December 31, 2025
India’s rail network is one of the largest in the world and is an important part of the country’s transportation system, connecting people and businesses over long distances.
In recent years, the sector has seen major investments in modernization and expansion, including initiatives such as high-speed rail and electrification, making Indian Railways more advanced than ever. This growth has made the rail sector attractive to investors looking for long-term opportunities.
RITES, a government-owned company, plays an important role in this transformation. It offers solutions in the field of railway infrastructure, transport and related services.
Today, RITES shares rose 7.2% in early trade to their intraday high of Rs 254.6 on the BSE.
This is what is driving the rally.
# International order won
Shares of RITES rose 7% in early trading on Wednesday. The increase comes after the company announced that it has secured a significant international order worth US$3.6 million (Rs0.3 billion).
The order from Berhard Development Corporation, Zimbabwe, is for the supply of in-service Cape Gauge diesel-electric locomotives.
These locomotives are specifically designed for use on Cape gauge railway networks, and RITES plans to complete delivery within three months.
According to the company’s official filing, this international deal reflects RITES’ growing global footprint and its expertise in delivering specialized rail solutions.
What now?
Looking ahead, RITES has signed an MoU with the Botswana government to help develop and modernize the country’s transportation infrastructure.
The partnership will focus on improving railways, highways, bridges, airports and buildings by using advanced technology and global best practices.
The company wants to expand to other countries, especially in Southeast Asia, Africa and the Middle East. It has partnered with Etihad Rail in the UAE and expects to earn Rs 4-5 billion annually from train exports.
RITES is well positioned for sustainable growth, driven by increasing government spending on infrastructure and international project procurement.
Indian Railways has expanded 35,000 km of track from 2025, produced 30,000 wagons and 1,500 locomotives annually, increased freight share to 29%, reduced accidents by 80% and planned 1,000 new trains and bullet trains by 2027.
The Indian railway market is expected to be the third largest in the next five years, accounting for 10% of the global market. The government has announced two major initiatives to seek private investment: the running of passenger trains by private operators on the rail network, and the redevelopment of train stations across the country.
RITES, part of the rail sector, could also benefit from the above.
How RITES Stock Has Performed Recently
RITES’ share price is up 6.6% in the past month, but down 15.6% in the past year.
The stock touched its 52-week high of Rs 316.1 on June 5, 2025 and its 52-week low of Rs 192.3 on March 3, 2025.
About RITES
RITES, formerly known as Rail India Technical and Economic Service Limited, is a Navratna-based central government undertaking under the Indian Ministry of Railways.
Founded in 1974, it is a multidisciplinary engineering and consultancy organization providing a comprehensive range of services, from concept to commissioning, in all facets of transport infrastructure and related technologies.
The company is a leading player in the transportation consulting and engineering sector in India. It has a unique position in terms of diversification of services and geographical reach in various sectors such as railways, highways, urban planning (metros) and sustainability, airports, ports, cable cars, institutional buildings, inland waterways and renewable energy.
The company is the only export arm of Indian Railways that supplies rolling stock internationally (except Thailand, Malaysia and Indonesia).
For more details about the company, please see RITES’ financial fact sheet and quarterly results on our website.
Here are some peer group comparisons from RITES:
RITES vs Engineers India
RITES vs. Blue Pebble Ltd
RITES vs Winsol Engineers Ltd
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Investors should evaluate the company’s fundamentals, corporate governance and stock valuations as key factors when conducting due diligence before making investment decisions.
Disclaimer: This article is for informational purposes only. It is not a stock recommendation and should not be treated as such. Read more about our referral services here…
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