2025 turned out to be one of the most volatile years for the Indian stock market, bringing some of the stocks that once dominated Dalal Street to their knees. One such stock was Rail Vikas Nigam Limited (RVNL).
The shares of the railway infrastructure company witnessed a sharp correction this year, following six consecutive years of positive returns.
Closing 7 of the last 11 months in negative territory, the stock has lost 18.22% of its value, falling to ₹345.70 per share amid a slowdown in fresh order wins, which drove weak numbers in recent quarters. More strikingly, since hitting an all-time high of ₹647 in July 2024, the shares have shed nearly 50% of their value.
For the September quarter, the railway major reported a decline in both operating level and net profit, while revenue was the only metric to show growth on a year-on-year (YoY) basis. Its net profit fell 20% YoY to ₹230.52 crore, impacted by higher expenses.
It reported an EBITDA of ₹217 crore, down from ₹256 crore in the same period last year, with margins contracting by 100 basis points YoY to 4%.
After being under pressure, sentiment toward the counter improved lately, especially after the government announced the rationalisation of passenger fares aimed at balancing rising operational costs while minimising the impact on passengers, sending the stock up 15% in the last four trading sessions.
The recent order win also aided sentiment, with the company last week securing a Letter of Award from Northeastern Railway for the construction of the substructure of Important Bridge No. 50 (14 × 61.0 metres), featuring a double D-type well foundation for a double line with RDSO 25-tonne axle load standards over the River Gandak, between Paniyahwa.
In addition, the recent recovery in RVNL’s share price can also be attributed to expectations surrounding the upcoming budget, which is often seen as a trigger for sector-specific stocks due to the possibility of policy measures, capital expenditure plans, and project announcements.
RVNL share price on track for first annual drop since 2019
With an 18% decline so far in 2025, the RVNL share price is poised for its first annual drop since listing. The Navratna PSU stock made its market debut in March 2019 and closed that year with a 42% gain.
It maintained bullish momentum in the following years, delivering higher returns in each of the next five calendar years, including multibagger gains of 133% in 2023 and 166% in 2024.
Cumulatively, the shares have grown 447% over the last three years and 1,400% over the past five years.
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