RITES (RITES) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 results were flat, with a strong order book of INR 8,800 crores, including INR 3,500 crores added in the last two quarters of the previous FY.

• Over 150 new or extension orders were secured during the quarter, maintaining a pace of one order per day.

• Interim dividend of ₹1.30 per share recommended, with a 94% payout for Q1FY26.

• Board approved unaudited standalone and consolidated financial results for Q1 FY26 and declared an interim dividend of ₹1.30 per share.

• Received awards for excellence in railway design and innovation in rail electrification.

Financial highlights

• Consultancy revenue grew 7% year-over-year, driving an 8% increase in EBITDA.

• Consolidated operating revenue grew by 0.8% year-over-year to ₹508 crore; total revenue up 0.7% to ₹512 crore.

• Consolidated PAT rose 2.8% year-over-year; EBITDA and PBT up 7.6% and 3.8% respectively.

• Margins remained stable, with EBITDA margin at 23.8% and PAT margin at 14.0% for Q1FY26.

• Cash balance stands at INR 800 crores, with client funds at INR 2,400 crores.

Outlook and guidance

• Revenue is expected to surpass last year's performance, with sequential uptick anticipated as execution accelerates.

• Annual EBITDA margin guidance is around 20%, and PAT margin around 15%.

• Export of locomotives to Mozambique commenced in Q2FY26.

• Consultancy, export, and leasing are targeted to contribute at least 60% of revenue mix, with turnkey at about 30%.

• Continued focus on securing export orders every quarter.