RITES (RITE IN) – Q4FY26 Result Update – Execution ramp-up amid record order book – BUY
Published on 20 May 2026
RITES delivered a healthy Q4FY26 performance, with revenue growing 24% YoY, while EBITDA margin stood at 22% (vs. 23% QoQ). EBITDA declined 9% YoY, impacted by higher employee expenses along with export-related logistics and warranty costs. Management highlighted an improving trend in order inflows over the past month. The company ended FY26 with a record order book of ~INR94bn (~4x TTM revenue) versus INR89bn last year, providing strong revenue visibility. Management reiterated confidence in delivering double-digit revenue growth going forward, while maintaining EBITDA margin guidance of at least ~20% and PAT margin of ~15%, despite potential mix-related pressures. RITES’ asset-light business model, negative working capital cycle and expected ~19% RoE by FY28E remain key positives. We model a 16% revenue CAGR over FY26-28E, compared with flat revenue growth during FY24-26. Maintaining our 25x FY28E P/E valuation, we retain BUY with a target price of INR275. The stock also offers an attractive dividend yield of ~3.5–4%.
