Rail Vikas Nigam Limited (RVNL), a leading railway infrastructure company, saw its shares fall 3% to ₹308 apiece in early trade on Wednesday, November 12, following the release of its September quarter earnings, which came below Street expectations.
Quarterly performance:
In its post-market filing on Tuesday, RVNL reported a 20% decline in consolidated net profit to ₹230.52 crore, compared to ₹286.90 crore in the same quarter last year, primarily due to higher operating expenses. Revenue, however, grew marginally on a YoY basis, rising to ₹5,333.36 crore from ₹5,136.07 crore in Q2 FY25.
Operating expenses increased significantly to ₹5,015 crore, compared with ₹3,972 crore in Q1 and ₹4,731 crore in the year-ago quarter. EBITDA fell to ₹217 crore, down from ₹256 crore YoY, with margins contracting by 100 basis points to 4%.
Despite the YoY decline, the quarter showed improvement QoQ, with net profit up 72.8% and revenue up 31% compared to the preceding June quarter.
Recent orders and business updates:
RVNL has continued to secure new projects. Last week, the company won an order worth ₹272 crore from Central Railway for the design, supply, erection, testing, and commissioning of a 220/132/55 kV traction substation, along with sectioning posts (SPs) and sub-sectioning posts (SSPs) for the Daund–Solapur sections. This project supports a 3,000 MT loading target on an EPC basis.
This is RVNL’s fourth order in less than two months. In October, it secured three additional projects, including a ₹165.5 crore infrastructure project from the North Eastern Railway.
Share price trend:
RVNL shares have faced sustained selling pressure since October, after ending a three-month slide in September. In November so far, the stock has fallen another 4%, trading 40% below its 1-year high of ₹502. Over the past year, the stock has declined 25.25%, and if this trend persists, it would mark RVNL’s first yearly decline since its 2019 listing.
Investors are watching closely to see if recent order wins and project execution progress can stabilize the stock in the coming months.