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Industrials · Engineering & Construction
₹3,871.70 last close on 30 Oct 2026 +0.90%
Research updated
Rites Ltd.
NSE: RITESIndustrialsEngineering & Construction
- Last close
- ₹188.28
- Day change
- −₹6.53 (−3.35%)vs
- Market cap
- ₹10,083 crIndian rupees
- Research updated
- 1 report
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About Rites
Rites Ltd. is an engineering consultancy company that provides a gamut of services primarily focused on transport infrastructure. It is a government-owned enterprise under the Ministry of Railways, which affirms its prominence in the railway sector. Rites Ltd. specializes in project management, transport consultancy, and turnkey construction projects, demonstrating substantial expertise in railways, highways, ports, inland waterways, airports, and urban planning. The company's services extend to overseas projects, underlining its international market footprint. As a strategic partner for infrastructure development, Rites Ltd. plays a crucial role in planning and executing modernization and expansion initiatives, thereby contributing significantly to the enhancement of transport networks. The firm is pivotal to the Indian government's infrastructure growth agenda, aligning with national objectives to boost connectivity and mobility. With its extensive track record and technical prowess, Rites Ltd. sustains a central position in both national and global engineering consultancy landscapes. It embodies a critical interface between policymaking and practical infrastructure development, impacting various sectors, from urban development to logistics.
- Sector
- Industrials
- Industry
- Engineering & Construction
- Listing
- NSE: RITES
- Next results
- Chief executive
- Mr. Rahul Mithal
- Employees
- 1,765
- Headquarters
- Gurugram, India
- ISIN
- INE320J01015
- Website
- rites.com
Public research · Report of
Business model & financial foundation
RITES (NSE: RITES), Transport infrastructure consultancy, engineering, rolling-stock exports and leasing (PSU): revenue of ₹2,415 crore in FY26 (+8.9% on FY25), an EBITDA margin of 22.9% and net profit of ₹410.3 crore.
- Revenue, FY26 (₹ crore)
- 2,415
- consolidated
- Revenue growth, FY26
- +8.9%
- on FY25
- EBITDA margin, FY26
- 22.9%
- EBITDA (revenue less cogs, employee, other expenses) / revenue
- Net profit, FY26 (₹ crore)
- 410.3
- to owners
- Return on equity, FY26
- 14.8%
- on average equity
- Market capitalisation (₹ crore)
- 9,849
- at the close of 17 Oct 2026
Company profile
RITES is a Navratna PSU under the Ministry of Railways providing transport infrastructure consultancy (design, project management, quality assurance inspection), turnkey project execution, rolling-stock exports (locomotives and coaches to Africa and South Asia) and locomotive leasing. Consultancy produces about three-quarters of segment profit; turnkey is half the order book at 1.5-2% margin. The company is debt-free, holds about INR 2,800 crore of cash and investments, and pays out over 90% of profit as dividends.
| Item | Value |
|---|---|
| Legal name | RITES Limited (formerly Rail India Technical and Economic Service Limited) |
| Exchange and ticker | NSE: RITES; BSE: 541556 |
| ISIN | INE320J01015 |
| Sector | Industrials |
| Industry | Transport infrastructure consultancy, engineering, rolling-stock exports and leasing (PSU) |
| Headquarters | Gurugram, India |
| Fiscal year end | March |
| Reporting basis and unit | consolidated, in ₹ crore |
| Auditor | S R Goyal & Co., Chartered Accountants (C&AG-appointed statutory auditor) |
| Market capitalisation | ₹9,849 crore (17 Oct 2026) |
| Shares outstanding | 48.06 crore (FY26) |
| Price | ₹209.8 (close, 17 Oct 2026) |
| 52-week range | ₹175.0 - ₹259.7 (to 17 Oct 2026) |
| Website | https://www.rites.com |
Corporate structure and shareholding
Parent: President of India acting through the Ministry of Railways (promoter, ~72.2%).
| Entity | Holding | Business |
|---|---|---|
| REMC Limited | 51% | Railway energy management: power procurement consultancy and renewable/wind generation for Indian Railways (49% held by Indian Railways) |
| RITES (Afrika) (Pty) Ltd, Botswana | 100% | Overseas project support vehicle in Africa; immaterial |
| SAIL-RITES Bengal Wagon Industry Pvt Ltd (JV) | 50% | Wagon manufacturing JV with SAIL, equity-accounted |
| Indian Railway Stations Development Corporation Ltd (JV) | 24% | Station redevelopment JV; accounts prepared on liquidation basis |
MMG Metro Management Group (Israel) associate fully provided and struck off on 11 Apr 2026 (auditor emphasis, FY26 AR).
| Shareholding (% of shares) | Q3FY26 | Q4FY26 | Q1FY27 | Q2FY27 |
|---|---|---|---|---|
| Promoter | 72.20% | 72.20% | 72.20% | 72.20% |
| Promoter holding pledged | 0.00% | 0.00% | 0.00% | |
| Foreign institutions | 3.46% | 3.47% | 3.43% | 3.38% |
| Domestic institutions | 8.63% | 8.70% | 8.74% | 9.16% |
| of which mutual funds | 2.26% | 2.31% | 2.32% | |
| Retail | 15.70% | 15.62% | 15.63% | 15.24% |
The promoter holding pledged is a share of the promoter's own holding.
Business model
RITES is a Ministry of Railways Navratna transport consultancy, rolling-stock export integrator, locomotive lessor and turnkey executor. Consultancy provides the earnings; turnkey supplies turnover. REMC is 51% owned with 49% minority, so consolidated PAT is not shareholder PAT. Revenue recognition differs: consultancy/turnkey over time, export on dispatch of complete rakes, lease over the contract.
| Segment | revenue, FY26 (₹ crore) | Share | segment result, FY26 (₹ crore) | Share |
|---|---|---|---|---|
| Consultancy | 1,185 | 52.1% | 400.0 | 76.9% |
| Lease | 172.0 | 7.6% | 60.0 | 11.5% |
| Export | 316.0 | 13.9% | 50.0 | 9.6% |
| Turnkey | 602.0 | 26.5% | 10.0 | 1.9% |
Segments as the company reports them (standalone); each share is of the segments' sum.
| Peer | Why the dossier compares them |
|---|---|
| IRCON International (IRCON) | Railway PSU in rail EPC; same client (Indian Railways) and order-book driven model |
| Rail Vikas Nigam (RVNL) | Railway PSU executing rail projects; peer on rail capex exposure |
| Engineers India (ENGINERSIN) | PSU engineering consultancy plus turnkey; closest business-model analogue (consultancy + LSTK) |
| RailTel Corporation of India (RAILTEL) | Railway PSU, asset-light services with project (turnkey) revenue |
| NBCC (India) (NBCC) | PSU project management consultancy with low-margin PMC billing |
| Texmaco Rail & Engineering (TEXRAIL) | Rolling stock supplier; read-across for rolling-stock export and wagon cycle |
Financial databook
| Profit and loss (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue from operations | 2,634 | 2,598 | 2,453 | 2,218 | 2,415 |
| Cost of revenue (vendor classification) * | 1,231 | 1,185 | 1,148 | 1,055 | 1,144 |
| Other operating costs (vendor classification) * | 152.1 | 149.7 | 142.6 | 118.9 | 169.7 |
| EBITDA (vendor classification) * | 826.3 | 867.3 | 741.1 | 596.8 | 686.8 |
| EBIT * | 739.7 | 778.9 | 673.3 | 568.7 | 609.2 |
| Finance cost | 4.63 | 4.95 | 4.71 | 5.80 | 3.80 |
| Profit before tax | 735.1 | 773.9 | 670.4 | 565.0 | 607.8 |
| Total tax expense | 196.5 | 203.0 | 175.2 | 141.4 | 153.3 |
| Profit after tax (incl. NCI) | 538.6 | 571.0 | 495.2 | 423.7 | 454.4 |
| Diluted EPS (₹) | 10.75 | 11.28 | 9.48 | 8.01 | 8.54 |
| Exceptional items | 0.00 | 0.00 | 0.00 | ||
| Share of net profit of joint ventures | 5.47 | 12.2 | 14.0 | ||
| Profit attributable to non-controlling interests | 39.8 | 38.9 | 44.2 | ||
| Profit attributable to owners | 455.4 | 384.8 | 410.3 | ||
| Other income | 86.1 | 105.7 | 109.5 | ||
| Employee benefits expense | 492.4 | 503.4 | 521.7 | ||
| EBITDA (revenue less cogs, employee, other expenses) | 644.1 | 515.0 | 554.1 | ||
| Project, export and supply costs | 1,119 | ||||
| Travel and other expenses | 220.8 | ||||
| Depreciation and amortisation | 60.7 | 62.1 | 66.0 |
| Balance sheet (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Total equity * | 2,595 | 2,719 | 2,721 | 2,749 | 2,794 |
| Borrowings * | 27.6 | 5.42 | 8.00 | 9.03 | 6.59 |
| Cash and cash equivalents * | 808.7 | 1,048 | 660.9 | 688.1 | 557.0 |
| Trade receivables * | 848.7 | 989.6 | 956.5 | 785.7 | 995.3 |
| Inventories * | 118.8 | 30.9 | 4.93 | 78.1 | 34.6 |
| Trade payables * | 181.1 | 302.1 | 219.9 | 364.3 | 320.4 |
| Net property, plant and equipment * | 557.2 | 548.2 | 529.6 | 2.07 | 2.07 |
| Capital work in progress * | 58.1 | 98.0 | 173.7 | 81.3 | 92.6 |
| Total assets * | 5,822 | 5,972 | 5,661 | 6,119 | 5,926 |
| Cash flow (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Cash from operating activities | 509.4 | 559.8 | 431.6 | 637.1 | 327.5 |
| Free cash flow (vendor definition) * | 167.8 | 424.2 | 294.4 | 504.5 | 265.5 |
| Dividends paid (the provider's sign: an outflow is negative) * | -420.5 | -432.6 | -456.6 | -355.7 | -377.3 |
| Capex cash outflow | -141.6 | -135.7 | -137.2 | -132.6 | -62.0 |
| Other reported lines (₹ crore) | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Equity shares outstanding (crore) | 48.06 | 48.06 | 48.06 | 48.06 | 48.06 |
| Quarterly profit and loss (₹ crore) | Q2FY25 | Q3FY25 | Q4FY25 | Q1FY26 | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue from operations | 540.9 | 575.8 | 615.4 | 489.7 | 548.7 | 608.6 | 768.3 | 532.2 |
| Cost of revenue (vendor classification) * | 270.2 | 283.5 | 285.1 | 212.4 | 231.7 | 282.1 | 382.5 | 246.1 |
| Other operating costs (vendor classification) * | 43.4 | 49.8 | -24.0 | 36.9 | 60.3 | 53.2 | 80.5 | 35.8 |
| EBITDA (vendor classification) * | 128.6 | 161.0 | 210.7 | 138.5 | 164.2 | 171.7 | 203.2 | 148.0 |
| EBIT * | 113.7 | 145.1 | 193.9 | 123.0 | 147.1 | 154.8 | 186.7 | 131.4 |
| Finance cost | 2.42 | 1.04 | 1.29 | 1.42 | 0.76 | 0.72 | 0.90 | 0.83 |
| Profit before tax | 111.3 | 144.0 | 194.8 | 121.6 | 146.4 | 154.1 | 185.8 | 130.6 |
| Tax expense | 28.8 | 34.6 | 53.4 | 30.7 | 37.3 | 39.0 | 46.4 | 32.8 |
| Profit after tax (incl. NCI) | 82.5 | 109.4 | 141.3 | 90.9 | 109.1 | 115.1 | 139.4 | 97.8 |
| Diluted EPS (INR) | 1.52 | 2.08 | 2.76 | 1.67 | 2.04 | 2.12 | 2.70 | 1.81 |
| Other income | 21.3 | 38.4 | 23.5 | 22.0 | 30.3 | 26.3 | 31.0 | 28.5 |
| Direct costs (supplies & services, export purchases, inventory chg, generation) | 272.2 | 285.5 | 253.8 | 214.6 | 234.1 | 284.3 | 385.7 | 249.2 |
| Employee benefits expense | 121.0 | 125.1 | 126.9 | 126.4 | 127.1 | 131.2 | 137.0 | 135.7 |
| Other expenses incl. travel | 41.3 | 47.8 | 49.2 | 34.6 | 57.9 | 51.0 | 77.3 | 32.6 |
| EBITDA excl. other income and JV share | 106.3 | 117.3 | 185.6 | 114.2 | 129.6 | 142.2 | 168.2 | 114.7 |
| Depreciation & amortisation | 14.9 | 16.0 | 16.8 | 15.5 | 17.1 | 17.0 | 16.5 | 16.6 |
| Share of profit of JVs and associates | 1.10 | 5.26 | 3.70 | 2.37 | 4.29 | 3.27 | 4.04 | 4.82 |
| Profit attributable to non-controlling interests | 9.52 | 9.30 | 8.62 | 10.8 | 10.9 | 13.1 | 9.38 | 10.6 |
| Profit attributable to owners of RITES | 73.0 | 100.1 | 132.7 | 80.1 | 98.2 | 102.0 | 130.0 | 87.2 |
| Exceptional items | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Consolidated, as reported. Lines marked * are the market-data provider's figures; the rest are extracted from the company's filings or derived from them. n.d. not disclosed, n.r. not retrieved, n.a. not applicable.
Metrics dashboard
| Metric | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue growth | 41.6% | -1.3% | -5.6% | -9.6% | 8.9% |
| EBITDA margin | 26.3% | 23.2% | 22.9% | ||
| Net margin | 18.6% | 17.4% | 17.0% | ||
| Return on equity | 16.7% | 14.1% | 14.8% | ||
| Return on capital employed | 28.8% | 29.1% | 24.7% | 20.7% | 21.9% |
| Return on assets | 7.8% | 6.5% | 6.8% | ||
| Borrowings less cash (₹ crore) | -781.1 | -1,043 | -652.9 | -679.1 | -550.4 |
| Borrowings less cash / EBITDA | -1.01x | -1.32x | -0.99x | ||
| Interest cover | 159.8x | 157.3x | 142.9x | 98.0x | 160.3x |
| Asset turnover | 0.45x | 0.44x | 0.42x | 0.38x | 0.40x |
| Receivable days | 118 | 139 | 142 | 129 | 150 |
| Inventory days (on revenue) | 16 | 4 | 1 | 13 | 5 |
| Payable days (on revenue) | 25 | 42 | 33 | 60 | 48 |
| Cash conversion | 0.95x | 1.66x | 0.80x | ||
| Capex intensity | 5.4% | 5.2% | 5.6% | 6.0% | 2.6% |
| Free cash flow (₹ crore) | 367.8 | 424.2 | 294.4 | 504.4 | 265.5 |
| Dividend payout | 100.3% | 92.4% | 92.0% | ||
| EPS, diluted (₹) | 10.75 | 11.28 | 9.48 | 8.01 | 8.54 |
| Book value per share (₹) | 53,98,62,340 | 56,57,71,404 | 56,61,48,014 | 57,20,44,760 | 58,13,58,041 |
Computed from the statements above:
- Revenue growth: revenue over the previous year's, less one.
- EBITDA margin: EBITDA (revenue less cogs, employee, other expenses) / revenue.
- Net margin: net profit to owners / revenue.
- Return on equity: net profit to owners / average equity.
- Return on capital employed: EBIT / average equity plus borrowings.
- Return on assets: net profit to owners / average total assets.
- Borrowings less cash (₹ crore): borrowings less cash and cash equivalents, with no investments netted; negative is cash beyond borrowings.
- Borrowings less cash / EBITDA: borrowings less cash / EBITDA (revenue less cogs, employee, other expenses).
- Interest cover: EBIT / finance cost.
- Asset turnover: revenue / average total assets.
- Receivable days: receivables / revenue x 365.
- Inventory days (on revenue): inventory / revenue x 365.
- Payable days (on revenue): payables / revenue x 365.
- Cash conversion: cash from operations / net profit to owners.
- Capex intensity: capital expenditure / revenue.
- Free cash flow (₹ crore): cash from operations less capital expenditure.
- Dividend payout: dividends paid / net profit to owners.
- EPS, diluted (₹): as reported (Diluted EPS).
- Book value per share (₹): equity / shares outstanding.
Source: the company's filings and disclosures as extracted into Mool's company dossier (version 1, information to 17 Oct 2026); market data at the close of 17 Oct 2026. Every figure is read from the dossier's files or computed from them; the account of the business model is the analyst's, from the dossier's workings.
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What the full research on Rites includes
Every piece of Mool’s research is built the same way: a researched evidence base, analyses that build on each other, a research model and a report with the call. This page shows the first analysis.
The report and Mool’s call
- The 12-month rating and target
- The 3-month view
- Mool's estimates beside the street's
- The claims the view rests on, and what would change it
The analyses, among them
- Business model & financial foundationOn this pageWhat the company does and how it makes money, its structure, five years of financials and the metrics that matter for it.
- Future earnings & financial modelForecasts built from the drivers that move the business, by scenario, beside the street's.
- Fundamental valuation & 12-month thesisWhat the business is worth on several methods, what the market already prices in and the 12-month thesis that follows.
The research model
The model behind the report: the company’s history, the drivers that move it, its forecasts by scenario and the valuation the 12-month target comes from.
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Report history
Reports on Rites
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Prices are the last close on the NSE, 30 Oct 2026. Research from Mool’s report of 18 Oct 2026; page updated 2 Nov 2026.
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