According to reports from Moneycontrol, Prabhudas Lilladher has issued a 'BUY' rating on RITES Ltd with a target price of ₹276 in its research report dated February 05, 2026. The brokerage values the stock at 25x FY28E P/E and notes that the stock offers a 3.5-4% dividend yield.
As reported by Moneycontrol, RITES delivered steady Q3FY26 performance with revenue growing 6% YoY to ₹6.1 billion, led by consultancy growth and sharp recovery in exports. EBITDA increased 21% YoY, with margins expanding by approximately 300 basis points to 23.4%, driven by favorable mix skewed toward high-margin consultancy and exports. The company reported its highest-ever order book of ₹92 billion (4x TTM revenue), offering strong medium-term revenue visibility.
According to the report, the order book remains well diversified with turnkey at ~49%, consultancy at ~30% and exports at ~18%. Nearly 60% of the orders are ~1 year old, supporting execution momentum. The management remains confident of achieving double-digit YoY revenue growth, with acceleration expected from Q4, and has guided for an order book of ~₹100 billion by Q1FY27.
As reported by Moneycontrol, margin guidance remains intact at ~20% EBITDA and ~15% PAT on a normalized basis, while export margins are expected to stabilize at 12-13% amid competitive bidding. FY27E is projected as a year of growth by RITE, supported by execution ramp-up across segments. The asset-light business model, negative working capital cycle and expected ~17% RoE in FY27E underpin earnings quality.
