RITES targets Bangladesh coach dispatches from Q4 FY27 onward

RITES Limited expects Bangladesh coach dispatches to resume from the fourth quarter of financial year 2027 (Q4 FY27), targeting at least two further rakes across the remaining FY27 period, while aiming to have the first of five Mozambique locomotives ready in Q4 FY27. RITES recorded zero export booking in Q2 FY27 because export revenue is recognised on final dispatch.

When will RITES deliver more Bangladesh coaches?

RITES expects deliveries of subsequent Bangladesh coach rakes from Q4 FY27, with management targeting at least two rakes across Q3 and Q4 FY27. The first rake had been planned for Q2 FY27 but moved by about 10 to 12 days after final checks and third-party inspections, affecting the quarter's revenue and profit.

The first rake has been dispatched and was expected to enter service in Bangladesh shortly after the November 5, 2026 call. RITES said that completing the initial acceptance process should help both the company and Bangladesh Railway streamline later manufacturing, inspection and acceptance steps. The second rake was expected to near completion in Q3 FY27, but revenue will be booked only on its final dispatch.

The Bangladesh order covers 10 rakes. After the first shipment of 18 coaches, RITES said nine rakes comprising about 182 coaches remained. Management said the seven rakes following the FY27 deliveries must be completed contractually in FY28, and output should accelerate from the third and fourth rakes as the process becomes established.

What is RITES' Mozambique locomotive delivery schedule?

RITES is aiming to have the first Mozambique locomotive ready in Q4 FY27 and to complete all five locomotives by the first half of FY28 at the latest. Management put the ICVL Mozambique order value at about Rs 150 crore and said it was accelerating execution despite having more contractual time available.

The five-locomotive Mozambique contract and the Bangladesh coach programme are RITES' two principal rolling-stock export orders. The Q4 FY27 milestone applies to the first locomotive rather than the full order. Management said it aimed to finish the five units before the contractual deadline, but this remains an execution target rather than a completed delivery outcome.

RITES also has developmental orders to convert in-service diesel locomotives from broad gauge to Cape gauge and standard gauge. These are smaller batches, including two- and four-locomotive assignments, and require testing and approval of initial units before subsequent deliveries can progress. Two prototype locomotives were ready for shipment in the coming months, management said.

Those developmental African conversion orders cover about 20 locomotives across several geographies. RITES said delivery would be spread over time because the first units are prototypes, but management expects a steadier delivery flow next year if the locomotives reach their destinations and stabilise in service.

How could export dispatches change RITES' FY27 revenue mix?

Export dispatches are central to RITES' second-half FY27 revenue plan because the company recorded zero export booking in Q2 FY27 and recognises rolling-stock export revenue only when a complete set is finally dispatched. Management maintained its guidance for double-digit year-on-year growth in consolidated operating revenue for FY27.

Management said several revenue milestones moved by about 10 to 15 days into Q3 FY27, reducing both Q2 FY27 top-line and bottom-line results. The Bangladesh first-rake delay illustrates the accounting effect: physical completion activity can occur before revenue is booked, while the dispatch date determines when the export sale is recognised.

An analyst on the call cited revenue growth of about 5% in H1 FY27 and about 1.5% in Q2 FY27. Management said both exports and turnkey activity should increase in H2 FY27. In Q2 FY27, turnkey revenue increased by about Rs 70 crore year on year, while export revenue declined by about Rs 60 crore, reflecting the absence of export booking.

For H1 FY27, management said turnkey revenue was more than Rs 100 crore higher year on year. It described the turnkey order book as relatively young, with many orders worth about Rs 4,500 crore awarded 12 to 18 months earlier now moving into execution. RITES said export delivery should also support H2 FY27, although timing remains dependent on final dispatches.

What does the Sri Lanka opportunity add to RITES' export pipeline?

RITES had been declared the lowest bidder for a Sri Lanka rolling-stock order worth about Rs 400 crore, but it had not received a formal Letter of Award as of November 5, 2026. The proposed order comprises five power multiple-unit sets, each with seven coaches, making it a potential future delivery programme rather than a confirmed revenue order.

Management said the contractual delivery period would be 12 months from the opening of a letter of credit. RITES had begun preparatory planning because it viewed the schedule as tight, but the programme depends on receipt of the Letter of Award and completion of letter-of-credit formalities.

Management described the Bangladesh order as RITES' first export order in 50 years secured through a global competitive tender. It said the Mozambique contracts and the Sri Lanka lowest-bidder outcome were also globally competitive opportunities. This shifts the disclosed export pipeline toward contracts won through competition rather than nomination.

RITES also said a proposed joint venture with NICC was not materialising and was on hold as of the call. The export outlook disclosed on the call therefore rests on Bangladesh, Mozambique, the smaller African locomotive-conversion projects and the prospective Sri Lanka contract, rather than on an expected overseas order through that joint venture.

Conclusion

RITES' export revenue outlook for FY27 depends on dispatches rather than manufacturing progress alone. Bangladesh is expected to contribute at least two further rake deliveries from Q4 FY27, while Mozambique is planned to begin with one locomotive ready in Q4 FY27. These milestones follow a Q2 FY27 with no export booking, even as turnkey revenue grew year on year.

The next milestones are the final dispatch of the second Bangladesh rake, the Q4 FY27 readiness target for the first Mozambique locomotive, and the Letter of Award and letter-of-credit process for the Rs 400 crore Sri Lanka bid. Management's maintained double-digit FY27 consolidated operating-revenue guidance depends on export and turnkey execution accelerating in H2 FY27.