RVNL Share Price in Focus as Consortium Seals BharatNet Deal With BSNL

Rail Vikas Nigam Ltd (RVNL) partners with HFCL and Aerial Telecom to sign a ₹13,253 crore PIA deal with BSNL for BharatNet expansion, as RVNL reports a 13.1% YoY profit dip in Q3FY25 despite steady margins.

RVNL Consortium Secures Key Role in BharatNet Connectivity Expansion

Rail Vikas Nigam Ltd (RVNL), in collaboration with HFCL Ltd and Aerial Telecom Solutions Pvt. Ltd, has signed a Project Implementation Agency (PIA) agreement with Bharat Sanchar Nigam Ltd (BSNL).

This partnership focuses on developing, upgrading, operating, and maintaining the middle-mile network of BharatNet, a government initiative aimed at enhancing broadband connectivity across India.

RVNL to Expand BharatNet’s Rural Reach

The consortium won the contract by emerging as the lowest bidder for the project, valued at approximately ₹13,253 crore. The agreement includes a 3 year construction phase followed by 10 years of maintenance.

The maintenance fee structure is set at 5.5% of the capital expenditure annually for the first five years, increasing to 6.5% for the next five years.

This project is a crucial part of BharatNet’s ongoing expansion efforts to improve internet connectivity in rural and remote regions, supporting the Digital India initiative.

The successful execution of this plan is expected to significantly boost broadband accessibility, fostering economic growth and digital inclusion in underserved communities.

Rail Vikas Nigam Q3 Results

Meanwhile, Rail Vikas Nigam reported a 13.1% year-on-year (YoY) decline in net profit, which stood at ₹311.6 crore for the third quarter ending December 31, 2024. This profit decline occurred despite maintaining stable EBITDA margins.

The company’s revenue for Q3FY25 saw a 2.6% YoY decline, reaching ₹4,567.4 crore. Despite the revenue and profit decline, RVNL has upheld its revenue forecast for FY25 at ₹22,000 crore, indicating confidence in meeting its financial targets.

RVNL Share Price Performance

Rail Vikas Nigam Limited (RVNL) share price traded at ₹382.40, reflecting a gain of ₹0.85 or 0.22% at 10:05 AM on the NSE from its previous close of ₹381.55. The stock opened at ₹377.15 and reached an intraday high of ₹393, while the lowest price recorded so far is ₹376.35.

Conclusion

RVNL’s partnership with BSNL for the ₹13,253 crore BharatNet expansion marks a significant step in strengthening India’s digital infrastructure, particularly in rural areas.

As the company continues to secure large-scale projects and expand its role in national infrastructure development, its long-term growth prospects remain strong, aligning with India’s broader digital and economic expansion goals.

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