₹9,090 Cr Order Book: Railway Stock Jumps 8% After Receiving Over ₹300 Cr Order from Ndalama Capital

Synopsis: The shares of this small-cap PSU company jumped 8% following the order it bagged worth more than Rs 300 crore from Ndalama Capital (Pty) Ltd, South Africa, for the delivery and commissioning of in-service Cape Gauge ALCO diesel-electric locomotives.

This company, which is a public sector enterprise and a leading player in the transport consultancy and engineering sector in India, having diversified services and geographical reach, was in focus after its shares jumped more than 8% following the announcement of bagging a deal from an African firm. 

With the market cap of Rs 11,923 crore, the shares of Rites Ltd had hit their intraday high at Rs 252.45, gaining about 8 per cent compared to their previous day’s closing price of Rs 232.65. The shares are trading at a PE of 28.8, whereas their industry PE is at 18.8, and have given a return of 223% over the last 5 years. 

About the order

RITES has bagged a significant international order from Ndalama Capital (Pty) Ltd, South Africa, for the delivery and commissioning of in-service Cape Gauge ALCO diesel-electric locomotives. Worth USD 35.2 million, equivalent to more than Rs 300 crore , this order is yet another international order for the company and proves its capability in providing solutions for rolling stock in the international arena, especially in Africa.

The undertaking will be carried out on CIF terms with an 18-month time frame, thus having definite visibility in medium-term revenues. The work encompasses supply as well as commissioning, necessitating competency in these aspects and readiness to execute, in which RITES has had experience in order to undertake various international railway contracts. These orders indicate the continuous need for reliable diesel locos in countries where rail is an essential transport mode.

In terms of strategy, this contract boosts RITES’ overall orders abroad and is a step in the right direction as RITES seeks to move beyond purely consultation-driven projects in the home market and focuses on projects linked to its assets instead. As RITES’ presence in the global railway industry strengthens, so do its balance sheets as the firm moves toward its vision of being a one-stop solutions provider in the rail and transport domain.

Financials  

The revenue from operations for the company stands at Rs 549 crores in Q2 FY26 compared to Q2 FY25 revenue of Rs 541 crores, up by about 1.5 per cent YoY. Similarly, the net profit stood at Rs 109 crore in Q2 FY26, up from Rs 82 crore in Q2 FY25, giving a rise of about 33 per cent.

As of 30 September 2025, the order book of the company is Rs 9,090 Crore with a nicely diversified mix of businesses. Turnkey projects are leading with a maximum of Rs 4,308 crore, indicating substantial execution-driven models, followed by consultancy of Rs 2,928 crore, which indicates that their core competencies of expertise are being effectively tapped. The contribution of Rs 1,541 crore from the export side indicates a substantial global presence that is being supplemented by minor pockets of utility from the lease of Rs 194 crore and REMC Ltd of Rs 120 crore.

RITES stands among the top public sector companies engaged in engineering and consultancy with the objective of end-to-end solutions spanning design engineering, project management, turnkey construction, and rolling stock exports with quality assurance. The practical sustainable solution lies at the heart of its mainstay in works, besides operating with domestic and international clients, having built a wide global footprint by executing projects in countries across Asia, Africa, Latin America, and the Middle East.

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