Rail Vikas Nigam Ltd (RVNL), a state-owned entity, has achieved a significant milestone by securing a Rs 2.70 billion contract from Maharashtra Metro Rail Corporation Ltd. This project is part of the second phase of the ambitious Nagpur Metro Rail Project (NMRP). The scope of work involves the construction of ten elevated metro stations, showcasing RVNL’s expertise in urban rail infrastructure development.

The awarded contract includes seven metro stations in Reach 3A—Hingna Mount View, Rajiv Nagar, Wanadongri, APMC, Raipur, Hingna Bus Station, and Hingna. Additionally, three metro stations in Reach 4A—Pardi, Kapsi Khurd, and Transport Nagar—will also be constructed. The project, which includes GST, is scheduled for completion within a 30-month timeline. This win marks another milestone for RVNL, further solidifying its position in the metro rail infrastructure sector in India.

Despite this achievement, RVNL’s financial performance in Q2 FY25 presented mixed results. The company’s net profit witnessed a year-on-year decline of 27%, falling from Rs 3.943 billion to Rs 2.869 billion. Revenue from operations also saw a marginal dip of 1.2%, standing at Rs 48.55 billion compared to Rs 49.143 billion during the same period last year. EBITDA registered a decline of 9%, with margins narrowing to 5.6% from the previous 6%, primarily due to rising operational costs.

However, the quarter-on-quarter performance showcased a more positive trajectory. RVNL’s net profit grew by 28.1%, and revenue saw a notable increase of 19.2%. Tax expenses for the quarter also saw a slight year-on-year reduction of 0.5%, though they rose by 17.2% sequentially.

Following the announcement of the contract, RVNL’s shares closed at Rs 469.90 on the BSE, reflecting a modest increase of Rs 3.90 (0.84%). This contract award not only enhances RVNL’s portfolio but also aligns with its strategic vision of bolstering India’s metro rail infrastructure. The company’s continued efforts in securing and executing such projects underline its commitment to contributing to the country’s urban transport growth and development.