The shares of the railway infrastructure developer gained up to 1.1 percent in today’s trading session after the company bagged LoA from Southern Railway worth Rs 143.37 crore.
With a market capitalization of Rs 81,597.26 crore, the shares of Rail Vikas Nigam Ltd were trading at Rs 393.20 per share, increasing around 0.18 percent as compared to the previous closing price of Rs 391.35 apiece.
The share of Rail Vikas Nigam Ltd has seen positive movement after receiving LOA from Southern Railway for “Upgradation work of Electric traction system from 1×25 kV to 2×25 kV traction system from Salem Jn. (SA)-Podanur Jn. (PTJ) & Irugur (IGU)-Coimbatore Jn. (CBE)-Podanur Jn. (PTJ) section of Salem division of Southern Railway to meet 3000 MT loading target.” The project should be executed within 24 months.
Looking forward to the company’s financial performance, revenue decreased by 4.2 percent from Rs 6,714 crore in Q4FY24 to Rs 6,427 crore in Q4FY25. Further, during the same time frame, net profit decreased by 4 percent from Rs 478 crore to Rs 459 crore.
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The company’s order book stands at Rs 1 lakh crore, with a shift from legacy railway contracts ( Rs 45,000 crore) to competitive bids ( Rs 55,000 crore) across civil, electrical, telecom, and manufacturing. FY25 inflows reached Rs 14,000 crore, with FY26 targeted at Rs 17,000–18,000 crore. Management sees margin pressure as legacy high-margin railway orders decline.
RVNL is making a significant telecom entry through the BharatNet project, securing a capital order worth Rs 7,000 crore and an additional Rs 7,000 crore for operations and maintenance over seven years, totaling Rs 14,000 crore. The company is forming Special Purpose Vehicles (SPVs) for BharatNet and Hybrid Annuity Model (HAM) projects, indicating strategic diversification into new verticals.
Rail Vikas Nigam Limited (RVNL) is engaged in developing rail infrastructure. The Company is in the business of implementing various types of rail infrastructure projects, gauge conversion, new lines, railway electrification, bridges, workshops, and production units.
Written by Abhishek Singh
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