The shares of the railway infrastructure developer gained up to 4 percent after the company secured a letter of acceptance from the National Highway Authority of India worth Rs 554 crore.
Price Action
With a market capitalization of Rs 76,332.59 crore, the shares of Rail Vikas Nigam Ltd were trading at Rs 365.80 per share, increasing around 2.16 percent as compared to the previous closing price of Rs 358.05 apiece.
Reason for Rise
The shares of Rail Vikas Nigam Ltd have seen positive movement after securing a letter of acceptance for a project from the National Highway Authority of India for “construction of 6 lane access controlled connectivity to Visakhapatnam Port Road from Km 0.000 (Sabbavaram bypass of Anakapalli Anandapuram corridor) to Km 12.660 (Sheelanagar junction) of NH 516C on Hybrid Annuity Mode in the State of Andhra Pradesh under NH (O) on Hybrid Annuity Mode. this order is worth Rs 544 crore
Financial performance
Examining the company’s financial condition, revenue narrowed down by 2 percent from Rs 4,676 crore in Q3FY24 to Rs 4,591 crore in Q3FY25, and during the same time frame, net profit plummeted by 9 percent from Rs 326 crore to Rs 295 crore.
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Order book & Future plan
The company’s current order book is Rs 97,000 crore, including Rs 49,000 crore from bidding works and Rs 47,600 crore from railway projects. Management is shifting to market-driven bidding, with annual turnover projected at Rs 28,000-Rs 30,000 crore and a 3-4 year execution timeline.
Project updates
The Vande Bharat order faces delays due to train configuration changes, with the first prototype expected in early 2026. Meanwhile, the Rs 13,200 crore BharatNet project recently received a letter of acceptance, creating significant telecom sector opportunities.
Future Guidance
Management remains optimistic about meeting revenue targets, citing favorable Q4 conditions. They are confident in sustaining margins despite competitive pressures by leveraging operational efficiency and strong project execution capabilities, positioning the company for continued growth and stability in the coming quarters.
Company profile
Rail Vikas Nigam Limited (RVNL) is an India-based company 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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