The share price of RITES saw a strong buying interest in the intraday trading session today after the state-owned engineering and consultancy company secured a fresh export order from South Africa.
The announcement helped the railway public sector undertaking (PSU) stock snap its recent losing streak.
The stock climbed more than 8% in intraday trade, making it one of the top gainers on the Nifty 500 index. The rally also extended the stock’s recent recovery after it had remained under pressure over the past few trading sessions.
South African export order
The trigger for the rally was an export contract received from Volantis Asset Finance (Pty), South Africa. According to the company’s exchange filing, RITES has received an acceptance of its offer for the supply and commissioning of 4,000-horsepower Cape Gauge diesel electric locomotives.
The company said the formal contract agreement will be signed after due diligence is completed by both parties. Once the process is finalised, the project will be added to the company’s executable order book.
The international order is valued at $35.82 million and is scheduled to be completed within 20 months.
The order strengthens RITES’ presence in overseas railway projects, an area that the company has identified as an important growth driver.
Export business remains a key focus
RITES has been increasing its focus on international opportunities in recent years. Earlier, the company had indicated that exports and turnkey projects are expected to play a larger role in driving growth during Financial Year 2027.
The latest order follows another project announced earlier this month, when RITES secured a Rs 175.41 crore contract for project management consultancy services related to infrastructure development at Babasaheb Bhimrao Ambedkar University. That project has an execution period of 30 months.
The addition of multiple projects within a short period has kept investors focused on the company’s order inflow and execution pipeline.
Recent financial performance
In the quarter ended March 2026, the company posted a 28% year-on-year increase in revenue to Rs 768.26 crore.
However, profitability remained under pressure during the quarter.
Furthermore, the earnings before interest, taxes, depreciation and amortisation (EBITDA) declined compared with the previous year, while operating margins narrowed.
In addition to this, the net profit also slipped marginally.
How has the stock performed?
The stock has gained around 6% over the past five trading sessions and is up nearly 14% over the last one month.
However, on a year-to-date basis, the stock remains about 5% lower.
It has also corrected significantly from its record high of Rs 413.08 touched in February 2024 and continues to trade well below that level.