Rail Vikas Nigam Limited (RVNL) has emerged as the lowest bidder (L1) for a new Southern Railway project worth ₹145.34 crore, marking its second order this month. The regulatory filing states that the project includes the design, supply, erection, testing, and commissioning of traction substations, equipped with power quality compensating devices, SCADA, and Automatic Fault Locator (AFL) systems for the Salem division’s 2×25 kV AT Feeding System.
The project is expected to be completed within 540 days and supports a 3,000 MT loading target. Earlier this month, RVNL had secured a ₹169.48 crore order from West Central Railway on September 10.
Share Performance and Market Sentiment
RVNL shares have rebounded 19% in September after a three-month decline. The stock had previously experienced a strong bull run between May 2023 and July 2024, pushing valuations to high levels. A slowdown in order inflows had prompted investor caution, leading to sharp corrections. However, the recent rise in order flow has renewed market interest.
Financial Snapshot
For the quarter ending June 2025, RVNL reported:
- Revenue: ₹3,908 crore (down 4.1% YoY)
- Net profit: ₹134 crore (down 40% YoY)
- Sequentially, revenue fell 35%, net profit declined 71%, and margins contracted over 500 basis points, with EBITDA dropping nearly 90% quarter-on-quarter.
The new Southern Railway order is expected to further strengthen RVNL’s order book and investor sentiment.
Disclaimer: This news is for informational purposes only and does not constitute investment advice.
