RVNL share price falls over 3% ahead of Q3 results today. Should you buy the PSU railway stock?

Rail Vikas Nigam Ltd (RVNL) share price declined over 3% in early trade on Friday, ahead of the announcement of Q3 results today. RVNL shares fell as much as 3.24% to ₹366.65 apiece on the BSE.

RVNL will declare its earnings for the third quarter of FY25 today. The meeting of the board of directors of the railway PSU is scheduled to take place today, February 14, to consider and approve the financial results for the quarter ended December 2024.

Earlier, RVNL board meeting was scheduled on Wednesday, 12 February, 2025, but was postponed and rescheduled “due to unavoidable circumstance” to 14 February, 2025.

“... the Meeting of the Board of Directors which was scheduled on Wednesday, 12th February, 2025, has been postponed and rescheduled due to unavoidable circumstances on Friday, 14th February, 2025, inter alia, to consider, approve and take on record the Unaudited Financial Results (Standalone and Consolidated) of the Company for the quarter and nine months ended 31st December, 2024,” RVNL said in a stock exchange filing on February 11.

RVNL Q3 Results 2025 Preview

The public sector railway company, Rail Vikas Nigam Ltd is expected to report muted revenue growth with a fall in net profit on a year-on-year (YoY) basis during the third quarter of FY25.

RVNL is expected to report a net profit of ₹322 crore in the quarter ended December 2024, recording a fall of 10.2% from ₹358.6 crore in the same quarter last fiscal year. However, the company’s net profit is expected to rise by 12.2% from ₹286.9 crore in the September quarter, according to estimates by Antique Stock Broking.

RVNL’s revenue in Q3FY25 is estimated to grow 5% to ₹4,924 crore from ₹4,689.3 crore, YoY. On a sequential basis, revenue is estimated to rise 1.4% from ₹4,855 crore in the previous quarter.

Earnings before interest, tax, depreciation and amortization (EBITDA) during the December quarter is expected to fall 1.2% to ₹246 crore from ₹249.1 crore, YoY, while it is expected to decline 9.3% from ₹271.5 crore, QoQ.

Should you buy RVNL stock ahead of Q3 results today?

RVNL share price has declined 14% year-to-date (YTD), while the PSU railway stock has dropped over 33% in the past six months. RVNL stock has delivered 48% returns in one year and multibagger returns of over 428% in two years.

Anshul Jain, Head of Research at Lakshmishree Investment and Securities, highlighted that the RVNL share price has been in a sharp downtrend post its buying climax in July 2024, correcting nearly 47% from its peak near ₹644.

“The ongoing correction in RVNL stock shows no signs of reversal, with the next key support at ₹311.05 — the weekly swing low. Given the bearish momentum, existing investors should consider selling on rallies towards ₹423, while fresh buyers are advised to stay away. With market sentiment still weak and no strong reversal signals, caution is warranted,” said Jain.

He advises investors to wait for stabilization before considering fresh positions and stay vigilant for further downside risks.

At 9:55 AM, RVNL shares were trading 3.09% lower at ₹367.25 apiece on the BSE, with a market capitalisation of over ₹76,561 crore.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.