Synopsis: RITES Limited continued to see steady business momentum in FY26, supported by strong execution, rising exports, healthy order inflows, and a record order book that improves future growth visibility.
The shares of this small-cap company majorly engaged in the business of transport consultancy, with exporting rolling stock overseas, and many more, were in focus after the company hit a record order book of Rs. 9,416 Crores.
With the market capitalization of Rs. 9,809 Crores, the shares of Rites Ltd were trading at around Rs. 204 per share which is 35 percent discount from its 52 weeks high of Rs. 316 per share and is trading at a P/E of 23.9 where as industry P/E stands at 17.6.
Q4 FY26 results and dividend update
Year on Year analysis: Revenue from operations has increased from Rs. 602 Crores to Rs. 768 Crores, up 27.5 percent. Operating profit has decreased from Rs. 186 Crores to Rs. 168 Crores, down 9.6 percent and net profit has decreased from Rs. 141 Crores to Rs. 139 Crores, down 1.41 percent.
Quarter on Quarter analysis: Revenue from operations has increased from Rs. 609 Crores to Rs. 768 Crores, up 26 percent. Operating profit has increased from Rs. 142 Crores to Rs. 168 Crores, up 18 percent and net profit has increased from Rs. 115 Crores to Rs. 139 Crores, up 21 percent. The company has announced a dividend of 27.5 percent, translating to Rs. 2.75 per equity share with a face value of Rs. 10 each.
Strong Revenue Growth Supported by Better Execution
RITES reported a strong performance during Q4FY26, mainly driven by improved execution across its core businesses. Consolidated revenue increased by 27.7 percent YoY to Rs. 799 crore, while FY26 consolidated revenue rose nearly 10 percent to Rs. 2,525 crore. The company highlighted that growth came from almost all major segments except turnkey operations. Consultancy, leasing, and exports contributed positively during the period. The management also mentioned that better utilization and faster project execution helped improve operational performance across businesses.
Exports Emerging as a Key Growth Area
One of the biggest positives for RITES during FY26 was the sharp improvement in exports. The company completed the export supply of 10 locomotives to Mozambique during the year, while six locomotives were supplied in Q4FY26 alone. Export revenue saw a major jump compared to last year, showing that RITES is gradually building a stronger international presence. The company also continued its trend of securing at least one export order every quarter, which reflects improving global opportunities in railway infrastructure and locomotive supply.
Record Order Book Gives Future Visibility
RITES ended FY26 with its highest-ever order book of Rs. 9,416 crore. During Q4FY26, the company secured over 120 projects and contract extensions worth around Rs. 958 crore. The order book remains diversified across consultancy, turnkey, exports, leasing, and REMC businesses. Major project wins came from railways, infrastructure projects, locomotive supply, and maintenance contracts. This strong order pipeline provides good revenue visibility for the coming years and supports the company’s long-term growth outlook.
Order book mix:
Out of total order book of Rs. 9,416 crore, the mix is fairly diversified, with consultancy at Rs. 2,754 crore, exports at Rs. 1,755 crore, leasing at Rs. 206 crore, turnkey at Rs. 4,581 crore, and REMC contributing Rs. 120 crore. During Q4FY26, the company secured Rs. 958 crore worth of projects and extensions, led by consultancy at Rs. 393 crore, turnkey at Rs. 293 crore, exports at Rs. 185 crore, and leasing at Rs. 87 crore.
The order intake is also balanced between nomination (37 percent ) and competitive bidding (63 percent ), while the overall order book composition shows a strong tilt towards turnkey at 49 percent , followed by consultancy at 29 percent , exports at 19 percent , leasing at 2 percent , and a small REMC contribution of 1 percent , indicating a diversified but infrastructure-heavy pipeline for future execution.
Experienced Workforce Supporting Growth
The company highlighted its experienced employee base as a key strength. More than 80 percent of employees are skilled engineers and professionals, while senior management has over 30 years of average experience. RITES also maintained a low attrition rate of 2.76 percent , which supports continuity in project execution and operational efficiency.
Conclusion:
RITES Limited ended the year with a steady operational performance supported by consistent execution across core segments. Growth was driven by improving project delivery and a clear rise in international business activity. The company’s business mix continues to stay balanced, with consultancy and exports playing a stronger role. A healthy pipeline of projects and strong order visibility support future stability. Overall, the outlook remains steady, backed by execution strength and diversified opportunities ahead.
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