RITES reported a 2 per cent year-on-year decline in consolidated net profit for the fourth quarter of FY26 at Rs 130 crore, even as revenue recorded robust double-digit growth driven by higher project activity and execution momentum.
The railway engineering and infrastructure consultancy company posted consolidated revenue of around Rs 768 crore for the January–March 2026 quarter, marking a nearly 28 per cent increase compared to the corresponding period last year.
However, higher operational expenses weighed on profitability during the quarter. EBITDA declined 9.4 per cent year-on-year to Rs 168.2 crore, while EBITDA margin contracted sharply to 21.9 per cent from 30.8 per cent in Q4 FY25.
According to the company’s filing, expenses rose significantly during the quarter amid increased project execution and operational costs.
For the full financial year FY26, RITES reported consolidated net profit of Rs 410.3 crore, up 6.6 per cent year-on-year, while annual revenue increased nearly 10 per cent to Rs 2,415 crore.
The board of directors also recommended a final dividend of Rs 2.75 per equity share for FY26, subject to shareholder approval. Including interim payouts, the total dividend declared for the financial year stood at Rs 7.95 per share.
RITES continues to strengthen its presence across railways, metros, tunnels, bridges, airports, sustainability projects and green mobility infrastructure. The company has also been expanding its consultancy and turnkey project portfolio amid increased infrastructure spending across India and overseas markets.
In the previous quarter, the company had highlighted a strong order pipeline and growing opportunities across transportation and infrastructure sectors, supported by government-led capital expenditure initiatives.
Shares of RITES declined over 2 per cent during intra-day trade following the earnings announcement as investors reacted to margin pressure despite healthy revenue growth. |
