RVNL secures ₹554.47 crore Bengaluru rail project; shares surge 14% despite profit decline

Rail Vikas Nigam Limited (RVNL) has bagged a ₹554.47 crore contract from Rail Infrastructure Development Company (Karnataka) Limited (K-RIDE) for the Bengaluru Suburban Rail Project (BSRP). The contract involves constructing nine stations along Corridor-4A, including Heelalige, Singena Agrahara, Huskur, Ambedkar Nagar, Carmelaram, Bellandur, Marathahalli, Doddanakundi, and Kaggadasapura. The project, which features one elevated and eight at-grade stations, is set to be completed within 24 months.

Following the announcement, RVNL's stock surged 14% to ₹347.25 on the Bombay Stock Exchange (BSE), reflecting strong investor confidence.

However, earlier this week, the company reported a 13.1% year-over-year drop in its third-quarter net profit, totaling ₹311.6 crore, along with a 2.6% revenue decline. This led to a 7.3% dip in RVNL’s share price before the recent rebound.

Despite the latest contract win, analysts suggest investors keep a close watch on RVNL’s financial performance, as its recent earnings indicate potential challenges ahead.