Ladies and gentlemen, I'm Karthikeyan, moderator for the conference call. I would like to welcome you all to the investors' call of Rail Vikas Nigam Limited for Q1 of FY 2026/2027. We have with us today the management team of RVNL. Shri Saleem Ahmad, Chairman and Managing Director. Shrimati Anupam Bhan, Director, Personnel. Shri Mritunjay Pratap Singh, Director, Operations. Shri Abhishek Kumar, Director, Finance. Shri Amit Tandon, Director, Projects, and Shri Chandan Kumar Varma, Chief Financial Officer. As a reminder, all participants will be in listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on a touch-tone phone. Please note that this conference is being recorded.
We will start with a brief opening remark from the CMD, sir, which will be followed by a question- and- answer session. Thank you, and over to you, sir.
Good evening, everyone. I extend a warm welcome to all of you to the RVNL's quarter one financial year 2026/2027 earning call. It is my pleasure to have you with us as we share our performance and key developments for the quarter. India infrastructure sector is witnessing strong growth driven by sustained government investment, modernization, multi-model connectivity, and the transition towards green mobility, creating significant opportunities for RVNL. The company remains committed to supporting the nation's infrastructure vision through high quality, sustainable projects while diversifying its order book across transmission, road and highways, ports and harbors, metros, solar energy and overseas market. This diversified portfolio enhances RVNL resilience, expands growth opportunities, and position of the company for sustained long term value creation.
The first quarter of financial year 2027 has commenced on a positive and steady note for RVNL, with the company remaining firmly focused on sustaining operational momentum and advancing its key projects. Our fundamentals remain robust, supported by a healthy order book, a strong project pipeline, and continued focus on operational efficiency. At the same time, we are actively pursuing new business opportunities across the infrastructure sector. With the government's continued focus on railway and infrastructure development, we see significant opportunities ahead in real estate, port and hydro, highways and sustainable infrastructure. We remain confident that execution will gather further momentum in the coming quarter, and that RVNL is well-positioned to sustain its growth trajectory and create long-term value for all stakeholders. The company is targeting work orders of around INR 20,000 crore during this year.
In addition to the existing order book, out of which approximately INR 5,000 crore has already been received during quarter one. Further, the company expects its top line to grow by around 15%, while the bottom line is projected to increase by approximately 15%-20%, reflecting continued business momentum and a positive growth outlook. I am pleased to share that our order book continues to remain strong and diversified, providing healthy multi-year execution visibility for the company. During the quarter ended April to June 2026, the order inflow stood at INR 5,417 crore. As on June 30, 2026, the company total order book stood at an impressive INR 93,492 crore. Order book is primarily driven by railways with INR 58,000 crore, followed by S&T at INR 12,000 crore, ports, roads and highways at INR 3,651 crore, metros at INR 5,700 crore, power and transmission at INR 4,000 crore, and hydro and irrigation projects at INR 1,626 crore.
The growth and movement in the order book was supported by new railway and multi-sector infrastructure works awarded to RVNL. Steady execution leading to revenue recognition and our disciplined margin focus selective bidding strategy. This strong and well-balanced order book position the company confidently for sustained growth in the coming years. Company also demonstrated consistent execution pace in quarter one of financial year 2027, achieving healthy year-on-year revenue expansion with standalone turnover at INR 4,300 crore, higher by 9.62% year- on- year, reflecting steady execution momentum and improved project activity during the quarter. On a consolidated basis, turnover stood at INR 4,321 crore, which is higher by 10.55% year- on- year, quarter one financial year 2026 to Q1 FY 2027, demonstrating sustained project delivery and solid core execution strengths. Profitability also improved on a year-on-year basis.
Standalone EBITDA stood at INR 171 crore as compared to INR 81 crore in quarter one financial year 2026, which is higher by almost 110% on a year-to-year basis. While EBITDA margin also improved to 3.99% from 2.08% in quarter one financial year 2026. As a result, PAT stood at INR 155 crore, which is higher by 21.72% on a year-to-year basis. Our standalone earnings per share for the quarter stood at INR 0.75, higher by 22.95% year- on- year. Consolidated performance followed a similar trend. Consolidated EBITDA stood at INR 190 crore as compared to INR 64.91 crore in quarter one 2026. Consolidated EBITDA margin stood at 4.41% as compared to 1.66% in quarter one financial year 2026. While PAT stood at INR 159.52 crore, higher by 18.73% year- on- year. Overall, the quarterly results highlight robust execution and good revenue visibility for the company.
Margins, while showing improvement over quarter one financial year 2027, remain an important area of focus that we will keep tracking closely moving forward. The building works have also contributed 31.51% to the total revenue from operation, showing an increase of 16.63% from the previous years. I would like to highlight about some important projects carried out by RVNL. BharatNet project was awarded by Bharat Sanchar Nigam Limited, is a INR 13,000 crore initiative to provide high-speed broadband connectivity in rural and remote areas through 82,000 km of OFC infrastructure under the DBOM model. Rail Vikas Nigam Limited has made significant progress in project execution, with work now progressing at a good pace across various locations, and we are expecting good revenue and profit margins in this year.
Vande Bharat Sleeper Train Set is also a flagship program of railways, where INR 1,440 crore project with 35 years maintenance arrangement is being executed by Kinet Railway Solution Limited, our SPV of RVNL. The project is progressing at a steady pace. First prototype train set is targeted for launch in December 2026. SPV has also received the Bronze A' Design Award 2026 in Italy for excellence in mobility and transportation design. Rishikesh-Karnaprayag rail project is also project of national importance in Uttarakhand. Being developed at a cost of INR 37,000 crore, the 125 km project has achieved 78% overall progress, with around 97% tunnel excavation completed. Target for completion by December 2029, the project will improve access to the Himalayan region, support the Char Dham pilgrimage corridor, strengthen border connectivity, boost tourism and local economy, and significantly reduce travel time in the region.
Performance of our JVs and subsidiaries remained encouraging during first quarter, with subsidiaries contributing INR 126 crore to the consolidated revenue and INR 12.70 crore to profit after tax. The company's share of profit from joint ventures and associates stood at INR 6.16 crore. Additionally, dividend income received from JVs and subsidiaries stood at INR 12.07 crore during quarter one, which contributed positively to the company's consolidated profitability. During the quarter, employee productivity also showed improvement, with revenue from operation per employee increasing from INR 4.929 crore- INR 4.97 crore on a quarter-on-quarter basis. This growth reflects enhanced operational efficiency and better utilization of human resources. In conclusion, RVNL remains fully committed to disciplined execution and steady operational performance backed by a strong and diversified order book.
As weather condition improves over the coming months, our priority will be to pick up execution speed, maintain margin discipline, and convert our healthy pipeline of L1 positions and LOAs into active projects. We also continue to explore fresh opportunities in broader infrastructure segments and international markets. With long-term national infrastructure growth on our side, RVNL is well-placed to deliver sustainable value in the quarters ahead. On behalf of the management team, I thank you all for your continued trust, guidance, and support. Thank you.
Thank you, sir. Ladies and gentlemen, we will now begin the question- and- answer session. If you have a question, please press star and one on your telephone keypad and wait for your turn to ask the question. If you'd like to withdraw your request, you may do so by pressing star and one again. First question comes from the line of Mr. Vishal Periwal from PL Capital. Please go ahead.
Yes, sir. Thanks for the opportunity and congratulations on a good set of results. Your initial commentary was quite detailed, and it provided a lot of perspective in terms of what RVNL is doing. Just to continue, sir, with what you have shared with everyone. What could be the L1 size of order that we have with us right now?
Thank you, Vishal.
Yes.
Our target for business development or increasing the order book is almost INR 20,000 crore-I NR 25,000 crore for this year. Out of which already INR 5,500 crore works have been entrusted to us. We are trying in all the sectors. Right now, we are focusing heavily on port sector, hydros, and highways. These are the three sectors, plus green energy also. These are the four sectors we are focusing and expecting good orders in coming quarters. Thank you.
Okay, sir. I think there has been a bit of market concern around because inflation has been there. In our order book of this INR 90,000 odd crore plus, what could be a fixed price contract that we are executing? Maybe share of it.
It is almost 40%.
Okay.
42%, to be precise, is the railway work which has been awarded on a management fee basis. We are also trying with other state government and PSUs to get the work on nomination basis for a PMC fee. We have already got almost INR 6,500 crore works from a PSU called NMDC. Our discussions are going on with other PSUs also. We are hopeful that we are getting works on a fixed margin also. Parallelly, our bidding works, where our margins are slightly lower, are also going on. Our focus is that we get works on good margin. By increasing or by optimization of our operational efficiency, we expect then our margins will also improve in the bidding works.
Okay.
Thank you.
Any impact from inflation are we seeing for our orders that we have, particularly, say, for BharatNet?
Generally, Vishal. Generally all the contracts are covered by price variation, which generally covers the price inflation. I think it does not have a very big impact, though some impact is always there.
And sir, in the BharatNet particularly, I think you did mention INR 13,000 crore worth of order that we have. In this, how has been the experience, what we have executed, any color that can be shared? I think it is a fixed price contract, right sir?
Vishal, initially we really faced few challenges.
Okay. Hello?
Hello?
Sir, your voice is not audible.
Can you hear now?
Yes, sir. You are audible now, sir.
Should I repeat?
Yeah, sir. Sorry, sir, I missed on that, sir.
For BharatNet, initially there were some challenges. We faced some problem in execution also. But now the situation is quite better. It has improved. Work is going on in full swing in U.P. West and U.P. East also. Payment issues are being deliberated with BSNL and are being resolved. Some payments have been received by us and other payments are in pipeline. So we are hopeful that this year in the remaining quarters, we'll get good revenue from this work also. Thank you.
Okay. Sure, sir. I'll come back in the queue. And thank you very much, sir.
Thank you. We have the next question from the line of Ashutosh from Centrum Broking. Please go ahead.
Yeah, thank you for the opportunity. What percentage of our current order book is already mobilized and under active execution versus projects awaiting approvals, land availability, or financial closure?
Your voice is not very clear.
What percentage of our current order book is already mobilized and under active execution versus projects awaiting approvals, land availability, or financial closure?
[Non-English content]. Our total order book which is remaining is INR 93,000 crore, and works which are in progress is almost INR 40,000 crore.
Okay. Can you also provide details on how much CapEx we have incurred till now, our revenue recognition, and expected completion timeline for BharatNet, Vande Bharat Sleeper Train, and others?
BharatNet project is in two parts. First is the implementation of the infrastructure at site. The timeline is three years. There are certain issues at the ground end which are being sorted out, and this duct and fiber is being provided. This will take another six to eight months, it will be extended. The second part is for maintenance for the next 10 years. Whatever is being implemented there and handed over, that is automatically going to the maintenance period. As far as the cost is concerned, most of the items which are being used, hardware, the cost was finalized and the tender order issued before this crisis, and so we are getting the material at the previous costing at present also.
Okay. Thank you, sir.
Ashutosh, you asked about the Vande Bharat. The Vande Bharat is also having components. One is the delivery of the 120 sets of the Vande Bharat Set, which is likely to start from December of this year. The first prototype likely to roll out in this December, and thereafter in five years, the complete 120 sets are to be delivered. Thereafter, the contract with the Indian Railways involves maintenance of these supplied rolling stocks for 35 years in different parts of the country. So it is a very long-term contract, and which we think is likely to give good revenue to RVNL and with positive margins. Thank you.
Okay, sir. Sir, you have given a guidance of 15%-20% FY 2027 revenue growth. So do you maintain this guidance after Q1, and what gives you confidence in achieving it?
Yes, definitely. I said in my opening speech also, we are looking for almost 15% in our top line and 15%-20% in the bottom line. In quarter one, we have achieved 19% year-to-year growth with our bottom line. So we are very much hopeful that in coming quarters, we will be able to maintain this momentum. Thank you.
Thank you, sir.
Thank you. We have the next question from the line of Priyank Shah from Investec. Please go ahead.
Yeah. Thank you for the opportunity, sir. Sir, in your opening remarks, you highlighted that you are also exploring the international markets. Could you elaborate on that front with regards to the overall strategy, and what are the key markets or geographies you are currently targeting? If you can also help us with the opportunity size when it comes to the overall international business.
Good afternoon, Priyank. RVNL is focused in many parts of the world, and our primary focus is in Central Asia, Middle East, and Eastern European countries. Southeast Asia also. We are already in process of bidding in Africa also. We are in process of bidding in all these areas, and we have submitted bids in parts of Africa for power transmission line, for railway projects, road projects. We have submitted bids in Nepal also for hydropower projects. We are in touch for submitting the bids. We have already submitted the expression of interest for acquiring metro projects in Israel, Tel Aviv Metro, and in Eastern European countries also a lot of opportunities are coming in, where in form of roads and railways, where a lot of reconstruction work for railway sector is going on. We have identified some bids in Georgia and Serbia.
Our focus is basically in railways, metro, highways, and power transmission in these areas. Thank you.
All right. Thank you, sir. That is all from my side.
Thank you. Ladies and gentlemen, if you have a question, please press star and one on your telephone keypad. The next question comes from the line of Sunil Bhat from Choice Limited. Please go ahead.
The contribution of bidding projects has been increasing steadily and now forms a meaningful share of revenue. Could you share the revenue mix between nomination projects and competition bidding projects for Q1 FY 2027, and how do you expect this mix to evolve over our next two to three years?
Our order book is mixed. 40% of our order book is from the railway management works, which have been assigned to us. 20% of the railway work we have taken from bidding. Others are from the either PMC work from other PSU or bidding works in other sectors. If you see our quarter one results, almost 60% of the revenue top line is from the management work, which is almost 63% is from bidding works, from management, and remaining is from the bidding of PMC.
Okay. Sir, the next question on the current order book and the pace of execution we have right now. Considering this, how do you see RVNL's book-to-bill ratio for next two to three years or I can say for short term to long term tenure?
We are hoping that in next three years, our order book will be equally divided 50/50% between railway management works and bidding works. That is how the order book will evolve in next three years. As you have been briefed that we are focusing more on the overseas works and as already explained that we are bidding for works in Georgia, we are bidding for works in Africa, we have bid for Israel Metro. We are expecting good order from these overseas works. That will increase the non-railway portion. And railway works are already with us, almost INR 40,000 crores of work have to be executed by us in next three years. Those works will always go parallelly, and we are hoping that in our top line, soon it will be 50/50% for next two to three years.
Okay, well noted, sir.
Thank you.
And sir, as the business shift towards the competitive bidding, just want to know what's the management thinking about the overall profitability, ROE, ROCE going forward, or you can highlight something on, or you can throw some lights on margins which we are expecting going forward.
For the last two quarters, we are focusing on the works which give us better margins, and those margins are more than 5%-6% for the bidding works. For management, you know it is from 8%-10%. For PMC work, which we have got from PSU is almost 7%, and we are trying with other state government and PSUs to get the same PMC margins, fixed margins. For bidding, I will again repeat that our margins will vary from 5%-6% for the works in India. But for the overseas, we are expecting margin of 15%-20%, which we are trying in Georgia, in Africa, in other countries. Thank you.
Okay. Sir, the last question on to understand the industry. Which are the major internal and external risks for the company as of now? Or companies facing which affected our procurement timeline or project cost or overall project execution or business. Can you throw some light over there?
Definitely. As you know, the present geopolitical situation is a challenge that we faced during quarter one also. If the similar situation persists, this is a big challenge for us. Definitely, we are facing some challenge of labor availability from the market. Labor is not available for works, so we have to make extra effort to get the labor for execution of our works. Payment from the client is also a challenge, but we are trying to get the payments from them. Regular follow-up is being done. These are the few challenges which we are facing, but we are hopeful. Even with these challenges, we will be able to achieve the targets which we have fixed for ourselves. Thank you.
Okay, sir. That is all from my side. Thank you so much for the opportunity and all the best.
Thank you.
Thank you. We have the next question from the line of Abhishek Leekha from Neste Wealth LLP. Please go ahead.
Good morning, sir. Thank you for the opportunity. Congratulations for stable to good set of numbers. My question is, since you are trying to diversify to Middle East and Israel and all those, basically, areas are geopolitically highly active now. How you plan to address the risk part into that?
Good afternoon, Abhishek. As you rightly pointed out, the area of Middle East, Israel are a bit volatile at present, but we understand that the situation is likely to stabilize in coming time. These areas, they typically yield very good margins for the projects, and as a country, India has a good presence in all these areas. We stand to get good support from the government side also while executing the project into those areas. We will not face much of the issues, but certainly we have to account for some of the challenges there, because when we are taking the skilled and unskilled manpower to that area, the payments, they have to be given properly, they have to be insured properly. We will take care of all these things while executing projects on these areas.
Okay.
Abhishek, proper risk assessment is done before quoting. These risks have been identified and accordingly mitigation measures or risk premium has been considered.
Okay. That's good to know. Pardon me if that has been addressed earlier or have been answered earlier. What kind of vision that we have over the next three years?
We are expecting a return of 5%-7%.
ROE vision for RVNL as a whole in next three years.
Return on equity. Almost 12%-13%.
Okay. Mm-hmm. Fine. Okay. Thank you so much.
Thank you.
Thank you. We have the next question from the line of Pratik Tibrewala, an individual investor. Please go ahead.
Hello, sir. My first question is regarding the larger projects that are underway, Vande Bharat and BharatNet, et cetera. What would be the funding requirement and what would be our pipeline? How much would be internal accruals? Would we be looking at debt as well?
Presently, we are not looking for any debt from other sources. We are able to maintain from our internal resources only. We have our working arrangement with some banks for working capital, if required. In next two, three quarters, we are not looking for any assistance on part of debt.
What would be the rate on these bank lines that we have already secured?
5.5%-5.95%. Around 5.5%-5.9%.
Okay.
We have not taken any debt till now, but we have kind of arrangement with them. If required, most probably if it will be required in BharatNet, we may take it, and that will be at 5.5%-5.9%.
Okay. Got it.
Presently, we are able to manage from our internal cash.
Okay, that is great, sir. My last question is regarding the dividend policy, sir. Should we expect dividend growth to track the PAT, or could the ratio move going ahead?
We generally follow DIPAM guidelines, which is 30% of the PAT or 4% of the network, whichever is higher. We will give that dividend.
Okay. Got it. Thank you so much, sir, for the opportunity, and all the best.
Thank you.
Thank you, sir. Ladies and gentlemen, if you have a question, please press star and one on your telephone keypad. We have the next question from the line of Mayur Pednekar, an individual investor. Please go ahead.
Hello, am I audible?
Yes, sir. You are audible. Please go ahead with your question.
My question is on the following recognition of losses on certain contracts in FY 2026. Can you confirm whether all the major provisioning has now been completed, or do we have any additional contracts remaining?
We have already provisioned for the Indore project, and we are not anticipating any further provision of the loss.
Okay. The second question I have is on receivables from the Ministry of Railways, which has been increased marginally during FY 2026. What is the current outstanding amount for the same?
Outstanding, around INR 2,500 crore. This is actually railway receivable or outstanding is a dynamic process.
Presently, our outstanding with railways is almost INR 2,500 crores.
Okay.
We keep on receiving the payment on a monthly basis. We raise our bill to them, and within 30 days, the payment is received. That is the normal and dynamic process, and we are making more effort to ensure that our cash flow is maintained and payment is received well on time with railways. Our correspondence and interaction with railways is regular.
Okay. Got it, sir. That's it from my side. Thank you.
Thank you. That was the last question for the day. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation and for using Chorus Call conference call service. You may disconnect your lines now. Thank you, and have a good day.
Thank you.
Thank you, sir.