Rail Vikas Nigam (RVNL) has secured a significant contract from state-owned NMDC for establishing buffer stockpiles and a blending yard with a handling capacity of 10 million tonnes per annum (MTPA) at Visakhapatnam in Andhra Pradesh. According to the latest regulatory filing to the National Stock Exchange of India (NSE), the project is valued at ₹2,977 crore including GST and has been awarded in the normal course of business. The company clarified that the order has been awarded by a domestic entity and is not a related-party transaction, with no involvement from promoters or group companies.
RVNL shares surged 3% to touch an intraday high of ₹250.90 following the contract announcement, marking a significant turnaround from the previous decline. As of 11:55 AM on June 22, 2026, shares were trading at ₹247.59 on the NSE, rising 1.48%. This positive market reaction reflects investor confidence in the company's infrastructure capabilities and the strategic value of the NMDC contract. The stock recovery comes after RVNL's shares had declined 3.47% to ₹263.10 following the contract announcement, despite the positive business development. The company maintains a total market capitalisation of ₹51,591.74 crore as of June 22, 2026. However, over the past year, RVNL shares have fallen 32%, with a 9% decline over the past month and 25.5% drop in the last six months.
The NMDC contract adds to RVNL's recent order book expansion, with the company securing another ₹967.93 crore order from the East Coast Railway last week. This latest contract involves the construction of the third and fourth railway lines between Nergundi–Barang (22 km) and Khurda Road–Vizianagaram (363 km) on the Bhadrak–Vizianagaram section, covering a total length of 385 km. The project is expected to be completed within 42 months, with buffer stockpiles and blending yards being essential for mining companies to manage inventories and improve the quality and consistency of material supplied to customers.
The proposed facility is designed to strengthen NMDC's logistics infrastructure at Vizag and will be completed within 42 months. As reported by CNBC TV18, buffer stockpiles and blending yards are essential for mining companies to manage inventories and improve the quality and consistency of material supplied to customers. The project is expected to support the movement and handling of iron ore and other raw materials more efficiently, with the facility forming part of RVNL's regular business operations and involving the development of domestic infrastructure.
Despite the positive contract developments, RVNL's recent financial performance shows mixed results. The company's consolidated net profit fell 58.92% to ₹187.07 crore in Q4 FY26, though revenue from operations increased 4.18% to ₹6,695.91 crore compared to the same period last year. In contrast, NMDC reported strong quarterly results with a 35.03% jump in standalone net profit to ₹2,020.13 crore and 60.69% increase in revenue to ₹11,173.14 crore in Q4 FY26 over Q4 FY25. At an operational level, RVNL's EBITDA stood at ₹269 crore in Q4 FY26, marking a 38.42% year-on-year drop from ₹436 crore in the previous year, with EBITDA margin contracting to 4.01% compared to 6.79% in March FY25.
