Navratna stock in focus after bagging ₹201 Cr order from East Coast Railway

Synopsis: Rail Vikas Nigam announced that it secured the lowest bidder (L1) status for a project involving the establishment of a wagon Periodic Overhaul (POH) workshop with a capacity of 200 wagons at Kantabanji worth Rs 201 crore.

This Navratna Railway Stock, engaged in implementing rail infrastructure projects, including new lines, doubling, gauge conversion, railway electrification, metro projects, bridges, workshops, and resource mobilization for Indian Railways and government agencies, is in focus after receiving L1 status for a project worth Rs. 201 crore from East Coast Railway.

With a market capitalization of Rs 76,729 crore, the shares of Rail Vikas Nigam Ltd. made a day high of Rs 373 per share, up 1.5 percent from its previous day’s closing price of Rs 367.60 per share. Over the past five years, the stock has delivered a multibagger return of 1,450 percent, outperforming NIFTY 50’s return of 85 percent.

About the Order

Rail Vikas Nigam Limited (RVNL), through a stock exchange filing, announced that it has become the lowest bidder (L1) for one of the projects awarded by East Coast Railway. 

The project involves the establishment of a wagon Periodic Overhaul (POH) workshop with a capacity of 200 wagons at Kantabanji. It is a part of RVNL’s normal railway infrastructure business and will be executed within 18 months. The total worth of the order is approximately Rs 201.23 crore (excluding GST).

Financial and other highlights

RVNL Ltd has reported an operating revenue of Rs 5,123 crore in Q2 FY26, representing a 6 percent growth compared to Rs 4,855 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 31 percent from Rs 3,909 crore.

Regarding its profitability, the company reported a net profit of Rs 231 crore in Q2 FY26, representing a 20 percent decline compared to Rs 287 crore in Q2 FY25. However, on a quarter-on-quarter basis, it grew significantly by 72 percent from Rs 134 crore. 

As per the latest filings available, RVNL has a total order book of approximately Rs 90,000 crore, of which Rs 43,000 crore comprises legacy railway projects (assigned projects by Indian Railways), and the remaining amount, which the company has won through competitive bidding, is worth around Rs 46,000 crore.

Rail Vikas Nigam Limited, or RVNL, started back in 2003. It’s a central public sector company that works directly under India’s Ministry of Railways. The government wanted a faster way to build and upgrade railway infrastructure, so they set up RVNL for the job.

Think of RVNL as the construction powerhouse behind Indian Railways. They handle everything from laying down new tracks to doubling old ones, switching track gauges, electrifying lines, and building big bridges or workshops. It’s not just trains, either, they’re getting into metro rail projects and turning old stations into more modern, comfortable spaces for travelers.

RVNL doesn’t just build; they manage projects, handle execution, and help pull together the money to make it all happen. They work closely with Indian Railways, both central and state governments, and other public sector partners to push these projects forward.

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