RVNL shares slip 4% as Q1 profit plunges nearly 40%

Synopsis

RVNL shares fell after its Q1 profit dropped 40% year-on-year to Rs 134.36 crore, hit by lower revenue and weaker operations. The stock, down 24% in 2025, trades below key SMAs with RSI in oversold territory, signalling continued bearish momentum.

Shares of state-owned Rail Vikas Nigam Ltd (RVNL) dropped as much as 3.7% to Rs 316.75 on the BSE on Wednesday after the company posted a steep 40% year-on-year fall in June-quarter profit, reflecting weaker operational performance and revenue contraction.

RVNL’s consolidated net profit after tax came in at Rs 134.36 crore for the quarter ended June 30, 2025, down from Rs 223.92 crore a year earlier. Revenue from operations declined 4% to Rs 3,908.77 crore from Rs 4,073.80 crore in the same period last year.

The company said its total income fell 4.6% year-on-year to Rs 4,136.96 crore, underscoring pressure on the company’s topline.

Profit before tax dropped 42.5% to Rs 173.41 crore in Q1 FY26 from Rs 301.61 crore in the year-ago quarter, while total expenses eased 1.57% to Rs 3,972.92 crore. Sequentially, net profit tumbled 70.74% from Rs 459.12 crore in the March 2025 quarter, signalling a sharp slowdown at the start of the fiscal year.

Stock under pressure

The stock ended 4% lower at Rs 329.05 on Tuesday after the earnings announcement. The shares have lost 24% so far in 2025, 43% over the past 12 months, and 15% in the last month alone.

From a technical perspective, RVNL is trading below all eight key simple moving averages, ranging from the 5-day to the 200-day SMA, suggesting sustained bearish momentum. The Relative Strength Index is at 26.7, indicating oversold territory, while the MACD remains in negative territory below both the centre and signal lines.

Change in JV shareholding

Separately, the company said its board had noted a Ministry of Railways decision to alter the shareholding pattern of Kinet Railway Solutions Private Limited, a joint venture. Under the new arrangement, Joint Stock Company Metrowagonmash’s stake will be cut from 70% to 35%, Rail Vikas Nigam will retain 25%, and Joint Stock Company Locomotive Electronic System’s stake will rise from 5% to 40%.

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