Synopsis:
Shares rose after the firm emerged as the lowest bidder for a Rs 272 crore railway EPC contract. Despite weaker Q1FY26 results, a ₹1 lakh crore order book, expanding international projects, and strong bid momentum indicate solid long-term growth prospects.
The shares of the prominent railway company gained up to 2 percent from the day’s low after the company emerged as the Lowest Bidder (L1) for a contract worth Rs 272 crore.
With a market capitalization of Rs 65,938.76 crore, the shares of Rail Vikas Nigam Ltd were trading at Rs 316.25 per share, decreasing around 0.46 percent as compared to the previous closing price of Rs 317.70 apiece.
Significant order
Rail Vikas Nigam Limited (RVNL) has secured a significant domestic EPC contract from Central Railway for the design, supply, erection, testing, and commissioning of a 220/132/55 KV traction substation and sectioning systems in the Daund–Solapur section. The project aims to meet a 3000 MT loading target, enhancing rail electrification and operational efficiency.
The contract, valued at Rs 272.08 crore (including taxes), is to be executed within 24 months. This order further strengthens RVNL’s position as a key infrastructure partner for Indian Railways, expanding its project portfolio in high-voltage traction and railway modernization.
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 Rs 4,000 crore out of a total of Rs 1 lakh crore. For FY26, bids worth Rs 16,000 crore are in progress, with a target of Rs 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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