Credit Rating

No. RITES/SECY/NSE Date: July 04, 2026 To To Listing Department, Corporate Relationship Department, National Stock Exchange of India Limited, BSE Limited, Exchange Plaza, C-1, Block G, Bandra - Rotunda Building, Kurla Complex, Bandra (E), P J Towers, Dalal Street, Fort, Mumbai – 400051 Mumbai - 400 001 Symbol- RITES Scrip Code- 541556 Subject: Disclosure under Regulation 30 of SEBI (LODR) Regulations, 2015 - Credit Rating Dear Sir/Madam, In terms of Regulation 30 and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is hereby informed that CARE Ratings Limited has assigned the rating of the Company in the manner given below: Instrument/ Amount Rating Rating Action Facility Long Term/ Short Rs. 3555.00 Crore CARE AAA; Stable Assigned Term Non-fund (Rupees Three Thousand (CARE Triple A with based bank Five Hundred Fifty Five Stable Outlook) / CARE facilities Crore Only) A1+ (CARE A One Plus) In this regard, please find attached herewith the press release received from CARE Ratings Limited for the above credit rating. This is for your information and records. Thanking You, Yours sincerely For RITES Limited Nikhil Agarwal Company Secretary & Compliance Officer Membership No.: A42626 Press Release RITES Limited July 03, 2026 Facilities/Instruments Amount (₹ crore) Rating1 Rating Action Long-term / Short-term bank facilities 3,555.00 CARE AAA; Stable / CARE A1+ Assigned Details of instruments/facilities in Annexure-1. The list of facilities / instruments falling under the purview of various financial sector regulators (FSRs), along with the names of respective FSRs has been disclosed under Annexure-7. Rationale and key rating drivers Ratings assigned to bank facilities of RITES Limited (RITES) continue to be supported by its strong managerial and financial linkages with the Government of India (GoI), which held a 72.20% ownership stake in the company as on March 31, 2026. Ratings factor in RITES’ healthy and diversified order book of ₹9,416 crore as on March 31, 2026, which translates to 3.9x its FY26 operating income and provides medium-term revenue visibility. Ratings are further supported by the company’s long-standing presence and established track record in executing transport infrastructure consultancy and engineering projects across railways, buildings, and airports segments. The company has adapted to the shift towards competitive tendering, with ~62% of its order book as on March 31, 2026, secured through competitive bidding. It continues to receive works demanding higher order of safety requirements on a nomination basis from railways owing to its technical expertise. Over the last three years ending FY26, RITES has strengthened its position in locomotive exports and maintained stable revenue from locomotive leasing. Ratings also factor in RITES’ strong financial risk profile, characterised by stable total operating income over the past three years, healthy profitability despite an increasing share of competitively bid projects, absence of external bank debt, and strong liquidity supported by healthy cash and bank balances. Going forward, RITES’ ability to grow its scale of operations while maintaining profitability and managing working capital requirements will remain crucial. However, these strengths are partially offset by working capital intensive operations, reflected in a relatively high collection period 125 days in FY26 (PY: 135 days). The competitive and fragmented nature of the infrastructure consultancy and engineering, procurement, and construction (EPC) industry exerts pressure on margins. RITES undertakes turnkey projects primarily in the railways and building segment. CareEdge Ratings understands that these projects are executed on a back-to-back sub-contracting basis, with pass-through of performance risk to subcontractors through performance and financial guarantees. In such projects, RITES continues to provide consultancy services and mainly acts as a project management consultant, serving as a single point of contact for clients. Management has articulated that the company does not intend to increase its exposure to state government projects and does not plan to undertake material turnkey projects outside the railways and buildings segments. Any material changes in the business profile impacting collection efficiency and leverage are key rating sensitivities. Rating sensitivities: Factors likely to lead to rating actions Positive factors • Not applicable Negative factors • Reduction in shareholding of GoI below 51% or weakening of strategic importance, impacting the company’s strong linkages with GoI. • Significant decline in order book position leading to reduced revenue visibility or increase in share of low-margin orders, leading to decline in profit before interest, lease rentals, depreciation, and taxation (PBILDT) margins below 15% on a sustained basis. • Increase in collection period beyond 180 days on a sustained basis. 1Complete definition of ratings assigned are available at www.careratings.com and other CARE Ratings Limited’s publications. 1 CARE Ratings Ltd. Press Release Analytical approach: Consolidated CareEdge Ratings has followed a consolidated view of RITES, as there exist business, financial, and management linkages with the subsidiaries. Ratings also factor in RITES’ strategic importance to the GoI, given its 72.20% shareholding and its role as the principal consultancy arm of the Ministry of Railways (MoR). Consolidated entities are mentioned in Annexure-6. Outlook: Stable The outlook for RITES is expected to be ‘Stable’ backed by its strong financial flexibility due to GoI ownership, established track record in niche consultancy segment, low leverage and healthy order book. Detailed description of key rating drivers: Key strengths Significant linkages with GOI Incorporated in 1974, RITES is a GoI enterprise and is granted Navratna status since 2013. The company was listed on stock exchanges in 2018, with GoI retaining a majority stake of 72.20% as on March 31, 2026 (PY: 72.20%). RITES operates as a multidisciplinary consultancy organisation in the transport infrastructure sector and is a key entity through which the MoR undertakes consultancy, engineering, and export of rolling stock and equipment across domestic and international markets. The company benefits from strong operational and strategic linkages with the GoI, particularly MoR, and its established position as a preferred consultancy partner for rail and infrastructure projects. It is led by an experienced management team, supported by functional and independent directors with domain expertise. These linkages are expected to continue supporting order inflows and strategic positioning over the medium term. Strong and diversified order book RITES has a robust and diversified order book of ₹9,416 crore as on March 31, 2026 (~3.9x of FY26 operating income), providing healthy medium-term revenue visibility. The order book is well diversified across segments, with turnkey projects contributing 49%, followed by consultancy (30%), export sales (19%), leasing (2%) and power generation (1%), reducing dependence on single segment. It has a balanced mix of orders secured through competitive bidding (~62%) and nomination basis, supporting ensuring both scale and margin stability. Sectorally, the order book is well spread, with buildings and railways accounting for ~33% and ~25%, respectively, and a meaningful contribution from export orders. Diversified revenue stream with healthy profitability RITES reported operating income of ₹2,429 crore in FY26, growing by ~10% year-on-year and has a diversified revenue profile across consultancy, lease, exports, and turnkey segments, providing stability to cash flows and reducing segmental dependence. While the revenue mix has evolved in line with project opportunities, operating profitability remained strong, supported by a presence in high-margin consult [Showing first 8,000 characters — download PDF for full document]