Shares of Rail Vikas Nigam (RVNL) skyrocketed 13% on Wednesday, 19 February 2025, after the company announced receiving an acceptance letter from the Rail Infrastructure Development Corporation (Karnataka).

In its regulatory filing, the company said, “A Letter of Acceptance has been received from Rail Infrastructure Development Company (Karnataka) Limited (K-RIDE) for “Package C4A: Construction of Nine (9 Nos.) Stations i.e. Elevated (1 No.) and At-Grade (8 Nos.) BSRP Stations of Corridor-4A at Heelalige, Singena Agrahara, Huskur, Ambedkar Nagar, Carmelaram, Bellandur, Marathahalli, Doddanakundi, Kaggadasapura including Civil, Structural, Entry / Exit Structure, Steel FOB, Roof Structures, PEB works Architectural finishes and E&M Works and Detailed Design & Engineering (DOC) with all associated works for Bengaluru Suburban Rail Project” (BSRP).”

The project needs to be completed in 24 months and is projected to cost about Rs 55,446 crore. 

RVNL announced its Q3 financial results after market hours. The company’s overall net profit fell 13% to Rs 311.58 crore from a profit of Rs 358.57 crore the previous year. However, the company’s revenue dropped from Rs 4,689.33 crore to Rs 4,567.38 crore, a 2.6% year-over-year (Y-o-Y) decline. 

The company’s profits before interest, taxes, depreciation, and amortisation (EBITDA) increased from Rs 249 crore to Rs 239 crore during the quarter. In Q3 of FY24, the EBITDA margin was 5.3%; it now stands at 5.2%.

RVNL is a government agency under the Ministry of Railways, Government of India that was established in 2003. RVNL’s primary focus is on the design, development, and implementation of railway infrastructure projects around the country. 

At 12:04 pm, the shares of RVNL were trading 13.44% higher at Rs 378.15 on NSE.

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