Railway stock jumps 3% after receiving ₹270 Cr metro project from Maharashtra metro 

A leading railway infrastructure company witnessed a nearly 3 percent surge in its stock price after securing a Letter of Acceptance for a significant metro construction project. The order, valued at Rs.270 crore, was awarded by Maharashtra Metro Rail Corporation for the construction of elevated metro stations, boosting investor sentiment. 

Price Movement 

In Tuesday’s trading session, Rail Vikas Nigam Ltd’s share price reached an intra-day high of Rs.482.00 per share, rising 2.5 percent from its previous close of Rs.469.90 apiece. The shares have retreated since then and currently trading at Rs.472.75 per share. 

Contract Specifications 

Rail Vikas Nigam Ltd has secured an order from Maharashtra Metro Rail Corporation Limited for the construction of elevated metro stations under NMRP Phase-2. 

The contract includes the development of seven elevated metro stations in Reach 3A, namely Hingna Mount View, Rajiv Nagar, Wanadongri, APMC, Raipur, Hingna Bus Station, and Hingna, along with three elevated metro stations in Reach 4A, which include Pardi, Kapsi Khurd, and Transport Nagar. 

The project, valued at approximately Rs.270 crore (including GST), is to be executed within 30 months under the General Contract Conditions. The contract has been awarded by a domestic entity. 

Order Book and Global Expansion 

The company’s current order book stands at approximately Rs.85,000 crore, with an aspirational target to maintain it between Rs.75,000 crore and Rs.1 lakh crore. The success rate in project bidding exceeds 20 percent. 

Expanding its presence internationally, the company has submitted bids in markets such as Bangladesh, Maldives, Sri Lanka, UAE, Oman, Rwanda, Uzbekistan, Saudi Arabia, and Nepal. To strengthen its global operations, international offices have been established in South Africa, Oman, UAE, and Maldives. 

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Financial Performance 

RVNL reported a slight decline in revenue from operations, falling by 1.2 percent year-on-year from Rs.4,910 crore in Q2 FY24 to Rs.4,869 crore in Q2 FY25. Net profit also saw a significant drop of nearly 18 percent YoY, decreasing from Rs.370 crore to Rs.303 crore during the same period. 

Company Profile 

Established in 2003, Rail Vikas Nigam Limited serves as the construction arm of the Ministry of Railways (MoR), focusing on project execution and transportation infrastructure development. The company undertakes a wide range of railway projects, including the development of new lines, track doubling, gauge conversion, electrification, workshops, metro systems, bridges, cable-stayed bridges, and institutional buildings.

Written by – Siddesh S Raskar 

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