Analyst Concall
Rail Vikas eyes overseas orders worth INR 300 bln-350 bln
This story was originally published at 18:23 IST on 12 August 2025
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--Rail Vikas:Plan to bid for INR 300 bln-INR 350 bln overseas orders in FY26
--Rail Vikas: See margins improving Q2 onwards once work on projects start
--CONTEXT:Comments of Rail Vikas Nigam mgmt in post-earnings analyst concall
--Rail Vikas: See orders, revenue picking up substantially in Q2
By Taniva Singha Roy and Avishek Rakshit
MUMBAI – Rail Vikas Nigam Ltd. is eyeing overseas orders worth INR 300 billion-INR 350 billion in the current financial year ending March, the company's management said at a post-earnings call with analysts Tuesday. The company currently has an overseas order book of around INR 400 billion and expects it to increase further.
The construction company under the Ministry of Railways sees its overall orders and margins picking up substantially in the Jul-Sept quarter. The proportion of turnover from gauges is coming down by almost 25% but the turnover from bidding has increased by three times. "This kind of balancing will happen because turnover from gauges will continuously slide, but it will be compensated by an increase in turnover from bidding," the company's management said.
The company expects its margins to improve from the Jul-Sept quarter onwards. There is a slight dip in margins, but it will improve once the work starts in full swing, the company's senior management said. The public sector company's net margin decreased because some losses have been recognised on the online monitoring of rolling stock contracts, the management said.
The company said that it is going to come out with its first prototype of Vande Bharat by June 2026. "We expect the first prototype to roll out by next June, and revenue will also start flowing in. As per the contract condition, 90% of the cost of the train set will be given on production of the prototype and after successful trials, the balance 10% will also be released. And once the trials are successful... the regular production will start," the senior management said.
The state-owned company Tuesday reported the fifth straight quarter of year-on-year decline in its top line and bottom line. The decline in the net profit during the June quarter was the sharpest since at least the March quarter of 2018-2019 (Apr-Mar), data available with Informist showed.
The Navratna company reported a net profit of INR 1.28 billion for the June quarter, down 41% on year and 66% on quarter. Its revenue declined by over 3% on year and 38% sequentially to INR 39.25 billion during the quarter.
Tuesday, shares of the company ended 3.8% lower at INR 329.45 on the National Stock Exchange. The company announced results during market hours.
Edited by Saji George Titus
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