RVNL Stock Surges 4% After Securing ₹221 Crore Rail Infra Order, Snapping Nine-Day Losing Streak
Rail Vikas Nigam Ltd (RVNL) saw a significant rebound in its stock price on Tuesday following the company's successful securing of a new contract. The state-run infrastructure firm secured an order worth Rs 221.33 crore from South East Central Railway.Shares of RVNL traded at Rs 232.98 on the NSE, reflecting this positive development. Earlier in the trading session, the stock gained up to 4 percent, reaching an intraday high of Rs 236.40. This reversal is particularly notable as the company had been under pressure, declining for nine consecutive sessions, during which its shares had shed more than 16 percent.
New EPC Contract Details Revealed
The gains were fueled by the regulatory filing confirming a Letter of Acceptance from South East Central Railway. The order pertains to an engineering, procurement and construction (EPC) contract valued at Rs 221.33 crore.The project involves several critical railway infrastructure components. These include replacing panel interlocking with electronic interlocking systems. Furthermore, the work encompasses indoor and outdoor gears, OFC huts, construction and electrification of signalling and telecommunication service buildings, and cabling works across multiple stations in the Bilaspur Division of South East Central Railway. The domestic order is scheduled for execution within 730 days.
Company’s Order Book and Recent Wins
The latest contract adds substance to RVNL's pipeline of projects. In May alone, RVNL secured major railway infrastructure orders amounting to nearly Rs 1,002 crore from NMDC and West Central Railway.The company also recently emerged as the lowest bidder for other crucial projects. These included contracts worth approximately Rs 164 crore from East Coast Railway and Rs 129 crore from North Eastern Railway. As of March 31, 2026, RVNL's comprehensive order book stood at an impressive Rs 99,262 crore.
Stock Pressure Amid Earnings Woes
Despite the steady flow of project wins, RVNL’s stock has faced considerable pressure. This pressure is primarily linked to the company's recent earnings performance.RVNL reported a 59 percent year-on-year decline in net profit for Q4FY26, which stood at Rs 187 crore. Additionally, the full-year profit after tax saw a drop of 31.5 percent, settling at Rs 875 crore. This financial performance has overshadowed the positive impact of new order acquisitions on the stock.
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