Shares of Rail Vikas Nigam Ltd (RVNL) surged 2% on 30 June after the company emerged as the lowest bidder (L1) for a Rs 213.22 crore contract from South Central Railway.  

The work entails designing, supplying, installing, testing, and commissioning overhead equipment (OHE) upgrades from the existing 1x25kV system to a 2x25kV AT feeding system with feeder and earthing works in the Duvvada-Rajamundry and Samalkot-Kakinada Port sections of the Vijayawada division under South Central Railway, according to RVNL in an exchange filing. The contract will be finished within 24 months.

In May, the state-run corporation confirmed its revenue projection of Rs 20,000 to Rs 22,000 crore for the current fiscal year despite a dismal FY25 performance.

MP Singh, Director of Operations at RVNL, said, “We are expecting to achieve the FY26 revenue guidance because some of the large projects we secured through bidding are now under execution.”

The same guidance was provided for FY25. However, the corporation fell short due to a slow first half of the year.

The high momentum generated by competitive bidding initiatives is a major source of hope.  “In FY25, revenue growth from such projects was around 68%,” Singh said,

These projects, including BharatNet, metro infrastructure, and RDSS, are now in the middle of their implementation, which is normally when income flow comes up.

At 12:40 pm, the shares of Rail Vikas Nigam were trading 0.65% higher at Rs 397.60 on NSE.

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