RITES Limited is a multi-disciplinary engineering and consultancy organization specializing in the transport, infrastructure, and related technology sectors. The company operates across a diversified portfolio of services, categorized into four primary business segments: Consultancy, Leasing, Exports, and Turnkey projects. Its consultancy services form the core of its operations, providing comprehensive solutions from concept to commissioning in areas such as railways, highways, airports, and urban planning. The Leasing segment focuses on providing locomotives and other rolling stock on lease. The Export division handles the supply of rolling stock and railway equipment to international clients. Finally, the Turnkey segment undertakes the construction of railway lines, sidings, and related infrastructure projects on an EPC (Engineering, Procurement, and Construction) basis. Through its subsidiary, REMC Ltd., the company is also involved in power procurement and consultancy for railways. RITES serves a wide range of clients, including government entities and private corporations, both domestically and internationally.

Official Website: http://www.rites.com/

• Consolidated Performance - Q3FY26 (vs. Q3FY25)

• Operating Revenue: Increased by 5.7% to ₹614 crore from ₹576 crore.

• Total Revenue: Grew by 3.4% to ₹635 crore from ₹609 crore.

• EBITDA: Showed strong growth of 18.6%, reaching ₹144 crore compared to ₹123 crore. EBITDA margin improved to 23.4% from 20.8%.

• Profit Before Tax (PBT): Rose by 7.0% to ₹145 crore from ₹109 crore.

• Profit After Tax (PAT): Increased by 5.2% to ₹115 crore from ₹154 crore (Note: The PDF shows PAT of 115 vs 154, but a growth of 5.2%, suggesting a likely typo in the Q3FY25 PAT figure. Based on the growth percentage, the prior year PAT was likely closer to ₹109 crore, not ₹154 crore. The analysis proceeds based on the reported growth figures).

• Standalone Performance - Q3FY26 (vs. Q3FY25)

• Operating Revenue: Grew by 4.5% to ₹569 crore from ₹545 crore. This was attributed to better execution and the supply of two locomotives to Mozambique.

• Total Revenue: Increased by 1.9% to ₹603 crore from ₹592 crore.

• EBITDA: Grew significantly by 18.3% to ₹123 crore from ₹90 crore. EBITDA margin expanded to 21.3% from 16.1%.

• Profit Before Tax (PBT): Increased by 2.0% to ₹125 crore from ₹123 crore.

• Profit After Tax (PAT): Rose by 0.5% to ₹96 crore from ₹95 crore.

• Consolidated Performance - 9MFY26 (vs. 9MFY25)

• Operating Revenue: Increased by 2.8% to ₹1,647 crore.

• Total Revenue: Grew by 2.4% to ₹1,726 crore.

• EBITDA: Increased by 11.6% to ₹370 crore.

• Profit Before Tax (PBT): Rose by 14.0% to ₹422 crore.

• Profit After Tax (PAT): Grew by 17.2% to ₹315 crore.

• Subsidiary Performance (REMC Ltd.) - Q3FY26 (vs. Q3FY25)

• Operating Revenue: Increased by 28.2% to ₹43 crore.

• EBITDA: Grew by 39.9% to ₹36 crore.

• PAT: Rose by 30.1% to ₹27 crore.

• The revenue growth was driven by consultancy fees on RTC (Round-The-Clock) tenders.

Summary: The company delivered revenue and profit growth for the quarter and nine-month period, with particularly strong expansion in EBITDA, indicating improved operational efficiency and a favorable business mix.

• Segmental Growth Drivers (Standalone Q3FY26 vs Q3FY25):

• Consultancy: Revenue grew by 4.1% to ₹292 crore.

• Leasing: Revenue increased by 6.8% to ₹43 crore.

• Exports: Exhibited exceptional growth of 8278.4% to ₹62 crore, driven by the supply of two locomotives to Mozambique.

• Turnkey: Revenue declined by 22.8% to ₹172 crore, though the company notes that this segment has started showing an "uptick" from this quarter.

• Order Book Momentum:

• The company achieved its highest-ever order book, valued at ₹9,262 crore as of December 31, 2025.

• During Q3FY26, new orders and extensions worth ₹1,141 crore were secured.

• The order book provides strong revenue visibility, with a composition of Consultancy (30%), Turnkey (49%), Exports (18%), Leasing (2%), and REMCL (1%).

• Nine-Month Performance (9MFY26 vs 9MFY25):

• For the nine-month period, growth in Consultancy (+6.8%), Leasing (+17.6%), and Exports (+1472.4%) offset the 27.1% decline in the Turnkey segment revenue.

Summary: Growth is being propelled by the high-margin consultancy and export segments, supported by a record-high order book that provides strong revenue visibility for the future.

• International Expansion:

• An MoU was signed with the Botswana Government for the modernization of its railways and transport infrastructure, signaling a key international growth opportunity.

• A significant export order was secured from Ndalama Capital (Pty) Ltd. in South Africa for the supply and commissioning of diesel-electric locomotives, valued at ₹315 crore.

• Domestic Infrastructure Projects:

• An MoU with the Andhra Pradesh Economic Development Board (APEDB) aims to spur infrastructure growth in the state, opening a new avenue for domestic projects.

• The company secured over 140 projects in Q3FY26, including key contracts for:

• Project Management for NIMHANS, Bangalore (₹373 crore).

• Construction of a Regulator cum Bridge for Cochin International Airport (₹52 crore).

• Project Management for IIT Bhilai (₹13 crore).

• Integrated Transit Corridor Development for PWD Delhi (₹12 crore).

Summary: The company is actively pursuing both domestic and international opportunities through strategic partnerships and by securing high-value contracts in diverse infrastructure areas.

• Execution Efficiency: The increase in revenue from the Consultancy and Leasing segments is directly attributed to "better execution/utilization," indicating efficient deployment of resources and assets.

• Employee Productivity (Standalone):

• Revenue per Employee: Stood at ₹0.58 crore for 9MFY26, a slight decrease from ₹0.59 crore in 9MFY25.

• Profit After Tax per Employee: Remained stable at ₹0.09 crore for both 9MFY26 and 9MFY25.

• The company maintains a low attrition rate of 3.1% (FY25) for its regular employees, ensuring stability in its skilled workforce.

Summary: The company is demonstrating effective utilization of its existing capacity and human capital to drive revenue, while maintaining a stable and experienced workforce.

• Strategic Collaborations: The company is focused on forming strategic partnerships to drive future business. This is evidenced by the recent MoUs with the Botswana Government and the Andhra Pradesh Economic Development Board (APEDB).

• Modernization and Infrastructure Development: These MoUs indicate a strategic focus on participating in large-scale railway modernization and state-level infrastructure development projects, which are expected to be key future revenue streams.

Summary: Future plans are centered on leveraging strategic partnerships to secure large-scale, long-term projects in both international and domestic markets.

• Margin Improvement: Profit margins improved in Q3FY26 due to a favorable change in the segmental mix, with a higher contribution from the high-margin Consultancy and Exports businesses.

• Consolidated EBITDA Margin (Q3FY26): Improved to 23.4% from 20.8% in Q3FY25.

• Standalone EBITDA Margin (Q3FY26): Expanded significantly to 21.3% from 16.1% in Q3FY25.

• Segmental Profitability (Standalone Q3FY26):

• Consultancy: Profit grew by 8.0% to ₹103 crore, with a strong margin of 35.4%.

• Leasing: Profit increased by 2.2% to ₹15 crore, with a margin of 34.1%.

• Exports: Profit was ₹8 crore, with a margin of 13.5%.

• Turnkey: Profit declined by 13.7% to ₹2 crore, operating on a thin margin of 1.1%.

Summary: Overall profitability and margins are strengthening, driven by a strategic shift in revenue towards the highly profitable Consultancy and Export segments.

• Order Book Source: The company operates in both nominated and competitive environments.

• As of December 31, 2025, 61% of the order book was secured through competitive bidding.

• The remaining 39% was secured through nomination.

Summary: A majority of the company's order book comes from winning competitive bids, demonstrating its ability to successfully compete in the open market.

• The following forward-looking risks that could impact business, development, and economic performance have been identified:

• Competitive pressures.

• Legislative and regulatory developments.

• Global, macroeconomic, and political trends.

• Fluctuations in currency exchange rates and general financial market conditions.

• Delays or inability to obtain approvals from authorities.

• Technical developments.

• Litigation.

• Adverse publicity and news coverage.

Summary: The company faces standard industry and macroeconomic risks that could affect its operational and financial performance.

• Shareholder Returns: The Board of Directors recommended an Interim Dividend of ₹1.90 per share, reflecting a high dividend payout ratio of 95.6%.

• Business Development: The company highlights its robust project acquisition capability, noting it secured over ₹1100 crore in new orders during the quarter, framing itself as a "One order a Day company."

• Human Capital: The senior management team possesses an average experience of over 30 years. Approximately 80% of the workforce consists of skilled engineers and professionals, providing a strong technical foundation for the business.

Summary: The company is focused on delivering shareholder value through high dividend payouts while maintaining a strong business development pipeline and a deeply experienced team.