The shares of the Small-cap company, specializing in designing, manufacturing, and supplying railway products and services, including freight wagons, locomotive shells, and rolling stock, are in focus after management gave Revenue Guidance of 35–40 percent growth in FY26.
With a market capitalization of Rs. 6,213.71 Crores on Friday, the shares of Texmaco Rail & Engineering Ltd rose by 0.3 percent after making a high of Rs. 157.65 compared to its previous closing price of Rs. 157.05.
Texmaco Rail & Engineering Ltd at a Glance
Texmaco Rail & Engineering Ltd, founded in 1939 and part of the Adventz Group, is a leading Indian engineering and infrastructure company specializing in manufacturing railway wagons, coaches, locomotives, and related components.
It operates multiple manufacturing units, including India’s largest steel foundry, and serves Indian Railways, private freight operators, metro projects, and international markets. The company also undertakes railway infrastructure projects such as bridges, electrification, and signaling, positioning itself as a comprehensive rail solutions provider with strong global partnerships and a focus on innovation and quality.
Management Guidance
According to the company’s recent conference call update, the company has provided strong guidance for FY26, aiming to sustain a 35–40 percent revenue growth rate, supported by a robust order book and continued momentum in its freight rolling stock business.
The company expects to maintain margins above 10 percent, driven by an improved product mix and operational efficiencies. Texmaco is also planning to demerge its rail infrastructure systems business into a wholly-owned subsidiary to unlock further value, leveraging the government’s significant investments in rail infrastructure and signaling.
As the only major Indian exporter of freight rolling stock and components, Texmaco is well-positioned to benefit from both domestic and international opportunities, with new tenders from Indian Railways expected to boost growth further.
Also read: PSU stock to buy now for an upside of more than 60%; Are you holding it?
Financials & Others
The company’s revenue rose by 17 percent from Rs. 1,164.08 crore to Rs. 1,363 crore in Q4FY24-25. Meanwhile, the Net profit declined from Rs. 45.32 crore to Rs. 39.77 crore during the same period.
Texmaco Rail & Engineering reported strong operational highlights, with wagon sales reaching 2,597 units, foundry sales totaling 10,540 metric tonnes, and the Freight Car Division recording sales of Rs. 1,079 crore, demonstrating robust performance across key business segments.
The company generates 80 percent of its revenue from the Freight Car Division, while Infra Rail & Green Energy and Infra Electrical divisions each contribute 10 percent, highlighting the company’s strong focus on freight and diversified infrastructure segments.
As of Q4 FY25, Texmaco Rail & Engineering’s order book stands at approximately Rs. 7,000 crore, led by the Freight Car Division at 49 percent, followed by Infra-Electrical at 24 percent, Infra–Rail & Green Energy at 10.4 percent, Steel Foundry at 2 percent, Components at 0.2 percent, and Others at 14 percent.
Written by Sridhar J
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
