India’s largest domestic institutional investor, Life Insurance Corporation (LIC), has increased its stake in Rail Vikas Nigam Limited (RVNL) during the first quarter of FY26. As per Trendlyne, LIC now owns 6.6% of the company, up from 5.84% at the end of March 2025. This signals LIC's growing confidence in RVNL’s potential, especially in India’s booming infrastructure sector.
Established in 2003, RVNL is a government-owned company that focuses on railway infrastructure development. It plays a key role in constructing and upgrading railway lines, bridges, and metro systems. The company currently has a market cap of over ₹79,210 crore, making it a major player among public sector enterprises.
Even though RVNL share price has dropped nearly 40% over the past year, the stock has rewarded long-term investors handsomely. Since its listing in April 2019 at ₹20, RVNL has surged nearly 1,800%, currently trading around ₹372.30. It’s a reminder of how PSU stocks can offer multibagger returns over time.
Adding to its momentum, RVNL share price rose after recently bagging a significant project from the Delhi Metro Rail Corporation (DMRC). The ₹447.42 crore order covers civil structure work across seven metro stations, including Pushp Vihar, Lajpat Nagar, and Greater Kailash-1. This deal is expected to boost the company’s revenue in upcoming quarters.
In the fourth quarter of FY25, RVNL posted a net profit of ₹459.15 crore, slightly down from ₹478.56 crore in Q4 FY24. However, profits rose 47% compared to Q3 FY25’s ₹311.44 crore.
Revenue for Q4 came in at ₹6,426.88 crore, a minor dip year-on-year but a strong jump from ₹4,567.38 crore in the previous quarter.
Read more: ITR Filing 2025: Income Tax Department Tightens Scrutiny on Joint Mutual Fund Holdings.
RVNL continues to attract investor interest, especially from institutions like LIC, thanks to its consistent growth, key project wins, and government support. For investors, having a Demat account ready can be the first step towards capitalising on such emerging opportunities in India’s infrastructure sector.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jul 23, 2025, 12:22 PM IST
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