RailTel shares rise after securing ₹164.79 crore Western Coalfields MPLS VPN order

RailTel Corporation of India shares gained nearly 4% in Friday’s session after the company secured a Rs 164.78 crore work order from Western Coalfields Limited (WCL), extending its strong order-winning streak in August.The stock climbed as much as 3.92% to Rs 291.75 during the session, as investors reacted to the latest contract and the company’s growing order pipeline.According to RailTel’s regulatory filing, the latest order involves setting up an MPLS VPN network for Western Coalfields Limited on a rental basis for 60 months. The contract, awarded by WCL, is worth Rs 164.79 crore including taxes, with execution scheduled to be completed by September 20, 2031.RailTel received the work order on August 19, 2026. The company also clarified that neither its promoter or promoter group nor its group companies have any interest in WCL. The contract does not qualify as a related-party transaction.RailTel’s August order rushThe latest win takes RailTel’s major order announcements in August to five, with a combined value of around Rs 551.44 crore, underscoring continued demand for the company’s telecom, networking and digital infrastructure capabilities.The company’s recent orders include:Western Coalfields Limited, Rs 164.79 crore: MPLS VPN network on a rental basis for 60 months, announced on August 19.Employees’ Provident Fund Organisation (EPFO), Rs 166.80 crore: A one-year extension of the Infra-as-a-Service (IaaS) work order, along with additional components. The order was received on August 17 and is scheduled for execution by February 9, 2027.Deendayal Port Authority, Rs 63 crore: Design, supply, installation, testing and commissioning of an Integrated Gate Automation System (IGAS) at Kandla, along with five years of operation and maintenance. The order was received on August 12 and is scheduled for completion by August 16, 2031.Department of Posts, Rs 119.19 crore: Provisioning and management of cloud services for Postal Life Insurance (PLI). The order was received on August 10.North Western Railway, Rs 37.67 crore: Provision of 4×48-fibre Optical Fibre Cable for the Indigenous Train Collision Avoidance System (TCAS) across the Ajmer division, covering 568.24 route kilometres. The project is scheduled for completion by August 6, 2027.Why RailTel shares are in focusThe latest contract adds to RailTel’s expanding order book and reinforces its presence across key public-sector and infrastructure segments, including coal, railways, ports, postal services and social-security infrastructure.With five sizeable orders announced in just the first three weeks of August, investors are increasingly focusing on whether RailTel’s strong order inflow can translate into sustained revenue growth and execution momentum.The latest Western Coalfields win therefore adds another significant leg to RailTel’s August order momentum, keeping the stock firmly on investors’ radar.On the technical front, RailTel Corporation’s 14-day RSI stands at 40.5, indicating that the stock is in neutral territory. An RSI below 30 is generally considered oversold, while a reading above 70 signals overbought conditions. Meanwhile, the stock is trading below five of its eight key simple moving averages (SMAs), pointing to a relatively bearish technical setup.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)

Mumbai: RailTel Corporation of India has received a work order worth Rs 164.79 crore from Western Coalfields Limited for setting up a secure communications network.The company disclosed the order in a stock exchange filing. The contract value includes taxes.Network project for coal companyUnder the order, RailTel will establish a Multiprotocol Label Switching Virtual Private Network, or MPLS VPN, for Western Coalfields.An MPLS VPN allows an organisation to connect offices through a private network. It can help employees and systems exchange data across sites while keeping business traffic separate from the public internet.The network will be provided on a rental basis for 60 months. This means RailTel will establish and support the system while Western Coalfields uses the service during the period.Completion scheduled by 2031According to the filing, the contract must be executed by September 20, 2031.RailTel received the work order at 6 pm on August 19, 2026. The company classified it as a domestic contract because Western Coalfields is an Indian entity.The filing did not provide details about the project's locations, implementation schedule, payment stages or expected contribution to RailTel's annual revenue. RailTel Receives ₹3.56 Crore Income Tax Penalty, Order Linked To Disallowed Expenditure For AY 2023-24No related-party linkRailTel said its promoters or group companies do not have any direct interest in Western Coalfields.It also clarified that the order does not fall under related-party transactions. Therefore, the contract has been awarded independently and involves no transaction between connected entities.Why the order matters?The contract strengthens RailTel's order book and adds a long-duration rental project to its business portfolio. Its five-year service period could provide revenue visibility, although actual income recognition will depend on execution and contract terms. RailTel Bags ₹24.91 Crore AI-Based Insurance Fraud Detection Order From New India AssuranceThe project will support Western Coalfields' need for secure and reliable connectivity across its operations.RailTel informed the National Stock Exchange and BSE about the development under Regulation 30 of the SEBI listing rules, which requires listed companies to disclose material orders and business developments to investors.Disclaimer: This article is based on information disclosed by RailTel Corporation of India in its official regulatory stock exchange filing.