Rail Vikas Nigam Limited (RVNL) shares will be in the spotlight following the company's emergence as the Lowest Bidder (L1) for a significant infrastructure contract worth ₹201.23 crores from East Coast Railway. The state-owned company's successful bidding for establishing a wagon periodical overhaul (POH) workshop demonstrates its competitive positioning in the railway infrastructure sector.

Project Specifications

The contract involves setting up a comprehensive wagon maintenance facility at Kantabanji with substantial operational capacity. According to the regulatory filing, RVNL has been named the sole bidder for this contract, reinforcing its strong position in executing critical infrastructure projects in the railway sector.

Stock Performance Analysis

Despite the positive project development, RVNL shares have faced headwinds over the past year. The stock performance reflects mixed trends across different timeframes.

Recent Contract Portfolio

This latest contract adds to RVNL's expanding project portfolio. Earlier, the company received a letter of acceptance from Southern Railway for a traction power project worth ₹145.35 crores, covering design, supply, erection, testing and commissioning of Scott-connected traction substations and related systems.

Strategic Impact

The wagon workshop project aligns with Indian Railways' infrastructure modernization initiatives and supports freight capacity enhancement targets. The contract adds to RVNL's robust and growing order book, with the project involving establishing a Periodic Overhauling workshop for wagons with 200-unit capacity. The company's success in securing this project through competitive bidding reflects its operational efficiency and technical expertise in railway infrastructure development.

Rail Vikas Nigam Limited (RVNL) has now received four demand notices from tax authorities across different jurisdictions, with the latest being a ₹4.26 lakh notice from Hyderabad. The Government of India enterprise has informed stock exchanges about these regulatory developments as part of its compliance obligations under SEBI regulations, bringing the total demand notices to ₹9.41 crores.

Latest Hyderabad Demand Notice

RVNL received the most recent demand notice from the Office of the Deputy Commissioner Jurisdiction BEGUMPET STU3, Telangana State, Hyderabad. This notice pertains to FY 2021-22 and represents the smallest individual demand amount among all notices received.

Previous Demand Notices

Prior to the Hyderabad notice, RVNL had received three other demand notices. The largest was a ₹5.56 crore notice from Ahmedabad on December 23, 2025, followed by a ₹3.64 crore notice from Bengaluru and a ₹17.13 lakh service tax demand from Chennai, both received on December 22, 2025.

Regulatory Compliance and Disclosure

RVNL disclosed this information to the National Stock Exchange of India Limited and BSE Limited pursuant to Regulation 30 of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure follows the declaration requirements as per SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Company's Response and Impact Assessment

The company has assessed the impact of these demand notices on its operations and financial position. RVNL maintains that there is no material impact on financial, operational, or other activities of the company due to these orders.

The company emphasized that these orders are challengeable and indicated that the orders are being examined for further appropriate action. RVNL will pursue appeals with the appropriate appellate authorities to challenge all tax demands, following standard procedures for such regulatory matters.