Railway Stock: Rail Vikas Nigam Limited (RVNL) has received a major order worth ₹181 crore from Northern Railway. This contract involves upgrading the railway’s electrification and traction system in the Lucknow Division of Uttar Pradesh. Under this project, RVNL will design, supply, erect, test, and commission overhead equipment (OHE) modifications and feeder wire work for a 2×25 kV traction system. The work will be carried out in a 184 RKM/368 TKM stretch of the UTR-MWP section of the Lucknow Division, with the aim of increasing the railway’s capacity. The company stated that the project will be completed in 24 months and there is no interest from any promoter or related party.
New Order Details
RVNL has received this new order from Northern Railway, further expanding the company’s order book. This project is designed to upgrade the railway’s electrification and traction system. Under this project, overhead equipment (OHE) will be modified and feeder wire work will be performed. This work will be carried out in the UTR-MWP section of the Lucknow Division, increasing railway capacity and ensuring improved train speed and operation. RVNL aims to complete this project within 24 months. This order will further strengthen the company’s revenue and expertise in the railway infrastructure sector.
Financial Highlights
RVNL released its September quarter financial results, showing a 19.7% decline in net profit compared to the previous year to ₹230.3 crore. In the same period last year, it was ₹286.9 crore. However, revenue from operations increased by 5.5% to ₹5,123 crore, compared to ₹4,855 crore. EBITDA fell 20.3% to ₹216.9 crore, compared to ₹272 crore. EBITDA margin also declined to 4.2%, down from 5.6% last year. Rising costs and operational pressures have impacted the company’s profitability. However, this performance is better than the June 2025 quarter, when EBITDA margin was just 1.4%.
Stock Performance
RVNL shares closed at ₹314.05 on the BSE on Friday, a decline of 1.58% or ₹5.05. The company’s shares have gained approximately 26.6% so far this year. Despite receiving new orders, the stock market witnessed volatility as investors are concerned about the company’s profitability and cash flow. While revenue increased in the September quarter compared to the June quarter, margins and profits declined. Therefore, investors will be closely monitoring the company’s project delivery and cash management over the next few months.
Future Prospects
This new order is a major opportunity for RVNL, but the company will need to improve its profitability and cash management. Amid rising costs and operational pressures, the company will need to focus on the speed and quality of project delivery. Investors should monitor the company’s financial indicators and cash flow over the next few quarters. RVNL continues to specialize in railway infrastructure development, but improving profitability and cash management will be the next challenge.
Disclaimer
This article is for informational purposes only. The information provided is not investment advice. Consult an expert before making any investment.
