Q1 2026 RITES Ltd Earnings Call Transcript
Key Points
- RITES Ltd (NSE:RITES) has a strong order book of INR 8,800 crores, with significant contributions from consultancy and export orders.
- The consultancy segment has shown a growth of 7%, contributing to an 8% increase in EBITDA, with a focus on high-margin consultancy orders.
- Export orders, including 10 locomotives to Mozambique, have started generating revenue, with shipments beginning in early July.
- The company maintains a healthy cash balance of INR 800 crores and client funds of INR 2,400 crores.
- RITES Ltd (NSE:RITES) aims to maintain EBITDA margins of around 20% and PAT margins of about 15% on an annual basis.
- The company's Q1 results were flat, with revenues expected to start flowing in the latter part of the fiscal year.
- Margins on export orders are lower than historical levels, with competitive pressures reducing them to double digits.
- The Zimbabwe export order, valued at INR 700 crores, is not yet part of the order book due to funding challenges.
- The consultancy margins have decreased from historical levels of 40-45% to a more sustainable range of 30-35% due to increased competition.
- The turnkey segment's contribution to revenue is expected to remain around 30%, with no significant increase anticipated in the near term.
Good morning, ladies and gentlemen. I'm Karthikeyan, moderator for this conference. Welcome to the conference call of RITES Limited to discuss its Q1 FY26 results. We have with us today, Mr. Rahul Mithal, Chairman and Managing Director; Dr. Deepak Tripathi, Director, Technical and Director of Projects, additional charge; and Mr. Krishna Gopal Agarwal, Director Finance and Chief Financial Officer. (Operator Instructions) Please note, this conference is being recorded. (Operator Instructions)
Now I would like to hand over the floor to Mr. Rahul Mithal, Chairman and Managing Director, RITES Limited. Thank you, and over to you, sir.
Morning. Thank you. Let me start with giving the safe harbor statement. The presentation and the press release, which we uploaded on our website and exchanges yesterday, and discussions during the call -- these statements consider the environment we see as of today and obviously carry a risk in terms of uncertainty because of which the
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