RITES (RITES) Q4 25/26 earnings summary

Executive summary

• Achieved double-digit growth in revenue and profit for FY26, with consolidated revenue up 9.7% and net profit up 7.7% year-over-year, in line with strategic roadmap and guidance.

• Q4FY26 revenue grew 27.7% YoY, though net profit declined 4.6% due to a high base from deferred fee realization in Q4FY25.

• Record order book of ₹9,416 crore as of March 31, 2026, with steady order inflow and strong export momentum.

• Board recommended a final dividend of ₹2.75 per share, with a 95.4% payout ratio and three interim dividends totaling ₹5.20 per share already paid for FY26.

• Growth was broad-based across consultancy, leasing, and exports, with all three streams contributing to top and bottom line improvements.

Financial highlights

• Q4FY26 consolidated operating revenue was ₹768 crore (+27.6% YoY); FY26 consolidated revenue reached ₹2,525 crore (+10.0% YoY).

• Export revenue in FY26 surged to ₹316.25 crore from ₹10.85 crore in FY25, driven by Mozambique locomotive order.

• Consultancy revenue for FY26 totaled ₹1,185 crore across 13 verticals, with QA business rebounding and diversifying its client base.

• REMCL segment revenue grew 16% to ₹163 crore, with profits up 19% and a dividend payout of ₹42 crore.

• Standalone EPS for FY26 was ₹8.3 (+5.4% YoY); consolidated EPS was ₹8.54.

Outlook and guidance

• Substantial growth expected in FY27, leveraging a young order book where over 50% is less than 18 months old.

• Revenue anticipated to reach all-time highs, though profit records may take 2–3 years to surpass due to lower margins from competitive orders.

• PAT margin guidance set at a minimum of 15% and EBITDA margin at 20%, with active monitoring to maintain these thresholds.

• Continued focus on securing export orders, with at least one export order every quarter and strategic partnerships such as an MoU with SAIL.

• Management does not perceive any impairment in the value of investment in IRSDC, which is under voluntary liquidation.