Rail Vikas Nigam Ltd (RVNL) Q2 FY27 Results Analysis: EBITDA Margin Expands 148 bps, Revenue Falls 8%
Rail Vikas Nigam Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 4,700.96 Cr (-8.24% YoY) and PAT growth of +10.06% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 12, 2026 |
|---|---|
| Revenue (Q2) | Rs. 4,700.96 Cr (-8.24% YoY) |
| PAT (Q2) | Rs. 253.71 Cr (+10.06% YoY) |
| EBITDA margin | 6.26% (+148 bps YoY) |
| EPS (Q2) | Rs. 1.20 (+9.09% YoY) |
Quarter Snapshot
RVNL delivered margin and cash-flow execution: consolidated EBITDA margin expanded ~148 bps YoY to 6.26% and H1 operating cash flow swung from −Rs.1,254.83 Cr to +Rs.589.39 Cr, meeting management's guided improvement, while borrowings fell Rs.508.83 Cr. However, revenue declined 8.24% YoY against the reaffirmed ~15% FY27 growth guidance, leaving H2 needing +26.99% YoY to reach the target, and PAT growth of 10.06% is largely a tax-rate normalization (PBT −4.95% YoY). Watch the unresolved Rs.1,047.08 Cr KRCL receivable and rising trade receivables against the client-payment backdrop.
Key Investment Insights
Key Positives
- Consolidated EBITDA grew 20.21% YoY to Rs.294.41 Cr with margin up ~148 bps to 6.26% despite revenue declining 8.24%
- H1 consolidated operating cash flow swung from −Rs.1,254.83 Cr to +Rs.589.39 Cr, meeting management's guided improvement
- Consolidated borrowings reduced Rs.508.83 Cr in six months to Rs.4,304.89 Cr; cash and bank balances rose to Rs.1,092.63 Cr
- Expense of operation fell 12.33% YoY to 89.10% of revenue from 93.26%
- Share of JV/associate profit grew 26.63% YoY to Rs.30.43 Cr; subsidiaries added Rs.34.80 Cr to owners' PAT
- Consolidated PAT grew 10.06% YoY to Rs.253.71 Cr and 59.05% QoQ; EPS Rs.1.20 vs Rs.1.10
- Finance costs fell 10.14% YoY to Rs.93.45 Cr
Risk Factors
- Consolidated revenue declined 8.24% YoY and H1 revenue was flat (−0.11%), tracking well below management's ~15% FY27 growth guidance; H2 would need +26.99% YoY to reach the target
- PAT growth is substantially a tax-base effect: PBT fell 4.95% YoY while tax fell 35.87%; at a constant 32.67% ETR PAT would have been ~Rs.238 Cr vs reported Rs.253.71 Cr
- Other income fell 35.87% YoY to Rs.134.92 Cr, marginally flattering the operating EBITDA comparison
- Trade receivables rose Rs.159.56 Cr in H1 to Rs.5,530.08 Cr, consistent with management-acknowledged client-payment concerns
- KRCL receivable of Rs.1,047.08 Cr (including Rs.889.95 Cr disputed interest) remains unresolved per auditors' emphasis of matter
- Board approved an unconditional, irrevocable corporate guarantee of Rs.375 Cr on a Rs.1,500 Cr Exim Bank term loan to JV Kinet Railway Solutions (RVNL holds 25%)
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.