RITES Limited (RITES) share price

₹195.85 on NSE as of 2026-10-08. -2.44% on the day. market cap ₹9,413 Cr. P/E 22.6. 52-week range ₹175.63 to ₹256.62. Construction.

www.rites.com

What the company does

RITES Limited (RL) was incorporated in April 1974 as a multi-disciplinary consultancy organization operating in the fields of transport infrastructure and related technologies. RL is a Nav Ratna, Public Limited company, with 72.20% shareholding held by the Government of India. RL provides a comprehensive array of services from consultancy to project execution both domestically and internationally. It is listed on BSE and NSE.

Filed by Infomerics, page 11.

RITES Q1 FY27: Revenue Up 8.7% to ₹532 Cr, Operating Profit Flat at ₹115 Cr, and a ₹9,445 Cr Order Book

At a glance

RITES Limited sells railway consultancy, builds turnkey projects, exports rolling stock and leases locomotives. Revenue for the three months to June 2026 was ₹532 crore. A year earlier it was ₹490 crore, a rise of 8.7%. Profit after tax was ₹87.2 crore, against ₹80.1 crore a year earlier. That is a rise of 8.9%. Operating profit was ₹114.66 crore, against ₹114.15 crore. The difference is ₹51 lakh on a base of ₹114 crore, which is walking forward while standing perfectly still.

Export revenue for the quarter was ₹1.03 crore. That is the whole three months, not one weak month inside them. RITES is the only export arm of Indian Railways for rolling stock overseas. Management said export revenue is booked only when a full consist, a complete coupled set of coaches, is dispatched. For Bangladesh, the entire rake of 20 coaches moves as one group. Management said the first rake was expected to ship within ten days of the call.

The order book reached ₹9,445 crore as on 30 June 2026, the highest the company has reported. New projects worth ₹674 crore were secured during the quarter, across more than 120 contracts. Management described the cadence as roughly 1.4 orders a day. Management also repeated that the company is on track for a ₹10,000 crore order book.

The board declared a first interim dividend of ₹1.40 per share. The record date is 10 August 2026. Management says turnkey work carries margins of about 1.5% to 2%. Turnkey is now roughly half the order book.

Introduction

RITES Limited was incorporated on 26 April 1974 as a technical and consultancy arm for Indian Railways. It is now a Navratna central public sector enterprise under the Ministry of Railways. Navratna is a government status that lets a state firm commit larger sums without fresh clearance. The Government of India holds 72.20% of the shares. The company listed in 2018. LIC holds 5.52%.

The business stands on four visible legs. Consultancy comes first, then turnkey construction, exports of rolling stock and locomotive leasing. Rolling stock means the coaches and locomotives that run on the track. A small power generation piece sits inside the subsidiary REMC Limited. RITES operates in more than 55 countries. It reports six regional project offices and five inspection offices, with twelve project units alongside them.

The last eighteen months of filings show the map widening abroad. December 2025 brought an order worth USD 3.6 million for Cape Gauge locomotives, for Bernhard Development in Zimbabwe. In January 2026 ICVL Mozambique sent a letter of intent worth USD 20.6 million for diesel-electric locomotives. It covers fifteen months of supply and twenty-four months of maintenance. In July 2026 RITES secured acceptance for a 4,000 HP locomotive order from Volantis Asset Finance, South Africa. That order is worth USD 35.82 million. In June 2026 the board approved forming a joint venture in the UAE, RITES-NICC Infrastructure Construction LLC, and putting capital into it.

At home, March 2026 brought a revised turnkey electrification order from South Western Railway worth ₹729.28 crore. It covers the Mysuru–Hassan–Mangaluru section and is priced on a cost-plus basis. Cost-plus means the customer pays the costs incurred plus an agreed margin. In July 2026 a consortium won Patna Metro consultancy work worth ₹79.22 crore. The same month brought a ₹175.41 crore project management consultancy order from Babasaheb Bhimrao Ambedkar University, executable over thirty months. On 7 August 2026 the company signed a memorandum of understanding with HPCL for railway siding consultancy.

Three appointments are on record. Manish Tiwari became Chief Strategy Officer and ex-officio chief operating officer from 13 February 2026, with Rajesh Naik relieved. Vinod Kumar Sharma became Chief Vigilance Officer on 9 February 2026, for an initial three-year term. Nikhil Agarwal became Company Secretary and Compliance Officer from 19 March 2026, after Ashok Mishra resigned.

Business model

RITES is paid to know things about railways. A client wants a feasibility study, a detailed project report, design engineering or procurement help. Sometimes the client wants a project manager who can say the alignment is wrong before the concrete is poured. RITES turns up with an engineer and an invoice.

Consultancy is the historic core. In the three months to June 2026, consolidated domestic consultancy revenue was ₹284 crore. Segment profit before interest and tax was ₹109.76 crore. Consultancy abroad added ₹16 crore of revenue and ₹2.36 crore of profit. The main input is a person who has read a great many standards documents. The main capital spend is that person's laptop.

Turnkey is the opposite creature, since RITES there delivers the finished project rather than only the advice. Revenue of ₹176.40 crore in the quarter produced segment profit of ₹2.41 crore. Management was blunt about this on the call. Turnkey margins, they said, always remain in the range of about 1.5 to 2 percent. In their words, RITES is not a construction company but a consultancy company. Management also spelled out the accounting effect with an example. On a ₹100 crore project where the fee is ₹5 crore, the consultancy order value is ₹5 crore. The turnkey order value is ₹105 crore, because the full project value flows through the accounts. CARE, a credit-rating agency, says in its July 2026 report that the turnkey work runs on a back-to-back sub-contracting basis. CARE says performance risk passes to subcontractors through guarantees. RITES acts as project management consultant and single point of contact.

Leasing is the quiet one. Revenue was ₹48.73 crore in the quarter and segment profit ₹18.55 crore. The company leases more than 90 locomotives at 35 sites. It also manages more than 30 mini railway systems for in-plant shunting, which means moving wagons around inside a works. The customers sit in power, steel, ports and cement. Somewhere in India a steel plant's shunting locomotive is technically a rental.

Exports has the most interesting relationship with the calendar. Export revenue for the quarter was ₹1.03 crore, against ₹3.35 crore a year earlier. The investor presentation describes that as exports of spares only. Segment profit was ₹0.38 crore. Management says coaches count as revenue only when the whole rake leaves. The export order book stood at ₹1,775 crore.

Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for RITES Limited.

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