Rites shares gain 7% on $18-mn order from South Africa's Talis Logistics

Rites shares rose 7 per cent on receiving LoA from Talis Logistics, South Africa, for the supply of overhauled in-service Cape gauge ALCO diesel-electric locomotives

Shares of Rites rose over 7 per cent on Friday after it received a Letter of Award (LoA) from Talis Logistics, South Africa, for the supply of overhauled in-service Cape gauge ALCO diesel-electric locomotives for $18 million.

 

The civil construction firm's stock rose as much as 7.02 per cent during the day to ₹270 per share, the biggest intraday rise since July 2  this year. Rites stock pared gains to trade 5 per cent higher at ₹265.1 apiece, compared to a 0.45 per cent decline in Nifty 50 as of 10:12 AM. 

 

Shares of the company snapped a four-day losing streak and currently trade at 76 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 10 per cent this year, compared to a 4.8 per cent advance in the benchmark Nifty 50. Rites has a total market capitalisation of ₹12,654.30 crore.  CATCH STOCK MARKET LATEST UPDATES LIVE

Rites bags $18-mn order from Talis Logistics

The company has received a letter of award from Talis Logistics, South Africa, for the supply and commissioning of overhauled in-service Cape Gauge ALCO diesel-electric locomotives, according to an exchange filing. 

 

The order, valued at $18 million on a cost, insurance and freight (CIF) basis, will be executed within six to eight months from the receipt of advance payment. This contract, awarded by an international entity, further strengthens Rites’ presence in overseas markets, the statement said. 

 

Rites confirmed that the transaction does not involve any related parties, and neither the promoter nor the promoter group has any interest in Talis Logistics. The contract is being executed on a CIF (Cost, Insurance, and Freight) basis, with delivery to be completed at the client's port in South Africa.  ALSO READ | Waaree Energies shares slide 5% on reports of US prob for evading duties

Rites Q1 results

Rites reported consolidated operating revenue of ₹490 crore in Q1FY26 (excluding other income), compared to ₹486 crore in Q1FY25, marking a marginal 0.8 per cent rise. Total revenue came in at ₹512 crore versus ₹508 crore a year ago. 

 

Ebitda stood at ₹117 crore with a margin of 23.8 per cent, while PAT was ₹91 crore with a margin of 17.8 per cent, reflecting growth of 7.9 per cent and 0.5 per cent Y-o-Y, respectively. The steady performance was driven by improved execution efficiency in key consultancy projects, strong operational focus, and the addition of leased locomotives, the company said.

 

Rites is a Navratna Public Sector Enterprise and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach. The company has experience spanning 50 years and has undertaken projects in over 55 countries in Asia, Africa, Latin America, South America, and the Middle East region.