Rail Vikas Nigam Ltd (NSE: RVNL) Q1 2026 Earnings Call dated Aug. 12, 2025
Corporate Participants:
Unidentified Speaker
Pradeep Gaur — Chairman and Managing Director
Mritunjay Pratap Singh — Director of Operations
Chandan Kumar Verma — Chief Financial Officer
Analysts:
Unidentified Participant
Vishal Periwal — Analyst
Rajesh Agarwal — Analyst
Presentation:
operator
Ladies and gentlemen, good day and w elcome to Rail Vikas Nigam Limited Q1FY26 earnings call hosted by Antique Stockbroking. Please note that this call will end at 3:40pm Indian Standard Time. As a reminder, all participant lines will be in the listen only mode. And there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call please signal an operator by pressing Star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Vishal Periwal from Antique Stockbroking. Thank you. And over to you sir.
Vishal Periwal — Analyst
Yeah. Thanks. And good afternoon everyone. And apologies for the slight delay in the start of the call. So I welcome you all for the quarter 1 FY26 post result earnings call of Rail Vikas Nigam Ltd. The dais for this for this call is led by a management team of RVNL starting up with Mr. Praveen Gaurji who is the Chairman and Managing Director. Mrs. Anupam Banji who is the Director Personal. Mr. M.P. singh, Director Operations. And accompanied by Mr. Chandan Kumar Varmaji who is the Chief Financial officer. So as usual we’ll have a brief from the management and then we’ll have lines open for Q and A.
Thank you. And over to you sir.
Pradeep Gaur — Chairman and Managing Director
Thank you so much. It’s a pleasure to interact with the investors. So I think without much listening we will take the call. Because time is limited. So let us. We are ready to answer all the questions. Queries from the investors. Hello Mr. Vishal.
Questions and Answers:
operator
Hello. Yes sir. Should we go ahead with the questions?
Pradeep Gaur
Yeah, yeah. Please go ahead. Because time is slightly easy. We are constrained for time today so.
operator
All right. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will Wait for a moment while the question queue assembles. Ladies and gentlemen if you wish to ask a question you may press star and one on your touch tone telephone. The first question is from the line of Mr. Vishal from Antique stock Doking.
Please go ahead sir.
Vishal Periwal
Yes sir I think the result got posted some time back so I think maybe that’s the reason people are just absorbing the result so if I can ask a few questions sir, can you share a couple of updates in terms of like you know what has been the order inflow last quarter, how we have closed the order book, anything that can be provided.
Mritunjay Pratap Singh
Good afternoon. In this particular quarter there has been some order inflows from civil engineering and electrical engineering. The total order won this quarter is roughly of value 1000 crore and total contracts which are now orginal as one stands at around 96 contracts of the residual value of the contracts which we have won through open bidding is around 60,500 crores and coupled with our orders which are our legacy railway projects that is around 41,000 crores so roughly the order book of Arjunl is 1 lakh 1000 crores which is.
Vishal Periwal
Right sir. Right right and in terms of also that usually we do provide the split of this order book Anything on sector wise how this is panning out, Anything that can prove it?
Mritunjay Pratap Singh
Yeah our order book is spread out on various sectors. The orders which are from the civil engineering contracts which is from the railways, highways, metros is the orders are around 26,000 crores orders which are from the electrical is around 10,008 900 crores. And. Orders from signaling and telecom is of value total is around 14,700 crores. In civil engineering part our orders are in metro sector of roughly around 10,000 crores the highway sector is around 9,000 and the sector which includes traditional railways, irrigation etc is around 7000 crores and electrical is spread over the overhead electrification that is 2 into 25 conversion in railways then RDSS that is a distribution system of the state transcourse is a major component and the transmission line is also comprises of the manager segment and other than that in signaling sector we have got some of the railway contracts for automatic signalling or through modernization in form of COVID system and a major content of one day Bharat in which the capital cost is around 60006800 and considering the complete O and M cost is spread over 10 years period it will be around 13,000 and we have got a significant order a one day bar of manufacturing also of which the capital cost is 8640 crores, that is the arunish share in the JV.
That is the roughly breakout of the different sectoral orders along with the army.
Vishal Periwal
Got it sir, got it. And in terms of our revenue profile earlier at the, at the end of financial year 25 we were hinting at like you know we can clock revenue growth of in the range of 10 odd percent. So given I think what I have seen that like you know the first quarter has been a bit of muted for us and also for the industry. So how do you see this growth number panning out for us for the full year?
Pradeep Gaur
Actually let me say it, I think situation is very much in control because of course as expected the proportion of turnover from railways is coming down. It is in the range of almost 25% down. But kindly appreciate that turnover from bidding has increased by three times. So now this sort of balancing will happen because the turnover from railway will continuously slide. But it will be compensated by increase in turnover from bidding projects. So I’m sure that by. Because overall now it is minus 3.42% as of first quarter. But now I mean I can share it that present we have gone beyond, I mean gone more than the last year as we stand today.
So things will change and things will bank again. This turnover will be not only able to match last year, we will increase it also.
Vishal Periwal
Okay. Okay. That’s heartening to hear that sir. And even particularly on the margin front I think we are noticing there has been a bit of pressure on the margins for this quarter. So is it fair to say it’s primarily a couple of liner done like other expenses they have increased and even I mean like you know the other line item particularly increase which you are seeing. So that is more to do with like you know the competitive bid projects. They are entering to revenue recognition. So their margins are bit lower or anything that can be provided to explain the margin depth.
Mritunjay Pratap Singh
Actually when you see the gross margin there is a slight dip in the gross margin 13.57%. It is due to mainly the income from mor has decreased. But the income from project from bidding has increased by say 67% and net margin decreased. There is a reason for that because some of the owner on some of the onerous contracts where the some loss has been recognized they have been accounted for. And in Bharatnath project there were some pre bid expenses. They were also accounted for roughly value of 20 crore and 40 crore due to the honor of constant this 60 crore has gone into which has decreased our CBT and which ultimately resulted in decrease in Pet.
Vishal Periwal
Sorry sir, I just missed on that. So 60 crore. What was the nature of that? Sorry, I missed.
Pradeep Gaur
Yeah.
Mritunjay Pratap Singh
Basically There is a one time expenditure in an ArcNet project in which we had done One consultancy was pre bid consultancy was for the bidding survey and bidding. All that thing. This is a one time expenditure which has been booked in expenditure, indirect expenditure. Further a few commercial decisions. Maybe it’s too early because in most of the bidding project we have taken on the basis expenditure is just started booking in these projects. That’s why.
Pradeep Gaur
There may be a final picture.
Chandan Kumar Verma
Not the final picture. We anticipate that there may be some losses at the end of the day. But in due course we are doing the value addition. We have some change of the scope which we have to be get sanctioned from the plan. After that the picture will improve. But right now. Yes. We have recognized the three new projects which in this. This quarter.
Vishal Periwal
Okay. Okay. Sure. Sir, I have few more questions. I’ll come back in the queue sir.
operator
Thank you. Participants, if you wish to ask a question you may press star and one on your touchstone telephone. I repeat participants if you wish to ask a question you may press star and one on your touchstone telephone. We’ll wait for a moment while the question queue assembles. The next question is from the line of Mr. Rajesh Agarwal from money or. Please go ahead sir.
Rajesh Agarwal
Hello. Sir, on account of Bharat Sanchar order how much loss is extra your book.
Mritunjay Pratap Singh
Please repeat your question
Rajesh Agarwal
On account of a order how much extra expenses you book without commensurating revenue?
Mritunjay Pratap Singh
20 crore. Around approximately 20 crore.
Rajesh Agarwal
Approx 20 crore. And any other one offer is there.
Mritunjay Pratap Singh
No answer.
Rajesh Agarwal
Hello.
Pradeep Gaur
Kindly repeat. Kindly repeat.
Rajesh Agarwal
Any other one off expenses are there? No.
Mritunjay Pratap Singh
No other. No such other expenses.
Rajesh Agarwal
Okay. And you feel as from second quarter the revenue mix will start improving?
Mritunjay Pratap Singh
Yes, we are quite hopeful. Second it is already the reshoots are visible. And in this quarter we expect to cover the substantial ground. And we hope that our revenue will match last year’s revenue to the second quarter cumulatively.
Pradeep Gaur
No, no. We are already. We are already ahead. Now as of today we are already ahead in revenue compared to the last year. So definitely we are making it up by projects taken on bidding. So revenue wise absolutely no issue. We will be exceeding the last year’s revenue.
Rajesh Agarwal
And margin. Sir.
Pradeep Gaur
Margins there is a slight dip, is there? There’s a dip in the margin that. That is based on. I will request Mr. Chandan Verma to. Say on this.
Chandan Kumar Verma
Bidding projects booking has just started. Most in most of the projects we have just started executing the Work. So no doubt it’s very early to say that. But margins will improve once the work will start in full swing and change of scope. There are too many claims are there to be settled. The margins will improve.
Rajesh Agarwal
Thank you sir. And for JV sir, for JV when the profitability from the JVs will come other railway JVs. Yes, railway and all.
Chandan Kumar Verma
Yes, Railway. Basically Krishna Patnam this year they have thrown profit first time. And. In other JV also the traffic has improved. So we are hopeful that this year will get dividend.
Mritunjay Pratap Singh
Has already given dividend.
Chandan Kumar Verma
SPRPL has already given a dividend. Even 2 SPB has given dividend this year. So we are hopeful that the with the improve improvement in traffic more dividends will come to
Mritunjay Pratap Singh
Traffic will increase. And their liabilities is also going down the profit cost of the capital which they loan.
Rajesh Agarwal
Okay. And sir, one day project schedule. Now.
Pradeep Gaur
Which project?
Mritunjay Pratap Singh
Yes, all the roadblocks have been cleared. And now it is in advanced designing stage. And production has started in Latur factory. And we hope to see the first prototype in June 26th. And after that trial the regular production will start.
Pradeep Gaur
Actually background, you must be aware of it because configuration and all that 10 months delay. And railways have increased the time also by 10.
Rajesh Agarwal
Okay, understood. Thank you. Thank you sir. Thanks a lot.
operator
Thank you. Participants, if you wish to ask a question, you may press star and one on your touchstone telephone. I repeat, if you wish to ask a question you may press star and one on your touch tone telephone. We will wait for a moment while the question queue assembles. The next question is from the line of Mr. Vishal from Antique stock grouping. Please go ahead sir.
Vishal Periwal
Yes sir. Thanks for the opportunity again. So on one day. Bharat, I think you did mention like you know, June 26th is first prototype. So. So how exactly things work after that. I mean when. When we start recognizing revenue how much time it takes from prototype to actually commercially rolling out. So. So okay. Can you give some some background of this?
Mritunjay Pratap Singh
Yeah. First, as we expect the first prototype to roll out by next June. So revenue will also start flowing out as per the contract condition. 90% of the cost of the train set will be given on production of prototype. And after its successful trial balance 10% will also be released as revenue. And once the trials are successful and proving trials are held and the prototype is clear for regular production, the regular production will start. So in the next financial year, that is financial year 2627 along with the prototype we expect to see the regular production of the train sets.
Also.
Pradeep Gaur
I’ll Just add to what Mr. NP Singh has mentioned that this trial normally takes 60 days. So and the positive part is we are following only ICF design because these this is basically the design whatever already trains are running. Except difference is the existing trains are chair cars and this will be sleeper. I mean sleeper coaches. So there is a slight change in configuration. But by and large the same ICF design is being followed. So we expect the this trials should not take much issues because it is again ICF design. So and as soon as this thing what I should say as soon as these trials are over and I must give a comfort that we have already ordered for spare.
I mean these components and all for 10 sets immediately. So immediately the production will start. And I’m quite sure in financial year 2526 maybe 26262627 we can expect revenue of at least 6 to 8 Vande Bharat trains.
Mritunjay Pratap Singh
Two prototypes and just.
Pradeep Gaur
And even these two prototypes will become part of that 120 train section. What we are going to deliver.
Vishal Periwal
Got it sir. Got it. Got it. And then this 120 train sets this order order will get conclude by then. I mean like 27 is maybe 886 to 8 train set.
Mritunjay Pratap Singh
2032.
Pradeep Gaur
2030 to 5 years the total.
Mritunjay Pratap Singh
There’s a breakup of year wise.
Vishal Periwal
Right sir.
Pradeep Gaur
We are geared up for that once it is just. I mean our original target for September 25th to I mean roll out the first prototype. But unfortunately the 10 months what has this one delayed the whole thing. So that’s why it is now June 26th. And definitely in the financial year 2627 itself things will start in right earnest.
Vishal Periwal
Got it sir. And then I think earlier we used to hear that like you know this 120 train set and plus couple of peers also got 80 or train sets. This 200 train sets. This PI is almost like 5002000 odd train sets. So. And anything that are more orders are coming or anything that can be shared as of now for Monday. Bharat.
Pradeep Gaur
I don’t think any tenders are now as of now in the pipeline because there were some tenders about aluminum and all this but that could not be finalized. So I think presently this 200 train sets is what it is in the pipeline.
Mritunjay Pratap Singh
200 trains it by the Pontus and ICF. When RCF will be producing their railways production unit they will be continue to produce the train sets.
Vishal Periwal
Okay, okay. Okay. And then so we we have this ICF we are mapped to ICF. So for the 80 train set the the peers Are mapped to other coach factories.
Mritunjay Pratap Singh
Is awarded to the other bidder consortium that is a BHL and TITA GOT versions. So they will be. They will win contract matching to our basically trendset reads. So they will be producing 80 train sets in their manufacturing facility.
Vishal Periwal
Okay, okay. And then both the things will go parallel like prototype when we are doing. They’re also doing prototype. They are entering. Okay.
Mritunjay Pratap Singh
Yes, yes. Because they will be doing their own engineering and other things. But both of them will be on the basically ICF platform only.
Vishal Periwal
Icf. Okay, okay, got it, got it. Sir.
Pradeep Gaur
They will be manufacturing the train sets in ICF only. Like we are going to do it. They will manufacture it in icf.
Vishal Periwal
Oh, okay, okay, okay, okay. Got it, got it. And sir, any developments that is happening for a couple of JVs that we have formed any business traction that are we seeing anything or as of now they are still at MOU stage and more like a prelim discussion that usually happens before any business pickups. So that it is at that stage only, is that fair to say? Or any updates that can be provided.
Mritunjay Pratap Singh
You are Talking about the MOUs which Arduino has entered.
Vishal Periwal
Yes. Yes sir.
Mritunjay Pratap Singh
So we have entered into couple of MOUs and we are seeing good potential coming from it like in maintenance of the rolling stock. And Indian Railways has come up with some of the bids also for maintenance of the electrical engines at two workshops. So we have already formed MoU with the two companies and we hope to compete in those projects simultaneously. In the nuclear sector also with the Rosettam we are entering into MOU and we have given a proposal to Ministry of Railways also to the that is an upcoming sector. And with the government of India’s focus on nuclear power in a big way, we hope to gain certain business from that sector also.
And the solar sector also. We are with our success in JV in Uzbekistan and Saudi Arabia we hope to continue with momentum in the solar projects also. And right in Armania, Armenia we are building with the Jackson with whom we had a project completed in Uzbekistan and ongoing projects in Saudi Arabia. In Romania we are going for some solar projects.
Pradeep Gaur
That will be almost 800 megawatts. So this, this MOU and JV partnership, we are expanding it further to go to Europe now.
Vishal Periwal
Okay, maybe one last question from my side. As of now, what. What is the international order book PI in. In our 1 lakh crore order book.
Mritunjay Pratap Singh
Which part? Around 4,000 crore.
Vishal Periwal
Okay, okay.
Pradeep Gaur
Let me add. We have already bid in the present year itself around 10,000 crores we have bid and another 6,000 crores is in pipeline. We are expecting to bid almost 30 to 35,000 crores of projects this year only overseas. So even if the strike rate is around 15 to 20% we hope that this order book will increase now because this is our one, one of the main areas of focus which we are really, I mean, I mean really going all out to get some good orders abroad.
Vishal Periwal
Okay, got it, got it, got it. And I know I mean like a couple of procurements and everything that has been done for Vande Bharat it’s still some time to actually physically or commercially roll out. So as of now, I mean what sort of margin that you are seeing that one can make for. I mean RBL can make in Vandevarat, high, single digit, low double digit or anything.
Pradeep Gaur
The cost has been bid based on working the cost. And I mean what I will add that most of the supply chain is established supply chain which they are already supplying to ics. So mostly we have gone by the same order. So I think there is nothing, I mean nothing, I should say nothing. Nothing extraordinary happening as of now. So I think it is going in the direction at which we had planned. Because in this it is ICF design. We are ordering to the same supply chain except for one or two things where it is abroad.
One or two issues were there about sanctions, etc. But those have also been overcome.
Vishal Periwal
Sir, I think I’ve taken a good.
Pradeep Gaur
Nothing extraordinary. Nothing extraordinary neither on positive side nor on negative side.
Vishal Periwal
And thank you sir. I’ll come back in the queue.
operator
Thank you. Ladies and gentlemen, in the interest of time, that was the last question on behalf of Rail Vikas Nigam limited that concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you so much.
Pradeep Gaur
Thank you.
Mritunjay Pratap Singh
Thank you very much.