RailTel bags Rs 166.8 crore EPFO order for IaaS services

New Delhi, Aug 18 (IANS) Telecom infrastructure firm RailTel Corporation of India Limited on Tuesday said it has received a work order worth Rs 166.8 crore, including taxes, from the Employees’ Provident Fund Organisation (EPFO).

The order is an extension of an existing work order for providing Infrastructure-as-a-Service (IaaS) through RailTel, with additional components. The extended contract is scheduled to be executed until February 9, 2027.

RailTel said the order was received on August 17, 2026, and was awarded by a domestic entity. The company clarified that neither its promoter, promoter group nor group companies have any interest in the entity that awarded the order.

The latest order comes as RailTel maintains an optimistic outlook for its business in the current financial year. Earlier this month, Chairman and Managing Director Sanjai Kumar reiterated the company’s revenue growth guidance of 20-25 per cent for FY27 after RailTel reported 20 per cent growth in revenue during the April-June 2026 quarter.

Kumar said telecom revenue is expected to grow 7-8 per cent during FY27, while the project business is expected to expand by 40-50 per cent annually, supported by a strong order book.

The company’s revenue mix between projects and telecom currently stands at around 60:40 and could shift to 70:30, Kumar said. Such a change could put pressure on overall margins even as margins in individual segments remain stable.

He added that RailTel’s Kavach railway safety business, which is expected to start recognising revenue during the current financial year, carries higher margins than the 4-5 per cent range in the project business and could help improve the company’s overall margins.

RailTel is also targeting Rs 300 crore in data centre revenue in FY27 and aims to increase it to Rs 500 crore by FY28. Kumar said the company plans to achieve this growth through partnerships with real estate players rather than making direct capital investments.

On receivables, Kumar said more than Rs 2,000 crore in government trade receivables as of March primarily reflected delays in milestone payments and did not represent a funding risk, as project financing is largely provided by business associate partners.

–IANS

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