RailTel shares: Is the railway PSU stock headed for more upside?

Shares of RailTel Corporation of India Ltd are set for decent gains in the coming months. Technical analysts tracking the stock continue to remain positive on the counter considering its strong charts and pattern formation. They believe the stock to indicate a fresh breakout to enter a bullish zone.

RailTel Corporation has broken out from a falling trendline resistance after a prolonged downtrend, indicating a reversal in trend and fresh bullish momentum. The RSI is currently at 58, nearing the key 60-level; a decisive move above 60 would confirm strong bullish sentiment and room for further upside, said Canara Bank Securities.

"A positive MACD crossover has occurred with the MACD line crossing above the signal line near the zero mark, which supports the start of a new uptrend. Volume activity has also shown a gradual increase, adding weight to the breakout and improving conviction in the move," it added, suggesting a 'buy' with a target price of Rs 353-375 and a stop loss of Rs 294 on a closing basis.

Shares of RailTel Corporation of India jumped more than 9 per cent to Rs 356 during the trading session on Wednesday, with its total market capitalization close to Rs 11,500 crore. The stock had settled at Rs 325.80 on Tuesday. The stock is currently 47 below its 52-week high at Rs 618 hit in July 2025.

RailTel's standalone net profit rose 46.33 per cent YoY to Rs 113.4 crore in the March 2025 quarter. Its revenue from operations grew 57.11 per cent YoY to Rs 1,308.2 crore in the reported quarter. Ebitda for the quarter increased 54 per cent YoY to 180 crore, while margins contracted marginally 13.7 per cent.

After a long time, finally the railway stocks have started showing some traction. With regards to RailTel Corporation, it has confirmed a range breakout from the falling trend line above 340 mark, said Mehul Kothari, AVP of Technical Research at Anand Rathi Shares & Stock Brokers.

"We are also witnessing a breakout in daily RSI above 60 level which indicates fresh momentum. Based on the above signals, a buy is advised in the Rs 344 - Rs 336 zone with a target of Rs 390. Traders are suggested to keep a stop loss at Rs 315," he added.

RailTel Corporation of India is an India-based neutral telecom infrastructure provider, which owns a Pan-India optic fiber network on right of way along a railway track. Its two operating segments include telecom services and project work services. It provides various passenger services, including content on demand services and Wi-Fi across railway stations in India.

It provides a range of telecom services to its customers, including managed data services, leased line, virtual private network, Internet leased line, data center, tower collocation, rack and space and national long-distance (NLD) for voice carriage. The Project Work Services segment includes various projects.