Rail Vikas Nigam shares to be in focus on Tuesday as company secures ₹221 crore order

Shares of Rail Vikas Nigam Limited (RVNL) are expected to attract investor interest on Tuesday, 9 June, after the company secured an Engineering, Procurement and Construction (EPC) contract worth ₹221.33 crore from South East Central Railway.

The order involves the replacement of panel interlocking with electronic interlocking, along with indoor and outdoor gears, OFC huts, construction and electrification of signalling and telecommunication (S&T) service buildings, and cabling works across multiple stations in the Bilaspur Division of South East Central Railway, according to the company’s regulatory filing.

As per the filing, the contract is domestic in nature and is scheduled to be executed within 730 days.

RVNL also clarified that neither the promoter nor promoter group companies have any interest in the awarding entity, and the transaction does not fall under related-party transactions.

This marks another major order win for the company after it secured two railway infrastructure orders worth nearly ₹1,002 crore from NMDC Ltd. and West Central Railway on May 22.

During the same month, the company emerged as the lowest bidder for a railway signalling and infrastructure project awarded by East Coast Railway, valued at around ₹164.19 crore. It also secured L1 status for a North Eastern Railway project worth ₹129.46 crore.

Despite multiple order wins, the stock remained under significant selling pressure, as weak March quarter earnings kept the stock in the red for nine straight sessions through Monday.

The company’s net profit declined 59% year-on-year to ₹187 crore in Q4FY26 from ₹455.4 crore reported in the corresponding quarter last year. FY26 net profit after tax, too, declined to ₹875 crore from ₹1,278 crore in FY25, reflecting a fall of nearly 31.5% YoY.

Shares crash over 36% in less than six months

As the stock remained under sustained selling pressure, its year-to-date losses widened to 36.10%, marking its biggest annual decline since listing in 2019. This comes after the stock ended 2025 with a decline of 15.5%.

The stock has witnessed a one-way fall since touching its all-time high of ₹647 in June 2024 and has so far plunged 64.6%, eroding most of its earlier gains. However, on a long-term basis, the stock still trades with strong gains, having surged nearly 630% over the last five years.

Despite the weak performance on the exchange, retail investors continued to remain bullish on the company’s growth prospects, collectively holding a 15.9% stake at the end of the March quarter, according to Trendlyne data.

Disclaimer: We advise investors to check with certified experts before making any investment decisions.