Synopsis: RailTel Corporation of India (NSE: RAILTEL) has awarded a significant Advance Letter of Award (LoA) worth ₹89.07 crore to Pace Digitek Limited (NSE: PACEDIGITK) on February 19, 2026. The “Zero-Minute” fact is that the project involves the supply, installation, and commissioning of advanced IP-based video surveillance systems for Linke Hofmann Busch (LHB) coaches, featuring a 3-year warranty and a 5-year maintenance cycle.
On Friday, February 20, 2026, shares of Pace Digitek and RailTel remained in focus following the announcement of this high-tech security contract. This domestic order is part of Indian Railways’ larger modernization push to enhance passenger safety through real-time digital monitoring. Pace Digitek, a small-cap telecom infrastructure player, will execute the project on a back-to-back basis for a Customer of RailTel (CoR), with an ambitious completion timeline of 8 months.
The win adds a robust layer to Pace Digitek’s existing ₹3,129 crore order book, while RailTel continues to solidify its role as the digital backbone of India’s transport infrastructure.
Why the ₹89 Crore “Smart Security” order matters
The primary driver is the Railway Modernization Lifecycle. Unlike traditional one-time supply contracts, this deal includes a 5-year Comprehensive Annual Maintenance Contract (CAMC) post-warranty. This provides Pace Digitek with high revenue visibility and a steady long-term income stream, while RailTel ensures the technical integrity of the surveillance network.
Furthermore, the “1-2-1” rule of this business win was evident: one dominant technology (IP-based Video Surveillance), two strategic pillars (enhanced passenger safety and long-term AMC services), and one clear market objective. The project aims to digitize 100% of the premium LHB coach fleet, turning Indian Railways into a smart, secure transport ecosystem.
RailTel & Pace Digitek: Project & Financial Snapshot
| Key Metric | Details (Feb 20, 2026) | Strategic Impact |
| Order Value | ₹89.07 Crore (incl. GST) | Order Book Growth |
| Scope of Work | IP Video Surveillance (LHB) | High-Tech Security Push |
| Execution Period | 8 Months | Fast Revenue Recognition |
| CAMC Period | 5 Years (Post Warranty) | Recurring Income Stream |
| Pace Digitek Cap | ₹3,863 Crore | Small-Cap Outperformer |
RailTel’s Diversified Momentum
While Pace Digitek executes the surveillance project, RailTel is separately expanding its infrastructure footprint.
- Signalling Wins: On the same day, RailTel secured a separate ₹35.54 crore signalling project from North Central Railway for Prayagraj Division, involving indoor alterations in EI/RRI/PI stations.
- Asset Quality: Despite a minor 4% dip in Q3 net profit to ₹62.40 crore, RailTel’s revenue rose 19% YoY to ₹913 crore, driven by its massive broadband and VPN segments.
- Technical Outlook: Pace Digitek has been a strong performer, supported by its recent ₹375 crore solar EPC order. For RailTel, chartists are watching the ₹327 support level; a bounce back toward ₹350 is expected if project execution remains on schedule.
Also Read: Why GHV Infra Shares Hit 5% Upper Circuit: New ₹123 Crore Solar Order
The Bottom Line
The ₹89 crore smart security win is a definitive milestone for the RailTel-Pace Digitek partnership. For the Aam Aadmi investor, the focus remains on the 8-month execution window. If the JV successfully commissions the surveillance systems by October 2026, both companies will be well-positioned to bid for the next phase of Indian Railways’ digital surveillance rollout, valued at over ₹1,500 crore.
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