Rail Vikas Nigam Limited (RVNL) held its Q3 FY’26 earnings call on February 06, 2026, reporting a consolidated top line of INR4,936 crores and a Profit Before Tax (PBT) of INR359 crores for the quarter. Management noted a strong order book of nearly INR87,000 crores, though they anticipate stagnant top-line growth for the current fiscal year due to a shift towards lower-margin bidding works.
Q3 FY’26 Financial Performance Summary
During the Q3 FY’26 earnings conference call, the management of Rail Vikas Nigam Limited (RVNL) provided key financial updates. For the third quarter, the company achieved a top line of INR4,936 crores and a profit before tax (PBT) of INR359 crores. For the nine-month period, the consolidated top line reached INR14,406 crores, with a PBT of INR841 crores.
Order Book Strength and Execution Mix
The order book remains robust, standing at almost INR87,000 crores. This total comprises INR40,000 crores in railway nomination works and INR47,000 crores secured through bidding. In the last nine months, RVNL has secured new works worth INR1,528 crores and emerged as the lowest bidder for projects valued at INR3,667 crores.
Management outlined a diversified revenue mix projection for the next three years: approximately 50% of revenue is expected to come from existing railway works (the INR40,000 crore nomination book), and the remaining 50% from bidding works, including projects like Vande Bharat and BharatNet, as well as highways and other railway sectors.
Growth Trajectory and Margin Outlook
CMD Mr. Saleem Ahmad cautioned that the current fiscal year (FY’26) might see stagnant growth in top line, expecting only a 1% or 2% growth over the previous year, due to the lower margins associated with newer bidding works. Consequently, there may be a slight dip in the bottom line for FY’26.
Looking ahead to FY’27, the company is targeting sustainable growth of between 10% per financial year for both top line and bottom line. On the profitability front, the company expects to achieve an average EBITDA margin of 7% for the current fiscal year, with margins expected to slightly improve in the following year as the business transitions further from nomination basis to competitive bidding.
Key Project Updates
Management provided specific updates on key ongoing projects:
- Vande Bharat Project: RVNL is manufacturing 120 train sets with a Russian counterpart. The first prototype is targeted for delivery to the railways in June or July 2026. This specific order involves the sleeper Vande Bharat train with 16 coaches.
- BharatNet Project: Progress is satisfactory, and management is hopeful of generating good income from this project during the current year.
- Rishikesh-Karnaprayag Project: Work is progressing well, with a target completion date of December 2028.
Order Book Sectoral Breakup
RVNL’s core business remains railways, accounting for around 45% of total orders. The sectoral breakdown of the order book is further detailed as:
- Railway Orders: Approximately 45%.
- Road Sector: Around 10%.
- Electrical Sector (including RDSS): Around 15%.
- Signalling and Telecom (including BharatNet): Around 15%.
- Mechanical Sector (including Vande Bharat share): Around 7%.
- International Projects: An order book of around INR3,500 crores.
The management confirmed that most projects, barring certain electrical distribution systems, are sourced from the central government side, with metros and national highways also being important segments.
Source: BSE
