Rail Vikas Nigam Limited reported a 32.6% decline in standalone net profit to ₹800.48 crore for the financial year ended March 31, 2026, compared to ₹1,188.62 crore in the previous year. Revenue from operations increased marginally to ₹20,012.26 crore from ₹19,869.35 crore in FY25. For the quarter ended March 31, 2026, standalone net profit stood at ₹212.27 crore, while revenue from operations was ₹6,648.40 crore. The Board of Directors, in its meeting held on May 25, 2026, approved the audited standalone and consolidated financial results and recommended a final dividend of ₹0.71 per equity share of face value ₹10 each for FY26, subject to shareholder approval.

FY27 Outlook: BharatNet and Revenue Growth

Rail Vikas Nigam has projected a revenue growth of 15-20% for FY27, with improved margins compared to FY26. The company expects strong revenue and profit margins from the BharatNet project during the year, supported by a healthy order book. While Q1 FY27 may face some challenges, the company remains optimistic about meeting its revenue and margin goals for the full year. The following table outlines the key growth guidance parameters:

Order Book and Project Updates

As of March 31, 2026, the company's total order book stood at ₹99,262 crore. The order book is primarily driven by railways with ₹57,000 crore, followed by signaling at ₹14,900 crore, port, roads, highways at ₹10,400 crore, and metros at ₹9,900 crore. Works of power and transmission account for about ₹4,000 crore, and hydro and irrigation projects at ₹2,000 crore. During the quarter ended January to March 2026, standalone order inflow stood at ₹4,644 crore, while for the full financial year 2025-26, standalone order inflows were ₹5,875 crore. With joint ventures, the company secured works amounting to ₹1,201 crore.

The BharatNet project, awarded by Bharat Sanchar Nigam Limited, is a ₹13,236 crore initiative. RVNL has achieved 15.01% physical progress and expects good revenue and profit margins in the coming year. The Rishikesh Karnaprayag Rail project, costing ₹37,000 crore, has achieved 74% overall progress with 96% tunnel excavation complete, targeting completion by December 2029. The Vande Bharat sleeper train set project, valued at ₹14,400 crore, targets the launch of the first prototype in December 2026, with the total order book to be completed in five years.

Q4 Performance at a Glance

The latest quarterly figures highlight a significant compression in operating profitability. The following table summarises the key Q4 metrics:

While consolidated revenue for Q4 grew to ₹66.96B from ₹64.3B year-on-year, the sharp decline in net profit and EBITDA margin reflects elevated cost pressures during the quarter. The decline in profitability is mainly driven by a few onerous contracts and reconciliation adjustments relating to joint ventures.

Full-Year Consolidated Results

On a consolidated basis, Rail Vikas Nigam reported a net profit of ₹870.66 crore for FY26, a decrease from ₹1,277.79 crore in the previous year. Consolidated revenue from operations for the year stood at ₹20,412.12 crore. The auditors drew attention to comments issued by the Comptroller & Auditor General of India (C&AG) regarding accounting treatments for replacement obligations and capitalisation of expenditure by certain component companies. The management stated that these treatments were based on technical assessments and opinions from the Expert Advisory Committee of the Institute of Chartered Accountants of India.

KRCL Receivable and Audit Emphasis

The financial results include an emphasis of matter regarding a significant receivable from Krishnapatnam Railway Company Limited (KRCL), a joint venture company. The total amount receivable from KRCL as of March 31, 2026, is ₹1,116.26 crore, which includes ₹889.95 crore as interest on delayed payment. The application of interest was changed from compound to simple effective October 1, 2024, while KRCL requested simple interest effective April 1, 2020. The matter is pending with the Board of Directors, and any adjustment will be recognised upon finalisation. Management expects the receivables to be wiped out in the coming two years due to the continued good performance of KRCL.

National Stock Exchange of India Limited (NSE) imposed a fine of Rs 9,55,800 on rail vikas nigam for non-compliance with board composition regulations for the quarter ended March 31, 2026. The penalty, inclusive of GST, was levied due to violations of Regulation 17(1), 18(1), and 19(1)(2) regarding the composition of the Board and its committees. The company received the communication regarding the fine on May 27, 2026.

The company clarified that it is a Government company under Section 2(45) of the Companies Act, 2013. Consequently, the power to appoint Directors, including Independent and Woman Independent Directors, vests with the President of India. All directors are appointed by the Government of India through the Ministry of Railways, and RVNL stated it has no role in these appointments.

Fine and Waiver Expectations

RVNL expressed that the financial penalty has no material impact on its operations. The company anticipates a waiver of the fine upon achieving compliance with the SEBI (LODR) Regulations. This waiver is contingent upon the Ministry of Railways appointing the requisite number of directors to the Board.

The company noted that in previous instances of non-compliance, both NSE and BSE had waived fines imposed on it. RVNL confirmed that it will seek the waiver under SEBI's exemption policy once the board composition is rectified by the administrative ministry.