This article first appeared on GuruFocus .
Release Date: November 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Rail Vikas Nigam Ltd ( BOM:542649 ) reported improved results in Q2 FY26 compared to both the previous quarter and the same quarter last year.
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The company has a robust order book of over INR 90,000 crores, providing stable revenue guidance for the next two to three years.
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Rail Vikas Nigam Ltd is exploring new business opportunities in sunrise sectors such as solar with battery storage systems and international projects, including a flagship project in the Maldives.
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The company is involved in multimodal logistics park sectors, which are expected to provide steady long-term revenue streams.
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The management maintains a positive revenue guidance of INR 21,000 crores to INR 22,000 crores for the current financial year, with expectations of exceeding this target.
Negative Points
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EBITDA margins have been impacted, dropping from 4%-5% last year due to a higher proportion of competitive bidding projects with lower margins.
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The order inflow for the first half of FY26 was INR 2,000 crores, significantly lower than the previous year's INR 18,000 crores.
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Operating cash flow turned negative in the first half due to a large negative cash outflow in the line item called other financial assets.
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The company faces challenges in the road sector due to deferred tendering of high-value projects, impacting order inflow.
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There is a concern about maintaining higher EBITDA margins in the future due to the competitive nature of bidding projects.
Q & A Highlights
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Q: Sir, you mentioned that the total order book is INR90,000 crores, which comprises legacy orders of INR43,000 crores and balance INR46,000 crores. Is that correct? The current order book? A: Yes. The current order book is correct. The order book from our legacy railway projects is around INR43,000 crores, and the projects won through bidding in various sectors are around INR46,000 crores. This is a dynamic figure as RVNL regularly acquires new orders.
Q: Can you provide a sector-wise order book breakup in different segments? A: Yes, roughly 33% of our orders from market bidding are from railway projects, including civil engineering, electrical, or signaling. The metro sector comprises around 22% of our order book, the road sector about 10%, BharatNet project 12%, and 10% from our share in the Vande Bharat manufacturer.
Q: What was the order inflow in this quarter? A: In the last quarter, we received orders worth INR852 crores. In the last six months, we have received orders totaling INR2,000 crores.
Q: Regarding the Vande Bharat project, has the exhibition started? A: The Vande Bharat project involves producing two prototypes, which will be tested before regular production. The first prototype is expected in June '26, and the second in August '26. After testing, 12 regular trains will be produced in '26-'27, followed by 25 trains annually over the next five years.
Q: What is the reason for the impact on EBITDA margins this year? A: This year's turnover includes almost 30% from bidding projects, which have slightly lower margins compared to legacy projects. We are working on improving margins through design and standardization processes.
Q: What would be the guidance of revenue for this year? A: We maintain the revenue guidance given at the start of the year. The quarter two results are encouraging, and we expect accelerated revenue in the next few months. We maintain a revenue guidance of around INR21,000 crores to INR22,000 crores for this financial year.
Q: How can RVNL have more value-added revenue lines with higher EBITDA margins in the future? A: We are aligning our business strategies to go beyond railway projects and align with industry standards. We are confident of maintaining EBITDA margins in line with industry standards and our guidance.
Q: What is the expectation for order inflow for the full year FY26? A: We hope to bid for around INR75,000 to INR80,000 crores this financial year. With a success rate of 10% to 12%, we anticipate an order inflow of around INR8,000 crores to INR10,000 crores for FY26.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
