Destini Bags RM46 Mil Government Contract To Undertake Rail MRO Works
The post Destini Bags RM46 Mil Government Contract To Undertake Rail MRO Works appeared first on Destini Berhad .
Source: Destini Berhad · August 1, 2026 at 10:54 PM · AI-assisted report
KUALA LUMPUR, 2 AUGUST 2026 —
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Headline: Destini Bags RM46 Mil Government Contract To Undertake Rail MRO Works Lead: The post Destini Bags RM46 Mil Government Contract To Undertake Rail MRO Works appeared first on Destini Berhad . Body: KUALA LUMPUR (July 27): Destini Bhd (KL:DESTINI) has secured a contract worth RM45.58 million from the government to undertake Level 1 and Level 2 maintenance, repair, and overhaul (MRO) works for 13 passenger train sets.
Market Impact
“This landmark award completes Railtec’s full-spectrum Level 1 to Level 4 rail MRO capability, covering the entire railway asset lifecycle — from critical daily operational maintenance to deep-tier heavy overhauls,” the construction group said in a statement on Monday.
The two-year contact was awarded by Railway Assets Corporation, the statutory body responsible for owning and managing Malaysia’s railway assets, to Destini’s 70%-owned subsidiary, M Rail Technics Sdn Bhd (Railtec).
Railtec was formed in 2021 to strengthen sovereign engineering capability and advance domestic self-reliance in rail MRO, in line with the aspirations of the government’s National Transport Policy.
“By securing Level 1 and Level 2 capabilities to complement our established Level 3 and Level 4 expertise, we are now the only rail MRO provider in Malaysia capable of supporting an operator’s fleet throughout its entire lifecycle,” said Destini executive director Ismail Mustaffa.
“This transition elevates Railtec from a heavy-overhaul specialist into a truly comprehensive, full-suite MRO powerhouse,” he added.
Destini said the contract is expected to contribute positively to its earnings and net assets for the financial year ending June 30, 2027, and subsequent years over the duration of the contract.
For the third quarter ended March 31, 2026, Destini’s net profit fell 58.6% to RM3.46 million from RM8.35 million a year earlier, mainly due to lower MRO activities in the aviation and defence sectors. Revenue declined 4.6% to RM83.69 million from RM87.67 million.
Last week, Destini received a requisition notice from four shareholders seeking an extraordinary general meeting (EGM) to remove four directors, including its executive chairman and executive director, and appoint two others. The four collectively hold a 10.15% stake in the group.
The requisitionists — LINC Shared Services Sdn Bhd, Veritas Aman Sdn Bhd, WP Travel Sdn Bhd and Azulite Bloom Sdn Bhd — requested the EGM to remove executive chairman Datuk Abd Aziz Sheikh Fadzir, executive director Ismail Mustaffa, and nonexecutive directors Datuk Bahudin Mansor and Norashikin Mat Yusof.
Destini shares closed two sen or 7.41% lower at 25 sen, valuing the group at RM137.2 million. Source: Destini Berhad Published: 2026-07-27T02:20:11.000Z Region: Companies Topic: Economy (AI-assisted rewrite, based on the original source)