The project, awarded by South Central Railway, involves providing Project Management Consultancy (PMC) services for the electrification of 110 route kilometres (RKM) between Bidar and Kalaburagi on a cost-plus turnkey basis, according to an exchange filing.
The revised project cost includes RITES’ fees. The company said the order is from a domestic entity and is currently ongoing.
The transaction is between the government and a government company and does not constitute a related-party transaction, RITES said in the filing.
Shares of RITES jumped 2.32% to ₹207.95 on the NSE at 2:06 pm. The stock has declined 6.5% over the past month and is down 16.2% so far this year.
The order comes as RITES looks to convert its strong order book into revenue growth.
The company had reported a record order book of ₹9,450 crore and expects FY28 to be a strong year for revenue and profit as projects begin moving further into the execution phase.
Earlier this month, RITES Chairman and Managing Director Rahul Mithal had said the company’s order book remains relatively young, with projects spread over three to four years and now beginning to generate revenue.
“This year if I summarise, it’s consolidation to acceleration. We touched an all-time high order book,” Mithal said, adding that the company had maintained its track record of securing roughly one order a day, including 128 orders in the latest quarter. He expects the order book to cross ₹10,000 crore in the coming quarters.
The government’s approval of ₹20,800 crore for multitracking projects across nine states could also provide further opportunities for RITES. The company is involved across various stages of the railway project cycle, including feasibility studies, detailed project reports, alignment surveys, project supervision and technical audits.
RITES Q1 results
RITES started FY27 on a steady note, reporting an 8.6% year-on-year increase in revenue to ₹532 crore for the June quarter. Net profit rose 7.7% to ₹98 crore from ₹91 crore a year earlier.
EBITDA was largely unchanged at ₹114 crore, while the operating margin moderated to 21.5% from 23.4% in the corresponding quarter last year.
At the time of the Q1 earnings announcement, RITES shares were trading at ₹216.81 on the NSE, down around 1.1% during the afternoon session.
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