Rail Vikas Nigam Ltd (RVNL) shares closed down 0.99 per cent at ₹326.20 on Wednesday, extending Tuesday’s decline when the stock fell as much as 4 per cent following disappointing June quarter results.

The State-run railway infrastructure company reported a sharp deterioration in profitability for Q1 FY26. Net profit dropped 40 per cent year on year to ₹134 crore from ₹224 crore in the same quarter last year. Revenue declined 4.1 per cent to ₹3,908 crore during the period.

The company’s EBITDA margin compressed significantly to 1.4 per cent (4.5 per cent), representing a deterioration of over 300 basis points. EBITDA itself plunged 71 per cent to ₹52 crore.

Sequential comparisons showed even starker declines. Revenue fell 35 per cent from the March quarter, while EBITDA dropped nearly 90 per cent quarter on quarter. Margins contracted by over 500 basis points sequentially.

Weak operational performance

Despite the weak operational performance, RVNL’s share of profit from joint ventures and associates rose to ₹9.37 crore (₹1.36 crore). Total expenses declined marginally to ₹3,972.92 crore.

The company has outstanding receivables of ₹1,275.25 crore from Krishnapatnam Railway Company (KRCL), including ₹889.95 crore in interest on delayed payments. KRCL has requested a waiver of departmental charges worth 5 per cent of project completion cost, which remains pending with the board.

RVNL shares have declined significantly from their 52-week high of ₹619.50 in September 2024.

Published on August 13, 2025