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RVNL Stock Tumbles on Weak Earnings
26 May
Summary
- RVNL's net profit fell 59% year-on-year in March quarter.
- Revenue from operations increased slightly to ₹6,696 crore.
- A final dividend of ₹0.71 per equity share was recommended.
Rail Vikas Nigam (RVNL) saw its share price decline by over 4% on May 26, 2026, after announcing its financial results for the quarter ending March 31, 2026. The company reported revenue from operations of ₹6,696 crore, a 4.2% increase from the previous year.
However, net profit after tax experienced a sharp decline of 59% year-on-year, falling to ₹187 crore from ₹455.4 crore in the same period last year. EBITDA also decreased by 38.4% to ₹268.5 crore, with EBITDA margins shrinking to 4% from 6.8% year-on-year.
Alongside its financial performance, RVNL declared a final dividend of ₹0.71 per equity share for FY26, pending shareholder approval at the Annual General Meeting. The company continues to benefit from government infrastructure spending, but analysts note potential for near-term stock volatility due to margin pressures and execution challenges.
For long-term investors, RVNL is considered a hold or gradual accumulation candidate, with a recommendation for staggered buying until profitability shows consistent improvement. Technical analysis suggests the stock is in a prolonged downtrend, with a potential base formation around the 272 zone, but a confirmed reversal requires a break above the 310 level.
