2025 proved to be a turbulent year for the Indian stock market, hitting several previously high-flying stocks, including Rail Vikas Nigam Limited (RVNL). After six consecutive years of gains, RVNL’s shares faced sharp corrections, closing seven out of the last eleven months in negative territory. The stock has declined 19.57% this year, trading at ₹344.70 per share, and has lost nearly 50% since reaching an all-time high of ₹647 in July 2024.
The slowdown is linked to a weaker order inflow, which impacted recent quarterly results. For the September quarter, RVNL reported a 20% drop in net profit to ₹230.52 crore, while operating expenses rose. EBITDA also fell to ₹217 crore from ₹256 crore in the previous year, with margins contracting by 100 basis points YoY to 4%. Revenue was the only metric showing YoY growth.
Investor sentiment has improved recently after government passenger fare rationalization and new order wins, including a Letter of Award from Northeastern Railway for constructing a bridge over the River Gandak, featuring a double D-type well foundation for a double line with RDSO 25-tonne axle load standards. The stock rose 15% in the last four trading sessions following these developments.
Market watchers also attribute part of the recovery to budget expectations, as government announcements often act as catalysts for sector-specific PSU stocks, especially in infrastructure and railways.
Despite the recent recovery, RVNL is on track for its first annual decline since listing in 2019. The Navratna PSU stock had delivered consecutive gains from 2019 to 2024, including multibagger returns of 133% in 2023 and 166% in 2024, contributing to cumulative growth of 447% over the last three years and 1,400% over the past five years.
RVNL’s 2025 decline highlights the broader volatility in the Indian market and serves as a cautionary reminder for investors to monitor PSU infrastructure stocks closely.
