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Rail Vikas Nigam Emerges Lowest Bidder for ₹272 Crore Railway Electrification Contract

Written by: Suraj Uday SinghUpdated on: 7 Nov 2025, 1:55 am IST
Rail Vikas Nigam secured a ₹272 crore railway electrification contract from Central Railway, with execution in 24 months. RVNL Share Price closed at ₹318 on November 6.
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Rail Vikas Nigam Ltd. announced on Thursday, November 6, that it has emerged as the lowest bidder for a railway electrification contract valued at approximately ₹272 crore from Central Railway. The project will be executed under the engineering, procurement, and construction (EPC) mode and is scheduled to be completed within 24 months.

Project Details and Scope

The contract includes the design, supply, testing, and commissioning of traction substations, sectioning posts (SPs), and sub-sectioning posts (SSPs) across the Daund–Solapur sections of Central Railway. 

This project aims to enhance traction systems and facilitate improved operational efficiency in line with Central Railway’s 3,000 MT loading target. The scope reflects ongoing infrastructure expansion efforts to strengthen India’s railway electrification network.

No Related Party Involvement Reported

In its regulatory filing, the company clarified that the promoters have no interest in Central Railway and that the awarded order does not qualify as a related party transaction. This disclosure aligns with transparency norms followed in government-awarded infrastructure contracts.

Recent Order Wins Add to Project Portfolio

The latest project win follows a series of contract awards secured in recent months. In October, the company received three new orders, including a ₹165.5 crore infrastructure project from the North Eastern Railway. These projects form part of its normal course of business operations, reinforcing its steady project execution record in the railway infrastructure sector.

RVNL Share Price Update

As of November 06, 2025, RVNL Share Price closed at ₹318, marking a decline of 2.46% on the NSE. The company has a market capitalisation of ₹66,272 crore, with a price-to-earnings (P/E) ratio of 55.6 and a book value of ₹45.9. 

Over the past year, RVNL Share Price has reached a high of ₹502 and a low of ₹295. The stock currently offers a dividend yield of 0.54%, with a return on capital employed (ROCE) of 14.7% and a return on equity (ROE) of 14.0%. The face value of the stock stands at ₹10.

Read More:Rail Vikas Nigam Emerges As Lowest Bidder For Major North Eastern Railway Project

Conclusion

The new order adds to Rail Vikas Nigam’s growing portfolio of railway infrastructure projects. Its consistent project execution and order inflows reflect the ongoing development momentum within India’s rail electrification and modernisation initiatives.

 

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: Nov 6, 2025, 8:22 PM IST

Suraj Uday Singh

Suraj Uday Singh is a skilled financial content writer with 3+ years of experience. At Angel One, he excels in simplifying financial concepts. Previously, he cultivated his expertise at a leading mortgage lending firm and a prominent e-commerce platform, mastering consumer-focused and engaging content strategies.

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