Rites

Rites achieved an all-time high order book of ₹8,000 crores at the end of Q3 FY25. This was driven by a record quarterly inflow of ₹1,900+ crores from over 110 orders, nearly matching the entire previous year's total inflow. The order book is diversified across Consultancy (₹2,800 cr), Turnkey (₹3,600 cr), and Exports (₹1,300 cr), ensuring a robust pipeline for FY26 and beyond.

The company is shifting its export strategy from traditional Line of Credit (LoC) opportunities to global competitive bidding. While this has successfully restarted the export order flow after a 3-4 year hiatus, it comes with lower margins. Management guided that blended export EBITDA margins will now be around 10%, down from the historical 20% seen in LoC-funded projects.

Despite an 11% revenue dip in the first nine months of FY25, management is targeting at least 20% top-line growth in FY26. This optimism is based on the commencement of execution for the ₹1,300 crore export book and new turnkey projects. The company expects to execute 40% of its current export orders within the next financial year.

Management reiterated that Rites remains a 'pure consultancy company' at its core, aiming for consultancy to contribute 50%+ of total revenue. Even within turnkey projects, the focus is on consultancy-design and project management rather than pure construction. This strategy is intended to maintain consolidated EBITDA margins at the 20% level despite lower margins in other segments.

Rites maintains a debt-free balance sheet with a healthy cash balance of ₹609 crores (excluding ₹2,600 crores in client funds). The company continues its aggressive dividend policy, with a payout ratio exceeding 95% for Q3. Management confirmed that as a low-CAPEX company, they intend to maintain these high levels of shareholder returns.