Rail Vikas Nigam Limited (RVNL) Q3 FY26 Earnings Call Summary

Summary

Rail Vikas Nigam Limited - Q3 FY 2026 Earnings Call Summary Friday, February 06, 2026, 4:00 PM IST

Event Participants

Executives 5 Amit Tandon (Director Projects), Anupam Ban (Director Personnel), Chandan Verma (CFO), M.P. Singh (Director Operations), Saleem Ahmad (CMD)

Analysts 2 Ashish Shah (HDFC Mutual Fund), Vishal Periwal (PL Capital)

Financials & KPIs

Geographic & Segment Commentary

• Railway (Core Segment): Comprises 45% of the total order book (approx. ₹39,150 crores). The segment is shifting from a pure nomination model to a mix of nomination and competitive bidding, with a focus on doubling and new lines.
• Electrical & RDSS: Accounts for 15% of the order book. Projects include Revamped Distribution Sector Scheme (RDSS) across four states, transmission lines, and railway electrification.
• Signalling & Telecom (incl. BharatNet): Represents 15% of the order book. Management noted satisfactory progress on the BharatNet project, which is expected to generate significant income in the current fiscal year.
• Roads & Highways: Comprises 10% of the order book. RVNL is actively bidding for national highway projects to diversify its infrastructure portfolio.
• Vande Bharat & Mechanical: Accounts for 7% of the order book. Includes the manufacture of 120 sleeper train sets (16-coach configuration) in partnership with a Russian counterpart.

Company-Specific & Strategic Commentary

• Business Model Transition: The company is transitioning from a nomination-heavy model to a competitive bidding model, which currently accounts for ₹47,000 crores of the order book.
• Diversification & MOUs: RVNL is actively pursuing MOUs with state bodies and PSUs, including a recent agreement with Visakha Port Authorities for infrastructure development.
• International Presence: The company currently holds an international project order book valued at approximately ₹3,500 crores.
• Operational Focus: New CMD Saleem Ahmad emphasized timely completion of ongoing works and faster execution of the current ₹87,000 crore order book to ensure sustainable growth.

Guidance & Outlook

Risks & Constraints

Q&A Highlights

Order Book & Revenue Mix

• Question: What is the execution status of the ₹87,000 crore order book? (Ashish Shah)
• Answer: Both nomination (₹40,000 cr) and bidding (₹47,000 cr) buckets are under full-swing execution. Over the next three years, revenue is expected to split 50-50 between these two streams (Saleem Ahmad).

Vande Bharat Progress

• Question: What is the current status and configuration of the Vande Bharat order? (Shubham)
• Answer: Work is progressing as planned. The first prototype for the 16-coach sleeper Vande Bharat is expected by June or July 2026 (Saleem Ahmad).

Margin Trajectory

• Question: How will margins evolve given the shift to bidding projects? (Vishal Periwal)
• Answer: Management is targeting a 7% gross margin for next year. While bidding is competitive, margins are being supported through cost-cutting and improved execution quality (Management).

Budget & High-Speed Rail

• Question: Will RVNL benefit from the new high-speed rail corridors mentioned in the budget? (Vishal Periwal)
• Answer: While specific corridors are entrusted to other organizations, RVNL will bid for these projects as a contractor. However, material order inflow from this sector is likely 2-3 years away (Saleem Ahmad).

Key Takeaway

Rail Vikas Nigam Limited (RVNL) is navigating a structural transition from a nomination-based railway agency to a diversified infrastructure executor. While Q3 FY26 results showed a top line of ₹4,936 crores, management cautioned that FY26 growth will remain flat (1-2%) with potential pressure on the bottom line due to the lower margins inherent in competitive bidding. However, the company maintains a robust order book of ₹87,000 crores, split nearly equally between nomination and bidding projects. Strategic focus areas include the Vande Bharat sleeper sets (prototype due mid-2026) and the Rishikesh-Karnaprayag rail link. Looking toward FY27, management guided for a 10% revenue growth and 7% EBITDA margins, supported by diversification into roads, ports, and international markets. The long-term outlook remains tied to the execution efficiency of its transition to a competitive bidding model.