The shares of this public-sector enterprise gained up to 2 percent after the company bagged a prestigious work order from Mahanadi Coalfields Limited for Rs 28 crore.
Price Movement
With a market capitalization of Rs 11,150.01 crore, the shares of RITES Ltd were trading at Rs 232.00 per share, decreasing around 2.66 percent as compared to the previous closing price of Rs 239.15 apiece.
Reason for rise
According to the company filing, RITES Ltd bagged a prestigious work order from Mahanadi Coalfields Limited for Engineering & Project Management Consultancy services for the work of “Rail Connectivity for proposed phase-II SILO at Lakhanpur Area of MCL. This work order is valued at Rs 28 crore.
Financial Growth
Looking forward to the company’s financial performance, revenue decreased by 16 percent from Rs 683 crore in Q3FY24 to Rs 576 crore in Q3FY25, Moreover, during the same time frame, net profit declined by 15 percent from Rs 129 crore to Rs 109 crore.
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Global Footprint
RITES Videsh has executed over 100 projects across 55+ countries, including major infrastructure works like ports in Indonesia and Myanmar, highways in Guyana and Nigeria, and metros in Bahrain and Mauritius. With an average annual foreign earnings of US$66 million, it maintains a strong global presence across Asia, Africa, and beyond.
Strong Orderbook
As of December 31, 2024, RITES’ order book stood at Rs 7,978 crore, led by turnkey ( Rs 3,574 Cr) and consultancy ( Rs 2,773 Cr), with exports at Rs 1,320 Cr. During 9MFY25, projects worth Rs 3,963 Cr were secured, with a 60:40 competitive-to-nomination split, highlighting strong growth in exports and turnkey segments.
Management Guidance
RITES, a Navratna PSU under the Ministry of Railways, projects 20 percent revenue growth and a 10 percent net profit rise by March 2026, driven by strong execution and rising orders. The company targets a Rs 10,000 crore order book, securing 110+ orders worth Rs 1,900 crore this quarter.
Chairman and Managing Director Rahul Mithal highlighted the company’s ongoing efforts to recover from previous dips. “The execution has been improving sequentially, and what we are aiming is that we end the year at least to try and bring down the topline dip to about 10 percent or below, and bottom-line dip to about 20 percent or below.”
Mithal added, “Moving forward, with the increase in all streams of business, in the percentage of competitive orders, the margins are settling down in this range of about 20 percent earnings before interest, taxes, depreciation, and amortisation (EBITDA) margins and profit after tax (PAT) margins about 15-16 percent.”
Company Overview
RITES Limited is a public sector enterprise and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach. The company is the only export arm of Indian Railways for providing rolling stock overseas (other than Thailand, Malaysia, and Indonesia).
Written by Abhishek Singh
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