RITES September-quarter profit falls 7.7% to Rs 94.35 crore

RITES Limited reported standalone profit after tax of Rs 94.35 crore for the quarter ended September 30, 2026, down 7.7% from Rs 102.22 crore a year earlier, as export-sale revenue dropped to Rs 0.48 crore from Rs 60.42 crore and supplies-and-services expense rose to Rs 259.92 crore.

Why did RITES profit fall in the September quarter?

RITES’ profit fell because higher operating revenue was outweighed by a sharp reduction in export sales, increased supplies-and-services costs and lower other income. Profit before tax declined to Rs 120.65 crore from Rs 131.85 crore in the quarter ended September 30, 2025, while basic and diluted earnings per share declined to Rs 1.96 from Rs 2.13.

Revenue from operations increased 1.6% year on year to Rs 521.82 crore from Rs 513.79 crore, but other income fell to Rs 42.94 crore from Rs 47.31 crore. Consequently, total income rose only to Rs 564.76 crore from Rs 561.10 crore, while total expenses increased to Rs 444.11 crore from Rs 429.25 crore.

Supplies and services was the largest cost movement, increasing by Rs 75.50 crore to Rs 259.92 crore. Employee-benefit expense rose to Rs 129.89 crore from Rs 126.83 crore and finance cost rose to Rs 0.97 crore from Rs 0.76 crore, partly offset by other expenses declining to Rs 25.69 crore from Rs 42.02 crore.

Which RITES segments changed most year on year?

RITES’ export-sale segment recorded the largest change, with revenue falling to Rs 0.48 crore from Rs 60.42 crore and its segment result turning to a Rs 1.93 crore loss from a Rs 6.28 crore profit. The filing does not provide an operational explanation for the decline in export sales.

Turnkey construction projects supplied the largest revenue offset, rising by Rs 74.42 crore to Rs 187.39 crore from Rs 112.97 crore. Its profit before interest and tax rose to Rs 3.04 crore from Rs 1.25 crore, while domestic leasing revenue increased to Rs 49.05 crore from Rs 42.84 crore and segment profit rose to Rs 19.37 crore from Rs 12.78 crore.

Domestic consultancy remained RITES’ largest revenue segment at Rs 269.49 crore, but was lower than Rs 283.57 crore a year earlier. Its segment result fell to Rs 91.51 crore from Rs 95.46 crore, whereas consultancy abroad revenue increased to Rs 15.41 crore from Rs 13.99 crore and its segment result was Rs 2.58 crore versus Rs 2.59 crore.

For the half year ended September 30, 2026, operating revenue rose to Rs 1,019.81 crore from Rs 969.48 crore, while profit after tax declined to Rs 166.15 crore from Rs 168.87 crore. Half-year turnkey construction revenue rose to Rs 363.79 crore from Rs 261.37 crore, but export-sale revenue fell to Rs 1.51 crore from Rs 63.77 crore.

How did RITES perform compared with the June quarter?

RITES’ September-quarter profit improved sequentially, with profit after tax rising to Rs 94.35 crore from Rs 71.80 crore in the quarter ended June 30, 2026. Revenue from operations increased to Rs 521.82 crore from Rs 497.99 crore, and profit before tax increased to Rs 120.65 crore from Rs 97.13 crore.

Domestic consultancy revenue increased by Rs 13.66 crore sequentially to Rs 269.49 crore, while turnkey construction revenue rose by Rs 10.99 crore to Rs 187.39 crore. Domestic leasing increased marginally to Rs 49.05 crore from Rs 48.73 crore, while export-sale revenue declined to Rs 0.48 crore from Rs 1.03 crore.

Other income increased to Rs 42.94 crore from Rs 26.76 crore in the preceding quarter, while supplies and services rose to Rs 259.92 crore from Rs 245.55 crore. Purchases for export declined to Rs 4.74 crore from Rs 28.27 crore, and the September quarter included a Rs 4.44 crore reduction in inventories compared with a Rs 28.27 crore reduction in June.

Segment profit before interest and tax totalled Rs 114.57 crore in the September quarter, compared with Rs 106.73 crore in June. Domestic consultancy contributed Rs 91.51 crore, domestic leasing Rs 19.37 crore and turnkey construction Rs 3.04 crore, while export sales recorded the Rs 1.93 crore loss.

What do RITES’ balance sheet and cash flows show?

RITES had total assets of Rs 5,614.09 crore at September 30, 2026, compared with Rs 5,688.63 crore at March 31, 2026. Trade receivables declined to Rs 853.99 crore from Rs 922.73 crore, while inventories increased to Rs 67.91 crore from Rs 34.60 crore.

Total equity declined to Rs 2,534.95 crore from Rs 2,564.45 crore over the six months. Equity share capital was unchanged at Rs 480.60 crore, while other equity declined to Rs 2,054.35 crore from Rs 2,083.85 crore; trade payables to micro and small enterprises fell to Rs 38.40 crore from Rs 117.75 crore.

Net cash from operating activities was Rs 232.12 crore for the half year, compared with Rs 0.53 crore in the corresponding prior-year period. The change included a Rs 73.10 crore reduction in trade receivables, against a Rs 154.44 crore increase a year earlier, while net investing cash flow was an outflow of Rs 52.07 crore compared with an inflow of Rs 277.93 crore.

Cash and cash equivalents, including client funds, closed at Rs 460.42 crore on September 30, 2026, compared with Rs 549.03 crore on March 31, 2026. Client funds represented Rs 394.17 crore of the closing cash balance, and financing activities used Rs 201.91 crore, including Rs 199.45 crore of dividend paid.

What corporate matters did RITES disclose?

RITES’ board declared a second interim dividend of Rs 1.90 per share for financial year 2026-27 and approved the standalone results on November 4, 2026. The filing states that earnings per share of Rs 1.96 for the September quarter is not annualised.

Indian Railway Stations Development Corporation Limited, a joint venture in which RITES has an investment of Rs 48 crore, remains under voluntary liquidation. At September 30, 2026, its net worth was Rs 251.62 crore and RITES’ 24% share was Rs 60.39 crore; RITES received Rs 47.04 crore from the liquidator on July 30, 2026, recorded as an advance pending final settlement.

The board approved the initiation of the closure of Botswana-based wholly owned subsidiary RITES (Afrika) Proprietary Limited on September 25, 2026, subject to applicable approvals and formalities. RITES’ investment in the subsidiary was Rs 1 lakh at September 30, 2026, while the subsidiary’s net worth was Rs 1.79 crore and its financial statements were prepared on a liquidation basis.

The independent auditor issued a review conclusion, rather than an audit opinion, and said nothing had come to its attention indicating a material misstatement in the standalone results. The auditor also noted that the number of independent directors was less than half of RITES’ total board strength, as required under the cited listing regulation.

Conclusion

RITES delivered a 1.6% increase in September-quarter operating revenue to Rs 521.82 crore, supported by turnkey construction and domestic leasing, but standalone profit after tax fell 7.7% to Rs 94.35 crore. Export-sale revenue fell by Rs 59.94 crore year on year, while supplies and services increased by Rs 75.50 crore.

The disclosed matters to watch are the final settlement of Indian Railway Stations Development Corporation Limited’s liquidation following the Rs 47.04 crore interim receipt, and the planned closure of RITES (Afrika) Proprietary Limited after statutory and other approvals. RITES has also declared a Rs 1.90-per-share second interim dividend for financial year 2026-27.