RVNL Reports Higher Revenue in Q2 FY25 Even as Cash Flow Turns Negative

Rail Vikas Nigam Ltd (RVNL) reported a year-on-year increase in revenue for the quarter ended September 2025, even as other financial indicators showed signs of pressure. While the company’s top line improved compared to the same period last year, its earnings before interest, tax, depreciation and amortisation (EBITDA), margins, and net profit witnessed a decline.

On a quarter-on-quarter basis, RVNL’s performance improved, suggesting a steady pace of activity despite challenges in maintaining profitability.

Cash Flow Turns Negative

A key highlight of the second quarter was the shift in operating cash flow, which turned negative at the end of the first half of FY25. As of September 30, 2025, RVNL reported a negative operating cash flow of ₹1,254 crore, compared to a positive ₹1,878 crore in March and ₹1,755 crore during the same quarter last year.

This reversal indicates higher working capital requirements or delays in receivables, which are common in infrastructure-heavy businesses. The company continues to manage large-scale projects involving rail network expansion, electrification, and construction, which often entail extended payment cycles.

RVNL Share Price Update

At 9:55 AM on Wednesday, November 12, 2025, the RVNL share price stood at ₹319, up 0.50%. The company’s stock, listed under BSE: 542649 and NSE: RVNL, showed moderate movement following the announcement of its quarterly results. The stock had earlier declined by 3% in early trading as investors reacted to the mixed financial performance.

RVNL’s market capitalisation currently stands at ₹66,575 crore, with a 52-week high and low of ₹502 and ₹295, respectively. The stock trades at a P/E ratio of 58.6, with a book value of ₹45.8 and a dividend yield of 0.54%. Its Return on Capital Employed (ROCE) and Return on Equity (ROE) stand at 14.7% and 14.0%, respectively.

Business Overview

Established in 2003, the company plays a crucial role in developing rail infrastructure projects across the country. It undertakes a wide range of assignments from the Ministry of Railways, including line doubling, gauge conversion, new line construction, railway electrification, major bridges, and workshop development. Additionally, it earns a share of freight revenue through concession agreements.

Read More:RVNL Share Price in Focus Wins ₹144.44 Crore Order from South Central Railway.

Conclusion

While RVNL’s Q2 FY25 performance reflected growth in revenue, the pressure on margins and the negative cash flow highlight the challenges in maintaining liquidity and profitability. The coming quarters will likely focus on project execution efficiency and improving cash management, as the company continues its contribution to large-scale rail infrastructure development.

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