Synopsis: An acceptance of the offer has been received from Volantis Asset Finance (Pty) Ltd., South Africa, for the supply and commissioning of 4,000 HP Cape Gauge Diesel Electric Locomotives, valued at USD 35,820,000 (approximately Rs. 341 crore), to be executed within 20 months.
India’s railway export story is quietly gathering momentum, and one of the country’s premier infrastructure consultancy and export PSUs has just landed a significant international locomotive contract from South Africa, adding to a growing track record of cross-border rail supply deals.
With a market capitalization of Rs. 11,246 crore, the shares of RITES Limited were trading at Rs. 236 per share, up by 9 percent after the announcement, and it is trading at a P/E of approximately 27x.
Order Update
RITES Limited has received an acceptance of its offer from Volantis Asset Finance (Pty) Ltd., South Africa, for the supply and commissioning of 4000 HP Cape Gauge Diesel Electric Locomotives. The order is valued at USD 35,820,000 (~Rs. 341 crores) and is to be executed within a 20-month timeline. The Contract Agreement is to be signed after due diligence at both ends, following which it will be formally added to the company’s order book.
The win adds to RITES’ established export vertical, which had an order book of Rs. 1,755 crore as of March 31, 2026, accounting for 19% of the company’s total order book of Rs. 9,416 crore. Exports contributed Rs.185 crore worth of new projects secured during Q4 FY26 alone, and this latest locomotive deal from South Africa reinforces the company’s position as one of India’s leading exporters of railway equipment and services.
Financial Snapshot & Business Overview
RITES Limited is a Schedule ‘A’ Miniratna Central Public Sector Enterprise under the Ministry of Railways, offering integrated consultancy, project management, and export services across transport infrastructure spanning railways, highways, urban transport, airports, and ports. The company’s four key business segments are Consultancy (Rs. 2,754 crore order book), Turnkey (Rs. 4,581 crore), Exports (Rs. 1,755 crore), and Leasing (Rs. 206 crore), with 63% of its order book won through competitive bidding.
On a consolidated basis for FY26, the company reported revenue from operations of Rs.2,415 crore, up from Rs.2,218 crore in FY25. Operating profit came in at Rs.554 crore at an OPM of 23%, broadly stable year-on-year. Net profit for FY26 rose to Rs. 454 crore from Rs. 424 crore in FY25, supported by other income of Rs. 123 crore.
The Q4 FY26 quarter was notably strong, with revenue of Rs.768 crore, operating profit of Rs.168 crore, and net profit of Rs.139 crore, the best quarter of the year. With a healthy order book of Rs.9,416 crore and a growing international footprint, the Volantis locomotive contract adds further depth to the export pipeline, though investors will track contract formalization and execution progress closely.
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