Rs 8,877 Crore Order Book: Transport Consulting and Engineering Company Secured Rs 37.81 Crore Railway Redevelopment Order

Despite being a mid-cap PSU, the stock has delivered a 3-year return of 137.52 per cent, although it recorded a 1-year decline of 19.27 per cent.

RITES Limited, a key player in the transport consultancy and engineering sector, has announced a major milestone in its domestic operations. The RITES-Aryan Joint Venture (JV) has secured a Letter of Acceptance (LOA) from South Western Railway for the redevelopment of Tumakuru Railway Station. The contract includes comprehensive engineering, procurement, and construction services, covering civil works, signalling and telecommunication systems, and general electrical services. The project is set to be completed within 540 days from the appointed date, with RITES' share of the contract valued at Rs 37.81 crore, excluding GST.

This development highlights RITES Limited’s continued success in the railway infrastructure segment, particularly in turnkey projects. The Tumakuru Station redevelopment project adds to its robust domestic order book, which stood at Rs 7,978 crore as of the first nine months (9M) of FY25. Turnkey and consultancy services remain the largest contributors to the order pipeline. The company is also looking to expand its international footprint and has set a target of 20 per cent revenue growth in FY26.

Established in 1974, RITES is a government-owned enterprise and serves as the exclusive export arm of Indian Railways for rolling stock, barring operations in Thailand, Malaysia, and Indonesia. The company operates across multiple verticals—consultancy, turnkey projects, exports, and leasing. In 9M FY25, consultancy services accounted for 47 per cent of total revenue but registered an 8 per cent decline year-on-year. Turnkey projects contributed 32 per cent, also with an 8 per cent dip. Export activity remained subdued at 15 per cent contribution, while the leasing segment grew by 11 per cent. Notably, 92 per cent of RITES' revenue was generated from the domestic market in FY24.

As of July 1, 2025, RITES Limited’s stock is trading at Rs 279.2, with a 52-week high of Rs 387.75 and a low of Rs 198.45. The company’s market capitalization stands at Rs 13,457 crore. Despite being a Mid-Cap PSU, the stock has delivered a 3-year return of 137.52 per cent, although it recorded a 1-year decline of 19.27 per cent. The current Price-to-Earnings (PE) ratio is 32.71. Investors continue to watch the stock for its consistent dividend payouts and performance in railway-related contracts.

Disclaimer: The article is for informational purposes only and not investment advice.