Rail Vikas Nigam Ltd (RVNL), a government-owned enterprise, announced on November 29 that it has been declared the lowest bidder (L1) for a power infrastructure development project in Punjab. The contract, awarded by Punjab State Power Corporation Ltd (PSPCL), is valued at ₹642.57 crore, inclusive of taxes.
The project focuses on the development of distribution infrastructure under Package 3 in Punjab’s Central Zone. It falls under the Reforms-Based and Results-Linked Revamped Distribution Sector Scheme (RDSS). The scope of work includes high-tension (HT) and low-tension (LT) infrastructure upgrades aimed at reducing power losses and improving distribution efficiency in the state.
Despite securing this significant project, RVNL reported a 27% year-on-year (YoY) decline in net profit for Q2 FY25, which stood at ₹286.9 crore compared to ₹394.3 crore in the same period last year. Revenue from operations decreased by 1.2% YoY to ₹4,855 crore, down from ₹4,914.3 crore in Q2 FY24. The company’s EBITDA also dropped by 9% to ₹271.5 crore, with margins narrowing to 5.6% from 6% a year ago, reflecting increased operational challenges.
On a sequential basis, RVNL showed signs of recovery with a 28.1% rise in net profit and a 19.2% increase in revenue in Q2 FY25 compared to the previous quarter, indicating improved performance momentum. Rail Vikas Nigam Ltd (RVNL) is a public sector enterprise under the Ministry of Railways, India, established to undertake infrastructure development projects to enhance the country’s railway network. Specializing in the planning, execution, and management of rail-related projects, RVNL handles tasks such as track doubling, gauge conversion, electrification, and construction of new railway lines, bridges, and other critical infrastructure.
The company often collaborates with joint ventures and private partners to deliver large-scale projects efficiently. With a focus on modernizing India’s railway infrastructure, RVNL plays a vital role in supporting the government’s vision of expanding and upgrading rail connectivity to meet the growing demands of passengers and freight transport.
