Archive · 12 Nov 2025
RVNL Shares Dip 3% Following 20% Drop in Q2 Net Profit
RVNL, a company that builds things for railways, released its financial report for the last three months.
Even though they made more money in sales than last year, their costs went up a lot.
This meant their profit went down by a fifth compared to the same time last year.
Because of this news, the price of their stock dropped a bit.
However, when you compare these results to the previous three months, their profit and sales were actually much better.
The company also recently won several new contracts for railway projects.
Despite the recent stock drop, the shares are currently trading significantly lower than their highest price in the past year and are down for the year overall.
RVNL shares fell 3% on Wednesday, November 12, to ₹308, following its September quarter financial results.
The company reported a 20% year-on-year decrease in net profit to ₹230.52 crore due to higher expenses.
Revenue saw a year-on-year increase to ₹5,333.36 crore, but EBITDA declined to ₹217 crore with margins at 4%.
Quarter-on-quarter, RVNL showed improvement with net profit up 72.8% and revenue up 31%.
The company has secured multiple recent orders, including a ₹272 crore contract from Central Railway, but its stock is down 40% from its 1-year high.
- Who
- Rail Vikas Nigam Limited (RVNL)
- What
- Shares slipped following a reported 20% drop in Q2 net profit and narrowed EBITDA margins, despite revenue growth and quarter-on-quarter improvements.
- When
- Wednesday, November 12 (stock drop); Results reported after market hours on Tuesday.
- Where
- RVNL is a railway infrastructure company.
- Why
- Higher operating expenses led to a decline in net profit and EBITDA year-on-year, impacting investor sentiment.
Company Performance
Stock Market Reaction
Quarterly Financials
Company Performance
RVNL reported a 20% fall in consolidated net profit to ₹230.52 crore and a decline in EBITDA to ₹217 crore, with margins contracting to 4%.
Stock Market Reaction
Despite weaker year-on-year results, net profit and revenue improved by 72.8% and 31% respectively compared to the previous quarter.
Recent Stock Performance
Company Performance
RVNL shares dropped 3% on Wednesday, November 12, to ₹308, extending a decline that has seen the stock fall 40% from its 1-year high.
Stock Market Reaction
The company has secured multiple orders totaling ₹272 crore from Central Railway and other projects in recent weeks.
- Company
- Rail Vikas Nigam Limited (RVNL)
- Stock Movement
- Down 3% on Wednesday, November 12
- Q2 Net Profit
- ₹230.52 crore (down 20% year-on-year)
- Q2 Revenue
- ₹5,333.36 crore (up year-on-year)
- Q2 EBITDA
- ₹217 crore (down from ₹256 crore year-on-year)
- Q2 EBITDA Margin
- 4% (contracted by 100 basis points year-on-year)
- Recent Orders Secured
- ₹272 crore from Central Railway, plus other recent contracts.
- Year-to-Date Stock Performance
- Down 25.25%
