RVNL partners with Dubai’s GBH International for GCC infra projects

State-owned Rail Vikas Nigam Ltd (RVNL) has inked a memorandum of understanding (MoU) with Dubai-based GBH International Contracting LLC (GBHIC) to collaborate on civil infrastructure projects across the Gulf Cooperation Council (GCC) region. This strategic move aims to tap into the expanding infrastructure sector in the Middle East by leveraging the strengths of both organizations.

Partnership to unlock GCC opportunities

The MoU sets the stage for both entities to identify and pursue business opportunities in the Gulf’s booming infrastructure sector. With GCC countries focusing on large-scale development projects as part of their economic diversification plans, this partnership could provide RVNL a significant foothold in the region.

In a regulatory filing, RVNL stated, “This collaboration aims to combine the expertise and resources of both companies to explore civil infrastructure opportunities in GCC countries.”

Stock performance and financial highlights

Following the announcement, RVNL’s stock closed at Rs 416.45 on the BSE, gaining 1.52 per cent. The company has delivered robust returns of 162.2 per cent so far this calendar year, reflecting strong investor confidence.

However, RVNL’s financial performance in Q2 FY25 showcased mixed trends. Net profit declined by 27 per cent year-on-year to Rs 286.9 crore, largely due to lower operating margins. Revenue from operations also fell by 1.2 per cent YoY to Rs 4,855 crore. Despite these headwinds, the company reported sequential improvement, with net profit rising 28.1 per cent quarter-on-quarter and revenue increasing 19.2 per cent.

Strategic significance

The partnership with GBHIC comes at a time when RVNL is actively expanding its footprint beyond India. By aligning with a prominent Dubai-based firm, RVNL aims to capitalize on the growing demand for world-class infrastructure in the GCC region. The move also complements India’s push to strengthen economic ties with Gulf nations, underscoring RVNL’s ambition to establish itself as a global infrastructure player.

As the collaboration takes shape, it is expected to pave the way for RVNL to secure contracts in key GCC markets, enhancing its international portfolio and driving long-term growth.