Shares of Rail Vikas Nigam Ltd (RVNL) rose nearly 2% on June 30 after the company announced it had emerged as the lowest bidder (L1) for a major ₹213.22 crore contract awarded by South Central Railway.
According to an exchange filing, the project involves designing, supplying, installing, testing, and commissioning an overhead equipment (OHE) system upgrade—transitioning from the current 1x25kV setup to a 2x25kV AT feeding system with feeder and earthing works. The upgrade will cover the Duvvada–Rajamundry and Samalkot–Kakinada Port sections of the Vijayawada division. RVNL expects to complete the contract within 24 months.
Revenue Outlook Remains Positive
Despite a softer performance in FY25, the state-run infrastructure giant has reiterated its revenue guidance of ₹20,000–₹22,000 crore for the current fiscal year.
MP Singh, Director of Operations at RVNL, expressed confidence in meeting FY26 targets. “We are expecting to achieve the FY26 revenue guidance because some of the large projects we secured through bidding are now under execution,” Singh said.
The company had set the same revenue guidance for FY25 but fell short due to a sluggish first half. However, momentum picked up sharply as new contracts began moving into the execution phase.
Competitive Bidding Driving Growth
Competitive bidding has emerged as a key growth engine for RVNL. According to Singh, revenue from such projects grew around 68% in FY25, underscoring the importance of large-scale infrastructure initiatives.
Several marquee projects, including BharatNet, metro infrastructure, and RDSS, are currently in mid-implementation—a phase that typically generates higher revenue inflows.
Stock Performance
As of 12:40 pm on June 30, RVNL shares were trading 0.65% higher at ₹397.60 on the NSE, reflecting investor optimism around the company’s strong project pipeline and execution capabilities.
Stay tuned for more updates on RVNL’s infrastructure projects and their impact on the company’s financial performance.
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