Rail Vikas Nigam Ltd (RVNL), a Navratna PSU under the Railway Ministry, reported mixed financial results for Q4 FY26. According to reports from CNBC TV18, the company experienced a significant 60% year-on-year decline in consolidated net profit to ₹187.7 crore, compared with ₹459.12 crore in the same period last year. The profit also declined 42% sequentially from ₹322.8 crore in Q3 FY26. Despite the profit decline, revenue increased 4% year-on-year to ₹6,695.9 crore from ₹6,426.88 crore in the corresponding quarter of the previous fiscal year. For the full financial year FY26, revenue from operations rose marginally to ₹20,412.1 crore from ₹19,923.3 crore reported in FY25, while net profit after tax declined to ₹800 crore from ₹1,198 crore, reflecting a fall of nearly 33% YoY. On a sequential basis, revenue showed strong momentum with 43% quarter-on-quarter growth from ₹4,684.5 crore in Q3 FY26, while profit after tax fell 20% sequentially from ₹264 crore.
The company's profitability metrics showed substantial deterioration during the quarter. As reported by CNBC TV18, Live Mint, and The Economic Times, EBITDA fell 38% to ₹268.5 crore from ₹436.1 crore a year earlier. More significantly, EBITDA margin contracted nearly 300 basis points to 4% compared with 6.8% in the corresponding quarter last year, indicating increased operational costs relative to revenue generation. Profit before tax (PBT) also dropped to ₹250.3 crore from ₹542.5 crore, while total expenses rose to ₹6,535 crore from ₹6,120.1 crore in the same period last year. The company incurred expenses of ₹6,535 crore in Q4 FY26 compared to ₹4,386 crore and ₹6,081 crore in previous quarters, with costs growing 49% quarter-on-quarter and 7% year-on-year. These expenses were made under various heads including material consumed, employee benefits, and finance costs. The profitability was impacted by other income declining 54% from last year to ₹85 crore, profit from JV and associate companies falling to just ₹4 crore from over ₹52 crore in the base quarter, and operating expenses being on the higher side on a year-on-year basis.
RVNL announced its dividend policy for FY26, recommending a final dividend of ₹0.71 per equity share of face value ₹10 each, subject to approval by shareholders at the upcoming annual general meeting. According to CNBC TV18, Live Mint, and The Economic Times, the dividend will be paid within 30 days from the date of declaration at the AGM. Additionally, the company informed the closure of its joint venture entity, Kyrgyzindustry–RVNL CJSC, in Kyrgyzstan, Central Asia region. For FY26, finance costs declined to ₹419 crore from ₹544.9 crore in FY25, while total expenses increased to ₹20,100 crore from ₹19,368.2 crore a year ago. The company's total assets grew to ₹20,588 crore in FY26 versus ₹19,485 crore in FY25, while it reported negative cash flow of ₹1,923 crore in FY26.
Despite the challenging quarterly results, RVNL shares ended at ₹272.7, up 0.6% on the BSE on May 26, as reported by CNBC TV18. However, the stock has faced significant pressure with declining 10.9% in the past month and 24.6% this year so far. The stock is down over 60% from its record high of ₹647 that it had surged to in 2024. The modest gain suggests that investors may have focused on the company's revenue growth and the announced dividend rather than the significant profit decline, indicating some market confidence in the company's long-term prospects despite current operational challenges. The sequential improvement from Q3 FY26 revenue growth of ₹4,684.5 crore to Q4 FY26 revenue of ₹6,695.9 crore demonstrates the company's ability to maintain revenue momentum despite profitability pressures, though the 42% sequential profit decline from ₹322.8 crore reflects the challenging operating environment faced by the railway infrastructure company.
