RITES Limited (NSE: RITES) Q3 2026 Earnings Call dated Feb. 05, 2026
Corporate Participants:
Unidentified Speaker
Rahul Mithal — Chief Executive Officer and Managing Director
Analysts:
Unidentified Participant
Raghav Maheshwari — Analyst
Manan Poladia — Analyst
Viraj Mithani — Analyst
Arun Kumar — Analyst
Hashit Kapadia — Analyst
Presentation:
operator
Good morning ladies and gentlemen. I’m Kathy Gaines, Moderator for this conference. Welcome to the conference Call of Rights Limited to discuss its Q3 FY26 results. We have with us today sir Rahul Mithal, Chairman and Managing Director, Dr. Deepak Sripathi, Director Technical and Director of Public additional charge. And Mr. Krishna Gopal Agarwal, Director of Finance and Chief Financial Officer. At this moment all participants are in listen only mode. Later we will conduct a question and answer session. At the time. If you have a question, please press star and one on your telephone keypad. Please note this conference is being recorded.
In the interest of time and fairness to all participants. You are requested to repeat yourself to one question for participants time permits. You may come back in the question queued. Now I would like to hand over the floor to Mr. Rahul Mittal, Chairman and Managing Director, Rights Limited. Thank you. Now to you sir.
Rahul Mithal — Chief Executive Officer and Managing Director
Thank you. Morning everyone. Let me start with giving the Safe harbor statement. The presentation and the press release which we uploaded on our website and exchanges yesterday and discussions during the call today may have some forward looking statements. These statements consider the environment we see as of today and obviously carry a risk in terms of Uncertainty because of which the actual results could be different and we do not undertake to update those statements periodically.
Let me give you an Overall assessment of Q3 and then I leave the floor open for questions. So our assessment is that we are very frankly on our own. Our performance in Q3 is completely in line in a steady and focused manner in all the points and the roadmap which we had identified when I had given my commentary at the end of H1. So whether you take the first item in terms of maintaining one order a day. Yes, we got one hundred forty plus orders to think about 1140 crores, an average of 1.5 orders a day.
One export, we said we target one export order a quarter, we’ve got two this quarter totaling to about three hundred and fifty crores. Targeting a ten thousand crore order book. Yes, we are already moving ahead. We are at an all time high of 9262. And definitely the way Q4 is also going, we should be able to try and touch 10,000 by about Q1 for a continuous sequential growth. So whether it’s the operating revenue or the EBITDA, there’s a sequential growth of about 10% and 5 maintaining red lines of 20% EBITDA margin and 15% fat margins.
So we are about 24% and 18%. So whether it is order inflow or execution of the young order book, as I said, we are on a roll and we are poised to definitely achieved what we had given a guidance of a double digit growth on an FY to FY basis as we really step on the gas in Q4. So those are my opening comments and I leave the floor open for specific questions.
operator
Thank you sir. Ladies and gentlemen, we begin the question and answer session. If you have a question, please press star and one on a telephone keypad.
In the interest of time and fairness to all participants, you are requested to restrict yourself one question per participant. Time permits. You may join back for question queue. Wait for a moment while the question queue assembles. Ladies and gentlemen, to ask a question please press star and one on a telephone keypad. The first question comes from the line of Rehan Syed from Trinetra Asset Managers. Please go ahead with your question
Unidentified Participant
and thanks for giving me the opportunity. So like I want to understand how your segment and performance so so you have seen the consultancy margins remains very healthy at 35.4% but turnkey margin significantly lower at 1.3%.
So as turnkey now constitutes 49% of the total alter book. So what structural changes are being made to Ensure that the overall consolidated PBT margin doesn’t compress as the project start. This is your first question.
Rahul Mithal — Chief Executive Officer and Managing Director
So as you see we have a blended revenue mix and as you correctly said there are two extremes of the margin and we also have an export and leasing stream of revenue which is somewhere midway. So what we try and do now that we have a healthy order book which is a good mix of all the streams of revenue, we definitely laid out a strategy in every quarter and definitely on an or a complete FY basis that we you know, push the levers on the mix of orders we are executing today as we speak, more than 700 plus live orders across the country and beyond.
So as I said we definitely fine tuned that and iterated continuously in the quarter so that the red lines of 20% EBITDA margins we are definitely able to maintain.
Unidentified Participant
Okay, and my second question is around. Okay, thank you.
operator
Next question comes from the line of Raghav Maheshwari from Kamayakia Wealth Management Private Limited.
Raghav Maheshwari — Analyst
Hi, good morning. So my first question will be around the export margin sir on this quarter we are seeing as stated on the PPC approximately 13.5% of margin we have highlighted. So sir my question is where do we since we have now begin ramping up exports and we are seeing the order improvement exports as well.
So where do we see these margins stabilizing for export order and also what kind of hindrances do you see going forward from here for overall business?
Rahul Mithal — Chief Executive Officer and Managing Director
So in terms of export stream of revenue, you see these orders as I have highlighted earlier were in the first time most of these orders were on a global tender competitive basis. So bulk of these orders are also two major orders are on competitive basis in our last five decades the first time. So definitely the margins are tighter than the margins of historical margins of export. And the levels that you see now are now as the last 2/4 Q2 and Q3 export shipment and revenue booking has started.
These are the levels of margin in which in this range it will settle down on a quarterly or a half yearly basis. And in terms of constraints in export business the it’s not really a constraint. It is that now more and more we are, we had realized this about two years back and revisited the entire export and international consultancy strategy that now for substantial growth in our right Swedish business we have to get orders on a global competitive basis and not just rely on the line of credit funded project. So so we are now in fact we have ended quarter three with an all time high order book of, of our international business which is at about 2150 crores which includes the export of about 1700 crores and the other infrastructure, consultancy and execution etc.
So our rights with this, while it’s not really a constraint but yes, that’s a watch out which we will do to keep on trying to reinvent ourselves so that we get more and more international orders. So because of their exports on order booking, is it safe to assume that we’ll see a significant top line expansion by in you know, Q1 of FY27 onwards? Yes, for sure. So whether it is export or whether it is the turnkey orders, as I, as I pointed out a bulk of our order, about 60% of our order book, nearly two thirds is very young, it’s about a year or so old.
Whether these are the fresh export order, the fresh turnkey or even consultancy order. So that’s why the target that sequentially we will definitely continue growing in terms of top and bottom line. This is what we have seen Q3 versus Q2 and that trend will continue moving forward both in terms of top and bottom lines.
Raghav Maheshwari — Analyst
Okay, all the best. Thank you. Thank you.
operator
Thank you. The next question comes from the line of Dixit Joshi Combined Stone Financial Advices Private Limited.
Unidentified Participant
Yeah, thanks for the opportunity. So I have a question regarding our export business only. So you as you mentioned we are at 1700 crore order book as of Q3.
I think last month we received 20 million dollar order from Mozambique. So that is not included in this would be 1900 crore approximately as of today.
Rahul Mithal — Chief Executive Officer and Managing Director
Yes, very correct. This is 1700 is as of 31st December. This order of about 180 odd crores has come in Q4 in January. So that’s not included.
Unidentified Participant
Okay, thank you. So if I see so this 1900 crore, let’s say what would be the execution timeline for this? And you mentioned that now since these are we are doing getting these orders through competitive bidding. So that earlier with what we used to do say 25% kind of margin in export, now I think this 12 to 13% would be more sustainable.
Is it fair to understand?
Rahul Mithal — Chief Executive Officer and Managing Director
Yes, your assessment is very correct. And in terms of timelines, you see this is a mixture of locomotives and coaches orders, mix of different orders. On an average they have an execution timelines of about two to three years depending on locomotives. Sometimes you know, larger timeline but on an average I would say anything between two to three years. And you’re correct that this is the level of margins which will stabilize over a period of time. Since most of them including this Most recent order of Mozambique which we got in Q4.
That’s also on a competitive basis
Unidentified Participant
and in terms of donkey projects. So last year our revenue was 8.
Rahul Mithal — Chief Executive Officer and Managing Director
I’ll request you to come back in a queue for a call.
Unidentified Participant
Sure.
Rahul Mithal — Chief Executive Officer and Managing Director
Thank you.
operator
Thank you. Next person comes from the line of sriance meta from equivalent. Please go ahead.
Unidentified Participant
Yeah, thanks for the opportunity, sir. You guided for closer to 15% PAT margin whereas if I look at the nine month number, we are closure to say, you know, upwards of 18, 19%. So is it that we are guiding conservatively or probably no, we would see some margin depreciation going forward.
Rahul Mithal — Chief Executive Officer and Managing Director
Quarter three has given good margin because the mix and revenue, if you see carefully, it’s more of consultancy and export vis a vis turnkey. So what I said was that 15% is our red line in terms of margins and 20% is our red line in terms of EBITDA margin. So it’ll be fair, not really realistic to take 1/4 to be an indicator. But yes, definitely it will be about 50% and above 20 on an average 6 monthly or an annual basis.
Unidentified Participant
Got it, got it, got it. How should we look at export contribution in FY27?
Rahul Mithal — Chief Executive Officer and Managing Director
So export, the good order book is now 1700 as of 31st December and another about 180 odd crores which we got this quarter.
So in January. So I think as I mentioned about two to three year execution time you could see see an average output definitely. Now there’s no looking back every quarter. That gap that we had of about two years of literally zero pulling down the overall top and bottom line. Now every quarter you would only see an upward shrink.
Unidentified Participant
Got it, got it. I have a couple of more questions. I’ll join back in with you. Thank you and all the best.
Rahul Mithal — Chief Executive Officer and Managing Director
Thank you, chef.
operator
Thank you. The next question comes from the line of Manan Palladian from MKP Securities.
Manan Poladia — Analyst
Congrats on a good quarter. Thanks for the opportunity. One question on the order book side. We’ve seen that there’s a big win Delta quarter the quarter, if you look at competition and nomination, I think it’s jumped from 56 to 61. Just curious if you can give some color on like why the big jump and should we expect it to be the same? Secondly, just some color on that. What specific progress are you still getting under nomination?
Rahul Mithal — Chief Executive Officer and Managing Director
So you see, in fact the fresh order inflow in competitive business is literally more than 2 3rd or roughly 70% plus that breakup of 61 is basically, you know, the existing order book breakup.
That is the breakup of the order book of 6139. But in terms of fresh order inflow it is literally about 2/3 or about 70% on. So most of the orders we are getting, whether it is across sectors, whether domestic or international are on including, as I said, this recent export order also are on competitive basis by nomination would mean primarily, maybe few orders which are there under say in some MOU or in terms of some agreement either with some TSU or some central or state government and that in terms of let’s say our skill which has been there and working with them for long, those are some of the agreements which you still manage to get it on nomination.
But primarily I would say that most of our trend, every quarter fresh inflow, contribution of competition and fresh order inflow is getting higher.
Manan Poladia — Analyst
But would you say that the nomination orders that you’re getting are significantly higher margin than your competition orders or would there not be that big of insurance?
Rahul Mithal — Chief Executive Officer and Managing Director
No, not really. In fact, to be contrary, what has happened is that even the few orders that we are getting on nomination because of the bulk of the orders and the margins being lower in competitive orders, even those clients are revisiting the nomination and the agreements, etc.
And having hard nosed negotiations to lower the margins. So that’s why whether it’s a competition or a nomination, the overall scenario is that now you have to work on a broad higher competition, tough lower margins kind of scenario.
Manan Poladia — Analyst
Thank you. I’ll get back in the queue.
Rahul Mithal — Chief Executive Officer and Managing Director
Thank you.
operator
Thank you. Ladies and gentlemen, you are requested to restrict yourself one question for participants and if time permits you may join back with question two. Next question comes from the line of Viraj Mithai from Jupiter Financial.
Viraj Mithani — Analyst
Yes sir, thank you for the opportunity. My question is you. You mentioned the word disruptive growth in your, in the result.
What, what does. Can you give some color on that?
Rahul Mithal — Chief Executive Officer and Managing Director
That’s a very strong word to mention.
Unidentified Speaker
Yes, Viraj. And we say it with a full sense of responsibility that FY27 is going to be a year of disruptive growth. You see as you’ve been watching and many of your colleagues and peers have been watching our performance and every quarter the roadmap which we have been Saying, you see, 23, 20, 24, 25 was a year of consolidation. It was a year of bottom growth. I mean the bottom of the barrel. And then we consolidated revisited, started getting orders 25, 26, I had forecast will be a year of growth vis a vis 24, 25.
So we are aiming for a double digit growth. But since as you see the order book has been an all time high and growing steadily. And these orders are now started generating revenue in every quarter sequentially. Whether they are export orders or whether they are turnkey orders or consultancy orders. So definitely we are poised now to extract the maximum from these orders. And that’s why Q4, Q1 onwards, even more Q2, Q3 has been higher than Q2 in all parameters. So that’s why we see FY27 being pitched as a year of disruptive growth. And I repeat that that is because that is in all parameters.
We see firing on all cylinders to be able to make good the slide that we had. And especially in 2425. Does it mean it will be going upwards of 20% in terms of revenue? Well, it may be premature and you know, kind of speculative to give numbers right now but definitely, I mean you can see the way things are moving on all Our Order Book 4 Streams of Revenue that we will definitely aspire to be not just a year of growth but a year of disruptive.
Viraj Mithani — Analyst
And the quality assurance business is back, sir. Can we assume that.
Unidentified Speaker
Yes, it’s definitely back.
operator
Please dial your PIN number followed by the hash key. I’m sorry, I did not receive a valid input. Please dial your PIN number followed by the hash key. Limited Q3 Fi26 investor conference call. Kindly stay connected. Our operator will be with you shortly.
operator
Thank you for. Darling, can I have a name and company name please?
Arun Kumar — Analyst
Yeah, Arun Kumar from Alpha. State.
operator
Your company name. Sir.
Arun Kumar — Analyst
Alpha State.
operator
Alpha Street. Sorry sir.
Arun Kumar — Analyst
Alpha Street.
operator
And which city are you calling from? Sir,
Arun Kumar — Analyst
from New Delhi.
operator
Okay sir
Arun Kumar — Analyst
for. For Rights limited.
operator
Your name is from Delhi and your company name is Alpha Street. Alpha. Alpha. I can get it.
Arun Kumar — Analyst
Thank you.
operator
Okay, I’m placing on the cons. And already.
Arun Kumar — Analyst
Thank you.
operator
Thank you. Next we have a follow up question from Manan Polaria from MKP Securities. Please go ahead.
Manan Poladia — Analyst
Thanks for the opportunity again.
So my question with respect to your terms he business. Clearly our execution is set up this quarter and like you’re saying next quarter as well. Curious if we will close somewhere around the 600650 mark this year and if you could guide a range for the next year as well as the PBRT margin I think that would be great sir. Thank you.
Rahul Mithal — Chief Executive Officer and Managing Director
So in terms of turnkey, the indication what we are seeing in terms of execution of the 4,500 crore order book is that as you saw we are aiming for at least double digit growth in turnkey in Q4 vis a vis Q3.
And we will try and touch the Last year overall annual levels of turnkey contribution because you see if you compare with last year in certain quarters the turnkey revenues were high because those were the contribution from the earlier holder orders. And now in Q3, Q4 onwards, the contribution of turnkey revenues from the new younger orders. So on an annual basis this would be the comparison. But moving forward, Q4, Q1 and Q2 etc. Every quarter the contribution from the turnkey segment should gradually definitely have a sequential. You target about a sequential growth of about double digit.
In terms of overall margin. Yes, the turnkey has the lowest contribution margin. But as I said then we strategically in every quarter plan the various execution of the various streams of revenue so that an overall mix of ideal margin of about 20% we are able to ensure.
Manan Poladia — Analyst
Just a quick follow up on that. I think last couple of quarters since you had a higher mix of consultancy, our margins have trended closer to the 23, 24% mark than the guided range. Next year, since we see turn C going back up, 20% is the number that we should take.
Rahul Mithal — Chief Executive Officer and Managing Director
Yes, for sure. That’s why I’ve been saying that on an annual basis our red line is 20% EBITDA margins and we will maintain, try and definitely maintain that on an half yearly or an annual basis with balance between all streams of revenue, export, consultancy, turnkey et.
Manan Poladia — Analyst
Right, thank you sir.
operator
Thank you. Next question comes from the line of SH&IIs. Please go ahead.
Unidentified Participant
Yeah, thank you for the follow up. So my question is pertaining to our consultancy segments. If you see, you know, in terms of order book or revenues, it’s largely, you know, in that 3 to 5% growth range.
So any plans, you know, today scale this up, say at least you know what export orders are or probably, you know, in probably that 10 to 15% mark over next year, two to three years. How should one look at the consultancy segment in terms of order book and revenues?
Rahul Mithal — Chief Executive Officer and Managing Director
Shant, you see in consultancy, that is the sector where the highest level of competition is there in terms of fresh order inflow. So if I say that 70% odd today is the ratio overall in our fresh order inflows in a competitive basis the larger percentage is in terms of the consultancy order and that’s why you see a smaller bump in terms of the revenue growth or the profitability.
The profit, actual profit growth. But having said that, since we are constantly trying to get more and more orders at a strike rate instead of one plus order A and the consultancy order book is growing. Yes, you’re correct that it is at a rate of about 5 odd percent. But definitely we are trying that and we feel that as we expand more and more, including international orders, number of bids in international orders also we feel that we will aim to try and touch 10 odd percent in terms of growth in consultancy.
Unidentified Participant
Got it, Got it.
So enter. If I can just add one more question to previous participants, you said, you know, next year we’ll be, you know, giving out a few, rolling out a few export orders and the first batch would be on a trial basis. So what will be the time lag between, you know, the, the, you know, when we get the confirmation? So what I’m trying to understand is could there be a case, you know, there they are taking more time and because of that our revenues from exports could be postponed towards FY28.
Rahul Mithal — Chief Executive Officer and Managing Director
Not really. Because the now strategically the 1700 crore order book that we have in export plus the 180 odd crore which you recently got in January is about 1900 odd crore.
That also has the coach, Bangladesh coach order of about 900 crores which definitely the shipment will start in the coming fy. So it’s a varied mix. Plus this, this Mozambique order which we have got, this is of new locomotives which is similar to the locomotives which we are currently exporting the old order of 10 locomotives. So, so there is a mix of all types of stock in our, in our, you know, export order book. So we are, we are definitely going to be able to not get, you know, get bogged down by if, if by chance there is any delay in one disapproval of this particular type of new developmental order.
I don’t see. So that is the key strategy that, that dip that you saw about two years back, subsequently for two years in export revenue contribution. I don’t foresee happening that happening again now.
Unidentified Participant
Got it? Very clear. Thank you sir. And all the best.
Rahul Mithal — Chief Executive Officer and Managing Director
Thank you.
operator
Thank you. Next we have a follow up question from Parimal Mitani from Credential Investment. Please go ahead.
Unidentified Participant
So thanks once again. Can you hear me again?
Rahul Mithal — Chief Executive Officer and Managing Director
Yes, go ahead.
Unidentified Participant
I can see in terms of the budget, there has been increased allocation in terms of neighboring countries in terms of capital asset by Ministry of Excellence.
Do you think it will benefit us in the long run since we have presence in all these areas?
Rahul Mithal — Chief Executive Officer and Managing Director
Yes, definitely. In fact all the allocations, whether it is in the infra domestic sectors, highways, railways, you know, mrts, city development, urban infra, ports, waterways and international, all these areas, these freight corridor, the high speed corridors, the mineral corridors, each one of these has already our presence and in fact in our international business which we call rides. With quarter three end we have an order book of 2,150 crore which includes the 1700 crores of export. So which is an all time high ever.
Which is the highest ever rites redsh order book which REITS has had. So this is an uptick in our international business also. So whether it is the domestic or the international, all aspects in this budget allocation are definitely going to be useful for us and we’re going to leverage that.
Unidentified Participant
Okay,
operator
Thank you. Next we have a follow up question from Viraj Mithai from Jupiter Financial.
Viraj Mithani — Analyst
Yes sir, I wanted to ask that do we still maintain the 1 consistency order target a day?
Unidentified Speaker
Oh yes Viraj, we have maintained that steadily. In fact quarter three we have got 143 orders which is a strike rate of 1.5.
So now successively for about seven now eighth quarter we have been able to maintain a strike rate of 1 order a calendar day. Intend to maintain our dividend policy for 95% payout going forward also. Yes, for sure we maintained that in Q3 and as I have been reiterating in every quarter, our business strategy is very clear and transparent and we don’t like to swing any surprises. So our broad policy of giving a high dividend payout would definitely be maintained.
Viraj Mithani — Analyst
Thank you and all the best.
Rahul Mithal — Chief Executive Officer and Managing Director
Thank you.
operator
Thank you. Next question comes from line of Hashit Kapadia Elara.
Hashit Kapadia — Analyst
Please go ahead. Yeah, hi. Thanks for the opportunity and good set of numbers are good to see growth coming back and margins also sustaining. Congrats on that. Just a few. One question from my side on the consumer. Could you break the the revenue in terms of how much has been from the QA and non QA in terms of consultancy. That’s one question.
Rahul Mithal — Chief Executive Officer and Managing Director
Morning. So thank you. You see I can only tell you broad numbers in QA QA the levels which we were at 2324 the year when the competition competitive orders stuck in and there were four layers besides, I mean three more besides us this year. The way nine months have gone, we will and the way we have planned Q4 we will definitely after entire, you know, reinventing the whole business, taking on new clients, varied clients, including some international order. We will come back to that level after the first time in terms of the revenue where we started in 23:24.
So that’s a huge, huge recovery. Obviously the bottom line contribution from QA will not be there but we will definitely come back to that level. And by next year you will see a double digit growth in terms of the QA contribution to my Consultancy.
Hashit Kapadia — Analyst
Understood. I have a question. I’ll join with you sir.
Rahul Mithal — Chief Executive Officer and Managing Director
Thank you.
operator
Thank you. Next we have a follow up question from Yasden, an individual investor. Please go ahead.
Unidentified Participant
Thank you for the follow up question. Sir, can you just throw some light on the working capital requirements in the export segment. Especially after the competitive orders we are getting.
Rahul Mithal — Chief Executive Officer and Managing Director
There is hardly any working capital requirement. Most of it we covered by advance. Also our orders are structured like that and it is very very minimal and in fact it’s a very staggered requirement. So that’s why we that’s very minimal and insignificant.
Unidentified Participant
Thank you sir.
operator
Thank you. Next follow up question comes from Anand B from Shema Wells. Please go ahead.
Unidentified Participant
Yeah, thanks for follow questions. So can you just tell me what would be your expected breakup in terms of revenue break between consult especially from turnkey export and leasing for FY27 and FY28.
Rahul Mithal — Chief Executive Officer and Managing Director
So the FY27 a breakup of between all the segments right now would be too, I mean speculative to be able to give you.
But definitely on an average basis. You see our business strategy has been that consultancy and export because export also we count as a kind of a type of consultancy business and that’s what we are, a consultancy company. So consultancy and export combined would definitely be in the range of about 70 odd percent which has been our broad business strategy. And on an annual basis if you look at quarter basis sometimes they tend to get deviated from that because of the one particular stream contributing more on annual basis resultancy plus export would contribute about 70 odd percent and you know the balance leasing and about 5 odd percent and the balance from about turnkey.
So that’s broadly what is our business strategy which we try to achieve on an annual basis.
Unidentified Participant
Okay, I’ll jump back in. Thank you.
Rahul Mithal — Chief Executive Officer and Managing Director
Thank you.
operator
Thank you. Next question is a follow up question from Raghav from Kamayakia Wealth Management Private limited. Please go ahead.
Raghav Maheshwari — Analyst
Yeah, thanks for the opportunity. So just one small question. So we have a good order book. 9 over 9,000 crores just sorted on time. How much of 2 the order book we are booking like in terms of revenue, how much of the revenue booking in terms of point percentage for let’s say for each quarter.
So like you know in terms of percentage and you if you can guide.
Rahul Mithal — Chief Executive Officer and Managing Director
No it’s not really. You see this order is a combination of four streams of revenue which we have of our business. So consultancy is 2750 crores, export is 1700 crores, turnkey is 4500 crores and balance leasing in RMCL is about 300 crores. So each one of these and these total add up to about 700 plus orders which total up to this 9262 crores. Now each of these orders they have definitely, you know different time frames like in consultancy. Some are studies which could be a six month, nine month study.
Some are project management consultancy which are a percentage of the infrastructure getting created. So they have a time frame of about you know three to three, three and a half years. And export again as I said have about two to two and a half years leasing again the some are long term leasing contracts, some are about two year leasing contract. So to put one number as an average would be not. Would be not given a correct picture. But what you should definitely see is the overall revenue trend and an overall revenue nine month. If you compare vis a vis yoy in terms of profitability there’s about a 10% growth and that’s what the guidance we will try and see FY to FY to see your top line and EBITDA trying to reach at least a double digit minimum.
Raghav Maheshwari — Analyst
Okay. Okay, that helps. Thank you.
operator
Thank you. Next we have a follow up question from Hasid Kapadia from Elara. Please go ahead.
Hashit Kapadia — Analyst
Yeah, thanks for the opportunity. Again just wanted to check on the turnkey construction site. Since sir from last three quarters the revenue continues is continuously declining only and our order book is increasing. So where are we in that cycle where we will see the growth coming? Will it be Q4 or do you think it will be next year?
Rahul Mithal — Chief Executive Officer and Managing Director
So Harshit, in terms of the total turkey, yes it is declining but in terms as I said many of these orders were the last of the earlier order book and the new order book of absolute about 65% of 4500 crores is about a year or plus sold.
And if you see these orders have now started giving contributions. If you see sequentially there’s a growth in 60 crores in turnkey so it would not give a correct picture. If you compare yoy if you compare sequentially there’s a growth in turnkey in 60 crores as these young orders have started giving revenue and definitely Q4 will be definitely minimum 10% higher than Q3 in terms of turnkey. So every passing quarter these turnkey projects now are in those time frame between the 12 to 18 month time frame where the work has started on the ground level and the revenue booking has started.
So every quarter sequentially you will see a growth in the turnkey contributions. The realistic picture will be to see a sequential growth because YOYOI will not really give a very clear picture in terms of comparison. That was an older order book finishing and this is a new order book kicking in.
Hashit Kapadia — Analyst
Understood. Sir, I have one more question. I’ll just ask you after that. Thank you.
operator
Thank you. The next question comes from Vishal Perival from PL Capital. Please go ahead.
Unidentified Participant
Yes, thanks for the follow up. Sir. Even on the currency segment, even if you do quarter 10 sort of growth, I think year on year things still will be weak.
I think they will decline 5, 6%. So probably it looks like, you know, I know the execution is picking up but the real benefit of education could happen in quarter one of next year.
Rahul Mithal — Chief Executive Officer and Managing Director
Yes, you’re correct. Your assessment is very correct. Because Y O while is not a will not definitely will be down. If you compare FY26 with FY25, it will be definitely down as I said, because there’s a gap of few quarters between the old order book winding up and the new order book kicking in. So. So that will definitely, you know, but as I said, the aim is to increase sequentially as much as possible so that when you compare maybe H2 this year with H1 and H2 next year, those would give you a better comparison in terms of sequential growth.
Unidentified Participant
Sure, sir. Sure, sir. One last thing. On the Bangladesh order, but whatever is happening, country to country level relationships and also so does this have any bearing in terms of our order execution? Second is recovery of the month of dispatches has already commenced. So any color that you can provide then that will be helpful to us in the market.
Rahul Mithal — Chief Executive Officer and Managing Director
No, I think our order is safe. One is in terms of it’s an EIB funded order. We have already received the advance. The six type of coaches which are there four types of coaches. The prototypes have already got, you know, approved and the production of the prototypes have started.
We are targeting the first rake definitely by early next FY. So this 200 coaches which is about, you know, 10 odd rakes, these are on track and we don’t see we’re in very close. You know, the Bangladesh Railway is in very urgent need of these coaches and the funding is in place. As I said, the advance has already come in. So I don’t see any challenge whether in terms of executing this order or getting our money.
Unidentified Participant
Sure, sir, I think best thanks for all the answers.
Rahul Mithal — Chief Executive Officer and Managing Director
Thank you.
operator
Thank you. Thank you. The next is a follow up question.
Question from Anand from Shema Private Limited. Please go ahead.
Unidentified Participant
Yeah, thanks for the opportunity. Just a follow up on the previous question about the Bangladesh order. So you mentioned in the presentation will be executed in 2029 only. So since there’s no earth need or is coaches so let’s stick to that timeline only execution on 2029 only. So there’ll be no revenue realizations in next year or anything of that sort?
Rahul Mithal — Chief Executive Officer and Managing Director
No, no. I, I, I, I. Let me clarify. The Bangladesh order is 200 coaches and the first rake of 20 coaches we are definitely targeting to ship out in early next fy.
So the execution of the Bangladesh order should definitely start from this coming FY27.
Unidentified Participant
Okay. Okay. So early 7 the first 20 questions will be restored in the next couple of years going forward like that.
Rahul Mithal — Chief Executive Officer and Managing Director
Yes. So normally we will be sending it in rakes of 20 coaches each. So, so the other said the first rake of 20 coaches. We are trying to. Definitely things are on track as a set of prototype approvals have happened and the now the production is going to start way with the prototype also getting, you know, more fine tuned. So as I said, the early FY26 27 the first rake should start moving out and subsequently the the other rakes in 20 coaches each.
Unidentified Participant
Okay. Okay. And there will be targeting towards the 2029 where the entire 200 coaches will be executed by that campaign.
Rahul Mithal — Chief Executive Officer and Managing Director
Yes, yes. Outer limit for. That’s the contractual requirement FY29. But as I said, we will try and see to optimize and maximize expedited to the extent possible. That’s the outer limit as for the contractual agreement.
Unidentified Participant
Okay, okay. Thank you.
operator
Thank you. The next is a follow up question from Ashikapadia from Elara before him.
Hashit Kapadia — Analyst
Yeah, thanks. And such wanted to check that. I know you have spoken about the railway, but in a positive way. But if you look at some data points like the increase in the construction of new lines as well as doubling of lines in terms of value we have seen a very decent growth, you know, anywhere between 10 to 20%.
But in terms of kilometers we have seen a decline. Okay. In terms of. So just wanted to check is it right to assess. Maybe not from FY27 perspective, but probably we have reached a stage where the kilometer addition every year will not be that substantial. It is that value is higher because of maybe commodities are valid to that extent. So probably maybe we are nearing an end to the. A real, you know, construction cycle. That’s. Is that right? Fair and assessment according to you?
Rahul Mithal — Chief Executive Officer and Managing Director
I don’t agree with your assessment. If you see the kind of the, the seven high speed corridors, the east west freight corridor, the, the mineral corridors, each of these are, are the huge amounts of large kilometers.
So each one of them and for us as a consultant which has been associated with such corridors in the past, whether it is dfc, whether it is the current high speed two corridors which we are doing, the DPR etc so we see each one of these as a huge opportunity for all our various activities that we do in terms of study alignment so studies accept PNC etc.
Hashit Kapadia — Analyst
Okay and sir, on the seven high speed record has been announced. Have we done all seven of them or are we involved in any any one of them? Sir,
Rahul Mithal — Chief Executive Officer and Managing Director
currently we are doing two DPRs for two which have been which are in process for some time now.
Hashit Kapadia — Analyst
Okay, fine. Thank you very much and wishing you all the best.
Rahul Mithal — Chief Executive Officer and Managing Director
Thank you.
operator
Thank you. As there are no further questions I would like to hand over the call to the management for their closing comments.
Rahul Mithal — Chief Executive Officer and Managing Director
Thank you all and thank you for the avid interest and the questions which I got. As I say always that it’s a learning experience for my team and me also as based on your questions we revisit our strategies and see what better we can do. As I said, we are it has been a satisfying quarter in terms of being able to move in a steady and focused manner in all the areas which we had, all the milestone and all the strategy points that we had laid down at the beginning of the FY and we had reiterated at the end of H1.
So we are poised to leverage and build up on that in Q4 and I assure you that we are, as I said, firing on all cylinders to be able to definitely surpass the previous FY and also create the sufficient ground for next FY to be a year of disruptive growth. Thank you.
operator
Thank you sir. Thank you all for being a part of the conference call. If you need any further information or clarification, Please email@inversersrights.com Ladies and gentlemen, this concludes your conference for today. Thank you.