The shares of Rail Vikas Nigam (RVNL) tumbled more than 3% on Wednesday, extending losses for the second consecutive session after the release of Q4 results, with PL Capital maintaining its ‘Sell’ rating and reducing its target price.
RVNL shares have now fallen around 8% in two days to hit an intraday low of Rs 251.30 apiece on NSE, nearing its 52-week low of Rs 248 apiece which it had hit in March this year. This comes after the company on Monday reported a 43% year-on-year (YoY) decline in standalone net profit to Rs 212 crore for the January-March quarter of FY26, although revenue rose 5% YoY to Rs 6,648 crore during the quarter under review.
Also Read | RVNL shares fall 3% as Q4 net profit tumbles 43%; revenue rises just 5%
PL Capital on RVNL
PL Capital reduced its target price on RVNL to Rs 165 apiece from Rs 183 apiece. The latest target price implies a downside potential of more than 36% from the stock’s previous closing price of Rs 259.75 apiece.
The domestic brokerage noted that RVNL reported a weak Q4 performance, with modest revenue growth offset by a sharp decline in profitability. “As per RVNL, margin pressure was driven by non recurring factors: an onerous contract provision, JV reconciliation adjustments. Management expects underlying profitability to improve in FY27E versus the reported FY26 margin of 3.8% and has guided for revenue growth of 15–20% in FY27,” it said.
Although revenue guidance is ahead of PL Capital’s estimates, continued margin weakness (as competitive bid project share in order book continues to rise) and lower other income (led by lower cash amid higher receivable) have led the analysts to cut FY27 and FY28 EPS estimates by 15% and 5%, respectively.
“RVNL's order book stands at Rs993bn (~4.9x FY26 standalone revenue), with a ~50:50 split between nomination and competitive bidding projects, offering strong long-term execution visibility. Segment-wise, Railways dominates at Rs 570 billion, followed by signaling at Rs 149 billion, ports/roads/highways at Rs 102 billion, metro at Rs 99 billion, Power T&D at Rs 50 billion, and Hydro/Irrigation at Rs 20 billion. FY26 standalone order inflows rose 129% YoY to Rs 58.75 billion, with an additional Rs 12 billion through JV wins,” it added.
RVNL share price
RVNL shares dropped over 6% in one week, 17% in one month and more than 30% so far in 2026. The stock has declined over 39% in one month.
In the longer term, the railway stock has gained more than 118% in three years and 754% in five years. The company currently has a market capitalisation of more than Rs 52,740 crore.
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