The stock jumped after securing a Rs 180-crore railway electrification order, boosting order visibility and reinforcing strong bidding momentum. With robust inflows, steady execution guidance, diversified ventures, and long-term revenue streams, the company maintains growth prospects despite margin volatility and mixed quarterly profitability.
The shares of this Public Sector Undertaking company gained up to 1.5 percent in today’s trading session after the company secured a significant work order from North Eastern Railway worth Rs 180.77 crore.
With a market capitalisation of Rs 66,032.59 crore, the shares of Rail Vikas Nigam Ltd were trading at Rs 316.70 per share, increasing around 0.86 percent as compared to the previous closing price of Rs 314.05 apiece.
Significant Order
The share of Rail Vikas Nigam Ltd has seen positive movement after emerging as the lowest bidder for a North Eastern Railway project involving OHE modification and feeder wire work for the 2×25 kV traction system. The contract covers the 184 RKM UTR–MWP section in Lucknow division and must be completed within 24 months, boosting RVNL’s order pipeline and execution visibility. The order is valued at Rs 180.77 crore
Order Book & guidance
The company has a robust order book of Rs 90,000 crore in Q2FY26, split almost evenly between legacy railway projects and competitively won multi-sector contracts. With a strong FY26 bidding pipeline of Rs 75,000–80,000 crore and a realistic success rate of 10–12%, RVNL expects fresh inflows of Rs 8,000–10,000 crore, supporting steady medium-term growth momentum.
Moreover, the company has maintained its FY26 revenue guidance at Rs 21,000–22,000 crore. Management indicates a strong pickup in execution in Q3. For FY27, they are targeting at least 10% growth, supported by faster-turn projects, improving site activity, and steady inflows from recently secured contracts.
RVNL is steadily diversifying beyond traditional rail projects as policy shifts reduce nominated awards. The company is expanding into solar with battery storage, rolling-stock O&M, and metro maintenance to build new revenue pools. Additionally, annuity-like streams from multimodal logistics parks and HAM projects offer long-term visibility, with multiple MMLPs nearing operationalisation and HAM concessions providing 20–25 years of stable income.
Financial Highlights
RVNL delivered a mixed Q2FY26 performance, with revenue rising 6% to Rs 5,123 crore, reflecting steady execution. However, net profit declined 20% to Rs 231 crore. The results highlight stable topline momentum but near-term profitability challenges.
RVNL’s OPM has stayed in a narrow band of 4–7%, showing stable but low-margin operations. Operating profit peaked at Rs 456 crore in Mar-2024, then fell sharply to Rs 53 crore in Jun-2025 before recovering to Rs 217 crore in Sep-2025, reflecting volatility in project execution and cost pressures.
Rail Vikas Nigam Ltd (RVNL) is a government-backed infrastructure company focused on delivering railway, metro, and allied transport projects across India. Known for efficient execution and competitive bidding strength, RVNL is expanding into sectors like solar, telecom, and international markets, positioning itself as a diversified engineering and construction player with long-term growth potential.
Written by Abhishek Singh
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