RVNL shares in focus after emerging lowest bidder for Rs 145 crore Southern Railway project

Shares of Rail Vikas Nigam Ltd (RVNL) will be in focus on Tuesday, September 23, after the company emerged as the lowest bidder for a Southern Railway contract.

The order involves the design, supply, erection, testing, and commissioning of traction substations with power quality equipment, switching posts, SCADA, and automatic fault locator systems for the Jolarpettai–Salem section of the Salem division. Valued at Rs 145.35 crore, the project is to be executed within 540 days, the company said in an exchange filing on Monday, September 22.

Earlier this month, RVNL was also declared the lowest bidder for a Rs 169 crore project from West Central Railway for similar traction substation and SCADA work between Bina and RTA in the Bhopal division.


In August, the company signed a joint venture pact with Texmaco Rail & Engineering, with RVNL holding a 51% stake, to pursue railway and allied infrastructure projects.

RVNL shares have risen 11% so far this month. Other railway stocks have also gained up to 16% in September. However, analysts caution that the rally may be temporary. “Valuations remain elevated even after corrections; railway PSUs continue to trade at a premium,” said Aishvarya Dadheech, Founder and CIO of Fident Asset Management.

Q1 performance snapshot

Last month, the state-run firm reported a 39.99% year-on-year (YoY) decline in consolidated net profit after tax to Rs 134.36 crore for the quarter ended June 30, 2025, against Rs 223.92 crore in the same period last year.

Revenue from operations stood at Rs 3,908.77 crore, down 4.05% YoY from Rs 4,073.80 crore in Q1FY24. Total income fell 4.61% YoY to Rs 4,136.96 crore from Rs 4,336.75 crore in the year-ago quarter, reflecting a softer topline performance.

Total expenses for the quarter came in at Rs 3,972.92 crore, marginally lower by 1.57% YoY compared to Rs 4,036.50 crore in Q1FY24. Sequentially, net profit slumped 70.74% quarter-on-quarter (QoQ) from Rs 459.12 crore in Q4FY25, underscoring weaker performance at the start of the new fiscal year.

RVNL shares closed at Rs 359.40 on the NSE, down 1.1% from the previous close. Over the past year, the stock has advanced 33%.

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