RITES Aims for Rs 10,000 Crore Order Book in Current Fiscal Year: CMD

RITES Aims to Cross Rs 10,000 Crore Order Book Mark

State-owned infrastructure and engineering major RITES is expected to cross the Rs 10,000 crore mark in its order book this fiscal, driven by the company's efforts to "one order a day" and "one export order a quarter." This projection was made by Chairman and Managing Director Rahul Mithal in an interview to Moneycontrol.

RITES' order book stood at a record Rs 9,416 crore at the end of FY26, a testament to the company's success in re-inventing and re-engineering itself over the past three years. During this period, RITES cracked the competitive bidding code, which was a tedious task, to win orders. At present, 63 percent of RITES' active contracts (domestic and external) have been secured through open-market bidding.

Competitive bidding is a structured, transparent procurement process where a buyer invites multiple suppliers, contractors, or consultants to compete for a contract. This is in contrast to a nomination-based system, where a contract is simply handed to a preferred company. In FY22, the railways ministry began phasing out legacy nomination perks for its public sector undertakings (PSUs), including RITES and Ircon, forcing them to bid against each other as well as private infrastructure companies to win projects.

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RITES has focused on its core strengths, research, workforce reskilling, targeted domestic and export contracts. This effort has paid off, with the company achieving an all-time high order book of Rs 9,416 crore (till FY26 end). RITES has become a "one-order-a-day company, and one-export-order-a-quarter," with the company bagging one export order in each of the past seven-eight quarters.

In terms of revenue, RITES' FY26 revenue grew 9.2 percent on year to Rs 2,426 crore. Its EBITDA rose 7.8 percent to Rs 568 crore with a margin of 23.5 percent, while profit after tax (PAT) grew 7.1 percent to Rs 454 crore with an 18 percent margin. The consultancy business accounted for Rs 1,185 crore, turnkey projects Rs 602 crore, exports Rs 316 crore, and leasing fetched Rs 172 crore.

RITES is betting on turnkey projects to drive revenue growth this fiscal. While turnkey projects yield a modest margin of around 2 percent, they remain a major revenue generator. The company has started winning export orders on a "global tender basis" after five decades of existence. In FY26, RITES generated Rs 316 crore in export revenue, driven entirely through the delivery of 10 locomotives to Mozambique.

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