The shares of an PSU company, which specializes in multidisciplinary engineering and consultancy services, focusing on transport infrastructure and related technologies like railways, urban transport, and highways, are gaining attention. In this article, we will explore whether Rites Consulting Giant Or a Mini Infra player.
With a market capitalization of Rs. 11,882.93 crores on Friday, the shares of RITES Limited jumped upto 4.6 percent, making a high of Rs. 259.30 per share compared to its previous closing price of Rs. 247.80 per share.
RITES Limited, a Navratna and Schedule ‘A’ Central Public Sector Enterprise under the Ministry of Railways, incorporated on April 26, 1974, is a multidisciplinary engineering and consultancy organization, providing a comprehensive range of services from concept to commissioning in all facets of transport infrastructure and related technologies.
It is a leading player in the transport consultancy and engineering sector in India, providing a diverse range of services under one roof. RITES is uniquely placed in terms of diversification of services and geographical reach in various sectors such as railways, highways, metros, tunnels, bridges, urban engineering, sustainability & green mobility, airports, ports, ropeways, institutional buildings, inland waterways, etc.
The company, with its five-decade-long journey, has established itself as a preferred choice for clients in more than 55 countries across Asia, Africa, Latin America, and the Middle East regions. The company is the export arm of Indian Railways for providing rolling stock (including locomotives, coaches, trainsets, etc.).
Revenue Segmentation
In Q2FY26, consultancy revenue increased by 9.5 percent to Rs. 298 crore from Rs. 272 crore in Q2FY25. Lease revenue saw a strong growth of 21.7 percent, reaching Rs. 43 crore compared to Rs. 35 crore the previous year. Export revenue experienced an extraordinary surge of 2523.4 percent, rising sharply to Rs. 61 crore from just Rs. 2 crore in Q2FY25.
On the other hand, turnkey revenue declined significantly by 43.8 percent, falling to Rs. 113 crore from Rs. 201 crore. Other income showed a positive growth of 9.5 percent, increasing to Rs. 47 crore from Rs. 43 crore in the same period last year.
Orderbook Split
As of 30th September 2025, the total order book stands at Rs. 9,090 crore. Turnkey at Rs. 4,308 crore, followed by Consultancy with Rs. 2,928 crore. Exports contribute Rs. 1,541 crore, leases account for Rs. 194 crore, and REMC Ltd holds Rs. 120 crore.
The segment-wise order book split shows turnkey as the largest segment at 46 percent, consultancy at 34 percent, exports at 17 percent, leasing at 2 percent, and REMCL at 1 percent.
During Q2FY26, the company secured projects worth Rs. 851 crore across various segments. Consultancy contributed Rs. 310 crore, while turnkey projects with Rs. 313 crore. Export projects added Rs. 160 crore, and lease projects accounted for Rs. 69 crore. This mix highlights a balanced and diversified project portfolio across key business areas.
Financials & Others
The company’s revenue rose by 1.46 percent from Rs. 541 crores in September 2024 to Rs. 549 crores in September 2025. Meanwhile, Net profit rose from Rs. 82 crores to Rs. 109 crores in the same period.
The company is almost debt-free with a debt-to-equity ratio of 0, showing strong financial stability. It delivers solid returns, with a ROCE of 21.8 percent and a ROE of 14.7 percent, and consistently rewards shareholders with a high dividend payout of 93.4 percent.
Conclusion
Rites Ltd. is primarily an infrastructure powerhouse rather than a consulting giant. While its consultancy segment shows healthy growth, with a 9.5% revenue increase in Q2FY26, the company’s dominance lies in its turnkey infrastructure projects, which make up the bulk of its order book. With a substantial ₹ 4,308 crore order book in turnkey projects, Rites remains a major player in large-scale infrastructure development. Despite some short-term revenue fluctuations in turnkey, its robust order pipeline and market position in infrastructure solidify its role as an infra giant with an expanding consultancy arm.
Written by Sridhar J
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