Synopsis:
The railway firm secured a Rs 144 crore L1 contract for OHE system upgrades, while Q1FY26 saw revenue and profit decline. A strong domestic and international order pipeline, diversified across civil, electrical, signaling, and JV projects, supports long-term growth.
The shares of the prominent railway company gained up to 1.2 percent in today’s trading session after the company emerged as the Lowest Bidder (L1) for a contract worth Rs 144 crore.
With a market capitalization of Rs 68,951.61 crore, the shares of Rail Vikas Nigam Ltd were trading at Rs 330.70 per share, decreasing around 0.30 percent as compared to the previous closing price of Rs 331.70 apiece.
Significant order
According to the company filing, Rail Vikas Nigam Limited (RVNL) has won a contract from South Central Railway as the lowest bidder (L1) for upgrading the overhead electrification (OHE) system in the Ramgundam–Kazipet section. The project involves converting the existing 1x25kV system to a 2x25kV AT feeding system.
Additionally, the work, valued at Rs 144 crore, includes design, supply, erection, testing, commissioning, and feeder and earthing works across 92 RKM/276 TKM. RVNL is expected to complete the project within 18 months, enhancing electrification efficiency and supporting the division’s power and operational reliability.
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Financial & Operational highlights
Rail Vikas Nigam Limited is a government enterprise initially created to fast-track railway projects and bridge India’s rail infrastructure gap. Its vision is to build world-class, durable infrastructure with the latest technologies, following the highest quality and safety standards.
The company’s Q1FY26 financials show a decline in revenue and profitability. Revenue fell 4% to Rs 3,909 crore from Rs 4,074 crore in Q1FY25. Net profit dropped sharply by 40% to Rs 134 crore, indicating pressure on margins and operational challenges affecting earnings.
In Q1 FY26, the company reported order inflows of approximately Rs 1,000 crore, mainly from civil and electrical engineering segments, across 96 contracts. The management highlights a robust pipeline, describing the total order book, including legacy railway projects and open bids, as “unlimited,” totaling around Rs 1,01,000 crore.
Further, the sectoral split shows strong diversification: civil engineering projects account for Rs 26,000 crore, followed by metro and highways. Electrical projects, including OHE upgrades and transmission lines, total Rs 10,900 crore. Signaling and telecom projects contribute Rs 14,700 crore, while RVNL’s Vande Bharat manufacturing JV accounts for Rs 8,640 crore, ensuring sustained revenue visibility.
The company’s international business is gaining momentum, with a current order book of ₹4,000 crore out of a total of ₹1 lakh crore. For FY26, bids worth ₹16,000 crore are in progress, with a target of ₹30,000–35,000 crore. At a projected 15–20% strike rate, successful orders could significantly boost the overseas portfolio, reflecting a strong global growth focus.
Written by Abhishek Singh
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