Railway PSU RVNL Reports 59% YoY Decline in Net Profit, Revenue Increases 4% in Q4
Rail Vikas Nigam Limited Posts Mixed Q4 FY26 Results
Rail Vikas Nigam Limited (RVNL), a railway infrastructure company, released its Q4 FY26 and full-year FY26 financial results after market hours on Monday, May 25. The company's performance showed a mixed financial picture, with steady revenue growth but lower profitability.
For the March quarter, RVNL reported revenue from operations of ₹6,695.9 crore, a 4.2% year-over-year (YoY) growth from ₹6,427.1 crore in the same quarter last year. The company's total income for the quarter stood at ₹6,780.9 crore, up from ₹6,614.5 crore in Q4 FY25.
However, the company's profitability remained under pressure during the quarter. Net profit after tax declined sharply by 59% YoY to ₹187 crore from ₹455.4 crore reported in the corresponding quarter last year. Profit before tax (PBT) also dropped to ₹250.3 crore from ₹542.5 crore, while total expenses rose to ₹6,534.6 crore from ₹6,120.1 crore in the same period last year.
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The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for Q4 FY26 stood at around ₹268.5 crore, a 38.4% YoY drop from ₹436.1 crore in Q4 FY25. The EBITDA margin contracted sharply to 4% from 6.8% in the year-ago quarter.
On a sequential basis, revenue improved significantly from ₹4,684.5 crore reported in Q3 FY26, while net profit declined from ₹324.1 crore in the December quarter.
Full-Year FY26 Performance
For the full financial year FY26, RVNL's revenue from operations rose marginally to ₹20,412.1 crore from ₹19,923.3 crore reported in FY25. The company's total income for the year stood at ₹21,187.4 crore compared to ₹20,923.4 crore in the previous financial year.
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Meanwhile, FY26 net profit after tax declined to ₹875 crore from ₹1,278 crore in FY25, reflecting a fall of nearly 32% YoY. Profit before tax for the year came in at ₹1,181.2 crore versus ₹1,646.4 crore in the previous year.
The company's finance costs declined during FY26 to ₹419 crore from ₹544.9 crore in FY25, while total expenses increased to ₹20,100 crore from ₹19,368.2 crore a year ago.
| Metric | Q4 FY26 | Q4 FY25 | Change (YoY) |
|---|---|---|---|
| Revenue from Operations | ₹6,695.9 crore | ₹6,427.1 crore | 4.2% |
| Total Income | ₹6,780.9 crore | ₹6,614.5 crore | 2.5% |
| Net Profit After Tax | ₹187 crore | ₹455.4 crore | -59% |
| Profit Before Tax | ₹250.3 crore | ₹542.5 crore | -53.9% |
| EBITDA | ₹268.5 crore | ₹436.1 crore | -38.4% |
| EBITDA Margin | 4% | 6.8% | - |
Note: The table highlights the key financial metrics for Q4 FY26 and Q4 FY25.
Investor Takeaway
Investors should be cautious of the decline in profitability despite revenue growth.
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