Synopsis:
The stock jumped 7 percent after winning an $18 million international order, reflecting strong export traction. Despite modest Q1 growth, a robust Rs 8,790 crore order book, rising consultancy revenues, and management’s confident margin guidance highlight steady operations, global opportunities, and growth visibility.
The shares of the infrastructure company gained up to 7 percent in today’s trading session after the company bagged a significant work order from Talis Logistics, South Africa, worth USD 18.00 million.
With a market capitalization of Rs 12,387.56 crore, the shares of RITES Ltd were trading at Rs 257.90 per share, increasing around 2.14 percent as compared to the previous closing price of Rs 252.50 apiece.
Significant Order
The shares of RITES Ltd have seen bullish movement after bagging a significant work order from Talis Logistics, South Africa, worth USD 18.00 million for the supply and commissioning of Overhauled in-service Cape Gauge ALCO Diesel Electric Locomotives.
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Revenue & Order Book Segmentation
The company showed marginal growth in Q1FY26, with revenue rising slightly by 1 percent to Rs 490 crore and net profit inching up 1 percent to Rs 91 crore. This indicates stable operations with limited expansion, reflecting steady demand and controlled costs, but growth momentum remains modest in the current quarter.
In Q1FY26, consultancy revenue rose 6.9 percent to Rs 261 crore, supported by better execution. Lease income jumped 26.3 percent to Rs 43 crore with an expanded locomotive fleet. However, exports declined 32.5 percent to Rs 3 crore, and turnkey revenue fell 13 percent to Rs 148 crore. Other income slipped 5.5 percent to Rs 20 crore. Locomotive exports began in Q2FY26.
As of June 30, 2025, the order book stood at Rs 8,790 crore, led by turnkey projects ( Rs 4,209 crore) and consultancy ( Rs 2,903 crore). Exports contributed Rs 1,388 crore, while lease and REMCL Ltd added Rs 170 crore and Rs 120 crore. In Q1FY26, projects worth Rs 451 crore were secured, mainly from consultancy, supported by lease, export, and turnkey.
Exports are gaining traction with a 10-locomotive order from Mozambique, where shipments began in Q2FY26. Bangladesh coach exports are progressing with delivery expected from Q4FY26. South Africa’s Cape Gauge locomotive orders open a potential 100+ loco market, though execution starts end-FY26. A Rs 700 crore Zimbabwe order faces funding risks. Export margins remain moderate, at double digits but below 20 percent.
Management reaffirmed its annual EBITDA margin guidance at 20 percent and PAT margin at 15 percent. They remain confident of significantly surpassing FY25 revenue, backed by strong execution of newly secured orders, ensuring sustained growth momentum and improved profitability ahead.
RITES Limited is a multidisciplinary engineering and consultancy firm, providing diverse and integrated solutions for transport and infrastructure development, from concept to commissioning. Its primary mission is to establish itself as the definitive ‘Go-To’ infrastructure consultancy company for clients across various sectors.
Written by Abhishek Singh
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