Known for its expertise in railway infrastructure and transportation solutions, the company has recently secured significant contracts, boosting investor confidence. The news highlights a new order to supply locomotives for African operations and a joint venture project to redevelop an Indian railway station, signaling strong growth in domestic and international markets.
Rites Limited’s stock, with a market capitalisation of Rs. 14,273.93 crores, rose to Rs. 299.80, hitting a high of up to 7.43 percent from its previous closing price of Rs. 279.05. However, the stock over the past year has given a negative return of 15.3 percent.
Order Update
RITES Ltd. has secured a significant international order from African Rail Company for the supply and commissioning of two fully overhauled ALCO Diesel Electric Locomotives. These Cape Gauge locomotives, equipped with new bogies, traction motors, control systems, and air brakes, will be deployed across Zimbabwe, Mozambique, and Botswana. The overhauling work will be carried out at a nominated facility, with warranty support and the deputation of a RITES technical team.
This order, valued at $3.6 million (CIF), is expected to be completed within nine months. As an international contract, it highlights RITES’ growing presence in the global railway solutions market and reflects its expertise in delivering complex rail infrastructure projects abroad.
In addition, the RITES-Aryan JV received a Rs 37.81 crore contract from South Western Railway to redevelop Tumakuru Station, covering civil, signalling, telecom, and electrical works and it is to be expected within 540 days.
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Order Book Breakdown
As of March 31, 2025, the company’s total order book stood at Rs. 8,877 crore. Turnkey projects contributed the highest share at Rs. 4,235 crore, followed by consultancy at Rs. 2,982 crore, exports at Rs. 1,360 crore, leasing at Rs. 180 crore, and REMC Ltd at Rs. 120 crore.
Segment-wise, turnkey formed 48 percent of the order book, consultancy 34 percent, exports 15 percent, leasing 2 percent, and REMCL 1 percent. In terms of order sourcing, 53 percent came through competitive bidding, while 47 percent came through nominations.
During Q4FY25, the company secured new and extension projects worth Rs. 1,418 crore. Of this, turnkey projects accounted for Rs. 833 crore, consultancy brought in Rs. 514 crore, exports contributed Rs. 49 crore, and leasing added Rs. 22 crore.
Q4 Financial Highlights
In Q4FY25, the company reported revenue of Rs 615 crore, down 4.4 percent YoY from Rs 643 crore in Q4FY24 but up 6.8 percent QoQ from Rs 576 crore in Q3FY25. This indicates a sequential recovery, though the overall three-year sales CAGR remains negative at -6 percent, highlighting long-term top-line pressure.
Net profit for Q4FY25 stood at Rs 141 crore, marking a 2.9 percent YoY increase from Rs 137 crore and a strong 29.4 percent QoQ growth from Rs 109 crore in Q3FY25. Despite near-term gains, the 3-year profit CAGR is -9 percent, signaling past earnings volatility. However, the company’s 3-year ROE CAGR of 18 percent reflects consistent value generation for shareholders.
Written By Fazal Ul Vahab C H
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