New Delhi, September 11, 2025: State-owned Rail Vikas Nigam Limited (RVNL) has emerged as the lowest bidder (L1) for a significant infrastructure project awarded by West Central Railway, marking another milestone in its ongoing portfolio of railway electrification and modernization projects.
Project Details and Scope
The contract, valued at ₹169.49 crore (including applicable taxes), encompasses a comprehensive scope of work aimed at enhancing the railway infrastructure in the Bhopal division. The key components of the project include:
- Design, modification, and supply of a 220/132kV/2×25 kV Scott-connected traction substation and switching posts with Auto Transformer (AT).
- Erection, testing, and commissioning of the traction substation.
- SCADA integration between the BINA and RTA sections of the Bhopal division.
The project targets a loading capacity of 3,000 metric tons (MT) and is slated for completion over a period of 540 days. RVNL confirmed that the contract has been awarded under the normal course of business and does not involve any related party transactions.
Financial Performance: Q1FY26 Highlights
While the new contract strengthens RVNL’s order book, the company reported a challenging first quarter:
- Revenue declined by 4.1% year-on-year to ₹3,908 crore.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) dropped sharply by 71% to ₹52 crore.
- EBITDA margin fell from 4.5% to 1.4%, reflecting higher operational costs and project execution challenges.
- Net profit declined by 40% year-on-year to ₹134 crore from ₹224 crore.
Sequentially, the numbers were even more pronounced:
- Revenue was down 35% from the March quarter.
- EBITDA fell nearly 90%, with margins contracting by over 500 basis points.
Market Implications
Despite the subdued quarterly performance, the award of this ₹169.48 crore project demonstrates RVNL’s continued dominance in railway electrification and infrastructure development. The deal is expected to support the company’s medium-term revenue growth and strengthen its position in executing complex electrification and traction projects.
Investors are likely to monitor how new contracts such as this one affect RVNL’s financial recovery in upcoming quarters, especially in the context of improving profitability and margin stabilization.
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