Rail Vikas Nigam Limited (RVNL), a key player in India's infrastructure sector, has reported a substantial order book of INR 90,000 crores as of September 30, during its Q2 earnings call. This impressive figure underscores the company's strong market position and potential for sustained growth in the coming years.

Order Book Composition

The order book is well-diversified, comprising:

Sector-wise Breakdown of Competitive Bidding Projects

Financial Outlook

RVNL's management has maintained its revenue guidance of INR 21,000-22,000 crores, despite a relatively flat performance in the first half of the year. The company expects a significant acceleration in execution during the second half, particularly in Q3 and Q4, which are traditionally stronger periods for the infrastructure sector.

Order Inflow and Future Prospects

• H1 order inflow: INR 2,000 crores
• Expected order inflow: INR 8,000-10,000 crores
• Bidding pipeline: INR 75,000-80,000 crores

RVNL is actively pursuing opportunities in emerging sectors such as solar with battery storage systems and operation and maintenance of rolling stock. The company is also expanding its international presence, with projects in Maldives and bids submitted in Central Asia, Middle East, East Asia, and Eastern Europe.

Challenges and Strategies

While RVNL's EBITDA margins have compressed to 4-5% due to increased contribution from lower-margin bidding projects, the company is implementing strategies to improve profitability:

1. Focusing on projects with better margins, including HAM (Hybrid Annuity Model) projects
2. Expanding international operations to potentially boost margins
3. Leveraging its leadership position in the tunnelling sector

Vande Bharat Project Update

RVNL's involvement in the Vande Bharat train manufacturing project is progressing as planned:

• First prototype expected in June
• Second prototype in August
• 12 regular rakes to be produced in the remainder of the following year
• 25 rakes per year for the following 5 years
• Operations and Maintenance (O&M) contract for 35 years

In conclusion, Rail Vikas Nigam Limited's strong order book and diverse project portfolio position it well for sustained growth. However, the company faces challenges in maintaining margins amidst increasing competition. RVNL's strategic focus on high-value projects and international expansion may help mitigate these pressures in the coming years.

Rail Vikas Nigam Limited (RVNL) has unveiled its ambitious growth strategy for the coming years, focusing on revenue expansion and improved profitability. The company has set its sights on achieving significant milestones by FY27, demonstrating its commitment to sustainable growth and shareholder value creation.

Key Strategic Objectives

RVNL has outlined the following key objectives in its growth plan:

Strategic Approach

To achieve these targets, RVNL plans to implement the following strategies:

1. Focus on High-Margin Projects: The company aims to prioritize projects with higher profit potential to boost overall margins.

2. Targeting HAM Projects: RVNL plans to pursue less competitive Hybrid Annuity Model (HAM) projects, which could potentially offer better returns.

3. International Expansion: The company is looking to expand its operations internationally, which could open up new revenue streams and growth opportunities.

Investor Communication

In line with its commitment to transparency and investor relations, RVNL recently held a conference call with investors, analysts, and institutions on November 12, 2025. The company has made the audio recording of this call available on its website, allowing stakeholders to gain deeper insights into its strategies and performance.

The audio recording can be accessed at: https://rvnl.org/RVNL_cms/uploads/boardmeeting/AudioRecordingofInvestorconcall12112025New.mp3

This proactive approach to investor communication underscores RVNL's dedication to keeping its stakeholders informed about its plans and progress.

As RVNL moves forward with its growth strategy, investors and market watchers will be keen to observe how effectively the company executes its plans and whether it can achieve its ambitious targets in the competitive infrastructure development sector.