Shares of Rail Vikas Nigam Ltd (RVNL) opened nearly 3% lower on Monday after the company reported a sharp decline in fourth-quarter profitability and margins. The stock has already corrected around 25% so far in 2026 amid pressure on railway and infrastructure stocks.
RVNL shares were trading at ₹263.95 in early trade on the NSE, down 3.1% from the previous close of ₹272.45. The stock touched an intraday low of ₹263.95 and remains significantly below its 52-week high of ₹442.80.
The weak market reaction came after the company reported a steep decline in earnings for the March quarter. RVNL’s consolidated net profit fell 58.9% year-on-year to ₹187 crore in Q4 FY26 compared to ₹455 crore in the corresponding quarter last year.
The company’s EBITDA also declined sharply by 38.4% YoY to ₹269 crore from ₹436 crore a year ago. EBITDA margin contracted to 4.0% from 6.8%, reflecting pressure on profitability despite a rise in revenue.
Revenue from operations, however, increased 4.2% year-on-year to ₹6,696 crore in Q4 FY26 as against ₹6,427 crore reported in Q4 FY25.
The sharp margin contraction appears to have weighed on investor sentiment, especially at a time when railway-related stocks have already seen heightened volatility following strong rallies over the past two years.
RVNL is one of the key public sector railway infrastructure companies engaged in project execution for Indian Railways, including track doubling, electrification, bridges, workshops, metro projects, and other transportation infrastructure developments.
Disclaimer:
This article is for informational purposes only and should not be construed as investment advice.