RITES Q1'FY27: Declares first interim dividend; posts 9% rise in profit

New Delhi: Railway consultancy and engineering major RITES Ltd reported a steady increase in earnings for the first quarter of FY27, supported by higher revenues from its core domestic consultancy and turnkey businesses. The Navratna public sector enterprise also announced its first interim dividend for the current financial year.

The company reported a consolidated profit attributable to equity shareholders of Rs 87.21 crore for the quarter ended June 30, registering an 8.9 percent increase from Rs 80.10 crore in the corresponding period last year.

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Consolidated revenue from operations rose 8.7 percent year-on-year to Rs 532.20 crore, compared with Rs 489.70 crore in the June quarter of FY26, reflecting healthy execution across key business segments.

Total income for the quarter increased to Rs 560.68 crore from Rs 511.68 crore a year earlier, while profit before tax climbed 7.4 percent to Rs 130.56 crore. Profit after tax stood at Rs 97.78 crore, up from Rs 90.89 crore in the year-ago quarter.

Turnkey projects drive growth

Domestic consultancy continued to remain RITES' largest revenue generator, contributing Rs 284 crore during the quarter, marginally higher than Rs 272.31 crore in the corresponding period last year.

The standout performance came from the turnkey segment, where revenue increased to Rs 176.40 crore from Rs 148.40 crore, indicating stronger project execution during the quarter.

Leasing revenue also improved to Rs 48.73 crore, compared with Rs 42.59 crore a year ago, while consultancy assignments overseas contributed Rs 16 crore, slightly lower than the Rs 17.82 crore recorded in the same quarter last year. Revenue from the power generation business stood at Rs 6.04 crore.

Higher costs weigh on margins

RITES' operating expenses rose broadly in line with business growth. Total expenses increased to Rs 434.94 crore from Rs 392.46 crore in the year-ago period.

Employee benefit expenses rose to Rs 135.71 crore, while expenditure on supplies and services increased to Rs 246.07 crore, reflecting higher project activity during the quarter.

Despite the rise in costs, the company maintained earnings growth, indicating stable operational performance amid an expanding execution pipeline.

Dividend announced

The board declared a first interim dividend of Rs 1.40 per equity share for FY27, equivalent to 14 percent of the paid-up equity share capital.

The company has fixed August 10, 2026, as the record date for determining eligible shareholders. The dividend will be paid on or before September 2, 2026.

RITES has maintained a consistent dividend distribution track record in recent years. During FY26, it paid interim dividends of Rs 2 per share in November 2025 and Rs 1.90 per share in February 2026, besides a Rs 2.65 per share dividend in September 2025. The company had also rewarded shareholders with a 1:1 bonus issue in September 2024.

Outlook

The June quarter performance suggests RITES has entered FY27 on a stable footing, with infrastructure consultancy demand and turnkey execution continuing to support growth. While international consultancy remained subdued, robust domestic order execution and recurring leasing income helped offset the weakness.

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Going forward, investors will watch the company's order inflows, execution pace in railway and infrastructure projects, and margin trajectory as public capital expenditure continues to drive demand for engineering and project management services.

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