Delhi: Rail Vikas Nigam Limited (RVNL) reported an 8.3% year-on-year increase in net profit to ₹249.5 crore for the second quarter, compared with ₹230.3 crore in the corresponding quarter of the previous financial year. However, the company’s revenue declined 8.2% to ₹4,701 crore from ₹5,123 crore in the year-ago period.
Despite the decline in revenue, RVNL recorded an improvement in its operating performance, with Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) rising 19.5% to ₹264 crore during the September quarter, compared with ₹221 crore in the corresponding period last year.
The company’s EBITDA margin also improved to 5.6% from 4.3% in the year-ago quarter, indicating better operating margins during the reporting period.
RVNL Board Approves Corporate Guarantee of Up to ₹375 Crore
Separately, RVNL’s board has approved the issuance of an unconditional and irrevocable corporate guarantee of up to ₹375 crore in favour of the Export-Import Bank of India (Exim Bank).
The guarantee will support a proposed term loan facility of ₹1,500 crore to be availed by the company’s joint venture, Kinet Railway Solutions Private Limited (KRSL).
RVNL holds a 25% equity stake in KRSL. According to the company, the proposed transaction will be undertaken on an arm’s-length basis.
The corporate guarantee will be subject to the terms and conditions specified in the term sheet, final guarantee documentation acceptable to Exim Bank, and compliance with applicable statutory, regulatory and contractual requirements.
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RVNL Says No Immediate Financial Impact from Guarantee
RVNL clarified that the proposed corporate guarantee will have no immediate impact on the company. Any financial impact would arise only in the event of a default by the borrower under the proposed loan facility.
The guarantee is intended to support KRSL’s proposed borrowing from Exim Bank, with RVNL providing financial backing in proportion to its involvement in the joint venture.
RVNL Share Price Performance
RVNL shares closed at ₹205.40 on the National Stock Exchange (NSE) on Thursday, declining 1.91% ahead of the company’s earnings announcement.
The stock has witnessed significant pressure in 2026, falling 43.18% so far during the year. It has declined by ₹156.10 to ₹205.40 as of Thursday’s closing price on the NSE.
About Rail Vikas Nigam Limited (RVNL)
Rail Vikas Nigam Limited (RVNL) is a public sector undertaking under the Ministry of Railways, Government of India. The company is primarily engaged in the development and execution of railway infrastructure projects, including new railway lines, doubling, gauge conversion, railway electrification, metro projects and major bridge construction. RVNL plays an important role in strengthening India’s railway infrastructure through project development and execution.
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