RITES Limited has informed the Exchange regarding Transcript of the Investors Conference Call held on 07th August, 2025.
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RITES held its Q1 FY26 earnings call where management reported flat quarterly results but guided for substantial improvement in the latter part of FY26. The current order book stands at approximately INR 8,800 crore, with INR 3,500 crore added in recent quarters that is now at the execution stage. Management reiterated full-year guidance of EBITDA margin around 20% and PAT margin around 15%, noting that consultancy grew 7% and EBITDA grew 8% in Q1. The first two locomotives for Mozambique were shipped in early July (revenue to be booked in Q2), and the Bangladesh order aims to deliver the first rake of 20 coaches before FY26 end with revenue recognition targeted for Q4. The company remains debt-free with INR 800 crore cash and INR 2,400 crore client funds, and confirmed maintaining its high dividend payout ratio (~95%).
Positive signals for shareholders: management confirmed the worst is behind on margins and projects substantial year-on-year revenue growth, backed by a strong order pipeline and zero debt. However, export margins are now in double digits but below historical 20-25% levels, and the Zimbabwe order (INR 700+ crore) carries funding risk. Investors may view the execution of recent orders in H2 FY26 as the key catalyst for stock performance.