Titagarh Rail Systems Limited Achieves EBIT margin of 11.16% per cent in Q1FY26

Kolkata, August 11, 2025: Titagarh Rail Systems Limited (TRSL) continued to maintain its leadership position in Q1FY26 having delivered the highest number of wagons to the Railways. New orders booked were worth INR 2,469 crore, including GST (INR 2,092 crore excluding GST), taking the overall order book to INR 26,000 crore, excluding GST and including its share in joint ventures.

The company achieved an EBIT margin of 11.16 per cent in Q1FY26 against 12.12 per cent in FY25 and is confident of maintaining EBIT margins similar to FY25. TRSL is witnessing a steady flow of enquiries from the private sector for wagons and is also expecting fresh tenders to be issued from Railways during the financial year considering the overall cost advantage offered by rail logistics over road logistics.

The company approved an issuance of 21,11,932 convertible warrants at INR 947 each to promoter group entities, totalling INR 199.99 crore with shareholder approval in place.

The company entered into a 99-year lease agreement dated July 12 with West Bengal for approximately 40.009 acres of land contiguous to its existing factory at Uttarpara at an aggregate cost of INR 137 crore. The strategic nature of this land parcel provides crucial space for establishing enhanced production infrastructure and dedicated areas for testing and commissioning of metro coaches and Vande Bharat trains.

Wagon dispatches stood at 1,628 against 2,455 wagons in the previous quarter and 2,073 wagons in the corresponding first quarter last year on account of a lower supply of wheelsets from the Rail Wheel Factory. TRSL booked a new order for 966 wagons from the Railways and a private customer during the period for an aggregate contract value of INR 396 crore, including GST.

The total order book of FRS stands at INR 4,114 crore, representing 10,772 wagons. Based on the confirmed order book and the current trend of wheelset supply, the company is confident of delivering wagons in line with deliveries achieved last year, during which it delivered 9,431 wagons.

Overall production in the foundry within the FRS stood at 7,566 tonnes compared to 7,632 tonnes last quarter, 5,513 tonnes in the corresponding quarter and 27,239 tonnes in FY 25.

The foundry capacity expansion project is nearing completion, which will result in a production capacity of 8,500 tonnes per quarter by Q3 FY 26 and 10,000 tonnes per quarter by Q4 FY 26. This will make the company 100 per cent self-sufficient for internal casting requirements for wagons.

The total order book of Vande Bharat trains (supply portion) amounts to INR 9,600 crore, representing 1,280 coaches, of which the company’s share of the consortium was 51 per cent, amounting to INR 4,943 crore.

The total order book of Vande Bharat trains (annual maintenance for 35 years) to be executed in the joint venture company with BHEL amounts to INR 14,000 crore, where the company’s share will be INR 7,000 crore.

The company is in advanced stages of completion of the design phase of the project, and has set up the complete car body production line for the Vande Bharat coaches at its Uttarpara plant. It is also producing the first car body during Q1FY26. The company expects to complete the production of the prototype train of 16 cars by Q2 of FY 27 and continue with series production thereafter in terms of the contract.

During the period, the company secured new orders for supply of 273 traction motors to the Railways for INR 43 crore, including GST (INR 37 crore excluding GST) resulting in a total external order book of this SBU as on date to INR 544 crore consisting of traction motors for locomotives, propulsion systems, including traction converters for EMU and propulsion systems, including traction converters for MEMUs.