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RailTel shares: Shares of RailTel Corporation of India jumped as much as 7.8 per cent during the intraday trade today, February 10. At 12:06 PM, the public sector undertaking’s (PSU) shares were trading 4.53 per cent higher at Rs 348.45 per share.
The surge in RailTel Corporation of India’s stocks came after it had received a fresh Letter of Acceptance (LoA) from West Central Railway.
As per the LoA, the order is valued at Rs 454.95 crore and is scheduled to be executed over a period of 960 days, with completion targeted by September 24, 2028. The contract adds to the PSU’s growing order book and bolsters its role in executing large-scale railway communication and digital infrastructure projects.
“…this is to inform that RailTel Corporation of India Ltd. ("the Company") has received the Letter of Acceptance (LoA) from Dy. Cste/Project/Jbp,West Central Railway," RailTel said in an exchange filing.
Union Budget 2026–27: Government’s High Speed Rail Push
The Union Budget 2026–27 placed Indian Railways at the centre of the country’s infrastructure growth story, with a focus on improving financial stability, tightening cost structures and expanding capacity through high-speed corridors.
While large investments continue, the challenge for Railways remains balancing rising operational costs with sustainable revenue growth from passengers and freight.
Net Revenue Sees a Comeback in FY27
Indian Railways’ net revenue is expected to rebound in 2026–27 after a volatile phase over the past two years.
- 2024–25: Rs 2660 crore
- 2025–26 (BE): Rs 3041 crore
- 2025–26 (RE): Rs 1957 crore
- 2026–27 (BE): Rs 3000 crore
After slipping sharply in the revised estimates for 2025–26, the Budget projects a recovery to Rs 3,000 crore in FY27. The improvement signals the government’s push to offset higher operating costs with stronger passenger movement and freight volumes.
Operating Ratio Still Signals Tight Margins
The operating ratio shows how much Railways spends to earn every rupee, and it continues to stay close to the red zone.
- 2024–25: 98.22 per cent
- 2025–26 (BE): 98.43 per cent
- 2025–26 (RE): 98.82 per cent
- 2026–27 (BE): 98.40 per cent
A ratio near 98 percent means Railways spends about Rs 98 to earn Rs 100, leaving little surplus for expansion and safety upgrades. Although FY27 shows a marginal improvement, efficiency gains remain a key area of focus for the government.
Receipts and Expenses Rise in Tandem
Railways’ scale of operations continues to expand, with both receipts and working expenses moving higher almost at the same pace.
Gross traffic receipts: Rs 265114 crore
Working expenses: Rs 260769 crore
Receipts: Rs 301400 crore
Expenses: Rs 296359 crore
Receipts: Rs 278257 crore
Expenses: Rs 274500 crore
Receipts: Rs 301700 crore
Expenses: Rs 296500 crore
The FY27 projections point to higher income, but expenses continue to track closely, keeping operating surplus modest and reinforcing the need for cost discipline.
Passenger and Freight Remain Revenue Engines
Passenger and freight services continue to power Railways’ earnings, with freight retaining its dominance.
Passenger: Rs 75,368 crore
Freight: Rs 1,71,163 crore
Passenger: Rs 92,800 crore
Freight: Rs 1,88,000 crore
Passenger: Rs 80000 crore
Passenger: Rs 87,300 crore
Freight: Rs 1,88,800 crore
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
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