Rail Vikas Nigam Ltd

Rail Vikas Nigam Ltd maintains a balanced capital structure with a debt-to-equity ratio of 0.49, indicating moderate leverage relative to its equity base of 98.2 billion INR. The company holds 9.7 billion INR in cash and equivalents against 48.2 billion INR in long-term debt, resulting in a net cash position that is negative after subtracting total debt. Liquidity is assessed as medium, supported by a current ratio of 1.91, which suggests adequate short-term asset coverage for liabilities. Operating cash flow is negative at -18.9 billion INR, reflecting significant cash outflows from operations, though free cash flow remains positive at 2.9 billion INR due to low capital expenditure of 0.6 billion INR.

Profitability metrics show a return on equity of 12.21% and a return on assets of 5.53%, indicating efficient use of equity and assets to generate net income of 8.7 billion INR. The gross profit of 12.2 billion INR on revenue of 204.1 billion INR results in a gross margin of approximately 6%, while operating income of 7.3 billion INR suggests tight operating margins. Without cohort median data for direct comparison, these returns are evaluated against general industry standards for construction and engineering firms, where capital intensity often pressures margins.

Revenue concentration and segment details are not explicitly provided in the available data, limiting the analysis of geographic or business segment exposure. The company's activity is broadly classified under construction and engineering, implying a project-based revenue model typical of infrastructure developers.

Growth trajectory analysis is constrained by the absence of historical period data, preventing a detailed assessment of revenue or net income trends over time. The current financial snapshot provides a single-period view, highlighting the need for longitudinal data to evaluate growth consistency.

Risk factors include medium liquidity risk and low dilution risk, with a key flag noting the negative net cash position. The negative operating cash flow poses a potential liquidity concern, although the positive free cash flow and current ratio above 1.5 mitigate immediate solvency risks.

Recent events include analyst estimates with a mean price target of 249.50 INR and a median recommendation of 4.00, indicating a neutral to bearish sentiment among analysts. The absence of strong buy or buy recommendations suggests limited near-term upside expectations from the market.

Long-term debt decreased to INR 48.2 billion in FY2026, reflecting a consistent deleveraging trend over four years.

Debt-to-equity ratio of 0.49 is below the cohort median of 0.40, suggesting a conservative capital structure.

Revenue grew at a 1.3% CAGR over four years, demonstrating modest but stable top-line expansion.

Capex to revenue ratio is above the 75th percentile, indicating efficient capital deployment relative to peers.

Analysts assign a sell recommendation with a mean price target of INR 249.5, implying 8% downside.

Cash conversion ratio of -1.58 places the company in the bottom quartile of its peer cohort.

Revenue INR 66.96B, +4,2% YoY; Operating income −38,9% YoY.

• ▍Revenue INR 66.96B, +4,2% YoY
• ▍Operating income −38,9% YoY
• ▍Net income −59,3% YoY
• ▍Net margin 2.8%

Revenue INR 46.84B, +2,6% YoY; Operating income −8,7% YoY.

• ▍Revenue INR 46.84B, +2,6% YoY
• ▍Operating income −8,7% YoY
• ▍Net income +3,7% YoY
• ▍Net margin 6.9%

Revenue INR 51.23B, +5,5% YoY; Operating income −21,2% YoY.

• ▍Revenue INR 51.23B, +5,5% YoY
• ▍Operating income −21,2% YoY
• ▍Net income −19,7% YoY
• ▍Net margin 4.5%

Revenue INR 64.27B; Operating income INR 4.24B.

• ▍Revenue INR 64.27B
• ▍Operating income INR 4.24B
• ▍Net margin 7.1%

Revenue INR 45.67B; Operating income INR 2.32B.

• ▍Revenue INR 45.67B
• ▍Operating income INR 2.32B
• ▍Net margin 6.8%

Revenue INR 48.55B; Operating income INR 2.64B.

• ▍Revenue INR 48.55B
• ▍Operating income INR 2.64B
• ▍Net margin 5.9%

Revenue INR 40.74B; Operating income INR 1.75B.

• ▍Revenue INR 40.74B
• ▍Operating income INR 1.75B
• ▍Net margin 5.5%

Revenue INR 204.12B, +2,5% YoY; Operating income −33,2% YoY.

• ▍Revenue INR 204.12B, +2,5% YoY
• ▍Operating income −33,2% YoY
• ▍Net income −31,7% YoY
• ▍Free cash flow −37,3% YoY
• ▍Net margin 4.3%

Revenue INR 199.23B, −8,9% YoY; Operating income −17,9% YoY.

• ▍Revenue INR 199.23B, −8,9% YoY
• ▍Operating income −17,9% YoY
• ▍Net income −17,4% YoY
• ▍Free cash flow −43,2% YoY
• ▍Net margin 6.4%

Revenue INR 218.79B, +7,9% YoY; Operating income +8,9% YoY.

• ▍Revenue INR 218.79B, +7,9% YoY
• ▍Operating income +8,9% YoY
• ▍Net income +15,6% YoY
• ▍Free cash flow −10,8% YoY
• ▍Net margin 7.1%

Revenue INR 202.82B, +4,6% YoY; Operating income +5,3% YoY.

• ▍Revenue INR 202.82B, +4,6% YoY
• ▍Operating income +5,3% YoY
• ▍Net income +20,9% YoY
• ▍Free cash flow +47,9% YoY
• ▍Net margin 6.6%

Revenue INR 193.82B; Operating income INR 11.62B.

• ▍Revenue INR 193.82B
• ▍Operating income INR 11.62B
• ▍Net margin 5.7%