Rail Vikas Nigam Ltd (NSE: RVNL) Q3 2026 Earnings Call dated Feb. 06, 2026
Corporate Participants:
Unidentified Speaker
Saleem Ahmad — Chairman & Managing Director
Analysts:
Vishal Periwal — Analyst
Shubham — Analyst
Ashish Shah — Analyst
Presentation:
operator
Ladies and gentlemen. Good day and welcome to Q3FY26 post result conference call hosted by Rail Vikas Nigam Limited. As a reminder, all participants 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 the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note this call is of 40 minutes. I now hand the conference over to Mr. Vishal Perival from PL Capital. Thank you. And over to you sir.
Vishal Periwal — Analyst
Yeah. Thank you everyone. And warm welcome for the earnings call of Real Vikas Nigam Limited from the management team of RVNM is led by new CMD, Mr. Saleem Ahmed. Represented by another team members which are as follows. Mrs. Anupama Ban, Director Personal. Mr. M.P. singh with Director Operations. Mr. Amit Tandan, Director Projects. And with him is Chief Financial Officer Mr. Chandan Kumar Parma. So we’ll have a brief from the management on the company. And then we’ll have lines open for Q and A. Yeah. Over to you CMD sir.
Saleem Ahmad — Chairman & Managing Director
Namaskar. Good afternoon all of you. A very warm welcome to all of you in today’s investor call for third quarter of Rail Vikas Nigam Limited. My name is Saleem Ahmed. I’m chairman and managing director of your company. I have recently joined your company almost a month back. I have experience of working with Delhi Metro Rail Corporation. And lastly I was working as Director Projects with NVCC India limited. So I want to assure all the stakeholders that my focus area will be that all the works which are ongoing should be completed on time. And I will focus on the faster execution of our order book.
And I have to. I will be focusing on achieving the sustainable and good growth for both top line and bottom line. Our results for quarter three have been declared. We have achieved top line of. In quarter three we have achieved top line of rupees 4936 crore. And our profit before tax is 359 crores. If we see the nine months performance our consolidated top line is 14,406 crores. And our profit before tax is rupees 841 crores. If you see our order book, your company order book is very strong. We have almost 87,000 crores of order which includes railway nomination works of rupees forty thousand crores.
And we have secured forty seven thousand crores of work on bidding recently also we have secured works of 1528 crores of new works in last nine months and have emerged as the lowest bidder for the project’s value. 3,667 crore. 3,670 60s 7 crores. We have also signed an MoU with Vishaka Port authorities for development of various infrastructure projects in the in that port. And we are also in discussion with various states and public sector bodies to explore the businesses opportunities in that area. I also want to brief all of you about the progress of the important works which we are carrying out.
First important project which your company is doing is Bharat One Day Bharat project where 120 trained sets are being manufactured along with our Russian counterpart. And I want to brief all of you that work is progressing very well in that sector. First prototype which is required as per the key dates will be met and will be ready with the first prototype in June or July of this year. So that will be a major achievement of the major project. Another important project which is going on is Bharat Net project. Progress in that project is also progressing satisfactorily.
And we are hopeful to generate good income out of that project in this year. Our important project is. Another important project is Rishikesh Kanparyak where work is going on full swing and our target which is to achieve the completion of the project in December 2028. And we are progressing very well in that project also. So dear shareholder, I want to assure you on behalf of Railway cars become limited your company that our management with me as chairman and our directors will make all efforts to ensure sustainable good growth in future and ensure good profit in future.
Thank you very much. And now the forum is open for question and answers. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask question may press star and one on the touchdown telephone. If you wish to remove yourself from question queue, you may press star and tool. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. Participants may press star and one to ask question. The first question is from the line of Vishal from Pal Capital. Please go ahead.
Vishal Periwal
Yeah, so thanks for the opportunity and before others can join for the call, maybe I’ll ask a few questions. So. So one is in terms of how exactly are we seeing the full year for us in terms of the growth rate and second on the margins front how expected this trajectory going to be in financial year 26?
Saleem Ahmad
Vishal, our growth in top line is quite challenging right now because as you know from earlier we were getting railway works and now we are diversifying into bidding works also. But we are hopeful that this year our growth will be will be good. We are expecting a growth of 1 or 2% than the previous year. But profit, we are not expecting such good profit this year because of major part of our revenue of our income will be from the bidding works where the margins are less. So definitely there will be some hit in our bottom line.
But I want to assure all of you that in future in the next financial year we’ll be doing much better and we’ll have a better growth next year but this year it will be stagnant growth in top line and maybe we might get a dip in our bottom line.
Vishal Periwal
Sure. So this is helpful. And second sir, in terms of orders can you give some color? I mean like you know how has been the order inflow for us in the last 1 2/4 and any new opportunity that you are seeing that is emerging that could boost our order book in times to come.
Saleem Ahmad
Yes, I just brief you in the last quarters we have emerges lowest in works amounting to 3500 crores and already works up to 1500 crores have been awarded to us. So future is good. We are in talks with many public sector units to get works on mou basis. We are bidding for highway works for railway works and and there’s a lot of opportunity for us in future because recently in budget lot of capital expenditure has been announced for railway works so we are hopeful that we will get a good chunk out of that budget.
Vishal Periwal
Got it sir.
Saleem Ahmad
looks very good. Yeah.
Vishal Periwal
Yeah. So I think you briefly touched upon the budget. Can you give some perspective because this time we have seen a decent jump in the lease asset line line item of the budget and I mean do we get to participate in that particular capex of Ministry of Railway and another question related to that like you know high speed rails they have been announced but given your experience sir, how much time it takes when I mean the orders can be come to the market and like you know we can bid for those projects.
Saleem Ahmad
As you see the market, as you see the budget there is a huge opportunity for us. Railway is continuously spending money on the infrastructure improvement whether it is doubling of the line or the new line. So we are hopeful to get good works from these infrastructure works taken by railways and about the new corridors which have been recently announced for the this high speed train network. So we are not sure whether we can be part of the that work because that work is entrusted to the another organization. But definitely we will try to take some work from the bidding point of view.
We’ll wait for those projects in future but its timeline will be I think slightly two or three years. Yeah. In this year we are not expecting any work from that sector. But already the railway infrastructure lot of works are in pipeline or in tendering space. So we are hopeful to get good amount of orders from that.
Vishal Periwal
Right, right. And in terms of pipeline of railway orders though we have seen a good 10, 11% sort of CapEx increase in terms of order inflow also. I know maybe it’s a little early but. But any, any pipeline that you see for yourself and how. How this opportunity can be in terms of number, anything that can be provided. Sir.
Saleem Ahmad
You know if you see the next three years we already have almost 40,000 crores of railway works. So our focus first focus is to complete those works within next three years. So that will bring us the income of almost 10 to 11,000 per annum. And parallelly we will be focusing on getting new works on bidding. Our target is to get at least income of 10 to 12,000 from those works also. And in addition other infrastructure works are also going are also coming whether by PSUs, by state government and in other sector also. So we are trying in all the sectors that we should get good works.
And we are hopeful that in near future, in next three years will get good orders.
Vishal Periwal
Okay. Okay. Sure sir. And best wishes to you and your team and. And I’ll come back in the future.
Saleem Ahmad
Thank you.
operator
Thank you. The next question is from the line of Shubham from Antique stockbroking. Please go ahead.
Shubham
Thanks for the opportunity. I have only one question regarding Vande Bharat order. So what is the current status on the Vande Bharat order?
Saleem Ahmad
Thank you Shubham. Vande Bharat is a very prestigious project for us also and railways. So we are manufacturing 120 train sets. And right now our work is going on as per the plant progress. Our first milestone will be to give the prototype to the railways. And we are hopeful to achieve this milestone within this year as per the program of the railway which is I think June 2026.
Shubham
Sir, this will be basically the. The. Normal one.
Saleem Ahmad
Sleeper sleeper trained with 16 coaches configuration.
operator
Thank you. A reminder to all the participants, you may press star and one to ask questions. Participants may press star and one to ask question. The next question is from the line of Ashish Shah from HDSC mission fund. Please go ahead.
Ashish Shah
Hello. Yeah, good evening sir. Yeah sir, you know I just had a question on the order book that we have. So. So you said that out of 87,000, 40,000 is nomination based. 47,000 other new bidding based orders. So for each of these bucket if you can first highlight how much of let’s say this 40,000 crore nomination, what portion of this order book is currently under execution and what is maybe awaiting some approvals or go ahead from the railways.
Saleem Ahmad
No, this work is in progress is already awarded to us. Work is going on full swing. As I just brief you out of this 40,000 order book. We have to complete this order book in next three years. So accordingly works are going on.
Ashish Shah
Okay, and how about the the other order book of bidding base 47,000 crores.
Saleem Ahmad
Yeah, even that work is going on.
Ashish Shah
So it’s entirely under. Under execution.
Saleem Ahmad
Under. Yes, under progress. Yeah.
Ashish Shah
And.
Saleem Ahmad
Which includes. And other building projects of railways.
Ashish Shah
Right. And what’s the kind of execution that one can hope from this order board? Because it’s a complex set of mix where Vande Bharat would be having a longer execution cycle and the others could be shorter. So let’s say if you say that in nomination 40,000 you have roughly three years to deliver. So let’s say give or take 1112,000 crore if I’m doing a simple arithmetic, could be from this particular set of 40,000. And out of this 47,000 crore what could be our revenue execution cycle? Like.
Saleem Ahmad
This cycle for this is quite long for Vande Bharat and Bharatnet. But parallel we are undertaking many other works like highways, port sector also work is in progress. So we are hoping next for the next three years our 50% of revenue will be from the railway works which is 40,050% of our revenue will be from our bedding works. Whether from Bande Bharat or from Bharatnet from highways and other railway sector. So we are hoping that 50, 50% revenue will be from each sector.
Ashish Shah
Okay, so what’s the total revenue guidance that you may give for let’s say this year? This year you said it will be flat, but how does 27 look like? FY27.
Saleem Ahmad
There will be definitely sustainable growth. We are targeting growth of between about 10% for financial year. And we will achieve it because our order book is very strong. And the industry is also showing signs of lot of infrastructure coming up. And we are talking to many states, public sectors to take up work on MoU basis. So we are very hopeful that we will achieve 10% growth in our top line, bottom line too.
Saleem Ahmad
And how would you guide on the margins? You did say that because of the bidding based orders there would be some amount of pressure on the margins. So where would we end up on the EBITDA margin this financial year? 26. And based on the mix that you’re projecting, 50, 50% next year, what could be the margin that one can expect?
Saleem Ahmad
Margins. We are like you, as you know there are two revenue streams we have. One is railway which have a very good profit stream. And weddings we definitely are getting was on competition basis. So sometimes the margins are less and high. But on an average we will definitely get a ebitda margin of 7%.
Ashish Shah
Okay, so let’s say around 7% margin somewhere index financial year and on a turnover, let’s say maybe this year you ended close to 20,000 crore and 10% over that is what you’re guiding for next year.
Saleem Ahmad
Yes.
Ashish Shah
All right. Also maybe one just last thing on the railway projects. So are you seeing sort of any pickup in the railway EPC projects? The budget did talk about some new dedicated freight corridor related works and certain other, you know, city connectivity, high speed rail projects as well, some six or seven cities. So any perspective that you can share on how the railway projects seem to be shaping up over the next 12 months or so.
Saleem Ahmad
The railway ministry is like spending huge money on the infrastructure and in addition to that lot of other works also coming up which your company, you know bids for like metros, highways. So future is good for next two to three years and as I just said that we are hoping to increase our revenue by 10% even the profit margins will be slightly better because as I earlier told you it was a transition phase for us, for your company from like nomination basis to bidding. So I think things are improving and we’ll be getting better margins in our bidding projects also.
So accordingly we are bidding so that we get good margins.
Ashish Shah
Okay. All right sir, thank you. Thank you very much.
Saleem Ahmad
Thank you.
operator
Thank you. A reminder to all the participants, you may press star and one to ask question. The next follow up question is from the line of Vishal from PL Capital. Please go ahead.
Vishal Periwal
Yeah, thanks for the follow up again sir. Sir, on the previous participant Asish when he asked on the margin so. So just a clarification 7% EBITDA margin. This includes other income or how. How do you see that number sir, the gross.
Unidentified Speaker
Good afternoon. Basically sir talked about gross margin. If you see in this quarter though the turnover had decreased in compared to quarter two. But we have improved in margin gross margin in last quarter by almost like 5060 basis price. We have improved in gross margin. So with cost cutting better improvement in our cushion quality, we are going to achieve the 7% gross margin next year.
Vishal Periwal
Thank you. Okay, okay. Sure. Sure sir, sure. And maybe I mean clientele. Can you provide the order book breaker that you have mentioned say central, state, private, how this number can be for us?
Unidentified Speaker
Good afternoon Vishal. Our orders are from various diverse sectors. Railway is still our core. Railway orders comprises of around 45% of our total orders. Then road sector, we have got around 10% of our total orders. Electrical sector where we have got a diverse mix of orders from basically rdss which are basically revamped distribution support system in four states. And transmission line and railway electrification works, they comprises of around 15%. And signaling and telecom work which includes railway telecom works, signaling works as well as the Bharatnet projects, they comprises of around 15% of our order book and around 7% order book is from our mechanical sector which includes our share in Vande Bharat and some of the workshop projects.
And besides that they have got an order book of around 3,500 crore from international projects.
Vishal Periwal
Okay. Okay. So. So is it fair to say barring electrical most of the projects they are from the central government side? Is that fair to say?
Unidentified Speaker
Yeah, most of our projects barring the electrical distribution support systems, they are from the basically central government
Saleem Ahmad
Working for national. Highway and railways major
Unidentified Speaker
And metros. Metro is also important.
Vishal Periwal
Okay, sure sir, I think. Thank you very much for all the answers and I’ll come back in the queue. Thank you.
operator
Thank you. A reminder to all the participants. You may press star and one to ask question. Participants may press star and one to ask question. Is. There are no further questions from the participants. We will conclude the call on behalf of PL Capital that concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.
Saleem Ahmad
Thank you.