Synopsis: Driven by strong order wins and metro expansion, the firm is enhancing manufacturing capacity and operational reach. Despite a temporary dip in Q1 performance, its robust order book, metro project wins, and diversification across facilities position it well for long-term growth and profitability.
India’s railway wagon sector is scaling fast on freight push and capex tailwinds, with annual production hitting a record 41,929 wagons in FY25, up from 37,650 in FY24. Market size stands near Rs 12,000–14,000 crore in 2025, projected to double to Rs 25,000–30,000 crore by 2031 on exports and tech upgrades. Mega procurement plans underpin momentum.
With a market capitalization of Rs 11,417 crore, the shares of Titagarh Rail Systems Ltd closed at Rs 847 apiece, decreased around 0.95 percent as compared to the previous closing price of Rs 855.30 apiece.
Titagarh Rail Systems expects strong growth momentum, planning to deliver 120 metro coaches this year, 220 next year, and 230–250 in FY28. With a ₹30,000 crore orderbook and a 5-year AMC, execution for the new metro project begins in 14 months.
The company foresees higher revenue potential as the government targets 3 billion tonnes by 2030, spurring new tenders by Q4FY26 or Q1FY27. Additionally, the wagon wheelset issue has been resolved, with production expected to start by Q4FY26 or Q1FY27, supporting its expansion goals.
The company’s Q1FY26 results showed a slowdown, with revenue dropping 25% year-on-year to ₹679 crore from ₹903 crore. Net profit also declined 54% to ₹31 crore from ₹67 crore, reflecting weaker demand and project delays that impacted overall profitability and operational performance during the quarter.
Recently, the company received a Letter of Acceptance from MMRDA for a ₹2,481 crore order for Mumbai Metro Line 5. The project covers design, manufacturing, installation, and commissioning of rolling stock, signaling, telecommunication, and platform systems, along with five years of maintenance, highlighting strong execution capabilities and growing presence in India’s metro rail infrastructure sector.
According to a recent presentation, the company operates four manufacturing facilities with an annual capacity of 12,000 wagons and 300 coaches. It stands as the only Indian firm producing both wagons and coaches, holding around 25% market share. With a strong order book of ₹12,695 crore and ₹13,326 crore from its JV, it remains net-debt negative.
The company operates six key facilities across India, including passenger and freight rail units in Kolkata, a manufacturing unit in Bharatpur, an engineering centre in Bangalore, and a wheel manufacturing JV in Chennai. Additionally, its Hyderabad subsidiary focuses on engineering services, supporting strong nationwide manufacturing and R&D capabilities.
Titagarh Rail Systems Limited is a leading Indian manufacturer of railway wagons, coaches, metro trains, and wheelsets. Known for its innovation and engineering excellence, the company plays a vital role in modernizing India’s rail infrastructure with a strong order book, diversified portfolio, and expanding global footprint.
Written by Abhishek Singh
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