Navratna stock secures work order worth ₹242 Cr from South Central Railway; Check the details

Synopsis: RVNL jumped after the company secured the lowest bidder status (L1) for a Rs 242 crore project from South Central Railway for designing, supplying, installing, testing, and making the system operational.

This Navratna Railway Stock, engaged in implementing rail infrastructure projects, including new lines, doubling, gauge conversion, railway electrification, metro projects, bridges, workshops, and resource mobilization for Indian Railways and government agencies, is in focus after receiving L1 status for a project worth Rs. 242 crore.

With a market capitalization of Rs 69,806 crore, the shares of Rail Vikas Nigam Ltd. reached a day high of Rs 335.50 per share, up 3.6 percent from its previous day’s closing price of Rs 323.90 per share. Over the past five years, the stock has delivered a multibagger return of 965 percent, outperforming NIFTY 50’s return of 85 percent.

About the order

Rail Vikas Nigam Ltd (RVNL), through a stock exchange filing, announced that it has secured the lowest bid for a major project from South Central Railway. As part of the project, RVNL will be upgrading the overhead electrification system from 1×25 kV to 2×25 kV on the Ongole–Gudur section in the Vijayawada Division. This project spans around 154 route kilometers, or 462 track kilometers, and RVNL will take care of everything that is, from designing to supplying, installing, testing, and making the system operational. The contract is valued at about Rs 242.5 crore, including taxes, and RVNL has 24 months to complete the work. 

This upgrade is expected to make the power supply for trains much more reliable and efficient. It should lead to smoother train operations and allow the route to handle more traffic. Indian Railways is continuing its push to modernize and improve energy use, and this project is another move in that direction.

Financial and other highlights

RVNL Ltd has reported an operating revenue of Rs 5,123 crore in Q2 FY26, representing a 6 percent growth compared to Rs 4,855 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 31 percent from Rs 3,909 crore.

Regarding its profitability, the company reported a net profit of Rs 231 crore in Q2 FY26, representing a 20 percent decline compared to Rs 287 crore in Q2 FY25. However, on a quarter-on-quarter basis, it grew significantly by 72 percent from Rs 134 crore. 

As per the latest filings available, RVNL has a total order book of approximately Rs 90,000 crore, of which Rs 43,000 crore comprises legacy railway projects (assigned projects by Indian Railways), and the remaining amount, which the company has won through competitive bidding, is worth around Rs 46,000 crore.

Rail Vikas Nigam Limited, or RVNL, started back in 2003. It’s a central public sector company that works directly under India’s Ministry of Railways. The government wanted a faster way to build and upgrade railway infrastructure, so they set up RVNL for the job.

Think of RVNL as the construction powerhouse behind Indian Railways. They handle everything from laying down new tracks to doubling old ones, switching track gauges, electrifying lines, and building big bridges or workshops. It’s not just trains, either; they’re getting into metro rail projects and turning old stations into more modern, comfortable spaces for travelers.

RVNL doesn’t just build; they manage projects, handle execution, and help pull together the money to make it all happen. They work closely with Indian Railways, both central and state governments, and other public sector partners to push these projects forward.

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.

The post Navratna stock secures work order worth ₹242 Cr from South Central Railway; Check the details appeared first on Trade Brains.