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RailTel

RailTel Corporation of India Limited is a Navratna public sector undertaking (PSU) under the Ministry of Railways, Government of India, specializing in information and communication technology (ICT) infrastructure and services. Established on September 26, 2000, it was formed to modernize the Indian Railways' train control, operations, and safety systems by creating a nationwide broadband, telecom, and multimedia network. As one of the largest neutral telecom infrastructure providers in the country, RailTel owns and operates a Pan-India optical fiber cable (OFC) network spanning 62,000 route kilometers (RKM) as of October 2025, with access rights along 67,415 RKM of railway tracks connecting more than 7,000 stations. The company provides a wide range of services, including , virtual private networks (VPNs), operations, solutions, and multimedia distribution, serving both railway operations and external clients such as government agencies, enterprises, and rural initiatives. Initially focused on leveraging the railways' right-of-way for deployment, RailTel has expanded its to include over 21,000 kilometers of citywide networks and more than 11,000 points of presence (PoPs) across urban and rural areas as of 2025, covering approximately 70% of India's population. RailTel's growth has been marked by key milestones, such as its recognition as a Mini Ratna (Category-I) PSU in 2010 and elevation to Navratna status on August 30, 2024, granting greater operational autonomy. It went public through an (IPO) in February 2021, listing on the National Stock Exchange (NSE) and (BSE), which helped fund further network expansion. As of 2025, RailTel continues to support India's , including the BharatNet program for rural and secure connectivity for critical infrastructure, with recent financial growth including total income of ₹1,149 in Q2 FY26.

Corporate Profile

Formation and Ownership

RailTel Corporation of India Limited was incorporated on September 26, 2000, as a public limited company under the Companies Act, 1956. The company was granted Schedule 'A' Mini Ratna (Category-I) status in May 2012 as a public sector undertaking (PSU) under the administrative control of the Ministry of Railways, Government of India. Its initial purpose was to create and manage a nationwide broadband telecom and multimedia network, primarily to modernize the communication infrastructure for train control operations and other railway needs, while also enabling broader telecom services across the country. Originally fully owned by the through the , RailTel transitioned to partial public ownership following its (IPO) in February 2021, which listed its shares on the National Stock Exchange and . As of September 2025, the holds 72.84% of the equity shares via the , with the balance publicly traded among institutional and retail investors. On August 30, 2024, RailTel was granted Navratna status by the Department of Public Enterprises, recognizing its financial performance and operational capabilities, and providing greater autonomy in , investments, and joint ventures without prior government approval up to specified limits. The company's is situated in Gurugram, , at 143, Institutional Area, Sector-44, while its registered office is located in at Plate-A, 6th Floor, Office Block Tower-2, East Kidwai Nagar.

Governance and Leadership

RailTel Corporation of India Limited operates under a board of directors structured in accordance with the Companies Act, 2013, and guidelines for public sector undertakings (PSUs) issued by the Department of Public Enterprises (DPE). The board typically comprises 10 to 12 members, including a Chairman and Managing Director (CMD), functional directors responsible for areas such as finance, operations, projects, and marketing, independent directors, and government nominees from the Ministry of Railways. As of November 2025, the board includes Sh. Sanjai Kumar as CMD, Sh. V. Rama Manohara Rao as Director (Finance) and Chief Financial Officer, Sh. Manoj Tandon as Director (Operations), Sh. Yashpal Singh Tomar as Director (Marketing), Sh. Rameshwer Meena as Government Nominee Director, and independent directors such as Dr. Subhash Sharma and Smt. Asha Sharma, who was appointed as an additional independent director effective May 13, 2025. The CMD, appointed by the , holds ultimate responsibility for the company's strategic direction, operational execution, and overall performance as the . Sh. Sanjai Kumar has served in this role since September 23, 2022, guiding RailTel's expansion in telecommunications infrastructure and digital services while ensuring alignment with national railway objectives. RailTel's governance is supported by several board-level committees to ensure compliance, oversight, and ethical operations. The , chaired by an such as Dr. Subhash Sharma, oversees financial reporting, internal audits, and to maintain transparency and accountability. The Nomination and Remuneration Committee, comprising and nominee s, handles director appointments, performance evaluations, and compensation policies in line with DPE guidelines. The (CSR) Committee, led by the CMD or a designated functional , monitors CSR initiatives, ensuring adherence to Section 135 of the , with a focus on and . These committees meet regularly to review compliance and provide recommendations to the full board. As a listed PSU, RailTel adheres to Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015, including timely disclosures and norms post its 2021 . It also complies with DPE guidelines on for PSUs, emphasizing board independence and ethical standards. Annually, RailTel signs a (MoU) with the to set performance targets in areas like revenue growth, project execution, and , with the 2024-25 MoU focusing on digital infrastructure expansion. Ethical at RailTel is reinforced through robust policies, including a Code of Business Conduct and Ethics that mandates eradication of and promotes among board members and senior management. The company maintains a Whistleblower Policy, effective since 2007 and aligned with best practices, which provides safeguards for employees reporting unethical practices or victimization in good faith, with direct access to the chairperson. Board is promoted under DPE guidelines, with inclusion of women directors such as Smt. Asha Sharma and representation from varied professional backgrounds to enhance decision-making. Vigilance awareness programs, including sessions on during events like Vigilance Awareness Week 2025, further embed these principles across the organization.

History

Establishment and Early Years

In the late 1990s, Indian Railways recognized the growing need for a dedicated telecommunications entity to support upgrades in railway signaling, train control, and communication systems, driven by the demands of operational efficiency, safety, and the potential for revenue generation through broadband services along the extensive railway right-of-way. This recognition culminated in the 2000 Railway Budget announcement for forming a specialized telecom corporation to modernize these systems separately from core railway operations. RailTel Corporation of India Limited was incorporated on September 26, 2000, as a undertaking wholly owned by the , under the , with an authorized capital of ₹1,000 . commenced business on October 9, 2000, with initial equity shares allotted to nominees of the , enabling it to leverage railway tracks for optic deployment while focusing on development. By 2005, RailTel had rolled out approximately 20,000 route kilometers of cable () along railway tracks. The R1 —a high-capacity nationwide system using dense (DWDM) and (MPLS) technologies—was established later as part of network enhancements for and services. RailTel's first major projects included the implementation of railway communication systems for train operations and safety, alongside the launch of leased line services in 2002 targeted at government departments and enterprises for dedicated connectivity. This was supported by obtaining an Infrastructure Provider Category-II (IP-II) license in the same year, which authorized nationwide long-distance services and bandwidth provision. Early operations were funded primarily through equity infusions from the , such as the allotment of approximately 150 million (15 crore) equity shares by 2001-2002, but faced challenges including integration with existing railway infrastructure, project execution delays, right-of-way coordination issues, and initial hurdles in capacity utilization and . These obstacles were compounded by regulatory compliance requirements in the competitive sector, yet they laid the groundwork for RailTel's foundational role in India's rail-linked .

Key Milestones and Growth

In May 2012, RailTel was conferred with Mini Ratna Category-I status by the , granting it enhanced operational autonomy, including the ability to undertake projects independently up to Rs 500 crore without prior government approval. This milestone marked a significant step in RailTel's evolution, enabling faster decision-making and expansion into diverse telecom infrastructure projects. By 2015, RailTel had completed the development of its primary cable (OFC) backbone network, laying the foundation for nationwide connectivity, and continued expansions that grew its OFC network to over 65,000 km by 2025, connecting more than 7,000 stations. During 2015-2020, RailTel played a major role in the BharatNet project, laying fiber for rural connectivity, which expanded its network and revenue streams. This growth facilitated RailTel's diversification into non- sectors, such as and services for entities, broadening its role beyond communications. In February 2021, RailTel launched its (IPO), raising approximately Rs 820 through a public issue, with shares subsequently listed on the National Stock Exchange (NSE) and (BSE) on February 26. The listing enhanced RailTel's access to capital markets and public visibility, supporting further infrastructure investments. On August 30, 2024, RailTel was upgraded to Navratna status by the Department of Public Enterprises, , becoming the 25th such Central Public Sector Enterprise in and gaining authority to make equity investments up to Rs 1,000 in joint ventures or wholly owned subsidiaries without prior government approval. This upgrade provided greater financial and operational flexibility, positioning RailTel for accelerated growth in and digital infrastructure. From 2023 to 2025, RailTel pursued strategic partnerships to support digital transformation initiatives under the program, including collaborations for enhancing railway cybersecurity and AI-driven solutions, while contributing to infrastructure readiness through fiber optic expansions along railway tracks. The company's order book expanded significantly during this period, exceeding Rs 8,000 by late 2025, reflecting strong demand for its and services. In 2024, RailTel initiated international forays with its first overseas engagement, signing a strategic (MoU) with InoviTel (PTY) LTD and Tsiko Energy & Infrastructure on April 24 in , , to provide telecom consulting and deploy solutions in rail and digital infrastructure projects. This partnership marked RailTel's entry into global markets, leveraging its expertise in optical networks for cross-border collaborations.

Services and Infrastructure

Optical Fiber Network

RailTel's optical fiber cable (OFC) network forms the core of its infrastructure, spanning over 63,000 route kilometers (RKM) laid along ' tracks and rights-of-way as of 2025. This extensive deployment connects more than 7,000 railway stations, providing a robust foundation for high-speed data transmission across diverse terrains. The backbone structure is organized hierarchically with , , and layers to ensure and efficient traffic management. It incorporates primary and secondary pathways for , supporting capacities up to 800 Gbps. Key technical features include the dark fiber leasing model, which allows customers to access unlit fiber strands for customized applications, and integration with Dense Wavelength Division Multiplexing (DWDM) systems for scalable, high-capacity transmission over long distances. Network maintenance is handled by dedicated teams through a centralized , which monitors performance and conducts regular upkeep to minimize downtime. Security measures encompass comprehensive cybersecurity protocols via a and frameworks, including active redundancy, to safeguard against disruptions and cyber threats. The strategic advantage of RailTel's network lies in its low-cost deployment, facilitated by the exclusive right-of-way along railway corridors, which reduces infrastructure expenses compared to traditional telecom builds. This positioning establishes it as a vital highway, enabling seamless connectivity for critical communications and supporting broader digital initiatives. The infrastructure also underpins RailTel's and connectivity services by providing the foundational high-capacity .

Broadband and Connectivity Services

RailTel provides a range of and services tailored for enterprise and retail customers, leveraging its extensive cable (OFC) network as the backbone for reliable delivery. For enterprises, the company offers managed lease line services available in granularities from E1 to and higher, ensuring dedicated for critical operations. Additionally, RailTel delivers solutions, including Layer-2 and Layer-3 configurations, which enable secure, scalable virtual private networks for data transmission across multiple sites. Ethernet services complement these offerings, supporting high-speed, point-to-point for businesses requiring robust infrastructure. The target segments include government entities for e-governance initiatives, enterprises seeking dedicated internet access, and rural areas through participation in the BharatNet program, which aims to extend to gram panchayats nationwide. RailTel's , RailWire, targets individual consumers and households, operating on a public-private local entrepreneur model that engages more than 11,000 local access network providers to deliver services. As of 2025, RailWire serves more than 575,000 subscribers, with coverage spanning over 4,500 cities and towns, emphasizing last-mile connectivity in urban, semi-urban, and rural regions. Technologically, RailTel employs Fiber to the Home (FTTH) in select areas under RailWire, enabling download speeds up to 1 Gbps for high-performance applications. Integration with the national mission supports scalable infrastructure, while the overall network covers more than 63,000 route kilometers of , facilitating seamless connectivity. Innovations include cloud services for secure data storage and processing, connectivity solutions for applications such as urban monitoring and governance, and capabilities through deployed data centers that reduce latency for real-time services. These advancements position RailTel as a key enabler of across sectors.

Projects and Initiatives

RailWire

RailWire is RailTel Corporation of India's retail initiative, launched in to deliver affordable high-speed services primarily targeting rural and remote areas across the country. As a community-driven service, it leverages RailTel's extensive cable () network to provide reliable connectivity, marking a significant step in expanding beyond urban centers. The service was introduced with the goal of fostering digital inclusion by partnering with local entities to extend last-mile connectivity where traditional providers often fall short. Key features of RailWire include unlimited data plans tailored for homes and small businesses, with speeds starting at 10 Mbps for as low as ₹299 per month and scaling up to 60 Mbps or higher for around ₹499-₹599, depending on the region and data caps post-FUP. These plans are powered by RailTel's nationwide backbone, ensuring low latency and high reliability, and recently include bundled over-the-top () services under the "RailWire Satrang" umbrella, offering access to up to 15 OTT platforms, 450+ live TV channels, and gaming options without additional costs. The service emphasizes simplicity, with easy subscription via local partners and integration of features like prepaid options for flexible usage. RailWire operates in over 500 cities and towns, with a strong emphasis on tier-2, tier-3, and rural locations, supported by more than 11,000 community partnerships nationwide. As of 2024-25, it had more than 575,000 active subscribers, reflecting steady growth through its model of collaborating with local cable operators designated as Providers (ANPs) for last-mile delivery. Additionally, RailWire integrates with government initiatives like PM-WANI, enabling seamless public access and further extending its reach via a standardized framework for Wi-Fi networks. The initiative has played a pivotal role in India's program by bridging the urban-rural , with subscriber numbers growing from around 73,500 in fiscal year 2015-16 to over 575,000 by 2025, thereby enabling greater access to education, , and economic opportunities in underserved areas. This expansion has empowered local entrepreneurs through ANP partnerships and contributed to national goals of universal penetration, particularly in regions with limited infrastructure.

WiFi and Station Connectivity

RailTel launched the RailWiFi project in January 2016 as part of the Indian government's initiative, aiming to provide free high-speed access to passengers at railway stations across the country. The service began with a pilot at Central station in partnership with , marking the first major deployment of public in infrastructure. This initiative sought to bridge the by offering seamless connectivity in transit hubs, initially targeting 400 key stations before expanding nationwide. As of August 2025, RailWiFi covered 6,112 railway stations, establishing one of the world's largest public networks. The service has attracted daily unique logins exceeding 1 million in recent years. is achieved through a sponsored model that incorporates targeted advertisements on the , generating revenue while keeping access free for users. This approach has enabled ongoing expansion without direct passenger charges, supporting the project's goal of inclusive digital access. The technology underpinning RailWiFi relies on high-density access points connected to RailTel's extensive backbone, which spans over 61,000 kilometers along tracks for reliable backhaul. occurs via a where users enter their mobile number to receive a one-time password (OTP) via SMS, ensuring secure and simple access limited to 30 minutes of initial free high-speed usage per day. This setup leverages RailTel's nationwide core network for load balancing and high throughput, accommodating peak passenger traffic at busy stations. Early expansions in the included trials of technology for , though it has since been phased out in favor of fiber-based solutions. These developments build on the project's to prepare for future demands in passenger connectivity. Usage metrics highlight the project's impact, driven by activities such as streaming and browsing during waits. In October 2019 alone, the service recorded 1.5 user logins and over 10,242 terabytes of data usage, underscoring its role in enhancing passenger convenience. The initiative prioritizes by hosting all services on domestic , aligning with national policies for secure digital ecosystems.

Other National Projects

RailTel Corporation of India Limited has played a significant role in the BharatNet project, aimed at providing to rural areas across the country. Since 2018, the company has contributed to Phases II and III by laying cables in multiple states, including , where it executed network and electronics deployment under Phase II. These efforts support the of gram panchayats, aligning with the government's digital inclusion goals. In the realm of e-governance, RailTel has undertaken several key initiatives to enhance administrative and delivery. The company has implemented the Hospital Management Information System (HMIS) for ' health facilities, integrating with the for improved patient care and administration. Additionally, RailTel secured a Rs 70.95 crore contract from Municipal Smart City Development Corporation for and a Rs 170.11 crore order from the government for its inaugural project, focusing on integrated communication s. For augmentation, RailTel received a Rs 39.37 crore order from Services Incorporated (NICSI) to support applications. RailTel has bolstered through its video surveillance systems (VSS) deployed at railway stations. The company is executing camera-based VSS at over 5,000 stations nationwide, including a Rs 49.67 project for 340 stations under Northeast Frontier Railway in 2025. Earlier phases covered 813 major stations by 2021 and approvals for 983 stations under the Nirbhaya Fund, enhancing passenger safety with CCTV in waiting areas, counters, and parking. In emerging technologies, RailTel is expanding its data center infrastructure to support services and digital demands. The company offers co-location, managed hosting, and (IaaS, PaaS) through its facilities, with plans for a new in by mid-2027 and partnerships like the MoU with NBCC for developing centers in and abroad. It also supports rollout via tower co-location on its fiber network along railway routes, facilitating high-speed connectivity ambitions. As of November 2025, RailTel's order book stands at Rs 8,251 , with a substantial portion derived from these national project executions, providing visibility for future revenue growth.

Financial Performance

Revenue and Profitability

RailTel Corporation of India derives its revenue primarily from two key segments: project work services and services. In FY2024-25, approximately 60% of revenue came from projects, including major initiatives like BharatNet for rural connectivity, while services, encompassing leased lines and RailWire , accounted for around 40%, with the remainder from services and other operations. The company's financial performance in FY2024-25 showed robust growth, with total operating revenue reaching Rs 3,466 , marking a 35% year-over-year increase from Rs 2,564 in the previous . Net profit after tax stood at Rs 300 , up 22% from Rs 246 in FY2023-24, while the EBITDA margin was 17.4%, compared to 20.0% in the prior year. Profitability has been driven by high-margin executions in large-scale projects, such as cable (OFC) deployments under national programs, alongside cost efficiencies in network maintenance and the company's debt-free status, which eliminates interest burdens and supports reinvestment. In the first quarter of FY2025-26 (April-June 2025), RailTel reported of Rs 744 , a 33% increase from Rs 558 in Q1 FY2024-25, with net rising 36% to Rs 66 and (EPS) at Rs 2.06, up from Rs 1.52 year-over-year. In the second quarter of FY2025-26 (July-September 2025), rose 13% year-over-year to Rs 950 , net increased 5% to Rs 76 , and EBITDA margin stood at 16.2%. RailTel's cost structure emphasizes operational expenditures (OPEX) at around 40% of total costs for network maintenance, with 30% allocated to project execution expenses, while capital expenditures (capex) are directed toward infrastructure expansions like fiber optic enhancements and data centers to sustain long-term growth.

Market Position and Listing

RailTel Corporation of India Limited conducted its (IPO) in February 2021, with the issue opening on February 16 and closing on February 18. The book-built issue comprised 87,153,369 equity shares of ₹10 each, aggregating to approximately ₹820 , priced at a band of ₹93 to ₹94 per share. The IPO was an offer for sale with no fresh issuance, aimed at disinvestment by the , and was subscribed over 42 times overall, reflecting strong investor interest. Shares listed on the National Stock Exchange (NSE) and (BSE) on February 26, 2021, at ₹109, marking a debut gain of about 16% over the issue price. As of November 17, 2025, RailTel's shares traded around ₹360 on the NSE, with a of approximately ₹11,500 . The stock's trailing price-to-earnings (P/E) ratio stands at around 36, indicating a premium valuation relative to historical norms in the telecom infrastructure sector. RailTel maintains a of about 0.8%, supported by consistent payouts, and has delivered a (ROE) of 16.5% in recent fiscal periods. Analysts project a (CAGR) of around 19% for revenue through FY2027, driven by expanding digital services, though price targets vary, with an average forecast of ₹255 per share amid market volatility. In the competitive landscape, RailTel contends with major players like (BSNL) and , which dominate and enterprise connectivity markets. RailTel differentiates itself through its exclusive access to over 64,000 kilometers of laid along tracks, providing a cost-effective edge in last-mile connectivity and securing preferential government contracts for national projects. This railway-adjacent infrastructure positions RailTel strongly in tenders, particularly for secure data transmission and rural initiatives. Looking ahead, RailTel targets 25% revenue growth for FY2026, underpinned by diversification into non-rail segments such as data centers and cloud services, while aiming to sustain EBIT margins at 11-12%. This strategic focus includes international expansion and adoption of technologies like Kavach for railway safety systems, enhancing long-term investor appeal.

Awards and Recognition

Major Awards

RailTel Corporation of India Limited has received over 20 awards since 2014, recognizing its contributions to , , and innovative service delivery in the . In 2014, RailTel was awarded the 12th National Awards for Excellence in Cost Management in the Public Service Sector (Medium) category by the Institute of Cost Accountants of , highlighting its effective financial strategies and resource optimization practices. The company earned recognition in the sector in 2015 through the Aegis Graham Bell Awards for its initiatives, particularly for advancing broadband accessibility via services like RailWire. Additionally, at the VAR India Star Nite Awards 2015, RailTel received the 'Best Carrier of the Carrier' accolade for its reliable services supporting other providers. In the same year, it won the Voice & Data Telecom Leadership Recognition Award under the & category for the expansion of RailWire services, which enhanced rural and penetration. In 2022, RailTel obtained a award at the 16th Global Conclave of the Council of India for the Best CSR Communication Campaign, specifically for its community development projects in Rajur, , demonstrating effective outreach in operational CSR efforts. In 2024-25, RailTel achieved an 'Excellent' rating from the Department of Public Enterprises (DPE) under the (MoU) evaluation framework, reflecting superior performance in key operational metrics such as revenue growth and project execution for FY 2023-24. In June 2025, RailTel was honored with the ET Government PSU Leadership & Excellence Award (Gold) in the category of “Reinforcing Communication Infrastructure” for bridging the digital divide. In August 2025, it received the SCOPE Eminence Award in the Digital Transformation category, presented by the President of India.

CSR and Sustainability Achievements

RailTel Corporation of India Limited adheres to the provisions of Section 135 of the , mandating a minimum CSR expenditure of 2% of the average net profits of the preceding three financial years. For FY 2024-25, the company allocated ₹57.35 for CSR activities, with ₹27.26 spent during the year on initiatives focused on , , and . The company's CSR efforts emphasize empowering marginalized communities through targeted programs. In education, RailTel supports digital literacy initiatives, including the establishment of community information and skill development centers in locations such as and , benefiting rural populations by enhancing access to digital services. Additionally, the provision of free WiFi hotspots in over 200 rural villages nationwide promotes connectivity and digital inclusion for underserved areas. A flagship project, RailTel Akansha Super-30 in , , offers free residential coaching for IIT/JEE preparation to 30 underprivileged students annually, fostering academic excellence among economically disadvantaged youth. Health and women empowerment form core pillars of RailTel's CSR portfolio. Programs like the Sehat Center in Purulia, West Bengal, aim to improve women's health outcomes through accessible medical services, while skill development centers in Delhi and Pampore, Jammu & Kashmir, provide training in vocational skills to promote self-employment and economic independence for women from low-income backgrounds. The Rajur project in Maharashtra's Jalna district, inaugurated in 2022, addresses community needs in water management, education, and sanitation, supporting holistic rural development in six villages. On the sustainability front, RailTel integrates environmental responsibility into its operations via its Business Responsibility and Sustainability Report, emphasizing reduced environmental impact through and diverse workforce practices. The company has adopted measures to lower its and promotes eco-friendly network expansions aligned with global standards. RailTel's focus on sustainable IT, including , supports broader goals of minimizing operational emissions. These efforts earned RailTel the "Best in Energy Efficiency Award" for ongoing carbon reduction initiatives. RailTel's CSR and sustainability initiatives align with several (SDGs), including SDG 3 (Good and Well-Being), SDG 4 (Quality ), SDG 5 (Gender Equality), and SDG 8 (Decent Work and Economic Growth). These programs collectively benefit thousands of individuals annually, with projects like Akansha Super-30 and rural hotspots providing improved access to , services, and opportunities. In recognition of its impactful work, RailTel received the Bronze Award for Best CSR Communication Campaign in 2022 from the for its outreach on the Rajur project, highlighting effective in rural . The company also secured the CSR Times Award in the Best PSU Gold category for women empowerment in 2024, specifically for its project, and another CSR Times Award for the Akansha Super-30 initiative, underscoring excellence in educational outreach.

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