RailTel Secures ₹166.8 Crore EPFO Order, Maintains Strong FY27 Growth Outlook

RailTel Corporation of India has secured a ₹166.8 crore, including taxes, work order from EPFO for a one-year extension of its Infra-as-a-Service (IaaS) contract, valid until February 9, 2027. The order adds to the company’s strong project pipeline as management maintains its FY27 revenue growth guidance of 20–25%, following 20% growth in Q1 FY27. Telecom revenue is expected to grow 7–8%, while the project business is projected to expand 40–50%, potentially shifting the revenue mix from the current 60:40 towards 70:30. The company expects its Kavach railway safety business to begin contributing revenue this year, with margins higher than the 4–5% project business range. RailTel is also targeting data centre revenue of ₹300 crore in FY27 and ₹500 crore in FY28. While government receivables remain above ₹2,000 crore, management views this as a timing issue related to milestone payments rather than a funding concern. Overall, the fresh order and strong project outlook provide positive revenue visibility, while margins and execution remain key factors to monitor.

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