Rail Vikas Nigam (RVNL) reported improved performance in Q2 FY’26 compared to previous quarters and the same period last year. The company’s order book exceeds INR90,000 crores, comprising legacy railway projects (INR43,000 crores) and projects won through bidding (INR46,000 crores). RVNL is exploring opportunities in sunrise sectors and abroad, aiming to maintain stable revenue guidance for the next 2-3 years, targeting a revenue between INR21,000 crores to INR22,000 crores for the financial year.
Financial Performance and Order Book
RVNL’s management highlighted improved performance in Q2 FY’26 compared to previous quarters. The total order book exceeds INR90,000 crores, with INR43,000 crores from legacy railway projects and INR46,000 crores from projects won through bidding.
Sector-wise Order Book Breakup
The order book composition includes:
- 33% from railway projects.
- Approximately 22% from the metro sector.
- Around 10% from the road sector.
- 12% from the BharatNet project.
- Approximately 10% from Vande Bharat manufacturing.
Order Inflow and Revenue Guidance
The total order inflow in the last quarter was INR852 crores. In the last 6 months, the company has received orders worth INR2,000 crores. RVNL maintains its revenue guidance of INR21,000 crores to INR22,000 crores for this financial year.
EBITDA Margins
EBITDA margins have been impacted due to a higher proportion of turnover from bidding projects, which typically have lower margins than legacy projects. The company aims to improve margins in the next quarter by focusing on design, standardization, and process improvements.
Future Growth and Strategy
RVNL is exploring business opportunities in sunrise sectors like solar with battery storage, and operation and maintenance of rolling stock. The company also aims to increase its presence in international projects. It anticipates bidding for projects worth INR75,000 crores to INR80,000 crores in the current financial year, with a target order inflow of INR8,000 crores to INR10,000 crores.
International Projects
The international order book currently stands at INR3,200 crores. RVNL is actively bidding for projects in Central Asia, the Middle East, East Asia and Eastern Europe, expecting substantial traction from international projects in the coming financial year.
Source: BSE
