RVNL emerges as L1 bidder for ₹554.64 Crore order from NHAI

12 Mar 2025 , 09:50 AM

Rail Vikas Nigam Limited (RVNL) informed the bourses that it has secured a key infrastructure project from National Highways Authority of India (NHAI). The company has been announced as the lowest bidder (L1) for said project.

As per the company, the project includes construction of a six-lane access-controlled connectivity road linking Sabbavaram bypass (Anakapalli-Anandapuram corridor) to Sheelanagar junction of NH-516C. The project is situated in Andhra Pradesh.

The project shall take place under the Hybrid Annuity Model (HAM), a funding technique where the government and the private sector share risks associated with investments.

The company also mentioned in its filing that once the road is completed, it shall enhance connectivity to Visakhapatnam Port. This will give a boost to trade and logistics efficiency in the region.

This order fortifies RVNL’s increasing presence in the infrastructure and highways segment. The company has been gradually increasing its presence beyond railway projects, strengthening its foothold in the roads and highways sector, a vital area for the government’s infrastructure initiatives.

The company announced its results for Q3 FY25 in February and reported a subdued performance during the quarter. The company’s net profit fell as much as 13.10% on a year-on-year basis to ₹311.60 Crore as compared to ₹358.60 Crore in the previous corresponding period.

The Navratna PSU’s revenue from operations fell marginally by 2.6% to ₹4,567.40 Crore as compared to ₹4,689.30 Crore in the same quarter of previous year.

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