Global Materials | Industrials | Commodities

Rahul Jain

Equity Bottom-Up

<ul>
<li>RITES reported a ~10% YoY decline in revenue, from Rs2,453 Cr in FY24 to Rs2,218 Cr in FY25, with PAT falling ~16% to Rs424 Cr due to reduced turnkey execution.</li>
<li>The company is ramping up selective metros, export projects, and EPC work, while maintaining its strong core consultancy business, which makes up roughly 50% of revenue.</li>
<li>Trading at around 34× P/E, with a ROCE of ~21% and a dividend yield of ~3.8%, RITES remains well-positioned to benefit from India’s sustained rail sector investments.</li>
</ul>


RITES reported a ~10% YoY decline in revenue, from Rs2,453 Cr in FY24 to Rs2,218 Cr in FY25, with PAT falling ~16% to Rs424 Cr due to reduced turnkey execution.
The company is ramping up selective metros, export projects, and EPC work, while maintaining its strong core consultancy business, which makes up roughly 50% of revenue.
Trading at around 34× P/E, with a ROCE of ~21% and a dividend yield of ~3.8%, RITES remains well-positioned to benefit from India’s sustained rail sector investments.


RITES Ltd (NSE: RITES) – Stable Core, Turnkey Drag, Strong Rail Capex Tailwinds

<ul>
<li>FY25 results reflected margin pressure and a 14% revenue decline due to project completions, with FY26 guidance indicating flat revenue and lower core EBITDA margins (5–5.25%).</li>
<li>Indian Railways’ capex is expected to grow at a 6–10% CAGR over the next decade, offering sustained demand across new lines, electrification, and safety systems.</li>
<li>While valuations appear reasonable, near-term growth visibility remains limited due to a muted order book and transition away from cost-plus contracts.</li>
</ul>


FY25 results reflected margin pressure and a 14% revenue decline due to project completions, with FY26 guidance indicating flat revenue and lower core EBITDA margins (5–5.25%).
Indian Railways’ capex is expected to grow at a 6–10% CAGR over the next decade, offering sustained demand across new lines, electrification, and safety systems.
While valuations appear reasonable, near-term growth visibility remains limited due to a muted order book and transition away from cost-plus contracts.


IRCON International – Stable Franchise with Long-Term Tailwinds, Near-Term Execution Hurdles

External broker reports(aggregated public sources), Axis Direct

Axis Direct

External broker reports(aggregated public sources)

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Healthy order book: The company won 150+ orders worth Rs 1,418 Cr in Q4FY25. Its overall order book remains healthy at Rs 8,877 Cr, providing revenue visibility for the next 2-2.5 years.</li><li>The consultancy segment comprises 34% of the order book, which is a high-margin business.</li><li>Moreover, we foresee sustainable growth in the company's domestic and overseas consultancy businesses.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Healthy order book: The company won 150+ orders worth Rs 1,418 Cr in Q4FY25. Its overall order book remains healthy at Rs 8,877 Cr, providing revenue visibility for the next 2-2.5 years.The consultancy segment comprises 34% of the order book, which is a high-margin business.Moreover, we foresee sustainable growth in the company's domestic and overseas consultancy businesses.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

RITES Ltd -  Strong Order Book & Pickup in Export Sales to Drive Growth

<ul><li>Healthy order book: The company won 110+ orders worth Rs 1,933 Cr in Q3FY25.</li><li>Its overall order book remains healthy at Rs 7,978 Cr, providing revenue visibility for the next 2-2.5 years.</li><li>The consultancy segment comprises 35% of the order book, which is a highmargin business. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Healthy order book: The company won 110+ orders worth Rs 1,933 Cr in Q3FY25.Its overall order book remains healthy at Rs 7,978 Cr, providing revenue visibility for the next 2-2.5 years.The consultancy segment comprises 35% of the order book, which is a highmargin business. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

RITES Ltd - Strong Order Book & Pickup In Export Sales to Drive Growth

<ul><li>Healthy order book: The company secured 91 orders worth Rs 729 Cr in Q2FY25.</li><li>Its overall order book remains robust at Rs 6,581 Cr, providing revenue visibility for the next 2-2.5 years.</li><li>The consultancy segment, which is a high-margin business, comprises 38% of the order book. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Healthy order book: The company secured 91 orders worth Rs 729 Cr in Q2FY25.Its overall order book remains robust at Rs 6,581 Cr, providing revenue visibility for the next 2-2.5 years.The consultancy segment, which is a high-margin business, comprises 38% of the order book. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

RITES Ltd - Strong Orderbook and Pick-Up in Export Sales to Drive Growth

India

RITES Limited is an Indian public sector undertaking that operates under the Ministry of Railways, Government of India. The company offers consultancy, engineering, and project delivery services across various infrastructure sectors, including railways, highways, metros, urban development, and airports. RITES also provides services like leasing and export of railway rolling stock and turnkey construction projects. Headquartered in Gurugram, Haryana, India, RITES was incorporated on April 26, 1974.

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RITES (RITE IN)

RITES Ltd (NSE: RITES) – Stable Core, Turnkey Drag, Strong Rail Capex Tailwinds

RITES sees revenue decline in FY25 but remains well-positioned for growth with strong consultancy business and focus on rail sector investments.

Rahul Jain

IRCON International – Stable Franchise with Long-Term Tailwinds, Near-Term Execution Hurdles

FY25 results show margin pressure and revenue decline, FY26 guidance predicts flat revenue and lower EBITDA margins. Indian Railways capex to...

Rahul Jain

RITES Ltd - Strong Order Book & Pickup in Export Sales to Drive Growth

Healthy order book: The company won 150+ orders worth Rs 1,418 Cr in Q4FY25. Its overall order book remains healthy at Rs 8,877 Cr, providing...

Axis Direct

RITES Ltd - Strong Order Book & Pickup In Export Sales to Drive Growth

The company won 110+ orders worth Rs 1,933 Cr in Q3FY25. Its overall order book remains healthy at Rs 7,978 Cr, providing revenue visibility for...

Axis Direct

RITES Ltd - Strong Orderbook and Pick-Up in Export Sales to Drive Growth

The company secured 91 orders worth Rs 729 Cr in Q2FY25. Its overall order book remains robust at Rs 6,581 Cr, providing revenue visibility for the...

Axis Direct

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

RITES Ltd (NSE: RITES) – Stable Core, Turnkey Drag, Strong Rail Capex Tailwinds

​RITES sees revenue decline in FY25 but remains well-positioned for growth with strong consultancy business and focus on rail sector investments.

Rahul Jain

IRCON International – Stable Franchise with Long-Term Tailwinds, Near-Term Execution Hurdles

​FY25 results show margin pressure and revenue decline, FY26 guidance predicts flat revenue and lower EBITDA margins. Indian Railways capex to...

Rahul Jain

RITES Ltd - Strong Order Book & Pickup in Export Sales to Drive Growth

Healthy order book: The company won 150+ orders worth Rs 1,418 Cr in Q4FY25. Its overall order book remains healthy at Rs 8,877 Cr, providing...

Axis Direct

RITES Ltd - Strong Order Book & Pickup In Export Sales to Drive Growth

The company won 110+ orders worth Rs 1,933 Cr in Q3FY25. Its overall order book remains healthy at Rs 7,978 Cr, providing revenue visibility for...

Axis Direct

RITES Ltd - Strong Orderbook and Pick-Up in Export Sales to Drive Growth

The company secured 91 orders worth Rs 729 Cr in Q2FY25. Its overall order book remains robust at Rs 6,581 Cr, providing revenue visibility for the...

Axis Direct

RITES sees revenue decline in FY25 but remains well-positioned for growth with strong consultancy business and focus on rail sector investments.

FY25 results show margin pressure and revenue decline, FY26 guidance predicts flat revenue and lower EBITDA margins. Indian Railways capex to...