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

7 Followers
IN:RAILTEL

RailTel Corp. of India Ltd.

(NSE:RAILTEL)

Select Model
Rating:59Neutral
Price Target:INR 252.00â–¼(-2.33% Downside)
Action:reiterated
Date:11/07/26

The score is primarily supported by strong growth and a conservatively financed balance sheet, but it is held back by weakening margins and inconsistent free-cash-flow generation. Technicals also weigh on the score due to the stock trading below key longer-term moving averages and a negative MACD, while valuation appears moderate rather than compelling.

Positive Factors
Strong revenue and earnings growthSustained revenue expansion indicates growing demand for RailTel’s connectivity, digital infrastructure, and project services. The accompanying increase in net income shows that the company has converted scale into earnings, supporting continued investment and a stronger competitive position over the next several quarters.
Negative Factors
Material margin compressionPersistent margin deterioration means revenue growth is producing less profit per unit of sales than in earlier periods. If this trend continues, RailTel may have less capacity to reinvest, withstand pricing pressure, or convert its expanding project and service base into durable earnings growth.

RailTel Corp. of India Ltd. (RAILTEL) vs. iShares MSCI India ETF (INDA)

-40%-30%-20%-10%0%10%IN:RAILTEL-28.27%INDA-5.55%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
INR 83.57B
Dividend Yield
1.26%
Average Volume (3M)
68.78K
Price to Earnings (P/E)
24.5
Beta (1Y)
1.78
Revenue Growth
22.56%
EPS Growth
5.56%
Country
India
Employees
595
Sector
General
Sector Strength
55
Industry
Telecommunications Services

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 and...

How the Company Makes Money

RailTel makes money primarily by monetizing its optical fiber network and associated telecom infrastructure through service contracts and project execution. A major revenue stream comes from bandwidth/leased-line and connectivity services sold to tel...

RailTel Corp. of India Ltd. Financial Statement Overview

Summary

Strong multi-year revenue and net income growth supports the business outlook, and the balance sheet is a major strength with very low leverage (debt-to-equity ~2–3%). Offsetting this, profitability has weakened materially (gross margin compression and net margin down to ~8.1% in 2026) and cash conversion is volatile, with free cash flow negative in 2025 and only modestly positive in 2026 (~10% of net income).

Income Statement

72Positive

Balance Sheet

88Very Positive

Cash Flow

46Neutral
Financial statement breakdown
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue46.22B42.77B34.77B25.68B19.64B15.48B
Gross Profit5.27B5.10B5.77B5.05B4.21B4.04B
EBITDA6.83B6.62B5.33B4.64B3.87B3.73B
Net Income3.38B3.46B3.00B2.46B1.89B2.09B
Balance Sheet
Total Assets59.86B58.30B51.61B40.50B33.39B28.58B
Cash, Cash Equivalents and Short-Term Investments4.09B6.54B7.98B6.44B4.87B3.66B
Total Debt601.10M637.20M445.40M456.20M417.90M315.10M
Total Liabilities36.26B35.68B31.62B22.22B17.00B13.31B
Stockholders Equity23.59B22.62B20.00B18.27B16.49B15.27B
Cash Flow
Free Cash Flow-2.02B379.70M-697.10M3.47B524.70M1.48B
Operating Cash Flow-422.90M3.64B2.55B5.56B2.30B2.64B
Investing Cash Flow-369.90M-1.25B-823.10M-4.19B-1.50B-2.23B
Financing Cash Flow-1.01B-1.50B-1.13B-774.20M-785.10M-1.04B

RailTel Corp. of India Ltd. Technical Analysis

Technical Analysis SentimentPositive
Last Price258.00

Price Trends

50DMA252.16Positive
100DMA273.24Negative
200DMA291.45Negative

Market Momentum

MACD-2.34Negative
RSI61.17Neutral
STOCH85.26Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RAILTEL, the sentiment is Positive. The current price of 258.00 is above the 20-day moving average (MA) of 239.09, above the 50-day MA of 252.16, and below the 200-day MA of 291.45, indicating a neutral trend. The MACD of -2.34 indicates Negative momentum. The RSI at 61.17 is Neutral, neither overbought nor oversold. The STOCH value of 85.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:RAILTEL.

RailTel Corp. of India Ltd. Peers Comparison

Overall Rating

UnderperformOutperform
Sector (55)

Financial Indicators

IN:RAILTEL against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
IN:INDUSTOWERIN:INDUSTOWER74OutperformINR 1.01T14.75―3.50%5.31%-24.06%
IN:BHARTIARTLIN:BHARTIARTL70OutperformINR 12.88T41.32―1.14%17.56%-20.64%
IN:TATACOMMIN:TATACOMM60NeutralINR 485.20B45.10―1.00%9.08%-20.04%
IN:RAILTELIN:RAILTEL59NeutralINR 79.80B24.48―1.26%22.56%5.56%
Sector *55Neutral$6.65B3.83-15.92%6.20%10.91%7.18%
IN:IDEAIN:IDEA55NeutralINR 1.37T4.49――3.30%―
IN:MTNLIN:MTNL46NeutralINR 17.01B-0.56――68.07%14.04%

* General Sector Average

Performance Comparison

-40%-20%0%20%40%IN:RAILTELIN:BHARTIARTLIN:IDEAIN:INDUSTOWERIN:MTNLIN:TATACOMMDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
IN:RAILTEL and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
IN:RAILTELRailTel Corp. of India Ltd.258.00-95.65-27.05%
IN:BHARTIARTLBharti Airtel Limited2107.0034.381.66%
IN:IDEAVodafone Idea Ltd12.861.9217.55%
IN:INDUSTOWERIndus Towers Limited400.002.120.53%
IN:MTNLMahanagar Telephone Nigam Limited26.59-14.54-35.35%
IN:TATACOMMTata Communications Limited1746.70-110.60-5.96%

RailTel Corp. of India Ltd. Corporate Events

RailTel Clears September Quarter Results, Declares 10% Interim Dividend

Oct 25, 2026

RailTel Corporation of India Ltd. has approved its unaudited financial results for the quarter and half year ended 30 September 2026, following review by the audit committee and limited review by the statutory auditors, and will publish the figures i...

RailTel Board Clears Q2 FY27 Results, Announces Interim Dividend

Oct 25, 2026

RailTel Corporation of India Ltd. said its board has approved the unaudited financial results for the quarter and half year ended 30 September 2026, which will be published in newspapers in the prescribed format. The board also took note of related-p...

RailTel clears September-quarter results and announces interim dividend

Oct 25, 2026

RailTel Corporation of India’s board has approved the unaudited financial results for the quarter and half year ended 30 September 2026, following a review by its audit committee and statutory auditors in line with SEBI’s listing regulations. The res...

RailTel bags Rs 20 crore data centre, DR contract from Munitions India

Oct 24, 2026

RailTel Corporation of India Ltd. has received a Letter of Intent from Munitions India Limited for setting up a data centre and disaster recovery centre on an Infrastructure-as-a-Service platform for the Q-Shakti (QA4.0) project. The contract covers...

RailTel Wins Rs 47.4 Crore Structured LAN Contract from Haryana Govt Agency

Oct 20, 2026

RailTel Corporation of India Ltd. has secured a significant rate contract from Haryana State Electronics Development Corporation Limited for the supply, installation, testing, and commissioning of structured LAN networks. The contract covers multiple...

RailTel Wins Rs 1,675 Million RRB Secunderabad Digital Recruitment Contract

Oct 17, 2026

RailTel Corporation of India Ltd. has secured a major domestic contract from the Railway Recruitment Board Secunderabad to provide AM-RMS services for pre-exam and post-exam stages across various recruitment notifications. The Letter of Acceptance, r...

RailTel wins Rs 18.99 crore IT and cybersecurity contract from Health Insurance TPA of India

Oct 17, 2026

RailTel Corporation of India Ltd. has secured a major domestic, non-telecom contract from Health Insurance TPA of India Ltd. to provide IT infrastructure and cybersecurity solutions. The three-year project, valued at about Rs 18.99 crore including ta...

RailTel Wins Rs 14 Crore Hospital IT Systems Contract from UP Medical University

Sep 22, 2026

RailTel Corporation of India has secured a domestic work order from Uttar Pradesh University of Medical Sciences to implement and operate an Enhanced Hospital Information Management System. The five-year, outcome-linked, pay-per-use IT project, value...

RailTel Secures Rs. 63 Crore Doordarshan OTT Services Contract

Sep 17, 2026

RailTel Corporation of India Ltd. is a state-owned telecommunications and information technology company that leverages Indian Railways’ nationwide infrastructure to provide broadband, network, and digital services. The company focuses on government...

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 accountancy...

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. The c...

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 between t...

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.

Date of analysis: Nov 07, 2026