Shares of RailTel Corporation of India rallied nearly 10% in early trade on Monday, extending upward momentum for the fifth consecutive session. The rally in railway stock was in sync with broader market, with the benchmarks BSE Sensex and NSE Nifty surged nearly 5% during the same period.

Early today, RailTel share price opened 3.3% higher at ₹320 after ending up by 4.17% at ₹309.75 on the BSE. In the first two hours of trade so far, the stock gained as much as 9.6% to ₹339.50, while the market capitalisation rose to ₹10,540 crore. In five sessions, the railway-related stock rose as much as 23% from ₹275.90 on March 17.

The PSU stock has gained momentum after it touched its 52-week low of ₹265.30 on March 3, 2025. At the current level, the smallcap stock is down 57% from its 52-week high of ₹618 touched on July 12, 2024. The counter has delivered a negative return of 10% in the last one year, while it tumbled nearly 30% in the past six months. In the calendar year 2025, the stock has fallen over 19%.

Investors rushed to buy RailTel shares after the Navratna company bagged back-to-back orders. In an exchange filing on March 23, the PSU firm said that it secured ₹25.15 crore order from Hindustan Petroleum Corporation Ltd. (HPCL). The contract is for 5 years for renewal of existing MPLS (Multiprotocol Label Switching) and Internet Leased Lines (ILLs) links.

“It’s a rate contract of 5 years for renewal of existing MPLS/ILL links and proposed new connections that might come in a course of 5 years subject to feasibility confirmation,” the release noted.

Last week, the company bagged an order worth ₹16.89 crore from Ministry Of Defence for Optical Fiber Cable (OFC) laying work.

Besides, RailTel secured has received ₹28.29 crore order from Northern Railway; ₹47.50 crore work order from East Central Railway; ₹19.08 crore work order from Border Security Force; ₹262.33 crore order from State Transport Authority Odisha; and another order worth ₹30.26 crore from State Transport Authority Odisha this month.

Established in September 2000, RailTel Corporation provides nationwide broadband, telecom, and VPN services, aside from modernising Indian Railways' control and safety systems. For the December quarter of FY25, the company reported 5% year-on-year growth in its December quarter net profit at ₹65 crore as compared to ₹62 crore in the year ago period. The revenue from operations grew 15% to ₹768 crore, from ₹668 crore in the corresponding quarter of the previous financial year.

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)