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RVNL Aims To Generate Rs 22,000-Crore Revenue In FY26

Rail Vikas Nigam Ltd.'s order book currently stands at Rs 97,000 crore to Rs 98,000 crore, with Rs 47,000 crore from legacy railway projects and the remainder from diversified sectors.

<div class="paragraphs"><p>Rail Vikas Nigam Ltd. aims to generate revenue of Rs 20,000 crore to Rs 22,000 crore in the current financial year, according to Director (Operations) Mritunjay Pratap Singh (Source: RVNL website)&nbsp;</p></div>
Rail Vikas Nigam Ltd. aims to generate revenue of Rs 20,000 crore to Rs 22,000 crore in the current financial year, according to Director (Operations) Mritunjay Pratap Singh (Source: RVNL website) 

Rail Vikas Nigam Ltd. aims to generate a revenue of Rs 20,000 crore to Rs 22,000 crore in the current financial year, according to Director (Operations) Mritunjay Pratap Singh.

"We want to have an improvement of around 10% to 15% in our revenue growth as compared to the last financial year," he said during a conversation with NDTV Profit on Thursday. "For the current financial year, we are keeping revenue guidance of the order of Rs 20,000 to Rs 22,000 crore."

He added that the company aims to improve its margin by "faster execution, reducing indirect costs". "We hope to see it moving from 5% to around 6.5% to 7% this year."

"And certainly, in next year, we hope to take it to around 8%. And for the infrastructure sector, an 8% margin is pretty good," the top executive highlighted. 

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In FY26, the company expects a 20% growth in order inflows. In FY25, RVNL secured order inflows worth Rs 14,000 crore. The company's order book currently stands at Rs 97,000 crore to Rs 98,000 crore, with Rs 47,000 crore from legacy railway projects and the remainder from diversified sectors.

Singh noted that RVNL has historically been limited to executing railway projects under the Ministry of Railways. However, the company is diversifying into other sectors now. The top official added that the company will compensate for the decline in revenue from the traditional railway projects via projects won through bidding in various segments.

The company is now active in metro projects across seven cities, transmission line and distribution system improvements under the Revamped Distribution Sector Scheme in three states, BharatNet projects for telecom infrastructure and the manufacturing of Vande Bharat train sets in partnership with the Russian firm TMH International, he said.

RVNL has ventured into harbour construction in the Maldives and is exploring opportunities in energy sectors such as battery storage, solar, wind and hydro projects, as well as road construction, he added. "They are similar to the railway projects and are simpler as compared to railway projects."

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RVNL is also eyeing international markets to boost its revenue and margins. The company is pursuing railway projects in Peru, Albania and Croatia, transmission line and port projects in Africa, and road projects in the Philippines and Cambodia.  It also has hydro projects in Nepal.

Currently, international projects account for 10% of RVNL's revenue. Singh said the company aims to increase this to 20% to 25% within three years and to 40% in the next three to four years.

Regarding the Vande Bharat project, he said: "After initial hiccups for some time, it is now on a good trajectory."

"We hope to see the prototype rolling out by June 2025 and the second prototype in the following three months," he said. "And after getting the clearances from Indian Railways, we hope to see the regular production starting from December 2026."

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