Creative Newtech shocked investors on June 8 when it announced the Rs 3195 crore deal. The technology distribution and solutions company put pen to paper to take a step forward in the BharatNet project’s implementation in Odisha.
Per multiple sources, the tech firm expects to complete the contract within approximately three years. However, the project remains contingent on the fulfilment of the advance work order conditions. Also, the execution of a definitive agreement and the issuance of the required route-wise work orders by BSNL.
This deal, which is approximately worth Rs 3,194.83 crore, is a significant step towards the completion of the BharatNet Middle Mile Network Project, at least in Odisha. This project aims to connect India’s Gram Panchayats with fibre-optic Internet for better governance and empowering Indian villages digitally.
Additionally, this deal is way more important for the firm also. According to reporter Parth Goyal of NDTV, “This matters a lot for Creative NewTech because the order size is way above their current market cap as well as FY26 revenue.” Their current market cap is Rs 1078 crores, per Screener.
“It not only strengthens their government infra credentials but also gives them really nice annual annuity services revenue because it includes the O&M services as well,” Goyal added. Talking about the company’s bigger bets, he added that they are expanding across surveillance, AI and cybersecurity. “They are building presence in drones and IoT solutions along with targeting data center and HPC opportunities as well,” the NDTV reporter said.
This deal will shed light on the darkness of more than a decade. India’s push to bring high-speed internet to rural parts through the BharatNet has been more than a decade in the making.
The initiative began in 2011 under the National Optical Fibre Network (NOFN), but it has missed deadlines four times in the past 16 years: 2014, 2015, 2019, and 2023. Cut to the bigger aim, BharatNet’s current phase seeks to complete the final stretch of the project by extending fibre connectivity to all 6.5 lakh villages across India.
And that is where the company’s role comes into play. The company has been awarded a massive Advance work order with an amount more than its market capitalization. The repercussions of the deal were felt in the stock market as well.
Creative Newtech’s stock jumped 15% after securing a ₹3,195 crore BharatNet contract
Their shares rallied more than 15% on Monday. It significantly outperformed the broader market after the company announced a major BharatNet-related order win.
The stock climbed to nearly ₹728 even as benchmark indices traded in negative territory.
The sharp move came after the telecommunication firm secured an advance work order worth ₹3,195 crore for the BharatNet Middle Mile Network Project in Odisha.
Investors appeared to view the contract as a potentially transformative opportunity for the company and started picking up the stock, which turned into a rise in the share price.
The market reaction suggests that traders are betting the deal could strengthen the company’s growth prospects and expand its role beyond its traditional technology distribution business.
The rally was notable because it occurred during a weak trading session for Indian equities. While broader market sentiment remained subdued, the company attracted strong buying interest.