Good evening, everyone. I extend a warm welcome to all of you to the RVNL's Quarter 1 Financial Year 2026-27 earnings call.

It is my pleasure to have you with us as we share our performance and key developments for the quarter. India's 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, road and highways, ports and harbors, metros, solar energy, and overseas market. This diversified portfolio enhances RVNL's resilience, expands growth opportunities, and positions the company for sustained long-term value creation.

The first quarter of Financial Year '27 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, port 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. The company is targeting work orders of around ₹20,000 crore during this year in addition to the existing order book, out of which approximately ₹5,000 crore has already been received during Quarter 1.

Further, the company expects its top line to grow by around 15%, while the bottom line is projected to increase by approximately 15% to 20%, reflecting continued business momentum and a positive growth outlook. I am pleased to share that our order book continues to remain strong and diversified, providing healthy multi-year execution visibility for the company.

During the quarter ended April to June 2026, the order inflow stood at ₹5,417 crore. As on June 30, 2026, the company's total order book stood at an impressive ₹93,492 crore.

Order book is primarily driven by railways with ₹58,000 crore, followed by S&T at ₹12,000 crore, ports, roads, and highways at ₹3,651 crore, metros at ₹5,700 crore, power and transmission at ₹4,000 crore, and hydro and irrigation projects at ₹1,626 crore. The growth and movement in the order book was supported by new railway and multi-sector infrastructure works awarded to RVNL, steady execution leading to revenue recognition, and our disciplined, margin-focused selective bidding strategy.

This strong and well-balanced order book positions the company confidently for sustained growth in the coming years. Company also demonstrated consistent execution pace in Quarter 1 for Financial Year 2027, achieving healthy year-on-year revenue expansion, with standalone turnover at ₹4,300 crore, higher by 9.62% year-on-year, reflecting steady execution momentum and improved project activity during the quarter.

On a consolidated basis, turnover stood at ₹4,321 crore, which is higher by 10.55% year-on-year, Quarter 1 Financial Year 2026 to Q1 FY '27, demonstrating sustained project delivery and solid core execution strength. Profitability also improved on a year-on-year basis.

Standalone EBITDA stood at ₹171 crore as compared to ₹81 crore in Quarter 1 Financial Year 2026, which is higher by almost 110% on year-to-year basis, while EBITDA margin also improved to 3.99% from 2.08% in Quarter 1 Financial Year '26. As a result, PAT stood at ₹155 crore, which is higher by 21.72% on a year-to-year basis.

Our standalone earnings per share for the quarter stood at ₹0.75, higher by 22.95% year-on-year. Consolidated performance followed a similar trend.

Consolidated EBITDA stood at ₹190 crore as compared to ₹64.91 crore in Quarter 1 '26. Consolidated EBITDA margin stood at 4.41% as compared to 1.66% in Quarter 1 Financial Year '26, while PAT stood at ₹159.52 crore, higher by 18.73% year-on-year.

Overall, the quarterly results highlight robust execution and good revenue visibility for the company. Margins, while showing improvement over Quarter 1 Financial Year '27, remain an important area of focus that we will keep tracking closely moving forward.

The bidding works have also contributed 31.51% to the total revenue from operation, showing an increase of 16.63% from the previous years. Now I would like to highlight about some important projects carried out by RVNL.

BharatNet project was awarded by Bharat Sanchar Nigam Limited, is a ₹13,000 crore initiative to provide high-speed broadband connectivity in rural and remote areas through 82,000 kilometer of OFC infrastructure under the DBOM model. Rail Vikas Nigam Limited has made significant progress in project execution, with work now progressing at a good pace across various locations, and we are expecting good revenue and profit margins in this year.

Vande Bharat Sleeper train set is also a flagship program of railways, where ₹14,400 crore project with 35 years maintenance arrangement is being executed by Kinet Railway Solutions Limited, a SPV of RVNL. The project is progressing at a steady pace.

First prototype train set is targeted for launch in December 2026. SPV has also received the bronze A' Design Award 2026 in Italy for excellence in mobility and transportation design.

Rishikesh-Karnaprayag rail project is also project of national importance in Uttarakhand, being developed at a cost of ₹37,000 crore. The 125-kilometer project has achieved 78% overall progress, with around 97% tunnel excavation completed.

Target for completion by December 2029, the project will improve access to the Himalayan region, support the Char Dham pilgrimage corridor, strengthen border connectivity, boost tourism and local economies, and significantly reduce travel time in the region. Performance of our JVs and subsidiaries remained encouraging during first quarter, with subsidiaries contributing ₹126 crore to the consolidated revenue and ₹12.70 crore to profit after tax, while the company's share of profit from joint ventures and associates stood at ₹6.16 crore.

Additionally, dividend income received from JVs and subsidiaries stood at ₹12.07 crore during Quarter 1, which contributed positively to the company's consolidated profitability. During the quarter, employee productivity also showed improvement, with revenue from operations per employee increasing from ₹4.929 crore to ₹4.97 crore on a quarter-on-quarter basis.

This growth reflects enhanced operational efficiency and better utilization of human resources. In conclusion, RVNL remains fully committed to disciplined execution and steady operational performance, backed by a strong and diversified order book.

As weather condition improves over the coming months, our priority will be to pick up execution speed, maintain margin discipline, and convert our healthy pipeline of L1 positions and LOAs into active projects. We also continue to explore fresh opportunities in broader infrastructure segments and international markets.

With long-term national infrastructure growth on our side, RVNL is well placed to deliver sustainable value in the quarters ahead. On behalf of the management team, I thank you all for your continued trust, guidance, and support.

Thank you.

Sir. Thanks for the opportunity and congratulations on a good set of result, and also your initial commentary was quite detailed.

It provided a lot of perspective in terms of what RVNL is doing. Just to continue, sir, what you've shared with everyone.

What could be the L1 size of orders that we have with us, sir, right now?

Thank you, Vishal.

Yes.

Our target for business development or increasing the order book is almost ₹20,000 to ₹25,000 crore for a year, for this year, out of which already ₹5,500 crore works have been entrusted to us. We are trying in all the sectors.

Right now, we are focusing heavily on port sector, hydros, and highways. These are the three sectors and plus green energy also.

These are the four sectors where we are focusing and expecting good orders in coming quarters. Thank you.

Sir.

Okay. Sir, I think there has been a bit of market concern around because inflation has been there.

In our order book of this ₹90,000-odd crore-plus, what could be a fixed-price contract that we are executing, maybe share of it?

It is almost 40%. 42%, to be precise, is the railway work which has been awarded on a management fee basis.

We are also trying with other state government and PSUs to get the work on nomination basis for a PMC fee. We have already got almost ₹6,500 crore work from a PSU called NMDC, and our discussions are going on with other PSUs also.

We are hopeful that we are getting works on a fixed margin also. Parallelly, our bidding works where our margins are slightly lower are also going on.

Our focus is that we get works on good margin. By optimization of our operational efficiency, we expect that our margins will also improve in the bidding works.

Thank you. Sir.

Any impact from inflation are we seeing for our orders that we have, particularly say for BharatNet?

Generally, Vishal, generally all the contracts are covered by price variation, which generally covers the price inflation. I think it does not have a very big impact, though some impact is always there.

Okay. Sir, in BharatNet, particularly I think you did mention ₹30,000 ₹13,000 ₹13,000 crore worth of order that we have.

In this, how has been the experience? What we have executed?

Any color that can be shared? I think it's a fixed-price contract, right, sir?

Vishal, initially we really faced few challenges.

Okay. Hello?

Sir, your voice is not audible, sir.

Can you hear now?

Yes, sir, you are audible now, sir. Yes.

Should I repeat?

Sir. Sorry, sir.

I missed on that, sir.

For BharatNet, initially there were some challenges. We faced some problem in execution also.

Now the situation is quite better, it has improved. Work is going on in full swing in UP West and UP East also.

Payment issues are being deliberated with BSNL and are being resolved. Some payments have been received by us, and other payments are in pipeline.

We are hopeful that this year, in the remaining quarters, we'll get good revenue from this work also. Thank you.

Sure, sir, I'll come back in the queue, and thank you very much, sir.

Thank you for the opportunity. What percentage of our current order book is already mobilized and under active execution versus projects awaiting approvals, land availability, or financial closure?

Your voice is not very clear.

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

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

Okay. Can you also provide details on how much CapEx we have incurred till now, our revenue recognition, and expected completion timeline for BharatNet, Vande Bharat Sleeper Train, and others?

BharatNet project is in two parts: first is the implementation of the infrastructure at site, the timeline is 3 years. There are certain issues at the ground level which are being sorted out, and this duct and fiber is being provided.

This will take another 6 to 8 months, it will be extended. The second part is for maintenance for the next 10 years.

Whatever is being implemented there and handed over, that is automatically going to the maintenance period. As far as the cost is concerned, most of the items which are being used hardware the cost was finalized, and the tender orders issued before this crisis, and so we are getting the material at the previous costing at present also.

Thank you, sir.

Ashutosh, you asked about the Vande Bharat. Vande Bharat, we are also having components.

One is the delivery of the 120 sets of the Vande Bharat set, which is likely to start from December of this year. The first prototype likely to roll out in this December, and thereafter in 5 years the complete 120 sets are to be delivered.

Thereafter, the contract with the Indian Railways involves maintenance of these supplied rolling stocks for 35 years in different parts of the country. It is a very long-term contract, and which we think is likely to give good revenue to RVNL and with positive margins.

Thank you.

Sir. Sir, and you have given a guidance of 15% to 20% FY '27 revenue growth.

Do you maintain this guidance after Q1, and what gives you confidence in achieving it?

Yes, definitely. As said in my opening speech also, we are looking for a almost 15% in our top line and 15% to 20% in the bottom line.

In Quarter 1, we have achieved 19% year-to-year growth with our bottom line. We are very much hopeful that in coming quarters we will be able to maintain this momentum.

Thank you.

Thank you, sir.

Thanks for the opportunity, sir. Sir, in your opening remarks you highlighted that you're also exploring the international markets.

Could you elaborate on that front with regards to the overall strategy and what are the key markets or geographies you are currently targeting? If you can also help us with the opportunity size when it comes to the overall international?

Good afternoon, Priyank. RVNL is focused in many parts of the world, and our primary focus is in Central Asia, Middle East, and Eastern European countries and Southeast Asia also.

We are already in process of bidding in Africa also. We are in process of bidding in all these areas, and we have submitted bids in parts of Africa for power transmission line, for railway projects, 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. 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. Our focus is basically in railways, metro, highways, and power transmission in these areas.

Thank you.

All right. Thank you, sir.

That was all from my side.

The contribution of bidding projects has been increasing steadily and now forms a meaningful share of revenue. Could you share the revenue mix between nomination projects and competition bidding projects for Q1 FY '27 and how you expect this mix to evolve over our next two next 2 to 3 years?

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. Others are from the either PMC works from other PSU or bidding works in other sectors.

If you see our Quarter 1 results, almost 60% of the revenue top line is from the management work, which is almost 63% is from management. Remaining is from the bidding or PMC.

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

Considering this, how do you see RVNL's book-to-bill ratio for next 2 to 3 years, or I can say for short-term to long-term tenure?

We are hoping that in next 3 years our order book will be equally divided 50-50% between railway management works and bidding works. That is how the order book will evolve in next 3 years.

As you have been briefed that we are focusing more on the overseas works. As already explained that we are bidding for works in Georgia, we are bidding for works in Africa, we have bid for Israel Metro.

We are expecting a good order from these overseas works. That will increase the non-railway portion.

Railway works are already with us. Almost 40 ₹40,000 crore of work have to be executed by us in next 3 years.

Those works will always go parallelly. We are hoping that in our top line soon it will be 50-50% for next 2 to 3 years.

Okay. Noted, sir.

Sir, as the business shift towards the competitive bidding, just want to know what's the management thinking about the overall profitability, ROE, ROC going forward? Or you can throw some lights on margins which we are expecting going forward.

For the last two quarters we are focusing on the works which give us better margins. Those margins are more than 5% to 6% for the bidding works.

For management, it is from 8% to a 10%. For PMC work which we have got from PSU is almost 7%, and we are trying with other state government and PSUs to get the same PMC margins, fixed margins.

For bidding, I will again repeat that our margins will vary from 5% to 6% for the works in India. For the overseas, we are expecting margins of 15% to 20%, which we are trying in Georgia, in Africa, and other countries.

Thank you.

Okay. Sir, the last question on to understand the industry.

Which are the major internal and external risk for the company as of now, or company's facing, which affected our procurement timeline or projects cost or overall project execution or business? Can you throw some light over there?

Definitely, as the present geopolitical situation is a challenge that we faced during Quarter 1 also. If the similar situation persists, this is a big challenge for us.

Definitely we are facing some challenge of labor availability from the market. Labor is not available for works, we have to make extra effort to get the labor for execution of our works.

Payment from the client is also a challenge, but we are trying to get the payments from them, regular follow-up is being done. These are the few challenges which we are facing.

We are hopeful, even with these challenges, we'll be able to achieve the targets which we have fixed for ourselves. Thank you.

Sir. That's all from my side.

Thank you so much for the opportunity, and all the best.

Thank you.

Hi, sir. Thank you for the opportunity.

Congratulations for stable to good set of numbers. My question is since you are trying to diversify to Middle East and Israel and all those basically areas are geopolitically highly active now, how you plan to address the risk part into that?

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 coming time.

These areas, they typically yield very good margins for the projects. 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 project in those areas.

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. We'll take care of all these things while executing projects in these areas.

Okay. And

Abhishek, proper risk assessment is done before quoting. Risk premium has been identified, and accordingly mitigation measures or risk premium has been considered.

Okay. That's good to know.

Pardon me if that has been addressed earlier or have been answered earlier. ROE, what kind of vision that we have over the next 3 years?

We are expecting EBITDA of 5% to 7%.

ROE vision for RVNL as a whole in next 3 years.

Return on equity. Almost 12% to 13%.

Okay. Uh-huh.

Fine. Yeah.

Thank you so much.

Thank you.

Hello, sir. My first question is regarding the large projects that are underway: Vande Bharat and BharatNet, et cetera.

What would be the funding requirement and what would be our pipeline, how much would be internal accruals, would we be looking at debt as well?

Presently, we are not looking for any debt from other sources. We are able to maintain from our internal resources only.

We have our working arrangements with some banks for working capital if required. In next two, three quarters, we are not looking for any assistance on part of debt.

What would be the rate on these bank lines that we have already secured?

Around 5.5% to 5.9%.

Okay.

We have not taken any debt till now, but we have kind of arrangement with them if required. Most probably if we require in BharatNet, we may take it, and that will be at 5.5%

to 5.9%.

Presently, we are able to manage from our internal cash.

That's great, sir. My last question is regarding the dividend policy, sir.

Should we expect dividend growth to track the PAT, or could the ratio move going ahead?

We generally follow DIPAM guidelines, which is 30% of the PAT or 4% of the net worth, whichever is higher. We'll give that dividend.

Got it. Thank you so much, sir, for the opportunity, and all the best.

Thank you.

Hello. Am I audible?

My question is on the following recognition of losses on certain contracts in FY '26. Can you confirm whether all the major provisioning has now been completed or do we have any additional contracts remaining under review?

We have already provisioned for the onerous project, and we are not anticipating any further provision of the loss.

Okay. The second question I have is on receivables from the Ministry of Railways, which has been increased marginally during FY '26.

What is the current outstanding amount for the same?

No, this is actually railway receivable or outstanding is a dynamic process. Presently our outstanding with railways is almost ₹2,500 crore.

We keep on receiving the payment on a monthly basis. We raise our bill to them, and within 30 days the payment is received.

That is a normal and dynamic process. We are making more effort to ensure that our cash flow is maintained and payment is received well on time with railways.

Our correspondence and interaction with railways is regular.

Okay. Got it, sir.

That's it from my side. Thank you.

Thank you.