India-based Afcons Infrastructure has won a significant railway infrastructure contract in Croatia, marking the company’s expansion into the European market. The project is also the largest international order secured by the company so far. The contract includes reconstruction of an existing railway track along with development of a second rail line. The project scope covers civil engineering activities, electrification systems, signaling technology, and communication infrastructure. The total contract value exceeds six hundred seventy-seven million euros, reflecting the growing global presence of Indian engineering and infrastructure companies in international railway modernization and transport development projects.
NEW DELHI: Afcons Infrastructure has emerged as the successful bidder for a major railway modernization project in Croatia, marking the company’s official entry into the European infrastructure market. The contract, valued at approximately €677.07 million (around INR 7,544 crore) excluding taxes, is the company’s largest international order to date.
The project involves the reconstruction of an existing railway track along with the construction of a second railway line aimed at improving transportation efficiency and regional rail connectivity in Croatia. Apart from core civil engineering activities, the scope of work also includes overhead electrification, advanced signaling systems, and telecommunication infrastructure required for modern railway operations.
Afcons Infrastructure, one of India’s leading engineering and construction firms, has previously delivered several landmark projects including the Chenab Rail Bridge on the Udhampur-Srinagar-Baramulla Rail Link, the Kolkata East-West Metro’s under-river tunnel, and the Atal Tunnel beneath Rohtang Pass.
Krishnamurthy Subramanian, Executive Chairman of Afcons Infrastructure, stated that the project represents a major milestone in the company’s global expansion strategy and reflects its capability to execute complex infrastructure projects across international markets. Managing Director S Paramasivan added that the Croatian railway contract strengthens Afcons’ position as a trusted global infrastructure development partner.
The development highlights the growing international competitiveness of Indian EPC and railway engineering companies as Europe accelerates investments in rail modernization, sustainable mobility, and cross-border transport infrastructure.
Afcons Infrastructure
Afcons Infrastructure is one of India’s leading infrastructure engineering and construction companies and operates as the flagship infrastructure arm of the Shapoorji Pallonji Group. Founded in 1959, the company specializes in large-scale EPC (Engineering, Procurement, and Construction) projects across transportation, marine, metro rail, tunnels, bridges, oil & gas, hydroelectric, and urban infrastructure sectors.
The company has built a strong international presence with projects across Asia, Africa, and the Middle East, and recently expanded into Europe after securing a major railway modernization contract in Croatia worth approximately €677.07 million (around INR 7,544 crore).
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Major Landmark Projects
Some of Afcons Infrastructure’s most notable projects include:
- Chenab Rail Bridge – the world’s highest railway arch bridge in Jammu & Kashmir.
- Kolkata East-West Metro under-river tunnel – India’s first underwater metro tunnel beneath the Hooghly River.
- Atal Tunnel under Rohtang Pass in Himachal Pradesh.
- Multiple metro rail, marine, highway, and tunneling projects across India and overseas.
The company is particularly recognized for executing technically complex engineering projects in difficult terrains and urban environments.
Financial and Business Performance
According to recent financial data, Afcons Infrastructure reported trailing twelve-month revenue of approximately INR 125.58 billion, with an employee base of nearly 3,800 professionals. The company’s order book grew to around INR 36,868 crore by FY2025, reflecting strong demand in transportation and infrastructure development.
The company mainly operates in:
- Railways and metro infrastructure
- Bridges and highways
- Marine and port engineering
- Oil & gas infrastructure
- Hydro and underground tunneling
- Urban infrastructure development
Afcons has also received strong credit ratings, including CRISIL AA- for long-term financial strength, highlighting its operational capability and project execution expertise.
Railway Stock Jumps After Bagging ₹221 Cr Work Order from South East Central Railway
Navratna PSU shares gained 3% after the company emerged as the lowest bidder for a ₹221.33 crore railway modernisation project from South East Central Railway. The project includes electronic interlocking, signalling, electrification, and cabling works in the Bilaspur Division.
India’s railway infrastructure sector continues to witness strong momentum as Rail Vikas Nigam Limited (RVNL) secured a major railway modernization project from South East Central Railway. The development triggered positive market sentiment, with the company’s shares rising nearly 3% intraday following the announcement of the new engineering and signaling contract.
The project, valued at approximately ₹221.33 crore, involves the modernization and replacement of conventional railway interlocking systems with advanced electronic interlocking technology across multiple stations in the Bilaspur Division. The scope of work also includes signaling systems, telecom infrastructure, OFC hut construction, electrification works, and cabling activities, aimed at improving railway operational efficiency and safety standards.
According to company disclosures, the EPC contract is expected to be completed within 730 days and has been secured under the normal course of business operations. RVNL also confirmed that there is no promoter or related-party involvement in the project.
Strong Order Book Strengthens Growth Outlook
Rail Vikas Nigam Limited continues to maintain a robust infrastructure pipeline, with its total order book reaching nearly ₹87,000 crore as of FY2026. Around ₹40,000 crore comes from railway nomination projects, while nearly ₹47,000 crore has been secured through competitive bidding.
The company has also emerged as the lowest bidder for projects worth approximately ₹3,667 crore recently, highlighting strong execution capability and aggressive expansion across railway infrastructure segments. In the last nine months alone, RVNL secured fresh projects worth nearly ₹1,528 crore.
Financial Performance and Operational Efficiency
RVNL reported revenue growth from approximately ₹4,567 crore to ₹4,684 crore during the recent reporting period, while net profit increased from ₹312 crore to ₹324 crore. The company maintains strong operational metrics with a Return on Capital Employed (ROCE) of 14.7% and Return on Equity (ROE) of 14%, reflecting efficient capital utilization and financial stability.
The PSU also maintains a balanced leverage profile with a debt-to-equity ratio of 0.52 and a dividend payout ratio close to 29.8%, indicating healthy shareholder returns and disciplined financial management.
Railway Modernization Driving Infrastructure Growth
India’s railway modernization sector is expanding rapidly due to increasing investments in signaling systems, railway electrification, freight corridors, metro rail expansion, and high-speed rail infrastructure. Government initiatives focused on safety enhancement, digital railway operations, and logistics efficiency are creating large opportunities for railway EPC companies.
Projects involving electronic interlocking systems, advanced signaling technology, telecom integration, and electrification upgrades are becoming critical for improving operational reliability and reducing congestion across major rail networks. The latest South East Central Railway contract further reflects the growing focus on smart railway infrastructure modernization across India.
About RVNL
Founded in 2003, Rail Vikas Nigam Limited is a Navratna Public Sector Undertaking under the Ministry of Railways. The company specializes in the development and execution of railway infrastructure projects including:
- Railway electrification
- Track doubling
- New railway lines
- Metro rail systems
- Major railway bridges
- Signaling and telecom infrastructure
RVNL has emerged as one of India’s leading railway infrastructure development companies and plays a significant role in supporting the country’s transportation modernization initiatives
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Top Companies Related to Railway Modernization and Railway EPC Infrastructure
- Afcons Infrastructure
Founded: 1959
Executive Chairman: Krishnamurthy Subramanian
Last Year Revenue: Above INR 12,500 Crore
Afcons Infrastructure is one of the leading railway and transportation infrastructure companies driving the growth of global railway modernization projects through advanced EPC capabilities, large-scale railway engineering, and complex infrastructure execution expertise. The company plays a major role in modern rail development through railway track construction, metro rail systems, tunnels, bridges, electrification projects, and smart transportation infrastructure. Afcons recently strengthened its global presence after securing a major €677 million railway modernization project in Croatia, marking its expansion into the European market. The company continues investing in advanced construction technologies, sustainable mobility infrastructure, underground tunneling, and cross-border transportation projects to expand its international footprint. Its expertise in technically challenging infrastructure projects positions the company among the leading global railway EPC and engineering firms.
- Rail Vikas Nigam Limited
Founded: 2003
Chairman & Managing Director: Pradeep Gaur
Last Year Revenue: Above INR 21,000 Crore
Rail Vikas Nigam Limited (RVNL) is one of India’s leading railway infrastructure development companies supporting large-scale railway modernization through track doubling, railway electrification, signaling systems, metro rail development, and transport connectivity projects. The company plays a significant role in improving India’s railway infrastructure through advanced EPC execution capabilities and government-backed transportation expansion programs. RVNL continues expanding its order book through railway modernization contracts involving electronic interlocking systems, telecom infrastructure, freight corridors, and urban rail mobility projects. The company’s strong project execution expertise, financial stability, and growing participation in smart railway infrastructure projects position it among the major players driving India’s railway modernization and transportation development ecosystem.
- Larsen & Toubro
Founded: 1938
CEO & MD: S N Subrahmanyan
Last Year Revenue: Above USD 27 Billion
Larsen & Toubro is one of the world’s leading engineering and infrastructure companies advancing railway modernization and transportation infrastructure through metro rail projects, high-speed rail corridors, smart mobility systems, and urban transportation solutions. The company delivers advanced EPC services across railway construction, signaling technology, electrification systems, tunnels, and large-scale civil infrastructure development. L&T continues investing in digital engineering, sustainable transportation technologies, and smart city mobility infrastructure to strengthen its transportation business globally. Its strong execution capability across complex infrastructure environments and major international transportation projects positions the company among the leading global railway EPC and engineering firms.
- IRCON International
Founded: 1976
Chairman & Managing Director: Hari Mohan Gupta
Last Year Revenue: Above INR 10,000 Crore
IRCON International is one of India’s major railway engineering and construction companies supporting global railway modernization through track construction, railway electrification, signaling infrastructure, bridges, highways, and transportation development projects. The company has developed a strong international presence across Asia, Africa, and the Middle East through large-scale railway EPC projects. IRCON plays an important role in modernizing rail transportation networks through advanced engineering solutions, efficient project execution, and infrastructure connectivity programs. Its growing international project portfolio and expertise in railway infrastructure development position the company among the leading railway engineering firms supporting global transportation modernization.
- RITES Limited
Founded: 1974
Chairman & Managing Director: Rahul Mithal
Last Year Revenue: Above INR 2,500 Crore
RITES Limited is one of India’s leading transport infrastructure consultancy and engineering companies supporting railway modernization through rail planning, signaling consultancy, rolling stock inspection, metro rail advisory services, and transportation engineering solutions. The company provides end-to-end consultancy for railway electrification, urban transport systems, smart mobility infrastructure, and logistics connectivity projects. RITES continues strengthening its global railway consultancy presence through projects across Asia, Africa, and Latin America. Its expertise in integrated transport engineering, rail operations, and sustainable mobility infrastructure positions the company among the key players supporting railway modernization and smart transportation development.
- Siemens
Founded: 1847
CEO: Roland Busch
Last Year Revenue: Above EUR 77 Billion
Siemens is one of the leading global technology companies driving railway modernization through intelligent signaling systems, railway electrification, smart mobility technologies, and digital rail infrastructure solutions. The company plays a major role in developing automated rail operations, high-speed railway systems, AI-powered transportation management, and sustainable mobility infrastructure across international markets. Siemens continues investing heavily in digital railway automation, IoT-enabled rail networks, and low-carbon transportation technologies to improve rail efficiency and operational safety. Its advanced mobility technologies and global transportation expertise position the company among the world’s leading railway modernization and smart infrastructure providers.
- Alstom
Founded: 1928
CEO: Henri Poupart-Lafarge
Last Year Revenue: Above EUR 17 Billion
Alstom is one of the world’s leading railway transportation companies accelerating global railway modernization through high-speed trains, metro systems, signaling technologies, rail electrification, and sustainable mobility infrastructure. The company supports modern rail transportation through advanced rolling stock manufacturing, automated rail control systems, and smart transportation technologies. Alstom continues expanding its global transportation footprint through investments in green mobility, hydrogen-powered trains, digital rail systems, and urban mobility infrastructure. Its strong presence in metro rail, freight corridors, and international railway modernization projects positions the company among the leading global railway technology and infrastructure providers.
- Hitachi Rail
Founded: 1999
CEO: Giuseppe Marino
Last Year Revenue: Above EUR 7 Billion
Hitachi Rail is one of the leading smart mobility and railway technology companies driving transportation modernization through digital signaling systems, rail traffic management technologies, AI-enabled mobility infrastructure, and automated railway solutions. The company develops advanced transportation systems focused on improving railway safety, operational efficiency, and passenger connectivity. Hitachi Rail continues investing in digital transformation technologies, smart rail automation, and sustainable transportation systems to support modern railway infrastructure development globally. Its expertise in intelligent transportation systems and digital mobility innovation positions the company among the major players in the global railway modernization sector.
- Tata Projects
Founded: 1979
Managing Director: Vinayak Pai
Last Year Revenue: Above INR 17,000 Crore
Tata Projects is one of India’s rapidly growing infrastructure and EPC companies supporting railway modernization through metro rail systems, rail electrification, urban transportation infrastructure, and smart mobility projects. The company plays an important role in delivering integrated transportation infrastructure solutions through advanced engineering capabilities and large-scale project execution expertise. Tata Projects continues expanding its transportation business through investments in sustainable mobility, railway infrastructure modernization, and urban transit development projects. Its strong engineering capabilities and growing transportation project portfolio position the company among the emerging leaders in India’s railway EPC infrastructure sector.
Founded: 1945
CEO & MD: Vimal Kejriwal
Last Year Revenue: Above INR 19,000 Crore
KEC International is one of the leading infrastructure engineering companies contributing to railway modernization through railway electrification systems, signaling infrastructure, power transmission networks, and transportation engineering projects. The company supports railway capacity expansion and sustainable transportation infrastructure development through advanced EPC services and large-scale engineering expertise. KEC International continues strengthening its transportation infrastructure business through investments in electrified rail systems, mobility connectivity projects, and smart infrastructure technologies. Its expertise in integrated infrastructure development and railway electrification positions the company among the important players supporting railway modernization and transportation growth globally.
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Conclusion: Expert View by Spherical Insights
The recent developments involving Afcons Infrastructure and Rail Vikas Nigam Limited highlight the accelerating growth of the railway modernization and infrastructure engineering sector both in India and globally. Afcons Infrastructure’s €677 million Croatia railway project demonstrates the rising global competitiveness of Indian EPC companies in executing large-scale international transportation projects, while RVNL’s ₹221 crore South East Central Railway contract reflects the strong domestic momentum in signaling, electrification, and smart railway infrastructure upgrades.
Increasing investments in railway electrification, advanced signaling systems, telecom integration, freight corridors, and sustainable mobility solutions are creating substantial long-term opportunities for infrastructure developers and engineering firms. Government-led modernization initiatives across Europe and India are also driving demand for technologically advanced and efficient railway networks. As transportation infrastructure becomes central to economic growth, logistics efficiency, and green mobility goals, Indian companies are emerging as key contributors in shaping the future of global railway development through innovation, engineering expertise, and large-scale project execution capabilities.