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Informist, Wednesday, Nov. 12, 2025

By Simran Rede and Rajesh Gajra

MUMBAI/NEW DELHI – Rail Vikas Nigam Ltd. Wednesday said it maintains its earlier revenue guidance of INR 210 billion-INR 220 billion for the financial year 2025-26 (Apr-Mar). The company expects its revenue to be stable for the next 2-3 years amid a strong order book, a top management official told investors and analysts on a post-earnings conference call.

The company also expects to clock at least 10% growth in the execution of projects in FY26 and to maintain this growth trajectory in FY27 as well, the official said. "In addition to that, we are getting a new project. And some of the projects have lesser execution period. So, getting the new order and including (it) in a shorter period will also give me the momentum and the better development of the company," the official added.

For the September quarter, the railway infrastructure company reported a bottom line of INR 1.96 billion on a top line of INR 49.35 billion. For the half year ended Sept. 30, the company's net profit was INR 3.24 billion on a revenue of INR 88.60 billion.

The company's total order book was around INR 900 billion as on Sept. 30, the top management official said. Of this, the order book of legacy railway projects amounted to INR 430 billion as on Sept. 30. Projects won through bids amounted to INR 460 billion as on Sept. 30, the company said.

"The order book, which is with us, provides us... a stable revenue guidance for the next 2-3 years," the official said. The company has projected an order inflow of INR 80 billion-INR 100 billion for FY26. In FY25, the order inflow was around INR 180 billion, primarily on the back of a "very large project", the company said.

So far this year, other than competition in the market, the template for some high-value projects had been repeatedly deferred for various reasons such as land availability and state regulations, the company said. However, Rail Vikas expects a number of high-value projects going ahead. "So our focus is basically on getting the high-value projects where it is a niche sector, and the competition is also not that high," the official said.

In the September quarter, the company's earnings before interest, tax, depreciation, and amortisation margin was hit by the increased share of bid projects in its turnover. Until now, almost 30% of the company's turnover came from bidding projects. "In legacy projects, we have very good margins. But in (bidding) projects, we are basically working on standard design processes," the top official said. The company expects its margins to improve in the December quarter.

Rail Vikas hopes to maintain its EBITDA margin in the range of 4-5%, which is the norm for the infrastructure industry, the official said. The company has tweaked its strategy for bid projects. "We are focusing on projects where margins are better and we are focusing towards projects ... where the competition is not so high," the official said.

The railway infrastructure company's international order book was around INR 32 billion as on Sept. 30. Some of these projects are under exclusion, the company said. It has already bid for many projects in Central Asia, West Asia, East Asia, and East Europe. "So certainly in the coming financial year or in the second half of this financial year, we hope to gain substantial traction from international projects also," the official said.

Orders for railway projects account for 36% of the company's total order book. Orders for metro projects account for 22% of the order book, while 12% of orders are for BharatNet projects, among the company's large flagship projects, and 10% relate to Vande Bharat trainset manufacturing, the management told analysts.

The first prototype of the Vande Bharat sleeper trainset is expected to be produced in June, with the second expected in August. After these prototypes are tested and certified for production, 12 more prototypes will be produced in the remaining months of FY27, the official said. Following this, 25 Vande Bharat sleeper trainsets will be produced every year for the next five years, he added. "So, the total production cycle is up six years," he said.

On Wednesday, shares of Rail Vikas Nigam closed slightly lower at INR 316.35 on the National Stock Exchange. The company had released its earnings after market hours Tuesday.  End

Edited by Rajeev Pai

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