RVNL Wins Lowest Bid For ₹968 Crore East Coast Railway Project; Shares Jump ~6%

Rail Vikas Nigam Limited (RVNL) has emerged as the lowest bidder (L1) for a major railway infrastructure contract awarded by East Coast Railway.

The total project value is ₹967.9 crore, including goods and service tax (GST), adding to the company’s growing order book.

The project is oriented towards the building of major railway bridges within the Bhadrak-Vizianagaram route, which is a critical route to increase the capacity of rail and efficiency of operations.

Rail Vikas Nigam Limited shares climbed close to 6% on Friday after the announcement, hitting ₹310.89 at 10:22 a.m. The surge slowed as trading progressed. By 13:00 p.m., the price settled at ₹303.96, still 3.43% above the previous close, pointing to sustained investor confidence.

What Does The Scope Of Work Include?

As per the company’s disclosures, the project spans 385 km across two stretches: Nergundi–Barang (22 km) and Khurda Road–Vizianagaram (363 km).

The work involves building major bridges over rivers such as Birupa, Mahanadi, Kathajori and Kuakhai.

These bridges will be developed using open-web steel girders under the EPC (Engineering, Procurement, and Construction) model. The execution timeline for the project has been set at three years.

RVNL has clarified that the contract has been awarded by a domestic entity under standard contractual conditions.

It also said its promoter group and related entities hold no stake in the awarding authority. So, this deal does not fall under related-party transactions.

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How Is RVNL Performing Financially?

The company reported revenue of ₹4,684 crore in Q3 FY26. That’s a 2.6% rise from the same period last year.

But earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell 8% to ₹220.8 crore, down from ₹239.4 crore. This shows margins are under pressure, even though revenue is growing.

Sources:

CNBC TV18

Mint