Synopsis:
Rail Vikas Nigam Limited has been selected as the lowest bidder by Southern Railway for a contract value of Rs.145.35 crore to set up, test, and commission traction substations.
The shares of one of the leading railway infrastructure providers engaged in offering services such as new line construction, gauge conversion, track doubling, electrification, and major bridge building are in focus today after it was declared as the lowest bidder for a Southern Railway project.
With a market capitalization of Rs.74,310.12 crore, the shares of Rail Vikas Nigam Limited closed at Rs.357.55, down by 0.39 percent from the previous close of Rs.358.95.
Whats the News
Rail Vikas Nigam Limited has been selected as the lowest bidder from Southern Railway to carry out a project on the Jolarpettai, Salem section. The work includes designing, supplying, installing, testing, and commissioning traction substations that will provide power to the 2×25 kV AT Feeding System.
The project also involves installing power quality equipment, switching posts, a SCADA system, and an automatic fault locator. The work is expected to be completed within 540 days, with a total cost of around Rs. 145.34 crore. The project is part of the Mission 3000MT Loading Target, aiming to increase the railway’s freight-handling capacity by building the necessary power infrastructure.
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Company Overview
Rail Vikas Nigam Limited is a government-owned entity that acts as a project execution agency on behalf of the Ministry of Railways, engaged in activities such as developing rail projects, including doubling, gauge conversion, new lines, railway electrification, major bridges, and many others.
The company has electrified 7,345 kilometers of railway lines, completed 16,500 kilometers of total work, and finished 157 projects. These achievements show RVNL’s contribution to upgrading and expanding India’s railway network. As per the available data, the order book of the company is at Rs. 1,01,000 crores.
In Q1 FY26, the company reported revenue of Rs.3,909 crore, down from Rs.4,074 crore in Q1 FY25. Net profit also declined to Rs.134 crore from Rs.224 crore. The company’s return on equity is 14 percent, and return on capital employed is 14.7 percent. P/E ratio of the company stands at 62.05, with the industry average of 21.09.
Written By Jhanavi Sivakumar
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