RITES margin beats Industrials median as exports fall 69.3%
Management linked the quarter to turnkey execution and leasing utilisation, while pointing to Bangladesh coach supplies for an export pickup from Q2FY27.
Filed 04 Aug 2026, 13:33 IST · Rites Ltd (RITES)
Key takeaways
- Management attributed Q1FY27 revenue support to better turnkey execution and higher leasing utilisation, while export revenue fell 69.3% year on year.
- RITES reported a 21.54% operating margin, 6.9 percentage points above the 14.64% median for 43 Industrials peers.
- Management said export revenue is expected to pick up from Q2FY27 as Bangladesh coach supplies begin, against an order book of Rs 9,445 cr.
Price around the results
Turnkey execution and leasing supported the consolidated quarter
RITES's consolidated operating profit was supported by better execution in Turnkey and higher utilisation in Leasing, according to management. Reported profit also included Rs 33.3 cr of other income, so operating performance and net profit should be read separately. The company reported EPS of Rs 1.81 for Q1FY27.
Export weakness remained the main business drag
Management reported a 69.3% year-on-year decline in export revenue during Q1FY27. It said export revenue is expected to pick up from Q2FY27 when supplies of coaches to Bangladesh start. This makes the timing of those supplies a key factor in the revenue mix beyond the first quarter.
Operating margin stayed above the reported Industrials peer median
RITES's operating margin of 21.54% was 6.9 percentage points above the 14.64% median among 43 Industrials companies that had reported the same quarter. The comparison places RITES above the sector midpoint, although no sequential or year-on-year margin movement is available here.
Orders and new initiatives broaden the pipeline
Management said RITES secured more than 120 projects or contracts, including extensions, worth Rs 674 cr during the quarter, and added more than Rs 670 cr of new orders. It reported a highest-ever order book of Rs 9,445 cr as of June 30, 2026. The company also said it signed an MoU with CRISIL for integrated, data-driven infrastructure solutions.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹532 cr |
| Other income | ₹33 cr |
| Expenses | ₹418 cr |
| Operating profit | ₹115 cr |
| Operating margin (%) | 21.54% |
| Interest | ₹1 cr |
| Depreciation | ₹17 cr |
| Profit before tax | ₹131 cr |
| Tax | ₹33 cr |
| Net profit | ₹98 cr |
| EPS (₹) | ₹1.81 |
Operating margin of 21.54% compares with a Industrials sector median of 14.64% across 43 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Better execution increased Turnkey revenue and higher utilization increased Leasing revenue during Q1FY27.
Guidance & outlook
- Export revenue is expected to pick up from Q2FY27 when supply of coaches to Bangladesh starts.
New orders
- RITES added more than ₹670 crore of new orders, including extensions, during Q1FY27.
- RITES secured more than 120 projects or contracts, including extensions, worth ₹674 crore during Q1FY27.
- RITES reported its highest-ever order book of ₹9,445 crore as of June 30, 2026.
New initiatives
- RITES signed an MoU with CRISIL for integrated, data-driven infrastructure solutions.
Problems & risks
- Export revenue declined 69.3% in Q1FY27 compared with Q1FY26.
What to watch
- Whether export revenue begins to recover from the 69.3% year-on-year decline when Bangladesh coach supplies start.
- Whether operating margin remains above 21.54%.
- How the Rs 9,445 cr order book translates into Turnkey execution and revenue.