NEW DELHI — Rail Vikas Nigam Ltd’s stock rose 1.13% to Rs 312.14 on Tuesday following a letter of acceptance from Northern Railway for a major infrastructure project. The Rs 1,201.35 crore contract targets Bridge No. 11, located 50 meters downstream from the existing Malviya Bridge near Kashi Railway Station in Varanasi, Uttar Pradesh.

Work on the bridge includes substructure and superstructure spanning 8 spans of 108.5 meters each plus 2 spans of 103.3 meters using open web steel girders. The lower deck will carry four railway tracks. Above it, a six-lane road deck will connect via dedicated railway and road approaches. The project also covers overhead equipment works and general electrical installations, according to company filings.

Completion is set for 48 months from the start date. RVNL holds a 60% stake in the joint venture executing the work. Partner GPT Infraprojects owns the remaining 40%. Officials confirmed the contract comes from a domestic entity with no related party ties.

RVNL specializes in railway projects across India, from new lines and track doubling to gauge conversions, electrification, metro systems, workshops, and complex bridges like cable-stayed structures. The company also handles institutional buildings.

Recent financials show strength. For the quarter ended December 31, 2025, consolidated net profit grew 3.65% to Rs 322.83 crore from Rs 311.44 crore a year earlier. Revenue from operations increased 2.56% to Rs 4,684.46 crore, the company reported.

The award bolsters RVNL’s order book amid steady demand for rail upgrades in densely populated areas like Varanasi. Northern Railway, overseeing northern India’s vast network, frequently taps specialized firms for such high-value builds. Bridge No. 11 will ease congestion on the old Malviya Bridge, built decades ago and now strained by rising freight and passenger traffic.

Market reaction stayed measured. Shares traded at Rs 312.14 after the 1.13% gain, reflecting investor confidence in RVNL’s execution track record. The firm has delivered similar mega-projects on time, including multi-span bridges over major rivers.

Joint ventures like this one with GPT Infraprojects spread risk while using complementary expertise. GPT focuses on civil engineering and steel fabrication, aligning with the steel girder demands here. No delays are anticipated, given the 48-month timeline and clear scope, sources close to the project said.

RVNL’s Q3 FY26 results underscore operational efficiency. Profit margins held firm despite modest revenue growth, driven by better project management and cost controls. Analysts track the company’s pipeline for more Northern Railway or IRCON tenders, as rail capex surges under national infrastructure pushes.

Varanasi’s transport hub status amplifies the project’s impact. The new bridge will link key lines, boosting goods movement from eastern India. Road enhancements will cut travel times across the Ganga, aiding local commerce.