RVNL Q2 Review: Earnings Miss Amid Cost Surge; IDBI Capital Retains 'Hold' — Check Revised Target Price

RVNL’s order book stood at around Rs 900 billion as of Q2 FY26, providing three–four years of revenue visibility. Moreover, Rs 430 billion relates to legacy railway projects, while Rs 460 billion comprises competitively bid contracts..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..IDBI Capital Report.Rail Vikas Nigam Ltd. posted a disappointing Q2 FY26, with weak profitability and cash flow offsetting modest revenue growth. Revenue from operations rose only 1% YoY to Rs 49.3 billion vs Rs 48.7 billion in Q2 FY25 despite a healthy 26% QoQ rebound from the muted Rs 39.2 billion in Q1 FY26. However, margins deteriorated sharply: Ebitda slipped to an estimated Rs 3.9 billion, translating to a 7.9% margin, down 120 bps YoY as cost pressures persisted and lower-margin EPC contracts formed a greater revenue share. Profit before tax dropped 27% YoY to Rs 3 billion, while PAT plunged 35% YoY to Rs 1.9 billion, with EPS falling to Rs 0.94 vs Rs 1.45 YoY. On the positive side, RVNL is expanding into higher-value segments such as rolling-stock manufacturing (Vande Bharat trains), operations and maintenance contracts, and non-rail infrastructure, all of which may improve future margin profile. Investor sentiment is cautious: strong backlog delivers long-term promise, but near-term execution, mix and cash-flow remain key watch-points. We maintain our Hold rating and revise our target price of Rs 334..Click on the attachment to read the full report:.HAL Q2 Review: Motilal Oswal Maintains 'Buy' Post Inline Numbers, Sees 22% Upside — Check Target Price.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

RVNL Q2 Review: Earnings Miss Amid Cost Surge; IDBI Capital Retains 'Hold' — Check Revised Target Price

RVNL's Ebitda margin dropped to 4.2%, lowest in recent quarters, due to higher share of competitively bid EPC projects.

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