RailTel Secures ₹450 Crore in New Orders Amid Bihar Project Setbacks

NEW DELHI – RailTel Corporation of India Ltd, a Navratna PSU, has kicked off 2026 with a massive expansion of its digital footprint. Throughout January, the company secured multiple high-value contracts across defense, healthcare, and IT infrastructure, totaling over ₹450 crore.

However, this growth comes alongside the cancellation of major educational projects in Bihar, highlighting the volatility of large-scale state government contracts.


The Bihar Project Cancellations

While January brought new opportunities, RailTel faced a significant hit to its existing order book in Bihar. The Bihar Education Project Council (BEPC) cancelled three major contracts previously awarded in September 2025, citing "unavoidable reasons."

  • Total Loss: Approximately ₹610 crore.
  • Cancelled Projects: Included smart classrooms for middle and secondary schools and teaching-learning materials for primary classes.
  • Market Impact: RailTel’s stock witnessed a nearly 10% decline over January as investors weighed the loss of these high-value revenue streams against new wins.

Financial and Market Outlook

Despite the Bihar setback, RailTel remains a strong contender in the "Maharatna" potential category.

  • Recent Performance: As of January 27, 2026, the stock is trading around ₹335, showing signs of a rebound after the mid-month slump.
  • Next Key Date: The company is expected to release its Q3 FY26 financial results on February 2, 2026. Analysts are anticipating robust revenue growth driven by its project work services.
  • Strategic Note: RailTel's expansion into Hospital Management Information Systems (HMIS) in Assam marks its first major entry into the healthcare digitalization space, a sector poised for rapid growth under the Ayushman Bharat Digital Mission.
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