Railtel Shares Jump 7% on Rs 167 Cr EPFO Order; Nifty Dips
By Business Desk
Railtel Corporation of India shares surged 7.4% to Rs 297.60 after securing a Rs 166.80 crore order from EPFO, despite a 0.27% dip in the Nifty index.
Railtel Corporation of India Ltd. shares climbed over 7% in early trading on Wednesday, following a significant order win from the Employees Provident Fund Organisation (EPFO). The stock hit an early high of Rs 297.60, driven by the new contract.
By 9:30 a.m., Railtel’s shares adjusted to trade 5% higher at Rs 290.80. This occurred as the Nifty index registered a 0.27% decline during the same period.
Market Snapshot
- Railtel share surge: 7.4% early
- Early high: Rs 297.60
- Trading at 9:30 a.m.: 5% higher at Rs 290.80
- Nifty index decline: 0.27%
- EPFO order value: Rs 166.80 crore
This latest contract adds to Railtel’s recent successes, including additional orders secured in the preceding week. These combined orders totaled Rs 183 crore.
Recent Contract Wins
- Deendayal Port Authority order: Rs 63 crore
- Department of Posts order: Rs 119 crore
Despite the recent order momentum, the company reported mixed financial results for the first quarter of fiscal year 2027. Revenue growth contrasted with a slight dip in net profit.
Q1 FY27 Financials
- Net profit: Decreased 0.5% to Rs 65.8 crore (from Rs 66.1 crore YoY)
- Revenue: Increased 20.1% to Rs 893 crore (from Rs 744 crore YoY)
- EBITDA: Increased 13.6% to Rs 132 crore (from Rs 116 crore YoY)
- EBITDA margin: Contracted to 14.7% (from 15.6%)
Railtel shares have faced a challenging period in the broader market, reflecting a downward trend over the past year. The year-to-date performance shows a notable decline.
Stock Performance Metrics
- Year-to-date decline: 22.7%
- Last 12 months decline: 20%
The recent contract wins provide a positive catalyst, yet Railtel’s long-term stock performance and Q1 FY27 financial results present a complex picture for investors.