Railway stock in focus after receiving LoA from East Coast Railway for surveillance system

Synopsis:
RVNL received a domestic order from East Coast Railway to supply, install, test, and commission an IP-based video surveillance system. The ₹9.64 crore project begins within 30 days and must finish in 180 days.

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 a Letter of Award worth Rs. 9.64 crore from East Coast Railway.

With a market capitalization of Rs. 67,346.15 crore, the shares of Rail Vikas Nigam Limited were currently trading at Rs. 323 per equity share, down nearly 0.40 percent from its previous day’s close price of Rs. 324.30. 

What is the news?

Rail Vikas Nigam Limited (RVNL) has received a Letter of Award from East Coast Railway for supplying, installing, testing, and commissioning an IP-based video surveillance system for its rolling stock. 

The project is a domestic order and will begin within 30 days of the contract, and must be completed in 180 days. The contract value is about Rs. 9.64 crore and is part of RVNL’s regular business.

Order Book

As of September 2025, RVNL’s total order book stands at approximately Rs. 90,000 crore. Out of this, Rs. 43,000 crore comes from assigned projects by Indian Railways, while the remaining Rs. 46,000 crore comes from projects secured through competitive bidding.

Company Overview

Rail Vikas Nigam Limited (RVNL) is a central public sector undertaking established in 2003 under the Ministry of Railways, Government of India. It was set up to meet the growing demand for rapid development and implementation of rail infrastructure projects. 

RVNL serves as a construction arm to support Indian Railways in expanding and modernizing the railway network across the country. The company is engaged in various rail infrastructure activities such as laying new railway lines, doubling existing tracks, gauge conversion, railway electrification, and constructing major bridges and workshops. 

The company also undertakes metro rail projects and station modernization to improve travel efficiency and passenger comfort. RVNL provides project management, execution, and financial resource mobilization services, collaborating with Indian Railways, central and state governments, and public sector agencies. 

Recent quarter results

Coming into financial highlights, Rail Vikas Nigam Limited’s revenue has increased from Rs. 4,855 crore in Q2 FY25 to Rs. 5,123 crore in Q2 FY26, which has grown by 5.52 percent. The net profit has decreased by 19.51 percent from Rs. 287 crore in Q2 FY25 to Rs. 231 crore in Q2 FY26. Rail Vikas Nigam Limited’s revenue and net profit have grown at a CAGR of 6.52 percent and 11.11 percent, respectively, over the last five years.

In terms of return ratios, the company’s ROCE and ROE stand at 14.7 percent and 14 percent, respectively. Rail Vikas Nigam Limited has an earnings per share (EPS) of Rs. 5.45, and its debt-to-equity ratio is 0.52x.

Written By – Nikhil Naik

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