Why RailTel Share Price is Rising

India is the world's second-largest telecom market, with a steadily growing subscriber base in both wireless and wired broadband services.

The Indian government's liberal policies and strong consumer demand have driven the rapid growth of the telecom sector.

In the Indian stock market today, a particular telecom stock is rising: RailTel Corporation.

Recently its share has surged 6%, attracting investors' attention.

So, what's charging up RailTel's momentum?

Let's take a closer look...

2 Reasons Why Railtel Share Price is Rising

#1 Bihar Education Contracts

Shares of RailTel surged 6% after the company announced it has won multiple orders from the State Project Director (SPD), Bihar Education Project Council (BEPC).

The company received an order worth over Rs 7 billion (bn) from the BEPC for various projects.

RailTel Corporation received a Letter of Acceptance (LoA) from the BEPC for setting up smart classrooms in government secondary and senior secondary schools. The project is worth Rs 2.6 bn.

The company received another order worth Rs 0.9 bn from BEPC for supplying teaching and learning materials to government schools in Bihar for Classes I TO V.

Additionally, RailTel received an order worth Rs 0.6 bn from BEPC for setting up integrated science and mathematics (ISM) labs and information and communication technology (ICT) labs.

RailTel's chairman and managing director expect the company's telecom business to grow 8-9% annually, with project-led initiatives being the main driver of this expansion.

This could be the main reason for the share price to rise.

#2 Mutual Fund Buying

Also, share price can rise due to mutual funds and other institutions increasing their stakes.

Mutual funds have increased their stake in the company from 0.12% in March 2025 to 0.26% in June 2025.

What's Next?

Moving forward, RailTel recently secured a Rs 2.8 bn order from East Central Railway. The Kavach system will utilize UHF technology, eliminating the need for additional spectrum since the railway already processes the necessary UHF spectrum.

The company is also exploring opportunities in the data centres business. RailTel, in partnership with NBC. is jointly developing state-of-the-art data centres across India and internationally (Vietnam, Mauritius, UAE, African countries).

RailTel's growth strategy includes expanding into ICT and data centre services, entering international markets, and participating in advanced railway technology projects.

How RailTel Shares Have Performed Recently

In the past five trading sessions, share price of RailTel is up 2%. In the last six months, the share price up 23%.

However, over the past year, the share price has declined 23%.

The stock touched its 52-week high of Rs 486.55 on 13 September 2024 and a 52-week low of Rs 265.3 on 3 March 2025.

About RailTel

RailTel Corporation is a "Navratna" PSU and one of the largest neutral telecom infrastructure providers in India.

It owns a pan-India optical fibre network that covers over 62,000 route km and 11,000+ Points of Presence (PoPs), reaching about 70% of the country's population, including many rural areas.

RailTel has a healthy order book and expects sustained revenue growth, supported by government backing and diversified services.

RailTel's extensive optical fiber network, strategic diversification into ICT and data center services, government collaborations, and focus on emerging technologies like 5G, position it well for growth aligned with India's digital infrastructure expansion and smart connectivity goals.

To know more, check out RailTel's factsheet and latest quarterly results. You can also compare RailTel with its peers on our website.

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To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...