RVNL shares dropped over 4% in morning deals on Monday after the company reported a 60% year-on-year decline in consolidated net profit at ₹187.07 crore for Q4 FY26. According to latest NSE data, the stock hit a low of ₹251.05 before recovering to trade 2.5% lower at ₹265.30 as of 9:45 AM. Around 6 million shares of the Navratna railway PSU changed hands in the first 30 minutes of trade, indicating active investor participation in the market reaction. The railway stock has significantly underperformed over the past year, declining 36% compared to a nearly 4% decline in the benchmark Nifty index. Over the past month, RVNL shares have fallen 13% compared with a marginal 0.6% gain in the Nifty 50, while so far in 2026, the stock is down 26% versus an 8% decline in the Nifty index.
For the January to March quarter of FY26, RVNL reported nearly 60% year-on-year decline in consolidated net profit at ₹187.07 crore from ₹455.4 crore in the same quarter last year, despite a marginal increase in revenue. The company had earned a profit of ₹455.4 crore in Q4 FY25, representing a significant deterioration in profitability. Sequentially, the profit after tax was down around 40% from the previous quarter. The company's revenue from operations increased by 4% Y-o-Y to ₹6,695.91 crore in the reporting quarter, up from ₹6,427.1 crore in Q4 FY2025. On a sequential basis, revenue increased 4% quarter-on-quarter from ₹6,427.1 crore reported in the October-December quarter. The company's other income in Q4FY26 declined by more than 50% Y-o-Y to ₹85 crore, down from ₹187.3 crore in Q4FY25.
According to the company's financial results, total expenses during the March quarter came in at ₹6,535 crore, compared with ₹6,081 crore in the previous year and ₹4,386 crore in the year-ago period. Expenses increased 7% annually and 49% sequentially due to material consumption, employee benefits and finance costs. The company's share of profit of joint ventures and associates for the reporting period stood at just ₹4.07 crore, down from ₹48.1 crore in the corresponding quarter a year ago and ₹56.5 crore in the preceding quarter. RVNL also accounted the closure of its JV company Kyrgyzindustry-RVNL CJSC in Kyrgyzstan (Central Asia Region). The firm's other income in Q4FY26 declined by more than 50% Y-o-Y to ₹85 crore, compared with ₹187.3 crore in Q4FY25.
The board of RVNL has recommended a final dividend of ₹0.71 per share on the paid-up equity share capital of face value of ₹10 each for the financial year 2025-26, subject to approval of shareholders at the ensuing Annual General Meeting. The final dividend will be paid within 30 days from the date of declaration. Technical analyst Harish Jujarey from Prithvi Finmart noted that RVNL has remained in a bearish-to-sideways consolidation phase for more than a year and continues to trade in a lower top-lower bottom formation, indicating a weak trend. The stock is trading below its key 50-day and 200-day moving averages, placed around ₹280 and ₹300 respectively, which are likely to act as strong resistance or supply zones in the near term. Looking at the overall chart structure, the stock is expected to remain under pressure, with the next key support seen around ₹250 levels, and the analyst recommended avoiding making fresh long positions until a clear reversal pattern or positive breakout emerges on the charts.
On a consolidated basis, net profit dropped 60% year-on-year to ₹187.07 crore in Q4 FY26 from ₹455.4 crore a year earlier, while sequentially, consolidated profit fell 40%. According to latest reports, consolidated revenue rose 4% quarter-on-quarter to ₹6,696 crore from ₹4,684 crore in Q3 FY26, and also increased 4% year-on-year compared with ₹6,427 crore in Q4 FY25. For the full financial year FY26, consolidated revenue stood at ₹19,869 crore, registering a marginal increase over the previous year. The company's total assets increased to ₹20,588 crore in FY26 from ₹19,485 crore in FY25, indicating growth in the company's asset base despite profitability challenges.
