RVNL — earnings call

The transcript as filed. Every paragraph is addressable: its link names the page and the position it sits at in the call.

Prepared remarks

Moderator · Conference Operator

Good evening, ladies and gentlemen.

I am Karthikeyan, moderator for the conference call.

I would like to welcome you all to the Investors’ Call of Rail Vikas Nigam Limited for Q1 FY2026-27.

We have with us today the management team of RVNL

Shri Saleem Ahmad, Chairman and Managing Director; Smt.

Anupam Ban, Director (Personnel); Shri Mritunjay Pratap Singh, Director (Operations); Shri Abhishek Kumar, Director (Finance); Shri Amit Tandon, Director (Projects); and Shri Chandan Kumar Verma, Chief Financial Officer.

As a reminder, all participants will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Should you need assistance during the conference call, please signal an operator by pressing * then 0 on a touch-tone telephone.

Please note that this conference is being recorded.

We will start with a brief opening remark from the CMD, sir, which will be followed by a question-and- answer session.

Thank you, and over to you, sir.

Saleem Ahmad Good evening, everyone.

I extend our welcome to all of you to the RVNL’s Q1 FY2026-27 Earnings Call.

It is my pleasure to have you with us as we share our performance and key developments for the quarter.

The Indian infrastructure sector is witnessing strong growth, driven by sustained government investment, modernization, multimodal connectivity, and the transition towards green mobility, creating significant opportunities for RVNL.

The company remains committed to supporting the nation's infrastructure vision through high-quality, sustainable projects while diversifying its order book across transmission, roads and highways, ports and harbours, metros, solar energy, and overseas market.

This diversified portfolio enhances RVNL’s resilience, extends growth opportunities, and positions of the company for sustained long-term value creation.

The first quarter of FY27 has commenced on a positive and steady note for RVNL, with the company remaining firmly focused on sustaining operational momentum and advancing its key projects.

Our fundamentals remain robust, supported by a healthy order book, a strong project pipeline, and continued focus on operational efficiency.

At the same time, we are actively pursuing new business opportunities across the infrastructure sector.

With the government's continued focus on railway and infrastructure development, we see significant opportunities ahead in real estate, ports and hydro, highways, and sustainable infrastructure.

We remain confident that execution will gather further momentum in the coming quarters and that RVNL is well- positioned to sustain its growth trajectory and create long-term value for all stakeholders.

Rail Vikas Nigam Limited

Moderator · Conference Operator

Sir, your voice is not audible, sir.

Saleem Ahmad Can you hear now?

Yes, sir.

You are audible now.

Saleem Ahmad Yeah.

Should I repeat?

Vishal Periwal Yes, sir.

Sorry, sir.

I missed on it, sir.

Rail Vikas Nigam Limited

Thank you.

We have the next question from the line of Ashutosh from Centrum Broking.

Please go ahead.

Ashutosh Kumar Yes.

Thank you for the opportunity.

What percentage of our current order book is already mobilized and under active execution versus projects awaiting approval, land availability or financial closure?

Saleem Ahmad Your voice is not very clear.

Ashutosh Kumar What percentage of our current order book is already mobilized and under active execution versus projects awaiting approval, land availability or financial closure?

Saleem Ahmad No, our total order book, which is remaining, is INR 93,000, and works which are in progress is about almost INR 40,000 crore.

Rail Vikas Nigam Limited

Thank you.

We have the next question from the line of Priyank Shah from Indsec.

Please go ahead.

Priyank Shah Yes.

Thank you for the opportunity, sir.

Sir, in your opening remarks, you highlighted that you are also exploring the international markets.

Could you elaborate on that front with regards to your overall strategy?

And what are the key markets or geographies you are currently targeting?

And if you can also help us with the opportunity side when it comes to the overall international market?

Mritunjay Pratap Singh Good afternoon, Priyank.

RVNL is focused on many parts of the world, and our primary focus is in Central Asia, the Middle East, and Eastern European countries, and Southeast Asia also, in Africa also, and we are in process of bidding in all these areas.

And we have submitted bids in parts of Africa for power transmission lines for railway projects, and road projects.

We have submitted bids in Nepal also for hydropower projects.

We are in touch for submitting the bids.

We have already submitted the expression of interest for upcoming metro projects in Israel, Tel Aviv Metro.

And in Eastern European countries also, a lot of opportunities are coming in, where in form of roads and railways, where a lot of reconstruction work for railway sector is going on.

We have identified some bids in Georgia and Serbia.

So, our focus is basically in the railways, metros, highways, and power transmission in these areas.

Thank you.

Priyank Shah All right.

Thank you, sir.

That's all from my side.

Rail Vikas Nigam Limited

Thank you.

Ladies and gentlemen, if you have a question, please press * and 1 on a telephone keypad.

The next question comes from the line of Sunil Bhat from Choice Limited.

Please go ahead.

Sunil Bhat The contribution of bidding projects has been increasing steadily and now forms a meaningful share of revenue.

So, could you share the revenue mix between nomination projects and competition bidding projects for Q1 FY27?

And how do you expect this mix to evolve over next two next two to three years?

Saleem Ahmad No. Our order book is mixed.

40% of our order book is from the railway management works, which have been assigned to us.

20% have been of the railway work, we have taken from bidding, and others are from the either PMC work from other PSUs or bidding works in other sectors.

If you see our Q1 results, almost 60% of the revenue/top line is from the management work, which is almost 63% is from management, and remaining is from the bidding or PMC.

Sunil Bhat Okay.

Sir, the next question on the current order book and the pace of execution we have right now.

So, considering this, how do you see RVNL's book-to-bill ratio on next two to three years, or I can say for short-term to long-term tenure?

Saleem Ahmad We are hoping that in next three years, our order book will be equally divided 50-50% between railway management works and bidding works.

So that is how the order book will evolve in next three years.

As you have been briefed that, we are focusing more on the overseas works.

And as already explained that we are bidding for works in Georgia.

We are bidding for works in Africa.

We have bid for the Israel Metro.

We are expecting a good order from this overseas works.

So that will increase the non-railway portion.

And railway works are already with us.

Almost INR 40,000 crore of work have to be executed by us in next three years.

So that way those works will always go parallelly.

And we are hoping that in our top line, it soon, it will be 50-50% for next two to three years.

Rail Vikas Nigam Limited

Thank you.

We have the next question from the line of Abhishek Leekha from Neste Wealth LLP.

Please go ahead.

Abhishek Leekha Hi, sir.

Thank you for the opportunity.

Congratulations on the stable to good set of numbers.

My question is, like, since you are trying to diversify the Middle East and Israel and all those basically areas are geopolitically highly active now.

How do you plan to address the risk part in that?

Mritunjay Pratap Singh Good afternoon, Abhishek.

As you rightly pointed out, the area of Middle East, Israel are a bit volatile at present, but we understand that the situation is likely to stabilize in the coming time.

And these areas, they typically yield very good margins for the projects.

And as a country, India has a good presence in all these areas, and we stand to get good support from the government side also while executing the projects in those areas.

So, we'll not face much of the issues, but certainly, we have to account for some of the challenges there because when we are taking the skilled and unskilled manpower to that area, the payments, they have to be given properly.

They have to be insured properly.

So, we'll take care of all these things while executing projects in these areas.

Saleem Ahmad Abhishek, proper risk assessment is done before quoting.

So, these risks has been identified and accordingly, mitigation measures or risk premium has been considered.

Abhishek Leekha Okay.

So that's good to know.

And pardon me if that has been addressed earlier or have been answered earlier.

What kind of vision that we have over the next three years?

Rail Vikas Nigam Limited

Thank you.

And the next question from the line of Prakhar Tibrewala, an individual investor.

Please go ahead.

Prakhar Tibrewala Yeah.

Hello, sir.

My first question is regarding the larger projects that are underway, Vande Bharat and BharatNet, etc. What would be the funding requirement and what would be our pipeline?

How much would be internal approvals?

Would we be looking at debt as well?

Saleem Ahmad Currently, we are not looking for any debt from other sources.

We are able to maintain from our internal resources only, but we have our working arrangements with some banks for working capital if required.

So, in next two, three quarters, we are not looking for any assistance on part of that.

Rail Vikas Nigam Limited

Thank you, sir.

Ladies and gentlemen, if you have a question, please press * and 1 on a telephone keypad.

We have the next question from the line of Mayur Pednekar, an individual investor.

Please go ahead.

Mayur Pednekar Hello.

Am I audible?

Rail Vikas Nigam Limited

Yes, sir.

You are audible.

Please go ahead with your question.

Mayur Pednekar So now my question is on the following integration of losses on certain contracts in FY26. So, can you confirm whether all the major provisioning has now been completed, or do we have any additional contracts remaining under review?

Saleem Ahmad So, we have already provisioned for the onerous project, and we are not anticipating any further provision of the losses.

Mayur Pednekar Okay.

And the second question I have is on receivables from the Ministry of Railways, which have been increased marginally during FY26. So, what is the current outstanding amount for the same?

Saleem Ahmad No. This is actually railway receivable or outstanding is a dynamic process.

And presently, our outstanding railway is almost INR 2,500 crores.

And we keep on receiving the payment on a monthly basis.

We raise our bill to them, and within 30 days, the payment is received.

So, what is the normal and dynamic process?

And, we are making more effort to ensure that our cash flow is maintained and payment is received well on time with Railways.

So, our correspondence and interaction with Railways is regular.

Mayur Pednekar Okay.

Got it, sir.

That's it from my side.

Thanks.

Rail Vikas Nigam Limited

Thank you.

That was the last question for the day.

Ladies and gentlemen, this concludes your conference for today.

Thank you for your participation and for using Door Sabha’s conference call service.

You may disconnect your lines now.

Thank you, and have a good day.

Saleem Ahmad Thank you.

Note

1.

This document has been edited to improve readability 2.

Blanks in this transcript represent inaudible or incomprehensible words.

Questions and answers

Rail Vikas Nigam Limited

Moderator · Conference Operator

Thank you, sir.

Ladies and gentlemen, we will now begin the question-and-answer session.

If you have a question, please press * and 1 on a telephone keypad, and wait for your turn to ask a question.

If you would like to withdraw your request, you may do so by pressing * and 1 again.

First question comes from the line of Mr. Vishal Periwal from PL Capital.

Rail Vikas Nigam Limited