Rail Vikas Nigam Limited has received the Letter of Acceptance (LOA) from Central Railway for a significant EPC project worth ₹270.22 crore. The contract involves comprehensive design, supply, erection, testing and commissioning of traction substation infrastructure for the Daund-Solapur railway route, marking another milestone in the company's railway electrification portfolio.

Project Specifications and Scope

The comprehensive project encompasses the development of 220/132/55 KV traction substation, sectioning posts and sub-sectioning posts in 2 x 25 KV traction system with Scott Connected Transformer configuration. The infrastructure development aims to meet the 3000 MT loading target on the Daund-Solapur sections of Central Railway.

Technical Infrastructure Development

The project involves sophisticated electrical infrastructure including traction substations, sectioning posts (SPs) and sub-sectioning posts (SSPs) designed to support heavy freight operations. The Scott Connected Transformer system represents advanced technology for railway electrification, ensuring efficient power distribution for the targeted 3000 MT loading capacity.

The EPC (Engineering, Procurement and Construction) mode of execution demonstrates the comprehensive nature of Rail Vikas Nigam's involvement, from initial design through final commissioning of the electrical infrastructure.

Regulatory Compliance and Business Impact

The company has fulfilled its disclosure obligations under Regulation 30 of SEBI (LODR) Regulations, 2015, confirming that this work falls within the normal course of business operations. The project represents a domestic contract with no related party transaction implications, ensuring transparent business practices.

This LOA receipt reinforces Rail Vikas Nigam's expertise in railway electrification projects and strengthens its position in India's railway infrastructure development sector. The 24-month execution timeline provides a clear framework for project completion, contributing to the modernization of the Daund-Solapur railway corridor and enhanced operational efficiency for Central Railway's freight operations.

Rail Vikas Nigam Limited has announced its consolidated financial results for the third quarter ended December 31, 2025, showing improved performance with net profit rising to ₹324.14 crore compared to ₹311.58 crore in the corresponding quarter of the previous year. The railway infrastructure development company also declared an interim dividend of ₹1 per equity share.

Financial Performance Overview

The company's consolidated financial results demonstrate steady growth across key metrics, with revenue from operations reaching ₹4,684.46 crore in Q3FY26 compared to ₹4,567.38 crore in Q3FY25. Total income, including other income, stood at ₹4,936.14 crore versus ₹4,836.06 crore in the previous year.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, RVNL reported consolidated net profit of ₹689.00 crore compared to ₹822.41 crore in the corresponding period of the previous year. Revenue from operations for the nine-month period reached ₹13,716.21 crore versus ₹13,496.14 crore in the previous year.

Dividend Declaration and Corporate Actions

The Board of Directors, in their meeting held on February 5, 2026, approved an interim dividend of ₹1.00 per equity share (10% of paid-up share capital) for the financial year 2025-26. The interim dividend will be paid on or before Friday, March 6, 2026, with the record date set for Wednesday, February 11, 2026.

Outstanding Receivables and Key Issues

The company continues to face challenges with Krishnapatnam Railway Company Limited (KRCL), with total receivables of ₹1,169.31 crore as of December 31, 2025, including ₹889.95 crore in cumulative interest. The company changed its interest calculation method from compound to simple interest effective October 1, 2024, though KRCL has requested this change be applied from April 1, 2020. Additionally, departmental charges at 5% of project completion cost remain unraised pending Board decision on KRCL's waiver request.

Business Expansion

RVNL established a new wholly-owned subsidiary, "Sabbavaram Sheelanagar Road Development Limited," in Andhra Pradesh with an issued share capital of ₹1 lakh, demonstrating the company's continued expansion in infrastructure development beyond railway projects.