PSU railway stock jumps 4% after receiving ₹156 Cr order from South Western Railways

The shares of the railway infrastructure developer gained up to 4 percent after the company received a significant letter of acceptance from South Western Railway for Rs 156 crore.

Price Action

With a market capitalization of Rs 72,079.14 crore, the shares of Rail Vikas Nigam Ltd were trading at Rs 345.70 per share, increasing around 2.46 percent as compared to the previous closing price of Rs 337.40 apiece.

Reason for Rise

The shares of Rail Vikas Nigam Ltd have seen positive movement after receiving a significant letter of acceptance from South Western Railway worth Rs 156 crore for design, supply, erection, testing, commissioning of 2X25 KV OHE & PSI system (TSSs & SPs & SSPs) including Electrical General Services, Engineering & Telecommunication works.

Financial performance 

Examining the company’s financial condition, revenue narrowed down by 2 percent from Rs 4,676 crore in Q3FY24 to Rs 4,591 crore in Q3FY25, and during the same time frame, net profit plummeted by 9 percent from Rs 326 crore to Rs 295 crore.

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Order book & Future plan 

The company’s current order book is Rs 97,000 crore, including Rs 49,000 crore from bidding works and Rs 47,600 crore from railway projects, down from Rs 140,000 crore historically. Management is shifting to market-driven bidding, with annual turnover projected at Rs 28,000-Rs 30,000 crore and a 3-4 year execution timeline.

Project updates

The Vande Bharat order faces delays due to train configuration changes, with the first prototype expected in early 2026. Meanwhile, the Rs 13,200 crore BharatNet project recently received a letter of acceptance, creating significant telecom sector opportunities.

Future Guidance

Management remains optimistic about meeting revenue targets, citing favorable Q4 conditions. They are confident in sustaining margins despite competitive pressures by leveraging operational efficiency and strong project execution capabilities, positioning the company for continued growth and stability in the coming quarters.

Company profile 

Rail Vikas Nigam Limited (RVNL) is an India-based company engaged in developing rail infrastructure. The Company is in the business of implementing various types of rail infrastructure projects, gauge conversion, new lines, railway electrification, bridges, workshops, and production units.

Written by Abhishek Singh

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