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STL Networks Emerges as L1 Bidder for ₹249.8 Crore RailTel Cloud Project

STL Networks Limited has emerged as the lowest bidder (L1) for a significant cloud infrastructure project awarded by RailTel Corporation of India Limited. The domestic contract is valued at ₹249.8 crore and encompasses the end-to-end deployment of cloud solutions at RailTel's data center and disaster recovery sites.

STL Networks Emerges as L1 Bidder for ₹249.8 Crore RailTel Cloud Project
STL Networks · Telecommunications Equipment · Representative image
Key numbers
Order Value ₹249.8 CrInclusive of taxes
Market Cap ₹2,415 CrTelecommunications
Revenue TTM ₹945.2 CrOperating Revenue
RSI 83.82Overbought Zone
Order fromRailtel Corporation of India Limited

Key highlights

  • Project value is fixed at ₹249.8 crore inclusive of all applicable taxes
  • Scope includes design, supply, installation, testing, and commissioning of cloud infrastructure
  • Contract involves comprehensive configuration, integration, and migration services
  • Deployment will be executed at the RailTel Data Center and its Disaster Recovery Site
  • The award follows tender bid RAILTEL/TENDER/OT/CO/ITP/2026-27/DC - DR Infra/018

What Is the Order?

STL Networks Limited has secured the status of the L1 bidder for a major infrastructure mandate from RailTel Corporation of India Limited. The project, valued at ₹249.8 crore, requires the company to provide a turnkey cloud infrastructure solution. This includes the design, supply, and installation of hardware and software components, followed by rigorous testing and commissioning.

The mandate further extends to configuration, integration, and the migration of existing workloads to the new environment. These works are critical for RailTel's operational continuity, targeting both their primary Data Center and their Disaster Recovery infrastructure to ensure high availability and robust data management.

Client Profile

  • RailTel Corporation of India Limited is a Miniratna Public Sector Enterprise under the Ministry of Railways
  • It is one of the largest neutral telecom infrastructure providers in India with an extensive optic fiber network
  • The corporation provides vital services including broadband, VPN, and data center hosting to government and private sectors
  • RailTel plays a central role in the digital transformation of Indian Railways and the national BharatNet project

Business Impact

This project win significantly strengthens STL Networks' position in the specialized cloud and data center services segment. With a TTM revenue of ₹945.16 crore, this single order represents roughly 26% of the company's trailing twelve-month turnover, providing a strong boost to the future revenue pipeline. Although the company reported a TTM net loss of ₹98.57 crore, large-scale domestic contracts of this nature help in scaling operations and improving fixed-cost absorption.

The successful execution of this cloud migration for a government-backed telecom major serves as a technical validation for SNL in competing for future large-scale digital infrastructure tenders.

Financial Context

  • The company currently has a Price to Book Value of 3.1, compared to an industry P/E of 85.15
  • STL Networks stock has delivered a 1-year price return of 64.32%, outperforming its quarterly revenue growth of -7.27%
  • The stock is currently trading with a high Momentum Score of 80.25 and an RSI in the overbought territory at 83.82
  • Promoter holding stands at 44.14%, while institutional participation has recently decreased to 4.38%
  • Operating profit margins for the June 2026 quarter were recorded at 4.7%
STL Networks · financial snapshot
Share price₹49.46
Market capitalisation₹2,414.99 Cr
Revenue (annual)₹958.96
Net profit (annual)₹-99.11
P/E (TTM)-24.5×Sector 67.35×
Promoter holding44.14%-0.01% QoQ
FII holding1.11%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.

Source verified

Exchange filing by STL Networks Limited announcing its emergence as the L1 bidder for a RailTel Corporation of India Limited project. Market figures from a third-party data provider.

Read the filing ↗

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