RITES lifts margin as other income drives a third of pre-tax profit
Standalone revenue rose +4.79% QoQ while expenses grew +3.84%, but the 31.41% net-profit gain also reflected a lower tax rate.
Filed 04 Nov 2026, 18:51 IST · after market close · Rites Ltd (RITES)
Key takeaways
- Standalone operating margin widened 0.74 percentage points QoQ to 17.90%, as revenue grew +4.79% while expenses rose +3.84%.
- Net profit rose +31.41% QoQ, but other income contributed 35.59% of pre-tax profit and the tax rate fell 4.28 percentage points.
- RITES added Rs 446 cr of orders in Q2FY27, while the presentation reported a 128.2% decline in Exports profit for H1FY27.
Price around the results
Revenue growth outpaced costs in Q2FY27
RITES reported standalone revenue growth of +4.79% QoQ, while expenses increased +3.84%, allowing operating profit to rise +9.33%. That cost gap lifted operating margin by 0.74 percentage points to 17.90%. The margin was 6.4 percentage points above the 11.5% median for 122 Industrials peers that had reported the quarter.
Other income and tax rate amplified the profit increase
Net profit grew +31.41% QoQ, faster than operating profit, as other income rose +60.46% and accounted for 35.59% of pre-tax profit. The tax rate fell 4.28 percentage points to 21.80%, which also supported the increase in net profit. Interest expense rose +16.87%, but from a low base relative to the operating result.
Orders rose as Exports remained the weak spot
The presentation said RITES added Rs 446 cr of orders, including extensions, and secured more than 130 projects or contracts during the quarter. It also highlighted a Rs 79 cr Patna Metro Rail consultancy assignment and a Rs 21 cr Haldia River Bridge study. Management said Exports profit declined 128.2% in H1FY27, while supplies had started for Bangladesh and were expected to start for Mozambique, with the segment expected to show profits in H2FY27.
Results were filed after market close
RITES filed these standalone results after market close on 4 November 2026.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹522 cr | ₹498 cr | +4.79% |
| Other income | ₹43 cr | ₹27 cr | +60.46% |
| Expenses | ₹428 cr | ₹413 cr | +3.84% |
| Operating profit | ₹93 cr | ₹85 cr | +9.33% |
| Operating margin (%) | 17.90% | 17.16% | — |
| Interest | ₹1 cr | ₹1 cr | +16.87% |
| Depreciation | ₹15 cr | ₹14 cr | +3.44% |
| Profit before tax | ₹121 cr | ₹97 cr | +24.21% |
| Tax | ₹26 cr | ₹25 cr | +3.83% |
| Net profit | ₹94 cr | ₹72 cr | +31.41% |
| EPS (₹) | ₹1.96 | ₹1.49 | +31.54% |
Operating margin of 17.90% compares with a Industrials sector median of 11.50% across 122 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- RITES added ₹446 crore of new orders, including extensions, during Q2FY27.
- RITES secured more than 130 projects or contracts, including extensions, during the quarter.
Guidance & outlook
- RITES expects the Exports segment to show profits in H2FY27 as supplies have started to Bangladesh and are expected to start for Mozambique.
New orders
- RITES secured consultancy services for implementing the Patna Metro Rail construction project for ₹79 crore, with expected completion in 2031.
- RITES secured a ₹21 crore feasibility study and detailed project report assignment for the Haldia River Bridge.
New initiatives
- RITES signed an MoU with NHIDCL for specialized consultancy and technical support.
- RITES signed an MoU with MECON for an exploration consultancy assignment and infrastructure opportunities.
Problems & risks
- The Exports segment reported a 128.2% decline in H1FY27 profit.
What to watch
- Whether operating margin holds above 17.90% after its 0.74-percentage-point QoQ improvement.
- Whether other income's contribution to pre-tax profit moves from 35.59% in the next quarter.
- Whether the Exports segment shows the H2FY27 profit outcome management described after its reported 128.2% H1FY27 profit decline.