Rail Vikas — Q3 FY26 earnings call

Call held 6 Feb 2026

Management summary

Rail Vikas Nigam Limited reported a Q3 FY26 top line of INR 4,936 crores and PBT of INR 359 crores, with 9M FY26 consolidated top line at INR 14,406 crores. The company maintains a strong order book of INR 87,000 crores, comprising INR 40,000 crores in railway nomination works and INR 47,000 crores in bidding-based projects. While FY26 is expected to see stagnant top line growth and potential margin pressure from bidding works, management guides for a 7% EBITDA margin and ~10% revenue growth for FY27, driven by robust project execution and diversification efforts.

Highlights

  • Strong order book of INR 87,000 crores provides significant revenue visibility.

  • Secured INR 1,528 crores in new works and emerged as L1 for INR 3,667 crores in the last 9 months.

  • Vande Bharat project for 120 train sets progressing as per plan, with first prototype expected by June 2026.

  • MOU signed with Visakha Port Authorities to explore infrastructure projects, indicating diversification.

  • Management targets sustainable growth of ~10% per financial year and 7% EBITDA margin for FY27.

Concerns

  • FY26 top line growth expected to be stagnant, with a potential dip in bottom line due to lower margins on bidding works.

  • High-speed rail projects have a 2-3 year timeline, with no work expected from this sector in FY26.

  • Margin pressure anticipated in FY26 as a larger portion of revenue shifts to lower-margin bidding works.

Key financials

2 periods

Q3 FY26

  • Top Line
    ₹4,936 Cr
  • PBT
    ₹359 Cr

9M

  • FY26 Consolidated Top Line
    ₹14,406 Cr
  • FY26 PBT
    ₹841 Cr

What they filed

Q1 FY27: revenue up 9.6%, net profit up 21.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue4,869 4,591 6,345 3,925 4,935 +1%4,504 −2%6,648 +5%4,303 +10%
EBITDA273 263 390 79 211 −23%230 −13%220 −44%172 +118%
Net profit303 295 373 128 196 −35%264 −11%212 −43%156 +22%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹87,000 Cr

as of 2025-12-31 quantified

Inflow this quarter

₹1,528 Cr

Execution

Nomination works (INR 40,000 crores) to be completed in next 3 years. Bidding works (Vande Bharat, BharatNet) have a 'quite long' execution cycle.

Composition

Mix 6 segments
  • Railway 45%
  • Road 10%
  • Electrical 15%
  • Signalling & Telecom 15%
  • Mechanical 7%
  • International Projects 4%

Share of order book by segment· partial disclosure (96% of the book)

Pipeline

L1 awaiting loa

Lowest bidder for projects worth INR 3,667 crores.

The company's order book is very strong, with a good mix of nomination and bidding works, providing significant revenue visibility for the next 3 years and beyond.

Source: Prepared remarks

Guidance & targets

Revenue Growth

  • FY26 Top Line Growth Revenue Growth · FY26 · High confidence stagnant
    Vishal, our growth in top line is quite challenging right now because, as you know, from earlier, we were getting railway works and now we are diversifying into bidding works also. But we are hopeful that this year, our growth will be sustained like will be good. We are expecting a growth of 1% or 2% than the previous year.

    — Saleem Ahmad

  • Long-term Top Line Growth Revenue Growth · per financial year · High confidence about 10%
    No, there will be definitely sustainable growth. We are targeting growth of between about 10% per financial year. And we will achieve it because our order book is very strong and the industry is also showing signs of a lot of infrastructure works coming up.

    — Saleem Ahmad

  • FY27 Revenue Growth Revenue Growth · FY27 · High confidence 10%
    Okay. So let's say around 7% margin somewhere in next financial year. And on a turnover, let's say, maybe this year, you ended close to INR20,000 crores. And 10% over that is what you're guiding for next year?

    — Saleem Ahmad

Profitability

  • FY26 Bottom Line Growth Profitability · FY26 · High confidence maybe a dip
    But profit, we are not expecting such good profit this year because a major part of our revenue of our income will be from the bidding works, where the margins are less. So definitely, there will be some hit in our bottom line. But I want to assure all of you that in future, in the next financial year, we'll be doing much better and we'll have a better growth next year. But this year, it will be stagnant growth in top line and maybe we might get a dip in our bottom line. Thank you.

    — Saleem Ahmad

  • Long-term Bottom Line Growth Profitability · per financial year · High confidence about 10%
    No, there will be definitely sustainable growth. We are targeting growth of between about 10% per financial year. And we will achieve it because our order book is very strong and the industry is also showing signs of a lot of infrastructure works coming up. And we are talking to many states, public sectors to take up work on MOU basis. So we are very hopeful that we will achieve 10% growth in our top line and bottom line, too.

    — Saleem Ahmad

Margin

  • EBITDA Margin Margin · next financial year · High confidence 7%
    But on an average, we will definitely get an EBITDA margin of 7%.

    — Saleem Ahmad

  • Gross Margin Margin · next year · High confidence 7%
    better improvement in our execution, quality, we are going to achieve the 7% gross margin next year.

    — Management

Revenue

  • Annual Revenue from Nomination Works Revenue · per annum · High confidence INR 10,000-11,000 crores
    If you see the next 3 years, we already have almost INR40,000 crores of railway works. So our first focus is to complete those works within next 3 years. So that will bring us the income of almost INR10,000 crores to INR11,000 crores per annum.

    — Saleem Ahmad

  • Target Annual Income from Bidding Works Revenue · per annum · High confidence INR 10,000-12,000 crores
    Our target is to get at least income of INR10,000 crores to INR12,000 crores from those works also.

    — Saleem Ahmad

Project Milestone

  • Vande Bharat First Prototype Delivery Project Milestone · this year · High confidence June 2026
    Our first milestone will be to give the prototype to the railways. And we are hopeful to achieve this milestone within this year as per the program of the railway, which is, I think, June 2026.

    — Saleem Ahmad

Project Completion

  • Rishikesh-Karnaprayag Project Completion Project Completion · December 2028 · High confidence December 2028
    Another important project is Rishikesh-Karnaprayag, where work is going on full swing, and our target which is to achieve the completion of the project in December 2028.

    — Saleem Ahmad

Revenue Split

  • Future Revenue Split (Railway vs Bidding) Revenue Split · next 3 years · High confidence 50% from railway, 50% from bidding
    So we are hoping for the next 3 years, our 50% of revenue will be from the railway works, which is 40,000; and 50% of our revenue will be from our bidding works, whether from Vande Bharat or from BharatNet, from highways and other railway sector. So we are hoping that 50%-50% revenue will be from each sector.

    — Saleem Ahmad

What to watch in Q4 FY26

Vande Bharat First Prototype Delivery

June 2026 (Q1 FY27)
Current Work progressing as per plan
Target First prototype delivered

Why it matters

This is a key milestone for a prestigious project and demonstrates execution capability.

Our first milestone will be to give the prototype to the railways. And we are hopeful to achieve this milestone within this year as per the program of the railway, which is, I think, June 2026.

Risks & concerns

  • Stagnant top line growth and potential dip in bottom line for FY26

    high

    Due to lower margins on bidding works, FY26 is expected to see stagnant top line growth and a possible dip in bottom line.

    Management acknowledged

  • Margin pressure from increased bidding-based works

    medium

    A larger portion of revenue from bidding works, which have lower margins, will impact overall profitability in FY26.

    Management acknowledged

  • Delay in high-speed rail project opportunities

    low

    High-speed rail projects have a 2-3 year timeline, and RVNL is not expecting any work from this sector in FY26.

    Management acknowledged

Q&A highlights

8 direct
FY26 growth rate and margin trajectory Direct
Vishal, our growth in top line is quite challenging right now because, as you know, from earlier, we were getting railway works and now we are diversifying into bidding works also. But we are hopeful that this year, our growth will be sustained like will be good. We are expecting a growth of 1% or 2% than the previous year. But profit, we are not expecting such good profit this year because a major part of our revenue of our income will be from the bidding works, where the margins are less. So definitely, there will be some hit in our bottom line.

Management provided a clear outlook for FY26, indicating stagnant top-line growth and potential bottom-line pressure due to lower-margin bidding projects.

Asked by Vishal Periwal

Order inflow and new business opportunities Direct
In the last quarters, we have emerged as lowest in works amounting to INR3,500 crores, and already works up to INR1,500 crores have been awarded to us. So future is good. We are in talks with many public sector units to get works on MOU basis. We are bidding for highway works, for railway works.

Highlights recent order wins and the company's strategy for future order inflow through diversification and MOUs.

Asked by Vishal Periwal

Participation in Ministry of Railways capex and high-speed rail projects Direct
As you see the budget, there is a huge opportunity for us. Railway is continuously spending money on the infrastructure improvement, whether it's doubling of the line or the new lines. So we are hopeful to get good works from these infrastructure works taken by railways. And about the new corridors, which have been recently announced for the high-speed train network, so we are not sure whether we can be part of that work because that work is entrusted to another organization. But definitely, we will try to take some work from the bidding point of view. We'll bid for those projects in future, but its timeline will be, I think, slightly 2 or 3 years. In this year, we are not expecting any work from that sector.

Clarifies RVNL's strategy and potential involvement in major government railway infrastructure projects, including the cautious outlook on high-speed rail for the current year.

Asked by Vishal Periwal

Pipeline of railway orders and revenue execution Direct
If you see the next 3 years, we already have almost INR40,000 crores of railway works. So our first focus is to complete those works within next 3 years. So that will bring us the income of almost INR10,000 crores to INR11,000 crores per annum. And parallelly, we will be focusing on getting new works on bidding. Our target is to get at least income of INR10,000 crores to INR12,000 crores from those works also.

Provides clear revenue visibility from the existing order book and targets for new bidding works, outlining the company's execution strategy.

Asked by Vishal Periwal

Current status of Vande Bharat order Direct
Vande Bharat is a very prestigious project for us also and railways. So we are manufacturing 120 train sets. And right now, our work is going on as per the planned progress. Our first milestone will be to give the prototype to the railways. And we are hopeful to achieve this milestone within this year as per the program of the railway, which is, I think, June 2026.

Offers a specific update on a high-profile project, including the timeline for the first prototype delivery.

Asked by Shubham

Order book breakdown (nomination vs bidding) and execution cycle by segment Direct
So you said that out of 87,000, 40,000 is nomination-based and 47,000 are the new bidding-based orders. So for each of the bucket, if you can first highlight how much of, let's say, this INR40,000 crores nomination, what portion of this order book is currently under execution and what is maybe awaiting some approvals or go ahead from the railways? ... The cycle for this is quite long, for Vande Bharat and BharatNet. But parallelly, we are undertaking many other works like highways, port sector also, work is in progress. So we are hoping for the next 3 years, our 50% of revenue will be from the railway works, which is 40,000; and 50% of our revenue will be from our bidding works, whether from Vande Bharat or from BharatNet, from highways and other railway sector. So we are hoping that 50%-50% revenue will be from each sector. ... Railway is still our core. Railway orders comprises of around 45% of our total orders. Then road sector, we have got around 10% of our total orders. Electrical sector... comprise of around 15%. And signalling and telecom work... comprise of around 15% of our order book. And around 7% order book is from our mechanical sector... And besides that, we have got an order book of around INR3,500 crores from international projects.

Provides a detailed understanding of the order book's composition by contract type and sector, along with insights into the execution timelines and future revenue mix.

Asked by Ashish Shah

Total revenue guidance for FY27 and EBITDA margin Direct
Okay. So let's say around 7% margin somewhere in next financial year. And on a turnover, let's say, maybe this year, you ended close to INR20,000 crores. And 10% over that is what you're guiding for next year?

Crucial guidance on future revenue growth (10% for FY27) and a specific EBITDA margin target (7%) for the next financial year.

Asked by Ashish Shah

Pickup in railway EPC projects and overall sector outlook Direct
The Railway Ministry is spending huge money on the infrastructure. And in addition to that, a lot of other works are also coming up, which your company bids for, like metros, highways. So future is good for next 2 to 3 years. And as I just said, that we are hoping to increase our revenue by 10%. Even the profit margins will be slightly better because as I earlier told you it was a transition phase for us, for your company from like nomination basis to bidding. So I think things are improving. And we'll be getting better margins in our bidding projects also.

Reaffirms the positive outlook for the infrastructure sector, particularly railways, and management's expectation of improved margins from bidding projects in the future.

Asked by Ashish Shah

2 min read 6 chapters

Detailed narrative

Q3 FY26 Performance Overview

Rail Vikas Nigam Limited reported a Q3 FY26 top line of INR 4,936 crores and a Profit Before Tax (PBT) of INR 359 crores. For the nine months ending December 31, 2025, the consolidated top line stood at INR 14,406 crores, with a PBT of INR 841 crores. Management indicated that FY26 is expected to see stagnant top line growth and a potential dip in bottom line due to a higher proportion of lower-margin bidding works.

Robust Order Book and Future Visibility

The company maintains a strong order book totaling INR 87,000 crores. This comprises INR 40,000 crores from railway nomination works and INR 47,000 crores from bidding-based projects. Management expects the INR 40,000 crores nomination works to be completed within the next three years, generating INR 10,000-11,000 crores in annual revenue. New orders secured in the last nine months amounted to INR 1,528 crores, and RVNL emerged as the lowest bidder for projects worth INR 3,667 crores.

Key Project Updates

Work on the Vande Bharat project, involving the manufacturing of 120 train sets (sleeper Vande Bharat with 16 coaches), is progressing as planned, with the first prototype expected by June 2026. The BharatNet project is also advancing satisfactorily, anticipated to generate good income this year. Additionally, the Rishikesh-Karnaprayag project is on track for completion by December 2028.

Growth and Margin Outlook

For FY27, RVNL targets sustainable top line and bottom line growth of approximately 10% per financial year. The company also guided for an EBITDA margin of 7% for the next financial year, acknowledging that while FY26 margins might be under pressure due to bidding works, future bidding projects are expected to yield better margins. The long-term revenue mix is projected to be 50% from railway nomination works and 50% from bidding-based projects.

Diversification and New Business Opportunities

RVNL is actively pursuing diversification beyond traditional railway projects. This includes signing an MOU with Visakha Port Authorities for infrastructure development and engaging in discussions with various states and public sector bodies to explore new business opportunities. The company is also bidding for highway works, indicating a broader focus on the infrastructure sector.

Railway Sector Outlook

Management highlighted that the Railway Ministry is investing significantly in infrastructure, including doubling of lines and new lines, presenting substantial opportunities for RVNL. While high-speed rail projects are on a 2-3 year timeline with no immediate work expected, the overall outlook for railway EPC projects and other infrastructure works like metros and highways remains positive for the next 2-3 years.

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