Shares of Rail Vikas Nigam Ltd (RVNL) are in focus after the company received a Letter of Acceptance (LoA) worth Rs 161.02 crore from East Coast Railway for a railway signalling project. 

The order involves the installation of Multi-Section Digital Axle Counter (MSDAC) systems to improve the reliability of automatic block signalling, adding to RVNL’s large railway infrastructure order pipeline.

Under the contract, RVNL will provide MSDAC systems for the automatic block signalling section between Machapur and Khurda Road Junction in the Khurda Road division. 

The project also covers several stations, including Raj Athgarh, Joranda Road, Sadashibapur, Dhenkanal, Hindol Road and Talcher Road. The work will include alterations to existing electronic interlocking systems and is scheduled to be completed within 18 months.

The order is aimed at improving the reliability of railway signalling and train detection systems. MSDAC technology helps determine whether railway sections are occupied, supporting safer and more efficient train operations. 

The project also involves integrating equipment from multiple signalling technology providers, including Hitachi Rail STS India, Medha Servo Drives, Siemens Rail Automation and Kyosan.

The latest contract adds to RVNL’s already sizeable project pipeline. As of June 30, 2026, the company’s outstanding order book stood at around Rs 93,492 crore. During Q1 FY27, RVNL recorded order inflows of approximately Rs 5,417 crore, highlighting continued demand for railway infrastructure, signalling and related projects.

The announcement also supported the stock during Thursday’s trading session. RVNL shares climbed as much as 3.5% to Rs 231.20 on the NSE before trading around Rs 229.49 at about 2 pm, up 2.68%. 

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