RVNL received a ₹447.42 crore order from DMRC for Delhi Metro Phase-IV. The company’s order book stands at ₹1 lakh crore. The stock has delivered 1,800% absolute returns over five years.
Rail Vikas Nigam Limited (RVNL), a Government of India Enterprise, announced that it received a Letter of Award (LOA) from Delhi Metro Rail Corporation Limited (DMRC).
The LOA is for "Contract D2C-02: Part Design and Construction of viaduct of length 7.298 kms. from Chainage 1202.782 M to Chainage 8501.25 M". This project also includes the construction of seven stations, which will only have platforms: Pushp Vihar, Saket District Court, Pushpa Bhawan, Chirag Delhi, GK-1, Andrews Ganj, and Lajpat Nagar.
Additionally, the contract covers a Pre-Engineered Building Structure in all stations of the Lajpat Nagar to Saket G Block corridor as part of the Delhi MRTS Phase-IV Project.
The project, awarded by Delhi Metro Rail Corporation Limited, is a general contract with a time period of 36 months for execution. The total cost of the project is ₹447.42 crore, inclusive of 18% GST. RVNL confirmed that this work falls within the normal course of its business, and there is no interest of the promoter, promoter group, or group companies in the entity that awarded the contract.
The company’s total order book stands at approximately ₹1 lakh crore, comprising ₹45,000 crore worth of legacy Indian Railways projects that are gradually depleting, and ₹55,000 crore from projects secured through competitive bidding, which form a growing portion of the portfolio.
For the quarter ended March 2025, the company reported a marginal decline in financial performance compared to the same period last year.
Consolidated revenue from operations stood at ₹6,426.88 crore, reflecting a year-on-year decline of 4.28% from ₹6,714.01 crore in March 2024. Profit after tax also dropped by 4.03%, falling from ₹478.40 crore to ₹459.12 crore. The slight contraction in both revenue and profit points to a subdued quarterly performance.
On a yearly basis, the decline was more pronounced. Revenue from operations for the year ended March 2025 stood at ₹19,923.02 crore, down 8.94% from ₹21,878.53 crore in FY24. Profit after tax declined by 17.37% to ₹1,281.52 crore from ₹1,550.87 crore a year ago.
On Tuesday share price of RVNL was trading in positive territory with modest gains. As of 10:43 am IST, the stock price was trading at ₹383 per share, up by 0.18%.
On a year-to-date basis, the stock is down by 10.01% while in the last 12 months it has seen a decline of 39.87%. In the longer period of 5 years, the stock has given absolute returns of 1,800% to its investors.
Check how RVNL share price reacts to new orders
Rail Vikas Nigam Ltd (RVNL) primarily operates as a government-owned entity under the Ministry of Railways, focusing on the development and implementation of rail infrastructure projects across India. Its business model encompasses project development, consultancy services, and the execution of various railway infrastructure works, including the construction of new railway lines, doubling and gauge conversion of existing lines, railway electrification, the building of major bridges, workshops, and production units, as well as station redevelopment and suburban rail systems. RVNL is also involved in mobilising extra-budgetary resources for railway projects through special-purpose vehicles and public-private partnerships.
Disclaimer: The article is for informational purposes only and not investment advice.
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