RVNL Reports 40% Drop in Q1 Profit Amid Lower Revenue and Income

Rail Vikas Nigam Limited (RVNL), a Navratna PSU, reported a sharp 40% year-on-year decline in consolidated net profit to ₹134.36 crore for Q1 FY26, down from ₹223.92 crore in the same period last year. Consolidated revenue from operations dipped 4% to ₹3,908.77 crore from ₹4,073.80 crore, while other income fell to ₹228.19 crore from ₹262.95 crore, dragging total income to ₹4,136.96 crore (vs ₹4,336.75 crore). Total expenses slightly decreased to ₹3,972.92 crore from ₹4,036.50 crore, but were outweighed by lower income. However, the company’s share of profit from joint ventures and associates surged to ₹9.37 crore from ₹1.36 crore, indicating improved partner performance. RVNL also established a new wholly-owned subsidiary—Sabbavaram Sheelanagar Road Development Limited—in Andhra Pradesh, with a paid-up capital of ₹1 lakh, signaling expansion beyond rail into road infrastructure. In its regulatory filing, RVNL disclosed a receivable of ₹1,275.25 crore from Krishnapatnam Railway Company (KRCL), including ₹889.95 crore in interest on delayed payments. Interest calculation has been revised from compound to simple from October 1, 2024, though KRCL seeks retroactive simple interest from April 2020 and a waiver of 5% departmental charges—matters still pending with RVNL’s board. The results reflect short-term financial pressure, but RVNL’s strategic expansion and recovery-related issues remain key to its future outlook.