Railway PSU’s Next Big Move: OTT Platform Expansion Could Change The Game

RailTel Corporation of India has received a Letter of Intent from Prasar Bharati for adding features and services to the existing WAVES OTT platform, in a contract valued at Rs 63.15 crore, including Tax. The domestic service contract, awarded by the Director General of Doordarshan, is scheduled to be executed by February 11, 2029. RailTel received the work order at 5.37 p.m. on September 16, 2026, according to its exchange disclosure.

The mandate fits RailTel’s wider push beyond conventional telecom connectivity into government digital platforms, cloud, data centre, cybersecurity and IT-enabled project execution. The Navratna public sector company has built a nationwide fibre network along Railway corridors and increasingly uses its network, integration and managed-services capabilities to pursue digital infrastructure assignments from government departments and state agencies.
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At the stated value, the order is equivalent to about 1.5 per cent of RailTel’s FY2025-26 revenue from operations of Rs 4,277.48 crore, based on a simple comparison with the tax-inclusive contract value. While it is not large relative to the company’s annual revenue base, it provides a multi-year engagement in a service area that is aligned with RailTel’s digital-services strategy.

RailTel’s project work services business generated revenue of Rs 2,776.79 crore in FY2025-26, accounting for nearly two-thirds of its overall revenue from operations. However, project work services had a segment profit margin of 3.9 per cent during the year, substantially below the 26.7 per cent margin reported by its telecom services segment. This makes execution discipline, timely commissioning and customer acceptance important considerations for project-led order growth.

The company had earlier highlighted data centre, cloud and artificial intelligence capabilities as strategic growth areas. Its investor presentation also showed an Order Book of Rs 10,166 crore, with state governments, Indian Railways and government departments forming the bulk of the pipeline. The Prasar Bharati contract further reinforces RailTel’s exposure to public-sector digital transformation programmes. RailTel said its promoter, promoter group and group companies have no interest in Prasar Bharati. It added that the transaction is not a related-party transaction.

As of 10.16 a.m. on September 17, 2026, RailTel shares were trading at Rs 258.50, up 2.36 per cent from the previous close of Rs 252.55. The stock was about 35.5 per cent below its 52-week high of Rs 400.65 and around 5.1 per cent above its 52-week low of Rs 245.90. Over the past year, the shares have declined 26.67 per cent, compared with a 2.65 per cent fall in the BSE 500.

The key monitorable now will be the conversion of the Letter of Intent into execution milestones and the pace at which RailTel delivers the additional platform capabilities over the contract period ending February 2029.

Disclaimer: The article is for informational purposes only and not investment advice.