Explained: Why RVNL share price plunged over 7% today

Shares of Rail Vikas Nigam Limited (RVNL), the government-owned railway infrastructure firm, dropped over 7% on Friday, hitting an intraday low of Rs 444 on the Bombay Stock Exchange (BSE).
At around 10:36 am, RVNL shares were trading down 5.28% at Rs 452.35.
The decline follows RVNL’s announcement of its financial results for the second quarter of the fiscal year 2025 (Q2FY25) on Thursday evening, revealing a considerable year-on-year (YoY) drop in profit.
Net profit for Q2FY25 fell 27.2% to Rs 287 crore, down from Rs 394.3 crore in the same quarter the previous year (Q2FY24).
Revenue also saw a slight dip, declining by over 1% to Rs 4,855 crore in Q2FY25 compared to Rs 4,914.3 crore in Q2FY24. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) slipped 9% YoY, coming in at Rs 271.5 crore, down from Rs 298.2 crore.
The decrease in operating performance also led to a narrowing of the EBITDA margin by 40 basis points, now at 5.6% compared to last year’s 6%.
Earlier this week, on November 6, RVNL secured a new contract valued at over Rs 180 crore from East Central Railway, signaling continued project activity despite the current challenges.
Based in New Delhi, RVNL has been at the forefront of rail infrastructure development across India since 2003. The company handles a wide array of projects, including new lines, doubling, gauge conversion, electrification, and even metro and bridge construction. Additionally, RVNL assists in financial resource mobilization to support its ongoing initiatives.
RVNL, with a market capitalisation of over Rs 94,000 crore, is listed within the BSE200 index and remains a prominent player in India’s rail infrastructure space.