Navratna PSU RVNL Shares Price Drop After Q1 Results — Here’s What Sparked the Slide

RVNL Share Price: The share price of Rail Vikas Nigam Ltd declined as much as 4 per cent after the navratna public sector undertaking (PSU) posted disappointing numbers in Q1 FY26.

The company's net profit declined 40 per cent year-on-year (YoY) to Rs 135 crore from Rs 224 crore. The revenue from operations also fell 4.1 in Q1 FY26 to Rs 3,909 rore from Rs 4,074 in the same period last year.  

The earnings before interest, taxes, depreciation, and amortisation (EBITDA) nosedived 70.9 per cent on the year Rs 52.9 crore from Rs 182 crore.  The profit margin also experienced a downtrend, declining 210 basis points YoY to 1.4 per cent from 4.5 per cent.

Meanwhile, the construction arm of the Ministry of Railways informed that the shareholding pattern in the joint venture (JV) Kinet Railway Solutions has undergone change with Metrowagonmash decreasing its stake in the joint venture to 35 per cent from 70 per cent.

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Rail Vikas Nigam said that the shareholding pattern in the joint venture Kinet Railway Solutions has changed. Metrowagonmash revised its stake in the joint venture to 35 per cent from 70 per cent. The locomotive electronic system revises the stake to 40 per cent from 5 per cent. However, the company's stake in the entity remained unaltered at 25 per cent.

The Rail Vikas Nigam share price declined 3.93 per cent to Rs 316.50 apiece, the lowest since April 7, 2025.

As of 12:17 pm on Wednesday, the RVNL shares were trading 1.93 per cent lower at Rs 322.70 apiece on BSE Sensex bourse.

The stock has fell 43.01 per cent in 12 months and 23.2 per cent on a year-to-date basis.

Two analysts tracking Rail Vikas Nigam Ltd suggested 'sell', as per the Bloomberg data. The average 12-month consensus price target implies a downside of 37.2 per cent.