Shares of Rail Vikas Nigam Ltd (RVNL) surged by 2% in early trading on Friday following the announcement that the company had been declared the lowest bidder (L1) for a significant project from East Coast Railway. The contract, valued at ₹404.88 crore including GST, was disclosed in an exchange filing on September 3.
The RVNL stock opened at ₹212.40 on the BSE, up from its previous close of ₹209.50. It reached an intraday high of ₹213.40, marking a 1.86% increase from the prior closing price.
Project Scope and Details
This domestic project, awarded by East Coast Railway, falls within the normal course of Rail Vikas Nigam's business operations. The comprehensive contract encompasses a wide array of railway infrastructure development works, including:
- Execution of roadbed works
- Construction of minor and major bridges
- Development of railway underpasses
- Building works and ballast supply
- Permanent-way linking and associated works
- Utility shifting
- Signalling and electrification works
- Power supply arrangements
- Shifting or modification of high-tension and low-tension lines
The project is focused on the construction of a third railway line. This critical expansion will cover sections between Nergundi-Barang and Khurda Road-Vizianagaram, situated on the broader Bhadrak-Vizianagaram section. The total length of the new line will span 385 km, comprising 22 km between Nergundi-Barang and 363 km between Khurda Road and Vizianagaram. The anticipated execution period for this extensive project is 30 months.
RVNL confirmed that neither its promoters, promoter group, nor any group companies have any interest in the entity awarding this project, ensuring that the order does not constitute a related-party transaction.
Financial Performance
In the June 2026 quarter (Q1FY27), RVNL reported a consolidated net profit of ₹159.36 crore, an 18.5% increase year-on-year compared to ₹134.53 crore in the corresponding quarter of the previous fiscal year. However, the profit saw a sequential decline of 14.8% from ₹187.07 crore recorded in Q4FY26.
Revenue from operations for the latest quarter stood at ₹4,321.23 crore, marking a 10.6% rise from ₹3,908.77 crore in Q1FY26. Conversely, revenue experienced a 35.5% quarter-on-quarter decrease from ₹6,695.91 crore reported in the March quarter.