Rites Q2 FY27 Results (NSE: RITES)
Signal: Growth decelerated
The read
The quarter shows a modest revenue recovery to ₹521.82 crore, +1.6% YoY, but earnings quality weakened as Supplies & Services rose 40.9% YoY and Export Sale swung to a ₹1.93 crore loss; PAT fell 7.7% to ₹94.35 crore despite the QoQ rebound, interrupting the recent margin-recovery trend.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹521.82 Cr | +1.6% | +4.8% |
| Net profit | ₹94.35 Cr | -7.7% | |
| EPS | ₹1.96 | -8.0% | |
| EBIT margin | N/A |
P&L walk
The supplied filing text includes a consolidated review report but does not include the consolidated P&L statement figures, so consolidated revenue and profit trends cannot be quantified.
Segments
Turnkey Construction Projects was the growth engine, with revenue up 65.9% YoY to ₹187.39 crore, but Export Sale dragged the result by shifting from ₹6.28 crore profit to a ₹1.93 crore loss; Consultancy—Domestic remained the largest contributor at ₹269.49 crore revenue and ₹91.51 crore result.
Key positives
- Revenue from Operations increased to ₹521.82 crore, +1.6% YoY and +4.8% QoQ, with Turnkey Construction Projects revenue up 65.9% YoY to ₹187.39 crore.
- Operating cash flow rose to ₹232.12 crore in H1FY27 from ₹0.53 crore in H1FY26, supported by a ₹73.10 crore trade-receivables adjustment versus a ₹154.44 crore outflow last year.
- Consultancy—Domestic remained the core profit contributor at ₹91.51 crore segment result on ₹269.49 crore revenue.
- Basic EPS recovered 31.5% QoQ to ₹1.96 from ₹1.49.
Key concerns
- PAT declined 7.7% YoY to ₹94.35 crore despite 1.6% revenue growth, indicating weaker conversion of revenue into earnings.
- Supplies & Services expense increased 40.9% YoY to ₹259.92 crore, far faster than revenue growth.
- Export Sale revenue collapsed 99.2% YoY to ₹0.48 crore and the segment moved from ₹6.28 crore profit to a ₹1.93 crore loss.
- Turnkey Construction Projects grew revenue 65.9% YoY to ₹187.39 crore but generated only ₹3.04 crore of segment result, implying limited profitability conversion.
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