Synopsis:
RITES Limited secured a Rs. 78.65 crore rate contract from NTPC for leasing diesel locomotives to power plants nationwide, with individual station orders issued as needed until 19th September 2027.
During Friday’s trading session, shares of the leading Transport Infrastructure Consultancy and Engineering firm are in focus on the stock exchanges after the company announced securing a rate contract worth over Rs. 78 crores from NTPC Limited.
At 01:49 p.m., the shares of RITES Limited were trading in the green at Rs. 271.5 on BSE, up by around 0.4 percent, as against its previous closing price of Rs. 270.50, with a market cap of Rs. 13,048 crores. The stock has delivered negative returns of nearly 20 percent in one year, but has gained by over 20 percent in the last six months.
What’s the News
According to the latest exchange filings, RITES Limited has secured a rate contract from NTPC Limited for the hiring of diesel locomotives on a lease basis for NTPC Power Plants across India. Under this contract, individual NTPC stations will issue separate purchase orders as needed within the contract’s validity, specifying details such as quantity, execution timeline, and cost for actual implementation.
The indicative value of the rate contract stands at Rs. 78.65 crore (excluding GST), while the final value of orders will vary based on the specific requirements of each NTPC station. The contract is scheduled for execution by 19th September 2027.
Financials & more
Rites reported a slight growth in its revenue from operations, showing a year-on-year increase of around 1 percent from Rs. 486 crores in Q1 FY25 to Rs. 490 crores in Q1 FY26. Likewise, its net profit increased during the same period from Rs. 90 crores to Rs. 91 crores, representing a marginal rise of around 1.1 percent YoY.
The sustained Y-o-Y performance is attributed to enhanced execution efficiency across key consultancy projects, reflecting the operational focus and delivery capabilities, and the addition of the leased locomotives.
The Consultancy segment remains the company’s top revenue contributor, generating Rs. 262 crore with margins of 32.2 percent, driven by improved execution. Locomotive leasing revenue, from a fleet of 88 units, totals Rs. 43 crore with 38.4 percent margins. Turnkey projects contributed Rs. 148 crore, and exports began in Q2 FY26.
In Q1 FY26, the company secured over 150 orders, including work extensions, worth more than Rs. 451 crore, bringing the total order book to Rs. 8,790 crore as of June 2025.
RITES Limited is a multidisciplinary engineering and consultancy organisation providing a diversified and comprehensive array of services from concept to commissioning in all facets of transport infrastructure and related technologies.
The major business engagements as consultants, engineers and project managers are in railways, highways, airports, ports, ropeways, urban transport and inland waterways in India and abroad.
Additionally, the company provides services of third-party inspection, quality assurance, construction supervision & project management, operations & maintenance, leasing, export of rolling stock and modernisation of railway workshop projects, doubling and electrification on a turnkey basis.
Written by Shivani Singh
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