RITES Ltd (NSE:RITES) Q2 2026 Earnings Call Highlights: Strong Order Book and Export Success ...

This article first appeared on GuruFocus .

Release Date: November 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• RITES Ltd ( NSE:RITES ) maintained a strong order intake with 150+ orders totaling 850 crores, achieving a rate of 1.6 orders per day.

• The company secured an export order of 160 crores for 10 locomotives to South Africa, maintaining its goal of one export order per quarter.

• RITES Ltd ( NSE:RITES ) achieved an all-time high order book of 9,090 crores, moving towards its target of 10,000 crores.

• Consultancy and export segments showed strong performance, contributing to a 12% sequential growth in revenue.

• The company maintained healthy margins, with EBITDA margins above 20% and PAT margins above 15%.

Negative Points

• The turnkey segment experienced a revenue hit of 90 crores, affecting the top-line growth.

• Top-line growth remained flat due to delays in turnkey project execution, with significant contributions expected only by Q4 or Q1 of the next fiscal year.

• The competitive environment has made it challenging to maintain high margins, particularly in the quality assurance vertical.

• Export revenue has been inconsistent in the past, with a significant gap in contributions over the last few years.

• The company faces challenges in maintaining a consistent order intake amidst increasing competition and margin pressures.

Q & A Highlights

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Q: In consultancy, the margin has grown. Is this a steady state of margin going forward? A: (Chairman and Managing Director) Normally, consultancy margins remain around 30%, and we aim to maintain that. Despite competitive pressures, we have consistently maintained these margins over the last several quarters.

Q: Can you provide some guidance on the top-line growth? A: (Chairman and Managing Director) The top-line has been flat due to the turnkey segment, which is still in its early stages of execution. We expect these orders to start contributing to revenue by Q3 and Q4. We are aiming for near double-digit growth in the coming months.

Q: What is the average turnaround time for the order book? A: (Chairman and Managing Director) Turnkey projects take about 3 to 4 years, export projects 2 to 2.5 years, and consultancy projects can range from 90 days to 3 to 4 years, depending on the project.

Q: How has the quality assurance segment grown within domestic consultancy? A: (Chairman and Managing Director) The quality assurance vertical has shown significant improvement, reaching levels close to previous highs. More than two-thirds of the revenue now comes from non-Indian Railways clients, indicating successful diversification.