RVNL shares rally 3% after winning Rs 116-crore Central Railway contract in Nagpur

“Rail Vikas Nigam Limited has emerged as the Lowest Bidder (L1) for OHE modification work to upgrade the existing 1×25 KV electric traction system to 2×25 KV at the feeding system in the Itarsi-Amla section of the Nagpur division to meet a 3,000 MT loading target,” the company said in an exchange filing.

The contract, aimed at enhancing railway electrification infrastructure, will be executed over 24 months.

Also Read: Bitcoin and the psychology of wealth: Robert Kiyosaki on why most people stay poorEarlier in March, RVNL received a letter of acceptance from South Western Railway for an engineering, procurement, and construction (EPC) contract worth Rs 156.36 crore, including taxes. The project involves the design, supply, erection, testing, and commissioning of a 2X25 KV overhead electrification (OHE) and power supply installation (PSI) system, along with electrical, engineering, and telecommunication works.

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The contract covers the Rayadurga-Topavagada section of the TK-RDG railway line and is expected to be completed within 18 months.

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RVNL Q3 earnings

RVNL reported a 13.1% year-on-year (YoY) dip in net profit at Rs 311.6 crore for the third quarter that ended December 31, 2024. In the same period in FY24, the company saw a net profit of Rs 358.6 crore.

The railway PSU posted revenue from operations at Rs 4567 crore, a 2.6% YoY decline from Rs 4689 crore reported in Q3 FY24.

At the operating level, EBITDA (earnings before interest, tax, depreciation, and amortisation) was down 3.9% YoY to Rs 239.4 crore in Q3FY25 over Rs 249 crore. The EBITDA margin was largely flat at 5.2% compared to 5.3% in the corresponding period in the previous fiscal.

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RVNL shares target price

As per Trendlyne data, the average target price of the stock is Rs 339, which indicates a downside of 9% from the current market prices. The consensus recommendation from 2 analysts for the stock is a ‘Sell’.

RVNL shares performance

On Monday, RVNL shares closed at Rs 371.5, up 2.85% on the BSE. The stock has declined 29% over the past six months but gained 474% in the last two years. The company’s market capitalization stands at Rs 77,468 crore.

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