New Delhi : RailTel Corporation of India Limited, a public sector telecommunications and ICT solutions provider, has secured a significant domestic telecom contract worth approximately ₹197.18 crore from State Bank of India (SBI) for the continuation of Multiprotocol Label Switching (MPLS) and Point-to-Point (P2P) connectivity services across the country.
The purchase order was received on October 13, 2026. The contract, valued at ₹197.18 crore excluding taxes, will run for five years, from April 1, 2026, to March 31, 2031.
The order reinforces RailTel’s role as a connectivity partner for critical banking infrastructure and highlights the importance of reliable telecommunications networks in supporting the operations of India’s largest public sector bank.
Key Details of the SBI Order
The major terms of the contract are as follows:
- Awarding Authority: State Bank of India
- Contract Value: ₹197.18 crore, excluding taxes
- Scope of Work: Continuation of MPLS links connecting SBI’s Data Centre and Disaster Recovery (DCDR) infrastructure and branches, along with Point-to-Point links across India
- Contract Duration: Five years
- Contract Period: April 1, 2026, to March 31, 2031
- Order Receipt Date: October 13, 2026
- Nature of Contract: Domestic telecom contract
The services will be provided at revised rates in accordance with the purchase order.
MPLS and P2P Connectivity to Support Banking Operations
The contract covers the continuation of two important categories of network connectivity: MPLS and Point-to-Point links.
Multiprotocol Label Switching (MPLS) is a networking technology used to direct data efficiently across telecommunications networks. It can support secure, reliable and managed connectivity between multiple locations, making it suitable for organisations operating extensive branch networks.
For a bank such as SBI, MPLS connectivity helps link branches and key infrastructure, including data centres and disaster recovery facilities, supporting the movement of information between different operational locations.
Point-to-Point (P2P) connectivity provides a dedicated connection between two specified network endpoints. Such links can support communication between banking facilities and other critical locations that require dependable network connectivity.
The continuation of these services is important for maintaining network availability and supporting the day-to-day functioning of banking systems across geographically dispersed locations.
Strengthens RailTel’s Position in the Telecom and ICT Sector
RailTel has developed a presence in telecommunications, data connectivity and information and communication technology solutions. Its services cater to government departments, public sector enterprises and other institutional customers.
The latest SBI order adds to its business engagements in the enterprise connectivity segment, where dependable telecommunications infrastructure is essential for large organisations with extensive networks.
Securing a five-year contract also provides a defined period of service engagement, with the potential to support continuity in RailTel’s institutional business. However, the actual revenue recognised will depend on contractual terms and the delivery of services during the relevant periods.
The order further highlights the growing importance of digital connectivity in banking, where uninterrupted communication between branches, data centres and disaster recovery facilities is essential to operational resilience.
No Related-Party Transaction Involved
According to the company’s disclosure, the contract does not involve any interest of RailTel’s promoter or promoter group and does not fall under related-party transactions.
RailTel has informed the stock exchanges about the order in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, which governs the disclosure of material events and information by listed companies.
Outlook
The ₹197.18 crore SBI contract represents a significant business development for RailTel, strengthening its engagement with a major public sector banking institution.
With the agreement covering connectivity services for five years, the order underscores RailTel’s role in supporting critical digital infrastructure across India. Its execution will be relevant to the company’s enterprise telecom business and its continued participation in the country’s expanding digital connectivity ecosystem.
