Railway stock jumps 4% after securing export order worth ₹185 Cr from ICVL Mozambique

Synopsis: RITES shares jumped sharply after it secured a $20.6 million (Rs 185 crore) contract from ICVL Mozambique to provide diesel locomotives along with two years of maintenance. 

The shares of this railway PSU, engaged in the transport consultancy and engineering sector in India, having diversified services and geographical reach, are in focus after it secured a key contract worth $20.6 million. In this article, we will dive more into the details of this.

With a market capitalisation of Rs 10,630 crore, the shares of Rites Ltd are currently trading at Rs 222 per share, up 4 percent from its day’s low price of Rs 213.85 per share. Over the past five years, the stock has delivered a return of 74 percent, underperforming NIFTY 50’s return of 84 percent.

About the order 

RITES Limited, through a stock exchange filing, announced that it has received a Letter of Intent (LOI) from ICVL Mozambique to supply new Cape Gauge diesel electric locomotives. The contract also includes preventive maintenance services and consumable spares to be provided at the project site, making it a comprehensive supply and support order.

This contract is significant, valued at $20.6 million, which is roughly over Rs 185 crore, and involves international cooperation. The company has a 15-month timeline to deliver the locomotives, followed by an additional two years dedicated to maintenance support. This approach ensures the trains remain reliable well after they are delivered.

Financial and other highlights

The consolidated revenue from operations for Rites stands at Rs 549 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 541 crores, up slightly by 1.5 per cent YoY. Additionally, on a QoQ basis, it reported a growth of 12 percent from Rs 490 crore. 

Coming down to its profitability, the company’s net profit stood at Rs 109 crore in Q2 FY26, up from Rs 82 crore in Q2 FY25, which is a growth of 33 percent YoY. Additionally, on a QoQ basis, it reported a net profit of Rs 91 crore, which is a growth of 20 percent.

As of the latest filing available, the company has a robust order book of Rs 9,090 crore, which is over 4x of its FY25 revenue, providing strong visibility over the next few years. Of the total order book, 46 percent of order value came from turnkey projects, followed by 34 percent from consultancy, 17 percent from exports, 2 percent from leasing and the remaining 1 percent from REMCL (JV with Ministry of Railways).

RITES Limited is engaged in the provision of engineering, consultancy and project management services for various sectors, including transport and renewable energy. In addition to the above sectors, the company engages in consultancy services, leasing contracts, exports, turnkey projects, and power generation services for both government and private customers, both within the domestic boundaries of India and also globally.  

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