RITES FY26 results: exports revive, order book ₹9,416cr

FY26 close signals a shift after consolidation

RITES Limited ended FY26 with stronger headline numbers and a change in the quality of earnings. The transport infrastructure consultancy and engineering company reported consolidated revenue of ₹2,525 crore and profit after tax (PAT) of ₹454 crore for the full year. In Q4FY26, revenue stood at ₹799 crore and PAT at ₹139 crore. Beyond the growth itself, the company’s commentary pointed to operational momentum after a period of moderation in exports and pressure in execution-heavy segments. The year also marked a visible comeback in export revenues, which had been subdued for nearly two years.

FY26 financials: operating revenue, margins, and profitability

RITES’ consolidated operating revenue for FY26 rose to ₹2,415 crore from ₹2,196 crore in FY25. EBITDA increased 7.7% to ₹568 crore, with EBITDA margin at 23.5%. PAT rose 7.3% year-on-year to ₹454 crore, translating into a PAT margin of 18%. The company’s numbers underline that profitability held up even as the mix included lower-margin turnkey execution. Management attributed the year’s performance to disciplined execution across segments, with exports returning after a gap.

Q4FY26: sharper growth and strong quarterly mix

The March-quarter performance was stronger on year-on-year growth. Consolidated operating revenue in Q4FY26 surged 27.6% to ₹768 crore from ₹602 crore in Q4FY25. EBITDA in the quarter came in at ₹172 crore, with margin at 22.4%. PAT for Q4FY26 stood at ₹139 crore and margin at 17.4%. The quarter highlighted the company’s reliance on higher-margin, lower-capital intensity verticals such as consultancy and leasing, alongside a stronger contribution from exports.

Exports revive: Mozambique locomotive deliveries drive contribution

A key takeaway from the FY26 results was the revival of exports, which had remained subdued over the previous two years. RITES said FY26 growth was driven primarily by consultancy, leasing, and exports, aided significantly by delivery of all 10 cape gauge locomotives to CFM Mozambique. Chairman and Managing Director Rahul Mithal said the results reflected a focus on disciplined execution and the return of export earnings after about two years. The company’s export momentum was also reflected in additional disclosures around export order wins during FY26.

Segment snapshot: consultancy leads, turnkey margins remain thin

The segmental performance in Q4FY26 showed why the company is emphasising consultancy, leasing, and exports.

• Consultancy generated revenue of ₹334 crore with margins of 34.2%, making it the largest revenue stream in the quarter.
• Leasing revenue stood at ₹44 crore with margins of 37%, reinforcing the profitability of asset-light operations.
• Exports revenue during the quarter was ₹190 crore with margins of 19.1%.
• Turnkey revenue was ₹169 crore, but margins were just 2.4%.

This divergence matters because it suggests RITES is leaning more on long-standing technical expertise and international credibility, while still carrying a sizable turnkey book where margins are structurally lower.

Record order book: visibility improves into FY27

RITES reported an all-time high order book of ₹9,416 crore as of March 31, 2026. During Q4FY26 alone, the company secured more than 120 orders worth over ₹958 crore. Earlier disclosures in FY26 also indicated a record order book of ₹9,262 crore at the end of Q3FY26, with 143 new orders totaling ₹1,140 crore in Q3. The order pipeline is positioned across consultancy, exports, leasing, and turnkey.

Some forward-linked project indicators were also flagged. A Bangladesh coach order worth ₹900 crore is slated to begin execution in FY27, with the first rake targeted for early FY27 and full execution by FY29. The company also stated an internal focus on maintaining profitability thresholds, describing “red lines” of 20% EBITDA margin and 15% PAT margin.

Exports order pipeline and margin context

In Q3FY26, RITES secured two export orders worth ₹346 crore, taking the export order book to ₹1,708 crore. Disclosures also noted export orders reaching ₹350 crore in Q3 and an additional export order of about ₹180 crore secured in January 2026. Management commentary in FY26 described a rhythm of one export order every quarter in recent periods.

At the same time, export margins were described as tighter than historical levels, with margins stabilising around 12%-14% in a competitive global bidding environment, compared with earlier levels of about 25%. Even so, the company highlighted that working capital requirements for export orders are minimal and largely covered by advance payments, which supports cash flow discipline.

What the mix shift means for profitability and execution risk

The FY26 numbers show that higher-margin businesses are carrying a larger share of performance. Consultancy and leasing posted margins above 30% in Q4FY26, while exports also improved contribution with double-digit margins. Turnkey, however, remains the pressure point on profitability, and management has acknowledged that several newly awarded projects are still at early execution stages. Analyst commentary in the provided data also noted that turnkey accounts for 49% of the order book, making it a key swing factor for revenue growth as execution ramps.

The company’s own framing of recent years provides context. Mithal described FY24 as a year of business re-engineering, FY25 as consolidation, and FY26 as growth, while positioning FY27 as a potential year of “disruptive growth” across business streams. The feasibility of this shift, based on the stated data, depends on converting the young order book into revenue without diluting margins.

Key figures at a glance

Market impact: what investors will track next

For investors, FY26 reinforces three measurable signals from the disclosed data. First, profitability stayed resilient with consolidated EBITDA margin at 23.5% and PAT margin at 18% in FY26, supported by the mix of consultancy, leasing, and exports. Second, order book visibility improved with the ₹9,416 crore backlog and strong quarterly inflows, which typically supports revenue predictability. Third, the export revival reduces the reliance on domestic execution-heavy work, though exports are now being won at tighter margins due to global competitive bidding.

A key watchpoint remains the conversion of turnkey orders into revenue. With turnkey representing a large portion of the backlog and carrying low segment margins, execution discipline and project phasing will influence blended margins. Management has indicated expectations of stronger growth as execution ramps, including from Q4FY26 onwards in the turnkey segment.

Conclusion

RITES’ FY26 performance combined revenue growth, stable margins, an exports revival, and a record order book of ₹9,416 crore. The segment mix in Q4FY26 highlighted the strength of consultancy and leasing, while also underscoring thin margins in turnkey execution. Management has positioned FY27 as a year of “disruptive growth,” with upcoming execution triggers including export momentum and the start of the ₹900 crore Bangladesh coach order in FY27.