RITES Ltd

RITES Ltd. announced its Q2FY27 standalone and consolidated financial results. Consolidated operating revenue was ₹557 crore, with EBITDA at ₹123 crore (22.1% margin) and PAT at ₹97 crore (16.7% margin). Total consolidated revenue stood at ₹583 crore. For H1FY27, consolidated operating revenue was ₹1089 crore. The company declared a second interim dividend of ₹1.90 per share, with a payout ratio of 97%. The order book stands at ₹9388 crore, with over 130 orders worth ₹446+ crore secured in Q2. While sequential growth was observed, the Chairman noted that certain planned revenue milestones slid marginally into Q3, with a focus on achieving yearly targets.

RITES Ltd announced the approval of its Un-audited Standalone and Consolidated Financial Results for the quarter and half-year ended September 30, 2026. The company also declared its second interim dividend for FY 2026-27 at ₹1.90 per share, with a record date of November 11, 2026. Additionally, RITES noted that its proposed Joint Venture with NICC Infrastructure Construction LLC is not materializing, following up on a previous intimation.

RITES' consolidated PAT fell 11.0% YoY to ₹97.06 Cr (from ₹109.10 Cr) on revenue of ₹556.83 Cr, up just 1.5% YoY and 4.6% QoQ. Sequentially PAT was essentially flat (-0.7% versus ₹97.78 Cr in Q1 FY27), but the YoY comparison is the one that matters here, and it shows a clear slowdown from the 32% PAT growth RITES posted in the year-ago quarter. Consolidated OPM (EBITDA/revenue) compressed to roughly 21.9% from 23.6% a year ago, and NPM to about 16.7% from 18.8% — margins are still above the company's own 20% EBITDA / 15% PAT internal red lines, but the trend is down, not up. The compression traces to business mix, not cost inflation in the core consultancy book: Employee Benefits Expense was nearly flat YoY (₹129.92 Cr vs ₹127.14 Cr), but Supplies & Services jumped 40.7% YoY to ₹260.96 Cr as the lower-margin Turnkey Construction Projects segment grew revenue 65.9% YoY to ₹187.39 Cr while contributing only ₹3.04 Cr of segment PBIT (a ~1.6% margin), against Consultancy-Domestic's ~39.7% PBIT margin on ₹298.13 Cr of revenue. The Export Sale segment, meanwhile, essentially disappeared — ₹0.48 Cr this quarter and just ₹1.51 Cr for H1 FY27, versus ₹60.42 Cr in Q2 FY26 — with the matching 'Purchases for Export' expense line also down sharply (₹4.74 Cr vs ₹29.79 Cr YoY), confirming the export trading business simply didn't execute this quarter. That export shortfall is the key miss against both management's own guidance and street expectations: the company had guided to ₹300+ Cr of export revenue in FY27 (~15% of total revenue) and double-digit FY27 revenue growth, but H1 FY27 revenue grew only 4.9% YoY (₹1,089.03 Cr vs ₹1,038.23 Cr) and export revenue is running at ~0.5% of that FY27 target through H1. Brokerages (Prabhudas Lilladher, Elara) had flagged Q2 FY27 specifically as the quarter the export vertical would ramp via the Bangladesh 200-coach order (~₹900 Cr) following prototype approval — that ramp is not visible in this quarter's billed revenue, leaving the FY27 export target dependent on a very compressed H2. No company press release accompanied this filing, so there is no separate management commentary to reconcile against; the notes to the results confirm no exceptional items. Alongside the results, the board declared a 2nd interim dividend of ₹1.90/share (record date November 11, 2026), and the quarter's corporate developments included an ₹38.3 Cr tax-appeal relief (October 4) and being named lowest bidder on a ₹400 Cr Sri Lanka Railways tender (November 2) — both post-quarter-close items that bear on near-term order-book and cash-flow outlook rather than this quarter's P&L.

RITES Ltd has emerged as the lowest bidder (L-1) in a tender floated by Sri Lanka Railways for the supply of Broad Gauge Diesel Multiple Unit (DMU) Train Sets. The estimated value of this bid is approximately ₹400 Crore (USD 41.45 Million). The order, if finalized after due process and scrutiny by Sri Lanka Railways, is expected to be executed within 12 months from the opening of the Letter of Credit (LC). This international contract is a significant development for RITES, showcasing its capabilities in the railway rolling stock sector.

RITES Ltd has responded to a stock exchange query regarding a significant movement in its share volume. The company stated that it has no pending announcements or information that could influence the price or volume behavior of its scrip. RITES confirmed that all necessary disclosures as per SEBI regulations have been made in a timely manner. The company attributes the recent volume fluctuations entirely to market-driven factors.

RITES Ltd has been assigned an ESG rating of 63 by CRISIL ESG Ratings & Analytics Limited. Additionally, CRISIL has provided a core ESG rating of 79. The company clarified that it did not engage CRISIL for these ratings, and they were independently prepared based on publicly available information. The ratings were communicated to the stock exchanges by CRISIL on October 8, 2026.

RITES Ltd has announced that its Board of Directors will convene on November 4, 2026, to review and approve the Unaudited Standalone and Consolidated Financial Results for the quarter and half-year ending September 30, 2026. Additionally, the board will consider the declaration of a second interim dividend for the Financial Year 2026-27, if any. In line with SEBI regulations on insider trading, the trading window for designated persons and their immediate relatives has been closed from October 1, 2026, and will reopen 48 hours after the board meeting concludes.

RITES Ltd. has announced the appointment of Dr. Sandeepa Malhotra (DIN: 11660579) as a Non-Official Director (Independent Director) on its Board. The appointment, approved by the Hon’ble President of India via the Ministry of Railways, is for a period of three years, effective immediately, or until further orders. Dr. Malhotra is an accomplished academician with 28 years of teaching and academic experience in MBA and Business Economics, holding a Ph.D. and a Master’s degree in Business Economics. She has taught at reputed institutions and has authored/presented numerous research papers. The company confirmed that she is not debarred from holding the office of director by any SEBI order and is not related to any other director of the company.

RITES Ltd has received a favorable order from the Hon'ble Deputy Commissioner of State Tax (Appeal-1), Ahmedabad, Gujarat, allowing its appeal against a demand order for FY 2019-20. The company was granted relief amounting to ₹38,30,49,704/- (₹38.30 Crore) in respect of tax, interest, and penalty. This order partially sets aside the demand raised by the State Tax Officer. The company had made a pre-deposit of ₹1,93,00,013/- (₹1.93 Crore) during the appeal process. Consequently, RITES Ltd has no further liability related to this specific demand.

RITES Ltd has responded to an email from the stock exchange regarding a significant movement in its share volume. The company stated that it has no pending information or announcements that could influence the price or volume behavior of its scrip. RITES confirmed that all required disclosures under SEBI regulations are made to the stock exchanges on a timely basis. The company attributes the recent movement in its equity share volume to purely market-driven factors.