New Delhi, February 5, 2026, 22:34 IST
- RVNL reported a 4% jump in profit for October-December, reaching ₹324.14 crore, while revenue from operations edged up 2.6%
- Interim dividend declared at ₹1 per share, with the record date on Feb. 11 and payments scheduled by March 6
- EBITDA dropped 8%, with the margin narrowing to 4.7%; auditors highlighted a significant JV receivable as a major uncertainty
Rail Vikas Nigam Ltd (RVNL) posted a slight uptick in profit for the December quarter on Thursday and announced an interim dividend, despite a squeeze on its operating margin due to rising costs.
The results come amid a packed schedule for India’s rail and infrastructure contractors. Investors are focused on whether increased government spending will boost steady cash flow, not just headline-grabbing order wins.
RVNL occupies a tough position. As a state-run builder linked intimately with railway projects, it operates on razor-thin margins, meaning even minor shifts in project costs or payments can rapidly affect its operating results.
The company reported a consolidated net profit of ₹324.14 crore for the quarter ended Dec. 31, up from ₹311.58 crore the previous year, according to its exchange filing. Revenue from operations climbed to ₹4,684.46 crore. Profit before tax held steady at ₹415.12 crore, as total expenses rose to ₹4,577.43 crore.
Operating profit took a hit. EBITDA — earnings before interest, tax, depreciation, and amortisation — dropped roughly 8% to ₹220.8 crore, according to the Free Press Journal. That decline pushed the EBITDA margin down by 50 basis points to 4.7% (a basis point equals one-hundredth of a percentage point).
RVNL shares dropped 1.42%, ending at ₹316.70 on the BSE, according to Business Standard.
The board announced an interim dividend of ₹1 per equity share for fiscal 2025-26, naming Feb. 11 as the record date and scheduling payment on or before March 6, PSU Connect reported.
A risk lurks in the fine print: the auditor flagged ₹1,169.31 crore recoverable from Krishnapatnam Railway Company Ltd, a joint venture, as of Dec. 31. This includes ₹889.95 crore in interest, but how that interest and some related charges will be handled is still up to the board.
RVNL handles rail infrastructure projects like new lines, track doubling, electrification, and more. It competes in a crowded space alongside state-run firms such as IRCON International and RITES. Investors typically focus on how quickly these companies execute projects and their profit margins, not just top-line growth.
