Established in 1974, RITES Limited is a Miniratna (Category – I) public sector enterprise operating under the aegis of Indian Railways. It is a wholly-owned government company and a prominent player in India's transport consultancy and engineering sector, recognized for its diverse services and extensive geographical reach. The Government of India maintained a 72.20% stake in the company as of March 31, 2025.
RITES functions as the sole export arm of Indian Railways for providing rolling stock overseas (excluding Thailand, Malaysia, and Indonesia). As a multidisciplinary engineering and consultancy firm, RITES Limited offers a comprehensive range of services, from concept to commissioning, across all facets of transport infrastructure and related technologies.
RITES operates through distinct business segments designed to meet diverse infrastructure requirements. The company's operations are categorized into five segments: Consultancy Services; Leasing of Railway Rolling Stock & Equipment; Export of Rolling Stock, Equipment, and Spares; Turnkey Construction Projects; and Power Generation.
This segment provides extensive transport consultancy services, including:
- Techno-economic and feasibility studies
- Detailed project reports
- Design engineering
- Procurement assistance
- Project management
Operating in over 55 countries across Asia, Africa, Latin America, South America, and the Middle East, this segment's contribution to the company's business portfolio grew from 40% in FY22 to 47% in 9M FY25.
RITES' expertise spans numerous sectors, including:
- Railways, Metros, Airports & Land Ports, Ports & Harbors, Highways, Ropeways, Tunnels & Bridges
- Institutional Buildings, Renewable Energy, and Urban Planning & Infrastructure
Services offered include engineering design and survey, feasibility studies, detailed design and consultancy, project management consultancy, technical audit, third-party inspection, quality assurance, construction supervision, and leasing and export of locomotives and rolling stock. The company also undertakes turnkey construction, and provides maintenance and operational facilities such like smart yards, coaching, and freight maintenance depots.
The company also specializes in constructing:
- Railway workshops, track doubling/tripling/quadruplicating, new/additional railway lines
- Railway electrification, redevelopment of railway stations, institutional buildings
- Wind, solar, and other renewable energy projects on a turnkey basis
- Civil engineering works
RITES also generates power from windmills and solar energy plants. Its clientele includes central/state governments, public sector undertakings, large corporations, and private enterprises in India, Asia, Africa, and internationally.
With a market capitalization of ₹13,548 crore as of recent data, RITES is a significant entity within the transport consultancy sector.
- Q4 FY25:
- Revenue: ₹615.43 crore (March 2025)
- Net Profit: ₹141.33 crore (March 2025)
- The company reported a 29.19% increase in net profit for Q4 FY25, indicating robust financial performance.
- Q3 FY25:
- Revenue: ₹575.76 crore (15.7% year-on-year decline from ₹682.89 crore in Q3 FY24)
- Net Profit: ₹109 crore (15% year-on-year decline from ₹129 crore in Q3 FY24)
- Annual Revenue: ₹2,218 crore
- Annual Profit: ₹424 crore
- The company has experienced poor sales growth of -2.17% over the past five years.
- RITES is almost debt-free, strengthening its financial stability.
- The stock offers a good dividend yield of 4.08%.
- The company has maintained a healthy dividend payout ratio of 98.6%.
- RITES has announced a third interim dividend of ₹1.9 per share for the financial year FY25, providing consistent returns to shareholders despite fluctuating financial performances.
RITES Ltd declared a 26.5% dividend and achieved its highest-ever order book of ₹8,877 crore for FY25. Additionally, the company formed a five-year partnership with Shree Cement to enhance rail infrastructure for efficient transportation.
- Secured a $3.6 million order to supply 2 overhauled ALCO locomotives to an African Rail Company.
- Awarded a ₹37.81 crore Tumakuru Station redevelopment order, with an execution period of 540 days.
- Emerged as the lowest bidder for a ₹28.50 crore project from Gujarat Urban Development Company, which positively impacted its share price.
Rahul Mithal currently leads RITES Limited as its Chairman and Managing Director. The company's subsidiaries include RITES (Afrika) (Pty) Limited and REMC Limited. RITES Limited was incorporated in 1974 and is headquartered in Gurugram, India.
RITES Limited continues to leverage its position as a government-backed enterprise with profound domain expertise in transport infrastructure. It maintains its role as India's premier railway consultancy and engineering solutions provider while actively expanding its international footprint across multiple continents.
