RVNL shares in focus after receiving Rs 625 crore contract from South Central Railway

Shares of Rail Vikas Nigam Ltd (RVNL) are likely to remain in focus on Wednesday after the company received a Letter of Acceptance from South Central Railway for the doubling of track between Parbhani to Parli stations worth Rs 625.09 crore.

“It is hereby informed that Rail Vikas Nigam Limited has received Letter of Acceptance from South Central Railway for 'Engineering, Procurement and Construction (EPC) contract Agreement for Doubling of Track between Parbhani to Parli stations (58.06Kms) (excluding Gangakhed yard from km 292.075 to km 298.85 = 6.775 Km) including Electrification & Signaling works in connection with Parbhani -Parli doubling project of South Central Railway in the state of Maharashtra,” said the company in an exchange filing.

The project is estimated to be completed in about 30 months.


Earlier this week, RVNL announced that its joint venture (JV), RVNL-SCPL has received a letter of acceptance (LoA) worth Rs 837.67 crore from Eastern Railway.

Rail Vikas Nigam is in the business of executing all types of railway projects including new lines, doubling, gauge conversion, railway electrification, metro projects, workshops, major bridges, construction of cable-stayed bridges, institution buildings, etc.

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In Q2 FY25, RVNL reported a 27% year-on-year (YoY) drop in net profit to Rs 286.9 crore, down from Rs 394.3 crore in the corresponding period last year, impacted by lower operating margins and reduced earnings.

The company's revenue from operations dipped 1.2% YoY to Rs 4,855 crore, compared to Rs 4,914.3 crore in Q2 FY24. EBITDA fell 9% to Rs 271.5 crore, with margins shrinking to 5.6% from 6% in the previous year, highlighting increased operational pressures.

On a quarter-on-quarter (QoQ) basis, RVNL’s profit rose by 28.1%, while revenue increased by 19.2% in Q2 FY25, reflecting some sequential improvement in performance.

On Tuesday, RVNL shares closed 0.85% lower at Rs 434.05 on the BSE.

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