Destini Bhd wins RM45.58 million government contract for rail MRO works
Destini Bhd (KL:DESTINI) secured a RM45.58 million contract from Railway Assets Corporation to perform Level 1 and Level 2 maintenance, repair and overhaul (MRO) on 13 passenger train sets.
Source: Destini Berhad · August 1, 2026 at 10:54 PM · AI-assisted report
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KUALA LUMPUR, 2 AUGUST 2026 —
Destini Bhd (KL:DESTINI) secured a RM45.58 million contract from Railway Assets Corporation to perform Level 1 and Level 2 maintenance, repair and overhaul (MRO) on 13 passenger train sets.
Market Impact
The two-year deal was awarded to Destini’s 70%-owned unit, M Rail Technics Sdn Bhd (Railtec), the company said on Monday. Railtec was formed in 2021 to build domestic rail MRO capability under the National Transport Policy.
“This landmark award completes Railtec’s full-spectrum Level 1 to Level 4 rail MRO capability, covering the entire railway asset lifecycle,” Destini said in a statement.
Executive director Ismail Mustaffa said the contract makes Railtec Malaysia’s only rail MRO provider able to support a train fleet across all four maintenance levels. “This transition elevates Railtec from a heavy-overhaul specialist into a truly comprehensive, full-suite MRO powerhouse,” he added.
Destini expects the contract to boost earnings and net assets for the financial year ending June 30, 2027 and beyond.
The award follows a 58.6% drop in net profit to RM3.46 million in the third quarter ended March 31, 2026 from RM8.35 million a year earlier. Revenue fell 4.6% to RM83.69 million from RM87.67 million, mainly because aviation and defence MRO activity declined.
Last week, four shareholders holding 10.15% of Destini called an extraordinary general meeting to remove executive chairman Datuk Abd Aziz Sheikh Fadzir, Ismail and two non-executive directors and replace them with two new nominees.
Destini shares fell two sen, or 7.41%, to close at 25 sen, valuing the group at RM137.2 million.