PSU rail infrastructure player Rail Vikas Nigam Ltd (RVNL) delivered mixed financial results for the September quarter. According to reports from CNBC TV18, the company reported an 8.3% year-on-year rise in net profit to ₹249.5 crore for Q2, compared with ₹230.3 crore in the corresponding period last year. However, revenue declined 8.2% to ₹4,701 crore from ₹5,123 crore a year ago, indicating a challenging operating environment.
Despite revenue decline, RVNL demonstrated strong operational efficiency improvements. As reported by CNBC TV18, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose 19.5% to ₹264 crore, compared with ₹221 crore in the year-ago quarter. The EBITDA margin improved significantly to 5.6% from 4.3%, indicating enhanced cost management and operational leverage. This margin expansion suggests the company's ability to maintain profitability despite revenue headwinds.
The company's board approved a significant corporate guarantee for its joint venture operations. According to CNBC TV18, RVNL has approved the issuance of an unconditional and irrevocable corporate guarantee of up to ₹375 crore in favour of Export-Import Bank of India (Exim Bank) for a proposed term loan facility of ₹1,500 crore to be availed by its joint venture, Kinet Railway Solutions Private Limited (KRSL). RVNL holds a 25% equity stake in KRSL and stated the transaction would be undertaken on an arm's-length basis.
Despite positive quarterly results, RVNL shares faced market pressure ahead of the earnings announcement. As reported by CNBC TV18, RVNL shares closed at ₹205.40 on the NSE on Thursday, down 1.91% ahead of the earning announcement. The stock has experienced significant decline throughout 2026, falling 43.18% so far in 2026, declining ₹156.10 to ₹205.40 as of Thursday's close on the NSE, reflecting broader market challenges facing the rail infrastructure sector.
