New Delhi: Public sector infrastructure giant Rail Vikas Nigam Ltd (RVNL) reported a sharp 39.99% year-on-year decline in consolidated net profit for the first quarter of FY26, amid pressure on margins and revenue.
The company posted a net profit of ₹134.36 crore for the quarter ended June 30, 2025, compared to ₹223.92 crore in the same quarter last year. The earnings came alongside a 4.05% YoY fall in revenue from operations, which dropped to ₹3,908.77 crore from ₹4,073.80 crore in Q1FY24.
Q1FY26 Key Financial Highlights (YoY)
- Revenue from operations: ₹3,908.77 crore ↓ 4.05%
- Total income: ₹4,136.96 crore ↓ 4.61%
- EBITDA: ₹52.9 crore ↓ 70.9% (vs ₹182 crore)
- Net Profit: ₹134.36 crore ↓ 39.99% (vs ₹223.92 crore)
- Profit Before Tax: ₹173.41 crore ↓ 42.5%
- EBITDA Margin: 1.4% vs 4.5% last year
- Total expenses: ₹3,972.92 crore ↓ 1.57%
- Employee expenses: ₹50.05 crore ↑ 6.55%
- Finance costs: ₹108.17 crore ↓ 21.23%
Stock Performance and Analyst Sentiment
Shares of RVNL closed 3.81% lower at ₹329.45 on the NSE on Tuesday, underperforming the Nifty, which fell 0.4%. The stock has now declined:
- 42.79% in the last 12 months
- 22.06% year-to-date (YTD)
According to Bloomberg, out of three analysts tracking the stock, one has a ‘Buy’ rating and two recommend ‘Sell’. The average 12-month target price implies a further downside of 33.8%.
What’s Behind the Weak Performance?
While RVNL saw some reduction in finance costs and total expenses, the significant drop in EBITDA and profit margins reflects a tougher operating environment and likely execution bottlenecks or cost pressures. The EBITDA margin plummeting to 1.4% from 4.5% indicates squeezed profitability across ongoing projects.
The slight rise in employee costs and reduction in financing costs were not enough to offset the broader revenue and margin compression.
Business Outlook
RVNL remains a key player in railway infrastructure development, executing a wide array of projects, including new railway lines, doubling, electrification, metro projects, and bridge construction. However, its Q1FY26 performance suggests that project pipeline execution or cost management may need closer scrutiny in the coming quarters.
read also: Leadership Reshuffle: Prakash Singh Takes Charge as Executive Director (Electrical) at RVNL
About RVNL
Rail Vikas Nigam Limited (RVNL) is a Navratna PSU under the Ministry of Railways. Incorporated in 2003, RVNL was created to fast-track the implementation of rail infrastructure projects. It is responsible for project development, execution, and commissioning across a broad spectrum of rail-based initiatives in India and abroad.
