Yeah. Thank you everyone, and warm welcome for the earnings call of Rail Vikas Nigam Limited.

From the management team of RVNL is led by new CMD, Mr. Saleem Ahmad, represented by another team members, which are as follows: Mrs.

Anupama Ban, Director Personnel; Mr. M.P.

Singh, who is Director Operations; Mr. Amit Tandon, Director Projects; and with him is Chief Financial Officer, Mr.

Chandan Kumar Verma. We'll have a brief from the management on the company, and then we'll have lines open for Q&A.

Over to you, CMD, sir.

Namaskar, good afternoon all of you. A very warm welcome to all of you in today's investor call for third quarter of Rail Vikas Nigam Limited.

My name is Saleem Ahmad. I'm Chairman and Managing Director of your company.

I have recently joined your company almost a month back. I have experience of working with Delhi Metro Rail Corporation, and lastly I was working as Director Projects with NBCC India Limited.

I want to assure all the stakeholders that my focus area will be that all the works which are ongoing should be completed on time. I will focus on the faster execution of our order book.

I will be focusing on achieving the sustainable and good growth for both top-line and bottom-line. Our results for quarter three have been declared.

In quarter three we have achieved top-line of Rs 4,936 crores, and our profit before tax is 359 crores. If we see the nine months performance, our consolidated top-line is 14,406 crores, and our profit before tax is Rs 841 crores.

If you see our order book, your company order book is very strong. We have almost 87,000 crores of order, which includes railway nomination works of Rs 40,000 crores, and we have secured 47,000 crores of work on bidding.

Recently also we have secured works of 1,528 crores of new works in last nine months, and have emerged as the lowest bidder for the projects valuing 3,667 crores, 3,670 67 crores. We have also signed an MoU with Visakha Port Authorities for development of various infrastructure projects in that port, and we are also in discussion with various states and public sector bodies to explore the business opportunities in that areas.

I also want to brief all of you about the progress of the important works which we are carrying out. First important project which your company is doing is Vande Bharat project, where 120 train sets are being manufactured along with our Russian counterpart.

I want to brief all of you that work is progressing very well in that sector. First prototype, which is required as per the key dates, will be met, and we'll be ready with the first prototype in June or July of this year.

That will be a major achievement of the major project. Another important project which is going on is BharatNet project.

Progress in that project is also progressing satisfactorily. We are hopeful to generate good income out of that project in this year.

Another important project is Rishikesh-Karnaprayag, where work is going on full swing. Our target, which is to achieve the completion of the project in December 2028, and we are progressing very well in that project also.

Dear shareholder, I want to assure you on behalf of Rail Vikas Nigam Limited, your company, that our management with me as Chairman and our directors will make all efforts to ensure sustainable good growth in future, and ensure good profit in future. Thank you very much, and now the forum is open for question and answers.

Thank you.

Yeah. Thanks for the opportunity.

Before others can join for the call, maybe I'll ask a few questions. One is in terms of how exactly are we seeing the full year for us in terms of the growth rate?

Second, on the margins front, how expected this trajectory going to be in financial year '26?

Vishal, our growth in top-line is quite challenging right now, because as from earlier we were getting railway works, and now we are diversifying into bidding works also. We are hopeful that this year our growth will be good.

We are expecting a growth of 1% or 2% than the previous year. Profit, we are not expecting such good profit this year because of major part of our income will be from the bidding works where the margins are less.

Definitely there will be some hit in our bottom-line. I want to assure all of you that in future, in the next financial year, we'll be doing much better, and we'll have a better growth next year.

This year it will be stagnant growth in top-line, and maybe we might get a dip in our bottom-line.

Sure, sir. This is helpful.

Second, sir, in terms of orders, can you give some color, how has been the order inflow for us in the last one, two quarters? Any new opportunity that you are seeing that is emerging that could boost our order book in times to come?

Yes, I just brief you. In the last quarters, we have emerged as lowest in works amounting to 3,500 crores.

Already works up to 1,500 crores have been awarded to us. Future is good.

We are in talks with many public sector units to get works on MoU basis. We are bidding for highway works, for railway works.

There's lot of opportunity for us in future, because recently in budget, lot of capital expenditure has been announced for railway works. We are hopeful that we will get a good chunk out of that budget.

Our future looks very good. Yeah.

Yeah. I think you briefly touched upon the budget.

Can you give some perspective because this time we have seen a decent jump in the lease asset line item of the budget. Do we get to participate in that particular capex of Ministry of Railway?

Another question related to that, high-speed rails, they have been announced. Given your experience, sir, how much time it takes when the orders can be come to the market, and we can bid for those projects?

As you see the budget, there is a huge opportunity for us. Railway is continuously spending money on the infrastructure improvement, whether it's doubling of the line or the new lines.

We are hopeful to get good works from these infrastructure works taken by Railways. About the new corridors which have been recently announced for this high-speed train network, we are not sure whether we can be part of that work, because that work is entrusted to the another organization.

Definitely, we will try to take some work from the bidding point of view. We'll bid for those projects in future, but its timeline will be, I think, slightly two or three years.

In this year we are not expecting any work from that sector. Already railway infrastructure, lot of works are in pipeline or in tendering stage, we are hopeful to get good amount of orders from that.

Right, sir. Right.

In terms of, sir, pipeline of railway orders, though we have seen a good 10%, 11% sort of capex increase, in terms of order inflow also, I know maybe a little early, but any pipeline that you see for yourself and how this opportunity can be in terms of number, anything that can be provided, sir?

If you see the next three years, we already have almost 40,000 crores of railway works. Our first focus is to complete those works within next three years.

That will bring us the income of almost 10,000 to 11,000 per annum. Parallelly, we will be focusing on getting new works on bidding.

Our target is to get at least income of 10,000 to 12,000 from those works also. In addition, other infrastructure works are also coming, whether by PSUs, by state government, and in other sector also.

We are trying in all the sectors that we should get good works. We are hopeful that in near future, in next three years, we'll get good orders.

Okay. Sure, sir.

Best wishes to you and your team, and I'll come back in the queue, sir.

Thank you.

Hi, sir. Thanks for the opportunity.

Sir, I have only one question regarding Vande Bharat order. What is the current status on the Vande Bharat order?

Thank you, Shubham. Vande Bharat is a very prestigious project for us also and Railways.

We are manufacturing 120 train sets. Right now our work is going on as per the planned progress.

Our first milestone will be to give the prototype to the Railways, and we are hopeful to achieve this milestone within this year as per the program of the Railway, which is, I think, June 2026.

Okay. Sir, this will be basically the sleeper Vande Bharat or the normal one?

Vande Bharat sleeper train with 16 coaches.

16-coach configuration.

Yes. Okay.

That's it, sir. Thanks.

Hello. Good evening, sir.

Yes, Ashish. Good evening.

Yeah. Sir, I just had a question on the order book that we have.

You said that out of 87,000, 40,000 is nomination-based and 47,000 are the new bidding-based orders. For each of this bucket, if you can first highlight how much of, let's say, this 40,000 crore nomination, what portion of this order book is currently under execution, and what is maybe awaiting some approvals or go-ahead from the Railways?

No, this work is in progress. Is already awarded to us.

Work is going in full swing. As I just briefed you, out of this 40,000 order book, we have to complete this order book in next three years.

Accordingly, works are going on.

Okay. How about the other order book of bidding-based, 47,000 crores?

Even that work is going on. Most

It's entirely under execution?

Yes. Under progress, yeah.

Which includes Vande Bharat, BharatNet, and other bidding projects of Railways.

Railways, roadways, metro.

Right. What's the kind of execution that one can hope from this order book?

Because it's a complex set of mix where Vande Bharat would be having a longer execution cycle and the others could be shorter. Let's say, if you say that in nomination, 40,000, you have roughly three years to deliver.

Let's say, give or take 11,000, 12,000 crore, if I'm doing a simple arithmetic, could be from this particular set of 40,000. Out of this 47,000 crore, what could be our revenue execution cycle like?

See, this cycle for this is quite long for Vande Bharat and BharatNet. Parallelly, we are undertaking many other works like highways, port sector.

Also work is in progress. We are hoping for the next three years, our 50% of revenue will be from the railway works, which is 40,000, and 50% of our revenue will be from our bidding works, whether from Vande Bharat or from BharatNet, from highways, and other railway sector.

We are hoping that 50%-50% revenue will be from the each sector.

Okay. What's the total revenue guidance that you may give for let's say this year?

This year you said it will be flat. How does '27 look like, FY27?

There will be definitely sustainable growth. We are targeting growth of between about 10% per financial year.

We will achieve it, because our order book is very strong and the industry is also showing signs of lot of infra-server works coming up. We are talking to many states, public sectors to take up work on MoU basis.

We are very hopeful that we will achieve a 10% growth in our top-line and bottom-line, too.

How would you guide on the margins? You did say that because of the bidding-based orders, there would be some amount of pressure on the margins.

Where would we end up on the EBITDA margin this financial year '26? Based on the mix that you're projecting, 50%-50%, next year, what could be the margin that one can expect?

As there are two revenue streams we have. One is railway, which have a very good profit streams.

Biddings, we definitely are getting works on competition basis. Sometimes the margins are less and high.

On an average, we will definitely get EBITDA margin of 7%.

Okay. Let's say around 7% margin somewhere in next financial year, and on a turnover let's say, maybe this year you end at close to 20,000 crore, and 10% over that is what you're guiding for next year?

Yes.

All right, sir. Also maybe one just last thing on the railway projects.

Are you seeing sort of any pickup in the railway EPC projects? The budget did talk about some new dedicated freight corridor-related works and certain other, city connectivity high-speed rail projects as well, some six or seven cities.

Any perspective that you can share on how the railway projects seem to be shaping up over the next 12 months or so?

The Railway Ministry is like spending huge money on the infrastructure. In addition to that, lot of other works are also coming up, which your company, bids for, like metros, highways.

Future is good for next two to three years. As I just said, that we are hoping to increase our revenue by 10%, and even the profit margins will be slightly better, because as I earlier told you, it was a transition phase for us for your company from like nomination basis to bidding.

I think things are improving, and we will be getting better margins in our bidding projects also. Accordingly, we are bidding so that we get good margins.

Okay. All right, sir.

Thank you very much.

Thank you.

Thanks for the follow-up again, sir. Sir, on the previous participant Ashish when he asked on the margin, just a clarification, 7% EBITDA margin, this includes other income, or how do you see that number, sir?

Gross margin. Good afternoon.

Basically, sir talked about gross margin. If you see in this quarter, though our turnover has decreased compared to quarter two, but we have improved in gross margin, in last quarter, by almost 50, 60 basis points we have improved in gross margin.

With cost-cutting, with our improvement in our execution, quality, we are going to achieve this 7% gross margin in next year.

Okay. Sure, sir.

Maybe, can you provide the order book breakup that you have mentioned? Say, central, state, private, how this number can be for us, sir?

Good afternoon, Vishal. Our orders are from various diverse sectors.

Railway is still our core. Railway orders comprises of around 45% of our total orders.

Then road sector, we have got around 10% of our total orders. Electrical sector, where we have got a diverse mix of orders from basically RDSS, which are basically revamped distribution support system in four states, and transmission line and railway electrification works, they comprises of around 15%.

Signaling and telecom work, which includes railway telecom works, signaling works, as well as the BharatNet project, they comprises of around 15% of our order book. Around 7% order book is from our mechanical sector, which includes our share in Vande Bharat and some of the workshop projects.

Besides that, we have got a order book of around 3,500 crore from international projects.

Okay. Is it fair to say, barring electrical, most of the projects they are from the central government side?

Is that fair to say?

Most of our projects barring the electrical distribution support systems, they are from the basically central government. Working for National Highways and Railways, major...

Metros. Metros also a important sector.

Okay. Sure, sir.

I think thank you very much for all the answers, sir, and I'll come back in the queue. Thank you.

Thank you.