RITES targets ₹10,000 crore order book by FY26, eyes private sector growth

RITES ended FY25 with ₹8,800 crore in orders and aims for ₹10,000 crore by FY26, focusing on execution, private sector projects, and exports to West Asia and Latin America

Public sector infrastructure consultancy RITES Ltd, which saw flat profit during the April-June quarter at ₹91 crore, is looking to achieve a ₹10,000-crore order book by the end of this financial year (FY26). It is broadening its scope of work and eyeing more big-ticket orders.

 

“We ended last financial year with our highest-ever order book of ₹8,800 crore. Around ₹3,500 crore of this is a very young order book — from the last two quarters. As construction work on projects starts in a few months, that is when the revenue will start coming in. In a nutshell, our focus is expeditious execution,” chairman and managing director Rahul Mithal told Business Standard. 

The ₹2,243-crore company — which is transitioning from being a nomination-dominated firm — became a “one-order-a-day” company recently, and is looking to build on this momentum.

 

“The trend of one-order-a-day continued in the first quarter. We are now targeting a ₹10,000-crore order book by March 2026. We are currently at ₹8,800 crore. Even as we focus more on execution, we will still have a net growth in the order book,” he said. 

For RITES, the consultancy business continues to provide the highest revenue at ₹262 crore with margins at 32.2 per cent. The increase in consultancy revenue is attributable to better execution, according to Mithal. 

“With a fleet of 88 locomotives, leasing revenue stands at ₹43 crore, maintaining margins of 38.4 per cent. Turnkey revenue stands at ₹148 crore, while exports have commenced in the July-September quarter of FY26,” the company said while declaring its Q1 results. 

The company will try to tap into some core growth sectors for consultancy – educational institutions and medical facilities, for instance.

 

RITES’ building vertical has received orders from IIM Bangalore and ESIC hospital. Mithal believes this is where more growth can occur. 

Mithal also looks to bank on the rapid growth of cross-sectoral infrastructure driven by private investment and how it also feeds into its rail infrastructure consultancy works. 

“The trend is that more private investment is happening and it will only grow. If you look at our rail infrastructure order book — we have orders from cement plants like Ultratech Cement, private steel players, private ports and airports. As a private player, you would want to go with a consultant with five decades of experience, which is where we have an edge,” he said. 

While Mithal did not give a number, he expects RITES’ private sector order book to have a healthy growth as more and more sectors open up. Around 10 per cent of its order book is currently accounted for by the private sector. 

For its export business, the company will zero in on two particular geographies, going forward. “Historically, our primary geographies were Africa and Southeast Asia. The Middle East (West Asia) was a very important foray that we started last year.  Last year, we had major pacts with DP World, Etihad Rail, and Abu Dhabi Ports – all these are major players,” Mithal added. 

The company will also look to increase its foray in Latin America, where it is starting with small-ticket projects to establish presence.