Analyst Concall
Rail Vikas sees PAT dn, sales flat FY26 but 10% higher FY27
This story was originally published at 17:47 IST on 6 February 2026
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--Rail Vikas: Order book at INR 870 bln, including INR 470 bln won via bids
--CONTEXT: Rail Vikas Nigam mgmt's comments in post-earnings analyst concall
--Rail Vikas: Top-line growth quite challenging as we diversify into bidding
--Rail Vikas: See stagnation in top line, slight dip in bottom line for FY26
--Rail Vikas: Will look to bid for high-speed rail projects after 2-3 years
--Rail Vikas:Target income of INR 100 bln-INR 110 bln a yr from railway works
--Rail Vikas: Making 120 Vande Bharat trainsets, work going on as per plan
--Rail Vikas: Hope to share prototype of Vande Bharat with Railways by June
--Rail Vikas: Need to complete INR 400 bln order book in next 3 years
--Rail Vikas: Targeting top-line, bottom-line growth of 10% in FY27
--Rail Vikas: Hope to see EBITDA margin of 7% in FY27
By Ashutosh Pati and Sunil Raghu
MUMBAI – Rail Vikas Nigam Ltd. is expecting a stagnation in its top-line growth and a potential fall in bottom line for the financial year 2025-26 (Apr-Mar) as the company transitions into bidding, its management told analysts in a post-earnings conference call Friday. However, the company is confident of performing better in FY27, expecting a growth of 10% in both the metrics, mainly because of a strong order book.
The public sector railway infrastructure company has an order book of INR 870 billion currently, which includes INR 470 billion that it got through bids. "...our growth in top line is quite challenging right now because as you know, earlier we were getting railway works and now we are diversifying into bidding works also...not expecting such good profit this year because of major part of our revenue, of our income will be from the bidding work where the margins are less," the company's management said.
Nearly 45% of Rail Vikas' current order book is from railways, 10% from road sector, 15% from electrical sector, 15% from signalling and telecom, and 7% from the mechanical sector. It has also received INR 35 billion in orders from international projects. The company hopes to see an EBITDA margin of 7% in FY27, the management said.
The company is in talks with several public sector units to get works on "an MoU basis". It is also bidding for highway works and railway works. "...there's lot of opportunity for us in future, because recently in Budget, lot of capital expenditure has been announced for railway works. So we are hopeful that we will get a good chunk out of that budget," the management said.
Rail Vikas aims to bid for the high-speed rail projects, which were announced in the Union Budget for FY27, in two-three years. Till then, it plans to focus on the completion of the INR 400 billion railway projects it currently has. It targets income of INR 100-INR 110 billion per annum from these projects, the management said.
The company is manufacturing 120 'Vande Bharat' train sets and plans to share the prototype with the Indian Railways by June. These are the Vande Bharat sleeper trains with 16 coaches, they said. "...right now, our work is going on as per the planned progress. Our first milestone will be to give the prototype to the railways, and we are hopeful to achieve this milestone within this year as per the programme," they added.
The company Thursday reported a net profit of INR 2.64 billion for the December quarter, down over 10% on year but up around 35% sequentially. Its revenue from operations fell around 2% on year and 9% sequentially to INR 45.04 billion. On Friday, its shares closed 0.8% lower at INR 314.1 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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