Transcript of Conference Call with Investors
RVNL · price
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RVNL held its Q1 FY26 earnings call hosted by Antique Stock Broking. The order book stands at Rs. 1,01,000 crores (Rs. 60,500 crores from bidding, Rs. 41,000 crores legacy railway projects), with Q1 inflows of about Rs. 1,000 crores across 96 contracts. Revenue was muted in Q1, down 3.42%, as railway turnover fell ~25%, but bidding turnover tripled and the company says it is already ahead of last year's run rate. Margins took a Rs. 60 crore one-time hit from BharatNet pre-bid expenses and onerous contract provisions, but management expects margins to improve as bidding projects ramp up. Vande Bharat's first prototype is now expected by June 2026 (10-month delay), with revenue from 6-8 trains targeted in FY27 out of the 120-train set order due by 2032. International order book is Rs. 4,000 crores, with Rs. 30,000-35,000 crores in planned overseas bids this year across solar, nuclear, and rail projects.
Investors get comfort on revenue recovery beyond Q1 and on margin recovery as bidding projects mature, but the Vande Bharat delay and margin softness in Q1 are near-term negatives. The disclosed international bid pipeline of Rs. 30,000-35,000 crores signals growth optionality, though conversion rates remain to be seen.