RITES Secures ₹78.65 Crore Rate Contract from NTPC for Diesel Locomotives; Boosts Order Book

RITES Limited, a leading transport infrastructure consultancy and engineering firm, has secured a significant rate contract from NTPC Limited for leasing diesel locomotives. This marks a major development in strengthening the company’s business portfolio in the power and transport sector.

Details of the NTPC Contract Awarded to RITES

The rate contract awarded by NTPC Limited involves hiring diesel locomotives on a lease basis for various NTPC power plants across India. The contract, valid from September 20, 2025, to September 19, 2027, carries an indicative value of ₹78.65 crore, excluding GST. The actual value of executed orders will depend upon the purchase orders placed by individual NTPC stations during the contract tenure.

Scope and Duration of the Agreement

The agreement allows NTPC to place multiple purchase orders as per its operational requirements. Each order will specify parameters such as the number of locomotives, completion periods, and payment details. This flexible structure ensures smooth execution of logistics and transport support for NTPC’s large-scale operations.

Domestic Nature of the Deal

This contract has been awarded by NTPC Limited, a domestic entity, confirming that it is not an international arrangement. The deal is categorised as a domestic order, with no involvement of related party transactions. It has also been clarified by the company that neither promoters nor promoter group entities have any interest in NTPC regarding this particular agreement.

Read More: NTPC and Saudi Electricity Company Ink MoU to Establish Power Plant Services!

Financial Impact for RITES

The indicative size of the contract is ₹78.65 crore, ensuring steady revenue generation over the 2-year period. Although the final financial outcome depends on NTPC’s fleet requirements, the order strengthens RITES’s recurring business prospects in leasing and project consultancy services.

RITES Order Book

RITES Ltd reported an order book of ₹8,790 crore as on 30 June 2025, led by Turnkey at ₹4,209 crore, followed by Consultancy at ₹2,903 crore, Exports at ₹1,388 crore, Lease at ₹170 crore, and REMC Ltd at ₹120 crore, with the segment mix showing Turnkey at 48%, Consultancy at 33%, Exports at 16%, Leasing at 2%, and REMCL at 1%.

While the acquisition mode split indicates 53% through competition and 47% via nomination; during Q1 FY26, projects secured totalled ₹451 crore, comprising Consultancy ₹367 crore, Turnkey ₹18 crore, Export ₹31 crore, and Lease ₹35 crore.

RITES Share Price Performance

On September 19, 2025, RITES share price opened at ₹269.00 on NSE, below the previous close of ₹270.56. During the day, it surged to ₹273.50 and dipped to ₹269.00. The stock is trading at ₹271.65 as of 1:48 PM. The stock registered a marginal change of 0.40%.

Over the past week, it has declined by 0.31%, over the past month, it has moved up by 7.12%, and over the past 3 months, it has moved up by 1.93%.

Conclusion

RITES Limited securing the ₹78.65 crore NTPC rate contract highlights a crucial business win, reinforcing its role as a reliable partner in India’s power and transport sectors. The 2-year contract is expected to provide consistent revenue through phased orders aligned with NTPC’s operational demands.

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