New Delhi: Rail Vikas Nigam Limited (RVNL) reported an 18.7% year-on-year increase in consolidated net profit to Rs 159.52 crore for the quarter ended June 30, 2026, compared with Rs 134.36 crore in Q1 FY26.
The government-owned rail infrastructure company also recorded strong growth in revenue from operations, which increased 10.6% to Rs 4,321.23 crore from Rs 3,908.77 crore in the corresponding quarter last year.
On a standalone basis, RVNL’s net profit increased to Rs 155.62 crore in Q1 FY27, compared with Rs 127.85 crore in Q1 FY26.
RVNL Q1 FY27 Financial Performance
The company’s financial performance improved across key profitability metrics during the quarter.
- Revenue from operations: Rs 4,321.23 crore, up 10.6% YoY
- Total income: Rs 4,462.29 crore
- Other income: Rs 141.06 crore
- Total expenses: Rs 4,244.91 crore
- Profit before tax: Rs 223.54 crore, up from Rs 173.41 crore
- Consolidated net profit: Rs 159.52 crore
- EPS (basic): Rs 0.76, compared with Rs 0.65 in Q1 FY26
Profit before tax increased 28.9% year-on-year, while basic earnings per share rose around 16.9% during the quarter.
Read also: RVNL Secures ₹358.97 Crore East Central Railway Order for Doubling of 41 Km Sitamarhi-Raxaul Section
Interest Calculation Methodology Under Discussion
The receivable issue is linked to the methodology used for calculating interest on delayed payments.
RVNL changed its interest calculation method from compound interest to simple interest with effect from October 1, 2024.
However, KRCL has requested that simple interest be applied retrospectively from April 1, 2020.
The matter concerning the applicability of simple interest for the period before September 30, 2024, remains under discussion between RVNL and KRCL management.
The company said that any financial adjustment arising from the finalisation of the matter will be recognised in the period in which the issue is concluded.
For comparison, the total receivable from KRCL stood at Rs 1,275.25 crore as of June 30, 2025, which also included Rs 889.95 crore towards interest.
Auditors Flag Rs 1,091.91 Crore KRCL Receivable
While reviewing RVNL’s financial results, statutory auditors Gandhi Minocha & Co., Chartered Accountants highlighted the company’s receivables from Krishnapatnam Railway Company Limited (KRCL).
As of June 30, 2026, the total amount receivable from KRCL stood at Rs 1,091.91 crore, including Rs 889.95 crore towards interest on delayed payments.
The auditors issued an unmodified conclusion on the limited review but included an “Emphasis of Matter” paragraph concerning the KRCL receivables.
RVNL Deregisters South Africa Subsidiary
RVNL also informed the stock exchanges that it has deregistered its wholly owned subsidiary, RVNL Infra South Africa, with effect from June 30, 2026.
The company continues to operate in a single reportable segment — Development of Rail Infrastructure.
For the consolidated financial results, RVNL included the interim financial results of:
- Nine subsidiaries
- One associate
- Eight joint ventures
The results of one subsidiary and four joint ventures could not be included in the consolidation due to non-availability of financial information. However, the management stated that the impact of their non-inclusion is not material to the Group.
RVNL Consolidated Financial Performance
On a consolidated basis, RVNL reported total income of Rs 4,462.29 crore during Q1 FY27.
The consolidated profit after tax stood at Rs 159.52 crore, which included the group’s share of profit from associates and joint ventures amounting to Rs 6.16 crore.
The company also reported other comprehensive income during the quarter.
On a standalone basis, net OCI that will not be reclassified to profit or loss stood at Rs 0.47 crore. On a consolidated basis, net OCI not to be reclassified to profit or loss was also Rs 0.47 crore, while items to be reclassified resulted in a net loss of Rs 5.54 crore.
The total comprehensive income on a standalone basis stood at Rs 156.09 crore.
Board Approves Q1 FY27 Financial Results
The Board of Directors approved the unaudited financial results on August 11, 2026, in accordance with Regulations 30 and 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The results were reviewed by the Audit Committee and subjected to a limited review by statutory auditors Gandhi Minocha & Co.
The company’s paid-up equity share capital remained unchanged at Rs 2,085.02 crore.
Standalone EPS for the quarter stood at Rs 0.75 for both basic and diluted earnings per share.
About Rail Vikas Nigam Limited
Rail Vikas Nigam Limited (RVNL) is a government-owned public sector enterprise under the Ministry of Railways. The company is engaged in developing and executing rail infrastructure projects, including new railway lines, doubling, electrification, major bridges, workshops and other railway-related infrastructure. RVNL operates primarily in the development of rail infrastructure segment and undertakes projects for Indian Railways and other entities.
Read also: RVNL Secures ₹358.97 Crore Railway Contract from East Central Railway for Infrastructure Development
