RITES shares jump over 8% on $35.2-million South Africa locomotive order

RITES shares rose after it received a LoA from Ndalama Capital (Pty) Ltd., South Africa, for the supply and commissioning of diesel-electric locomotives

Shares of RITES Ltd. rose over 8 per cent on Tuesday it received a letter of award worth $35.2 million from Ndalama Capital (Pty) Ltd., South Africa, for the supply and commissioning of diesel-electric locomotives.

 

The civil construction company's stock rose as much as 8.5 per cent during the day to ₹252.3 per share, the biggest intraday rise since May 16 this year. The RITES stock pared gains to trade 6.3 per cent higher at ₹247 apiece, compared to a 0.01 per cent advance in Nifty 50 as of 12:40 PM. 

 

Shares of the company rose for the third straight session and currently trade at 12 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 15 per cent this year, compared to a 10.5 per cent advance in the benchmark Nifty 50. RITES has a total market capitalisation of ₹11,897.35 crore.  READ STOCK MARKET UPDATES TODAY LIVE

 

RITES bags LoA worth $35.2 million

The company said it has received a letter of award from Ndalama Capital (Pty) Ltd., South Africa, for the supply and commissioning of diesel-electric locomotives.

 

The international contract involves the supply and commissioning of in-service Cape gauge ALCO diesel-electric locomotives on a cost, insurance and freight (CIF) basis in South Africa, the company said in an exchange filing. The order is valued at $35.2 million and is to be executed over a period of 18 months. Ndalama Capital is the awarding entity for the project. 

 

On Monday, it signed a Memorandum of Understanding (MoU) with the Government of the Republic of Botswana to collaborate on the development and modernisation of transport infrastructure in Botswana. Under the MoU, Botswana will draw upon Rites' extensive technical expertise for the development and modernisation of railway systems.   ALSO READ | Vodafone Idea zooms 99% from August low; here's why the stock is buzzing 

RITES, a Navratna and Schedule ‘A’ Central Public Sector Enterprise under the Ministry of Railways, was incorporated on April 26, 1974. Over the past five decades, it has evolved into a leading multidisciplinary engineering and consultancy organisation, offering end-to-end solutions – from concept to commissioning – across all facets of transport infrastructure and related technologies. 

 

The company’s consolidated net profit jumped 32.24 per cent year-on-year (Y-o-Y) to ₹109.10 crore in the September quarter of financial year 2025–26, compared with ₹82.50 crore in the corresponding quarter of the previous financial year. Revenue from operations increased 1.45 per cent Y-o-Y to ₹548.74 crore during the quarter. On a sequential basis, consolidated net profit rose 20.03 per cent, while revenue grew 12.04 per cent.