RITES Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript RITES Ltd filed with BSE on 26 May 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 that FY26 export income crossed INR 300 crore for the first time in nearly two years, and the company ended the year with a record order book of INR 9,416 crore as of 31st March despite executing over INR 750 crore in Q4 alone. Management said consultancy revenue grew 6% YoY with quality assurance revenue up 16%, while turnkey revenue remained about INR 200 crore lower than the prior year. Management also detailed REMCL's performance, with revenue up 16% and profit up 19% to about INR 90 crore.
Numbers mentioned
Order book: INR 9,416 crore (as of 31st March 2026)
p. 3
“despite the high execution in Q4 of about INR 750+ crore, we ended with the highest-ever order book on 31st March of INR 9,416 crore”
Rahul Mithal, page 3 of the filed PDF · View the filing
Export income: about INR 300 crore (FY26)
p. 3
“we broke the first gap in our export income, about INR 300 crore after a gap of nearly two years”
Rahul Mithal, page 3 of the filed PDF · View the filing
Consultancy revenue growth: 6% (FY26 YoY)
p. 8
“the overall consultancy YoY has seen a growth of 6%”
Rahul Mithal, page 8 of the filed PDF · View the filing
Quality assurance business growth: 16% (FY26)
p. 8
“there has been a 16% increase in our QA business within this overall consultancy”
Rahul Mithal, page 8 of the filed PDF · View the filing
Total consultancy revenue: INR 1,185 crore (FY26)
p. 9
“consultancy revenue of total INR 1,185 crore comes from 13 different verticals”
Rahul Mithal, page 9 of the filed PDF · View the filing
REMCL revenue growth: 16% (FY26)
p. 12
“REMC Ltd, as you correctly said, has grown by 16%, and the profits have grown by 19%”
Rahul Mithal, page 12 of the filed PDF · View the filing
REMCL revenue: INR 163 crore (FY26)
p. 12
“it's about INR 163 crore, the total revenue, and profit have been INR 90 crore”
Rahul Mithal, page 12 of the filed PDF · View the filing
REMCL profit: INR 90 crore (FY26)
p. 12
“it's about INR 163 crore, the total revenue, and profit have been INR 90 crore”
Rahul Mithal, page 12 of the filed PDF · View the filing
REMCL dividend to RITES: about INR 42 crore (FY26)
p. 12
“it's given a substantial dividend to us of about INR 42 crore”
Rahul Mithal, page 12 of the filed PDF · View the filing
Turnkey order book: INR 4,580 crore (as of FY26 end)
p. 14
“the order book of INR 4,580 crore of turnkey, substantial portion of it is at the now the young stage”
Rahul Mithal, page 14 of the filed PDF · View the filing
Export order book balance: INR 1,750 crore
p. 9
“with this execution of the Mozambique order, with the INR 1750 crore export order balance, one of the key elements of this is the 200 coaches of Bangladesh”
Rahul Mithal, page 9 of the filed PDF · View the filing
All-time high consolidated net profit: INR 571 crore
p. 11
“The all-time high profit for the consolidated profit, all-time high has been INR 571 crore”
Rahul Mithal, page 11 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.
PAT margin — 15%
stated firmly by Rahul Mithal
p. 5
“the red line of PAT margins 15% and EBITDA margins of 20%, that in no condition will we allow that to be breached by suitably monitoring the high-margin orders”
Rahul Mithal, page 5 of the filed PDF · View the filing
EBITDA margin — 20%
stated firmly by Rahul Mithal
p. 5
“the red line of PAT margins 15% and EBITDA margins of 20%, that in no condition will we allow that to be breached by suitably monitoring the high-margin orders”
Rahul Mithal, page 5 of the filed PDF · View the filing
Revenue — all-time high revenue · FY27
stated as an aspiration by Rahul Mithal
p. 11
“we will aspire for breaking the record for an all-time high revenue in this FY”
Rahul Mithal, page 11 of the filed PDF · View the filing
Net profit — FY27
stated firmly by Rahul Mithal
p. 11
“Profits will grow. To give an exact number is too premature, but profits will grow”
Rahul Mithal, page 11 of the filed PDF · View the filing
Net profit records — all-time high profit · next two to three years
stated as an aspiration by Rahul Mithal
p. 11
“That may take a subsequent, at least minimum two to three years to break those records because these revenue will have to grow substantially much higher with these lower margins to break the profit records also”
Rahul Mithal, page 11 of the filed PDF · View the filing
Export execution — much higher than INR 300 crore · FY27
stated conditionally by Rahul Mithal
p. 10
“But this is for sure, it will be much higher than INR 300 crore”
Rahul Mithal, page 10 of the filed PDF · View the filing
Bangladesh coach export first rake — first rake of 20 coaches · about two months
stated firmly by Rahul Mithal
p. 10
“So, the first rake should go in about two months’ time”
Rahul Mithal, page 10 of the filed PDF · View the filing
Turnkey revenue — turnkey revenue levels of last year · FY27
stated as an aspiration by Rahul Mithal
p. 14
“we foresee that we should be able to come back our projections based on the execution of each of these big projects to at least the turnkey revenue levels of last year”
Rahul Mithal, page 14 of the filed PDF · View the filing
REMCL international order — first international consultancy order · this FY
stated firmly by Rahul Mithal
p. 12
“we definitely, we are sure in this FY itself, we will get our first international consultancy order for REMC Ltd”
Rahul Mithal, page 12 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.
Margins on new competitive orders are lower, so overall margins will decline as these contribute more revenue, though management will hold to its stated PAT and EBITDA floors.
Answered by Rahul Mithal
Asked by Parimal Mithani: Will margins be maintained going ahead at the current year's level?
p. 5
“So, as these new orders generate more revenue in the mix of the total revenue, the margins will go down.”
Rahul Mithal, page 5 of the filed PDF · View the filing
RITES is a consultant, not a construction company; turnkey orders simply include the execution cost in the order value while the consultancy scope and fee remain the same, making margins appear lower.
Answered by Rahul Mithal
Asked by Lakshmi Narayanan GK: Why do turnkey construction projects show lower PAT margins?
p. 6
“our role remains the same. Certain clients like educational institutions, etc., primarily building projects, like to deal with a single window. So, they give us in the turnkey mode.”
Rahul Mithal, page 6 of the filed PDF · View the filing
Working capital requirement is minimal due to how consultancy orders are structured, so no significant impact is expected.
Answered by Rahul Mithal
Asked by Darshika Khemka: Will competitive projects dilute working capital position?
p. 6
“our working capital requirement is barely minimal. That's the way we structure all our orders of consultancy.”
Rahul Mithal, page 6 of the filed PDF · View the filing
The increase is due to logistics costs for movement of the Mozambique locomotives and warranty provisions tied to export order execution.
Answered by Rahul Mithal
Asked by Viraj Mithani: What is driving the rise in other expenses this quarter and year?
p. 8
“there are two major contributions to these other expenses. One is the, we have moved these 10 locomotives of Mozambique, right?”
Rahul Mithal, page 8 of the filed PDF · View the filing
QA revenue is intermingled across 13 verticals and cannot be separated cleanly, but QA has recovered to FY24 levels with a shift toward more non-Indian Railways business.
Answered by Rahul Mithal
Asked by Harshit Kapadia: Can you break down consultancy revenue between quality assurance and other consultancy?
p. 9
“It has different elements. It gets interspersed in the various consultancy verticals. So, it's very difficult to give a separate head-wise breakup”
Rahul Mithal, page 9 of the filed PDF · View the filing
The Bangladesh 200-coach order is on track, with the first rake of 20 coaches expected in about two months and production ramping up thereafter.
Answered by Rahul Mithal
Asked by Vishal Periwal: How will the pending export order book, including Bangladesh coaches, be executed?
p. 9
“The prototypes have been approved. The final production has started. They are in the finishing stage.”
Rahul Mithal, page 9 of the filed PDF · View the filing
Management is targeting all-time high revenue this year but said profit records will take two to three more years to break due to a lower-margin mix from turnkey growth.
Answered by Rahul Mithal
Asked by Viraj Mithani: What is the earnings trajectory expected given the young order book executing over the coming years?
p. 11
“we will aspire for breaking the record for an all-time high revenue in this FY, the profits, while they're aiming to have a growth, but will not be able to break the all-time high records of profit”
Rahul Mithal, page 11 of the filed PDF · View the filing
REMCL's power purchase growth will track IR traffic growth, but the company is diversifying into new consultancy orders in renewable energy and pursuing international orders.
Answered by Rahul Mithal
Asked by Parimal Mithani: How does management see the REMCL business evolving given reduced diesel consumption trends?
p. 12
“REMC Ltd getting revenue from these two new streams of revenue, which they have already started getting orders”
Rahul Mithal, page 12 of the filed PDF · View the filing
Management said it does not see any major impact on fresh orders or execution progress, citing continued order inflow across sectors.
Answered by Rahul Mithal
Asked by Harshit Kapadia: Could a government CapEx slowdown delay railway or infrastructure spending and affect order execution?
p. 13
“I don't see any major impact on our consultancy, whether it's fresh orders or for the progress of the construction, so that our fee as a consultant gets the requisite fee from various milestones.”
Rahul Mithal, page 13 of the filed PDF · View the filing
As the young turnkey order book matures into its second year of execution, revenue should start ramping up and approach last year's levels.
Answered by Rahul Mithal
Asked by Harshit Kapadia: When will turnkey revenue return to last year's levels?
p. 14
“the turnkey revenue is lesser by about INR 200 crore. And the order book of INR 4,580 crore of turnkey, substantial portion of it is at the now the young stage”
Rahul Mithal, page 14 of the filed PDF · View the filing
Risks flagged
Higher other expenses from logistics and warranty provisions tied to export order execution
p. 8
“we have moved these 10 locomotives of Mozambique, right? And especially if you see six in the last quarter. So, the logistics for this movement is also an important.”
Rahul Mithal, page 8 of the filed PDF · View the filing
Travel costs are a watch item for margins given the large number of live consultancy projects
p. 6
“We just have to keep a watch on the some of the costs like travel costs, etc., because being a consultants and, as I said, 700+ live project, we have travel costs is an important cost”
Rahul Mithal, page 6 of the filed PDF · View the filing
Lower margins from a growing mix of competitive and turnkey orders as they generate more revenue
p. 5
“as these new orders generate more revenue in the mix of the total revenue, the margins will go down”
Rahul Mithal, page 5 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.