38.20 | ― | 1.31% | 19.63% | -18.80% | |
63 Neutral | ₹1.02T | 14.31 | ― | 3.61% | 6.72% | -26.31% | |
60 Neutral | ₹83.40B | 24.11 | ― | 1.25% | 20.85% | 9.07% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ₹1.62T | 5.22 | ― | 0.72% | 3.30% | ― | |
49 Neutral | ₹502.56B | 53.08 | ― | 0.99% | 8.12% | -33.60% | |
42 Neutral | ₹15.57B | -0.52 | ― | 1.09% | 68.07% | 14.04% |
* General Sector Average
IN:RAILTEL
RailTel Corp. of India Ltd.
259.85
-135.59
-34.29%
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1,763.25
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6.56%
RailTel Corp. of India Ltd. Corporate Events
RailTel Restructures Statutory Auditors Across Regions for FY 2026-27
Sep 9, 2026
RailTel Corporation of India Ltd. has announced a change in its statutory auditors for the financial year 2026-27, following appointments made by the Comptroller Auditor General of India under the Companies Act, 2013. Separate chartered accountan...
RailTel Fined by NSE and BSE Over Board Composition Non-Compliance
Aug 27, 2026
RailTel Corporation of India Ltd. has disclosed that both NSE and BSE have imposed fines of Rs 9,00,340 each, including GST, for non-compliance with key SEBI LODR provisions on board and committee composition for the quarter ended 30 June 2026. Th...
RailTel Wins Net Rs 8 Crore in Arbitration Against Rajcomp Info Services
Aug 27, 2026
RailTel Corporation of India has reported an update on a long‑running arbitration case with Rajcomp Info Services Ltd., disclosing that an arbitral tribunal has issued its award in the commercial dispute. The case concerned financial claims ...
RailTel appoints new internal and cost auditors to bolster governance
Jul 8, 2026
RailTel Corporation of India Ltd. has approved the appointment of new internal auditors across its corporate office and five regional zones, covering the Eastern, Northern, Southern, Western regions and headquarters for FY 2026-27 and 2027-28. Thi...
RailTel Wins Rs 16.2 Crore Haryana State Wide Area Network O&M Contract
Jul 2, 2026
RailTel Corporation of India Ltd., a telecom and IT services provider with a strong presence in government and enterprise connectivity, is increasingly positioned as a managed services partner for large public sector digital infrastructure project...
RailTel Elevates Vishwanath Bharatula to Senior Marketing Leadership Role
Jul 1, 2026
RailTel Corporation of India Ltd. has elevated Shri Vishwanath Bharatula, currently Executive Director (Marketing/SR), to the role of Principal Executive Director (Marketing/SR), with the promotion taking effect when he assumes charge of the highe...
RailTel wins Rs 3,345 million Railways e-Office upgrade order
Jun 23, 2026
RailTel Corporation of India has secured a major domestic order from the Ministry of Railways to upgrade e-Office systems across zonal railways and administrative units to version 7.x, including the mandated use of digital signatures and eSign. Th...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.