NEW DELHI / MAPUTO – RITES Limited, the Navratna engineering and consultancy PSU, has strengthened its global footprint in the railway sector. On January 27, 2026, the company announced it has received a Letter of Intent (LoI) from ICVL (International Coal Ventures Private Limited), Mozambique, for the supply of new Cape Gauge Diesel Electric Locomotives.

The contract is a significant addition to RITES' international order book, highlighting the company’s expertise in rolling stock exports and life-cycle maintenance support in the African continent.

Project Scope and Financials

The order is a dual-component contract involving both the capital supply of machinery and long-term technical support.

• Contract Value: USD 20.60 million (approx. ₹171 crore).
• Equipment: Brand-new Cape Gauge Diesel Electric Locomotives.
• Services: Comprehensive preventive maintenance services, including the supply of all necessary consumable spares at the project site.

Execution Timeline

RITES has committed to a strict delivery and maintenance schedule to ensure operational reliability for ICVL:

Strategic Context: Expansion in Africa

This win follows a string of successful international forays for RITES in the region. In December 2025, the company secured a $3.6 million order from Zimbabwe for similar locomotive solutions and a $35.2 million contract from South Africa.

The locomotives are typically high-horsepower units (often 3,000 HP or 3,300 HP) designed by Indian production units like Banaras Locomotive Works (BLW) to handle the unique "Cape Gauge" (1,067 mm) tracks prevalent in Southern Africa.

Financial Outlook and Upcoming Events

The announcement provided a positive trigger for the stock, which has seen some volatility in early 2026. Investors are now looking forward to the company’s quarterly performance:

• Board Meeting: Scheduled for February 4, 2026.
• Agenda: To review Q3 FY26 (October-December 2025) results and consider the declaration of a Third Interim Dividend for the current fiscal year.
• Trading Window: Remained closed from January 1 and will reopen 48 hours after the result declaration.