It also investigates opportunities in the Regional Rapid Transit System (RRTS) | Photocredit: Karunakaran M
Rail Vikas Nigam LTD (RVNL), a leading infrastructure company in the public sector, has registered a turnover drop of 9 percent in FY25 to around 19,869 crore of £ 21,732 crore in FY24. The company also fought for its annual income guidance of £ 21,000 crore.
The deficit was attributed to a reduced release of funds from the Ministry of Spoorwegen, which has only awarded £ 19,000 crore, against RVNL’s claims of £ 23,000 crore for assigned project, said the Top Brass company.
This financing gap led to a dip in expenditure and influenced the general turnover of the company, which marked a challenging transition period while shifting on dependence on works assigned to competing bid projects.
Pradep Gaur, chairman and director of RVNL, acknowledged the setback during the recent profit call.
“Yes. In fact, we could have achieved the turnover of £ 21,000 crore. We came to around 19,500 crore. In principle, we had a matter of financing from the Ministry of Railways Projects … We had asked for money of about £ 23,000 crore from railways. And finally, he said around the £ 19,000.
“We may have reached the soil this year, but with a robust order book of £ 1 Lakh Crore, consisting of £ 45,000 crore of rail projects and £ 55,000 crore of bid projects, we are ready for a strong recovery,” he added.
Temporary dip
Gaur said that the decline is probably a temporary dip, with expectations of a multiple increase in turnover due to bidding projects in the current financial year, which may achieve £ 21,000 crore or more.
To prevent the turnover of slumps and to reduce dependence on railway financing, RVNL diversifies aggressively into alternative sectors.
Alternative sectors
The company is investigating fast-growing areas such as storage of solar energy, uses the push from India to the net-zero emissions by 2030 and ventures into small modular nuclear reactors, a field that is recently emphasized in the budget of the government of India.
“We enter the energy sector with Battery Energy Storage Systems (Bess) and Zonne projects, and the core power segment presents an exciting new border,” Gaur added.
The strategic pivot of the company includes other initiatives, such as operations and maintenance of metro systems, data centers and production, including the Vande Bharat Sleeper trains, which were equipped in June 2026.
It also investigates opportunities in the Regional Rapid Transit System (RRTS).
The Joint Ventures of RVNL (JVS) also contribute to its growth, with dividends of £ 25 crore already received from railway -SPVs; And promising developments in the Bharatnet project, with an order book of £ 14,000 crore.
Despite fierce competition in the Engineering, Purchasing and Construction (EPC) sector, where some players quote unrealistic low bids, RVNL remains debt -free with a strong working capital position and favorable bank guarantees (BG) rates from 0.05 percent to 0.1 percent.
Rights to rights
The company is also rights to its workforce, which reduces the power of employees in March 2024 to 1,040 in March 2025, while recruiting talent with expertise in motorways, solar energy and other emerging fields to adapt to the diversified portfolio.
While RVNL navigates geopolitical uncertainties, such as those of the India-Middle East-European Corridor (IMEEC), it continues to offer international projects in the Middle East, with a goal of increasing the intake of the order by 20-25 percent in FY26, with a crore of £ 17,000-18,000.
Published on 27 May 2025
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