RailTel Secures ₹166.8 Crore EPFO Order, While Targeting Strong FY27 Growth
RailTel Corporation of India Ltd has received a ₹166.8 crore work order, including taxes, from the Employees’ Provident Fund Organisation (EPFO) for an additional one-year extension of Infra-as-a-Service (IaaS) services, with execution scheduled until February 9, 2027. The order was received on August 17, 2026, and adds further visibility to RailTel’s project pipeline.
The company has maintained its FY27 revenue growth guidance of 20–25%, following 20% growth in Q1 FY27, while telecom revenue is expected to increase 7–8% and the project business is projected to grow 40–50%, supported by a strong order book. RailTel’s current revenue mix of around 60:40 between projects and telecom could shift towards 70:30, which may put some pressure on overall margins despite stable segment-level margins.
Meanwhile, the company expects its Kavach railway safety business to begin contributing revenue in FY27, with margins expected to be higher than the 4–5% range seen in the project business, potentially supporting profitability. RailTel is also targeting ₹300 crore in data centre revenue during FY27 and ₹500 crore by FY28, with expansion planned through partnerships with real estate players rather than direct capital investment.
The company also highlighted over ₹2,000 crore of government trade receivables as of March, attributing the balance mainly to delays in milestone payments rather than a funding constraint, as project financing is largely supported by business associate partners. Overall, the new EPFO order strengthens near-term revenue visibility, while the company’s growth targets across projects, Kavach and data centres remain key factors to monitor for its FY27 performance.