RITES Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript RITES Ltd filed with BSE on 11 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
RITES reported year-on-year revenue growth of 9-10% and bottom-line growth of about 8% for Q1 FY27, which management attributed to the order book built up over the last fiscal year starting to generate revenue. Management said EBITDA margin held at 22% and PAT margin at about 17% on a consolidated basis, consistent with the prior quarter. The order book grew to INR 9,450 crore during the quarter, with export revenue recognition from the Bangladesh coach order expected to begin in Q2 with the first rake shipment.
Numbers mentioned
Revenue growth: 9-10% (Q1 FY27 YoY)
p. 2
“while the Q1 has been in YoY good growth of 9-10% and bottom line also about 8%”
Rahul Mithal, page 2 of the filed PDF · View the filing
Order book: INR 2,100 crores (as of 30th June)
p. 4
“We have an total RITES' order book, let me include both the export and consultancy (foreign), is INR 2,100 crores.”
Rahul Mithal, page 4 of the filed PDF · View the filing
Bangladesh export order value: INR 900 odd crores
p. 4
“Out of that, about INR 1,775 is the export of rolling stock and out of that, about INR 900 odd crores is the order from Bangladesh, which is about 200 coaches.”
Rahul Mithal, page 4 of the filed PDF · View the filing
Fresh orders this quarter: 128 orders totaling INR 670 crores (Q1 FY27)
p. 8
“this quarter also, we have got 128 orders totaling INR 670 crores.”
Rahul Mithal, page 8 of the filed PDF · View the filing
Total order book: INR 9,450 crore
p. 8
“We are now at INR 9,450 crore.”
Rahul Mithal, page 8 of the filed PDF · View the filing
South Africa locomotive order: 35 million for nine locomotives (July)
p. 9
“This quarter also, in July, we have got an order for about 35 million for nine locomotives to South Africa.”
Rahul Mithal, page 9 of the filed PDF · View the filing
EBITDA margin: 22% (Q1 FY27)
p. 10
“Even this quarter, we've been able to hold on to 22%.”
Rahul Mithal, page 10 of the filed PDF · View the filing
PAT margin: about 17% (Q1 FY27)
p. 10
“PAT margins, we've held on to about 17% sequentially also.”
Rahul Mithal, page 10 of the filed PDF · View the filing
Employee cost increase: about INR 10 odd crores (Q1 FY27 YoY)
p. 12
“if you see a YoY basis in Q1, there has been increase of about INR 10 odd crores in the employee cost.”
Rahul Mithal, page 12 of the filed PDF · View the filing
Employee strength increase: about 450 numbers (Q1 FY27 YoY)
p. 12
“there has been a net increase in our employee strength of about 450 numbers, which is a huge jump from about 2,675.”
Rahul Mithal, page 12 of the filed PDF · View the filing
REMCL profit: about INR 22 crores (Q1 FY27)
p. 14
“This quarter also, it gave a profit of about INR 22 crores.”
Rahul Mithal, page 14 of the filed PDF · View the filing
REMCL dividend payout ratio: about 91%
p. 14
“That's a good dividend payout ratio of about 91%.”
Rahul Mithal, page 14 of the filed PDF · View the filing
Turnkey share of order book: about 50%
p. 11
“today also out of INR 9,450, about INR 4,700 is Turnkey.”
Rahul Mithal, page 11 of the filed PDF · View the filing
Turnkey margins: 1.5-2%
p. 7
“they always remain in the range of about 1.5-2% margins.”
Rahul Mithal, page 7 of the filed PDF · View the filing
QA revenue: about INR 70 odd crores (Q1 FY27)
p. 13
“We are on track again. It's about in the same range of about INR 70 odd crores.”
Rahul Mithal, page 13 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Export revenue — INR 300 crores plus · FY27
stated firmly by Rahul Mithal
p. 6
“Our assessment is that this year, export, we should try and achieve at least INR 300 crores plus.”
Rahul Mithal, page 6 of the filed PDF · View the filing
Export share of total revenue — roughly 15% · FY27
stated as an aspiration by Rahul Mithal
p. 6
“We are aiming that this year, it should account for roughly about 15% odd of my total revenue.”
Rahul Mithal, page 6 of the filed PDF · View the filing
Bangladesh order completion — all 10 rakes delivered · early Q2 or Q3 of next FY
stated conditionally by Rahul Mithal
p. 5
“But definitely, yes, it will get completed in next FY, maybe somewhere the early Q2 or maybe Q3 of the next FY.”
Rahul Mithal, page 5 of the filed PDF · View the filing
Mozambique locomotive deliveries — beginning of deliveries · by end of this FY
stated conditionally by Rahul Mithal
p. 5
“we are trying that maybe by the end of this FY, we could aim for beginning of the deliveries.”
Rahul Mithal, page 5 of the filed PDF · View the filing
Order book target — INR 10,000 crore · this FY
stated firmly by Rahul Mithal
p. 8
“we are on track of reaching the INR 10,000 crore order book despite heavy execution aimed for this FY.”
Rahul Mithal, page 8 of the filed PDF · View the filing
Export order intake pace — one order a quarter
stated as an aspiration by Rahul Mithal
p. 10
“I'm sure that we are targeting to maintain at least the export orders of one order a quarter.”
Rahul Mithal, page 10 of the filed PDF · View the filing
EBITDA margin floor — not below 20%
stated firmly by Rahul Mithal
p. 10
“our red lines are not coming below the 20% EBITDA margin.”
Rahul Mithal, page 10 of the filed PDF · View the filing
PAT margin floor — 15%
stated firmly by Rahul Mithal
p. 10
“Our red lines of 20% EBITDA margins and 15% PAT margin on a consol basis, we will definitely strategically pushing on the execution of some higher margin orders out of the 700 plus order that we are executing.”
Rahul Mithal, page 10 of the filed PDF · View the filing
Employee cost increase — 8-10% · FY28
stated as an aspiration by Rahul Mithal
p. 13
“Not really 20%. I would put it more in the range of about 8-10%.”
Rahul Mithal, page 13 of the filed PDF · View the filing
Turnkey share of order book — not more than 50 odd percent
stated as an aspiration by Rahul Mithal
p. 13
“I don't think over a period of time, I see the Turnkey being more than 50 odd percent on an average basis of the total order book.”
Rahul Mithal, page 13 of the filed PDF · View the filing
QA revenue growth — double-digit growth · this FY
stated as an aspiration by Rahul Mithal
p. 14
“We will definitely surpass the previous year's overall at least by a double-digit growth.”
Rahul Mithal, page 14 of the filed PDF · View the filing
Revenue growth — double-digit growth
stated as an aspiration by Rahul Mithal
p. 16
“Definitely aiming that we have a double-digit growth on the revenue and have some incremental definitely growth in the quarter.”
Rahul Mithal, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management explained revenue is recognized when a full rake is shipped, and the first rake is being dispatched in the coming days after approval delays.
Answered by Rahul Mithal
Asked by Bipul Kumar: Why did Bangladesh export revenue recognition not occur in Q1?
p. 4
“Basically, being the first rake in terms of the approval of the final rake has taken a few days, and now the rake is in the final stages of being dispatched.”
Rahul Mithal, page 4 of the filed PDF · View the filing
Management gave the order book split between Bangladesh coaches and locomotives to other geographies.
Answered by Rahul Mithal
Asked by Vishal Periwal: What is the breakup of pending export orders from Bangladesh, Mozambique and others?
p. 4
“Broadly, if I put it, it's about 50% of the export order book is for these coaches to Bangladesh and the balance is for the locomotives.”
Rahul Mithal, page 4 of the filed PDF · View the filing
Management said Turnkey revenue is booked at full project value while fees are the same as consultancy work, making margins appear smaller due to a larger denominator.
Answered by Rahul Mithal
Asked by Lakshmi Narayanan G.K.: Why are Turnkey project margins low?
p. 8
“So that's the only difference. That's why being the denominator being bigger, the margins become smaller.”
Rahul Mithal, page 8 of the filed PDF · View the filing
Management cited competitive order pricing, travel costs and impending pay revision as pressures but reaffirmed margin floors.
Answered by Rahul Mithal
Asked by Harshit Kapadia: Have margins bottomed out or could they decline further?
p. 10
“There are broadly three elements, which are definitely contributing to the overall stress in the margin.”
Rahul Mithal, page 10 of the filed PDF · View the filing
Management said the increase would be in the range of 8-10%, not 20%.
Answered by Rahul Mithal
Asked by Harshit Kapadia: What increase in employee cost can be expected in FY28 due to pay revision?
p. 13
“Not really 20%. I would put it more in the range of about 8-10%.”
Rahul Mithal, page 13 of the filed PDF · View the filing
Management said there was no reason to expect a change given the low capex, low working capital, debt-free business model.
Answered by Rahul Mithal
Asked by Parimal Mithani: Will the dividend payout momentum be maintained over the next two to three years?
p. 15
“we can with the low CapEx and hardly any working capital requirement, debt free, we don't see any major shift in the dividend payout policy.”
Rahul Mithal, page 15 of the filed PDF · View the filing
Risks flagged
Competitive bidding pressure compressing margins on new orders
p. 9
“since about 70% plus are on competitive mode, as they generate revenue in the coming quarters, these have been taken definitely at a much tougher margin.”
Rahul Mithal, page 9 of the filed PDF · View the filing
Rising travel costs pressuring margins
p. 11
“There is a pressure on the travel costs, while we've got very strong guardrails put on to keep a check on it.”
Rahul Mithal, page 11 of the filed PDF · View the filing
Impending pay revision to be accounted for
p. 11
“The third element is that the impending pay revision has to be definitely accounted for somewhere down the line.”
Rahul Mithal, page 11 of the filed PDF · View the filing
Low margin contribution from Turnkey projects pulling down blended margins
p. 11
“It is a low margin contributor. It's in the range of about 1.5-2%.”
Rahul Mithal, page 11 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.