Transcript of the Conference Call held to discuss Audited Financial Results for quarter and year ended 31st March, 2026.
RITES · price
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RITES Limited reported FY26 performance in line with its strategic roadmap, achieving double-digit growth with a highest-ever order book of INR 9,416 crore. The company broke a two-year gap in export income by achieving INR 300 crore in exports (Mozambique locomotives), with export order book at all-time high of INR 1,700+ crore. Management explicitly acknowledged that margins will face pressure going forward as competitive orders (63-70% of order book) start generating revenue in FY27. However, they committed to maintaining PAT margins above 15% and EBITDA margins above 20% as a 'red line.' The company aims for all-time high revenue in FY27 but expects profit records to take 2-3 more years to break due to the lower-margin mix. Bangladesh coach deliveries (200 coaches) are on track with first rake expected in 2 months.
While RITES expects strong revenue growth in FY27 driven by a young order book, shareholders should brace for margin compression as lower-margin competitive projects dominate execution. The company will prioritize revenue growth over profit record-breaking in the near term, though dividend payout policy remains intact.