This PSU Railway stock, engaged in providing infrastructure solutions for railway projects, including electrification, track laying, signaling, and station development across India, jumped 4 percent after securing an order worth Rs. 179 crore from IRCON International Limited for a comprehensive signaling and telecommunication project.
With a market capitalization of Rs. 87,278.94 crores, the share of Rail Vikas Nigam Limited has reached an intraday high of Rs. 448 per equity share, rising nearly 3.94 percent from its previous day’s close price of Rs. 431. Since then, the stock has retreated and is currently trading at Rs. 418.60 per equity share.
Order Details
Rail Vikas Nigam Limited (RVNL) has been declared the Lowest Bidder (L1) by IRCON International Limited for a comprehensive signaling and telecommunication project. The contract includes the supply, installation, testing, and commissioning of Electronic Interlocking systems at 10 new stations and six intermediate block sections in the Gevra Road–Pendra Road section.
The order also involves establishing a new Section Control System, communication equipment, a telephone exchange, and related infrastructure upgrades. The project is valued at Rs. 178.64 crore and is expected to be completed within 11 months.
Previous Order: On May 15, 2025, RVNL received a Letter of Acceptance (LOA) from Central Railway for the “OHE Modification Work for Up-gradation of the existing 1×25 KV Electric Traction System to 2×25 KV” in the Itarsi-Amla section, Nagpur Division. The project aims to meet a 3000 MT loading target and is valued at Rs. 115.79 crore, with an execution timeline of 24 months
Order Book: The company’s current order book is Rs. 97,000 crore, with Rs. 49,000 crore from competitive bidding and Rs. 47,000 crore from railway projects as of December 2024. Earlier, the order book was around Rs. 1.4 lakh crore, but the company is now focusing more on market-driven projects instead of only government assignments.
Additionally, the Vande Bharat project has been delayed due to design changes, with the first train expected by early 2026. RVNL also secured the Rs. 13,200 crore BharatNet project, opening new opportunities in the telecom sector.
Guidance: For the financial year FY25, the company has set a revenue target of Rs. 22,000 crore. By the end of the first nine months, it has already achieved Rs. 13,000 crore in revenue. This means that in the last quarter (Q4), the company needs to achieve Rs. 9,000 crore in revenue to meet its full-year target.
Rail Vikas Nigam Limited (RVNL) was incorporated in 2003 and is a central Public Sector Undertaking (PSU) under the Ministry of Railways, Government of India. RVNL serves as the construction arm of Indian Railways, focusing on project implementation and transportation infrastructure development.
Written By – Nikhil Naik
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