A leading Indian engineering infrastructure powerhouse, renowned for its expertise in rolling stock and rail solutions, is making waves in the international market. The company has forged a strategic partnership with a prominent US-based rail group, setting the stage for collaborative innovation in rolling stock design and development, aimed at serving both domestic and global markets.
Share Price Movement
The share price of Texmaco Rail & Engineering Limited went down 3.44 percent to Rs. 143.50 per share on Friday, a decrease from its previous close of Rs. 148.61 per share. The market capitalisation now stands at approximately Rs. 5,742 crore as of February 14, 2025.
Recent Update
Texmaco Rail & Engineering has signed a Global Supply & Services Agreement with Trinity Rail Group LLC, a leading U.S.-based provider of advanced rolling stock solutions. This partnership focuses on designing, developing, and innovating rolling stock and components for both Indian and international markets.
Under the agreement, Texmaco will serve as a key supplier of rolling stock components, including foundry products, for North America and other global regions. The collaboration includes technology integration, with Trinity providing advanced solutions and training to develop next-generation rolling stock with higher payload capacity.
Additionally, a Global Capability Centre (GCC) will be established in Faridabad, India, to drive rail technology innovation. The partnership also aims to explore expanded business opportunities, particularly in new freight car designs, beyond India and North America.
Q3 Financial Highlights
In Q3FY25, the company reported revenue of Rs. 1,326 crore, reflecting a 48 percent YoY growth from Rs. 896 crore in Q3FY24 but a slight 1.5 percent QoQ decline from Rs. 1,346 crore in Q2FY25. Net profit for Q3FY25 stood at Rs. 76 crore, marking a 153 percent YoY increase from Rs. 30 crore in Q3FY24 and a 2.7 percent QoQ rise from Rs. 74 crore in Q2FY25.
Competitors
The top competitors of Texmaco Rail & Engineering include Rail Vikas Nigam (RVNL), Titagarh Railsystems, Jupiter Wagons, Bharat Heavy Electricals, and BEML.
Texmaco Rail & Engineering is currently trading at a P/E of 28.51, which is below the industry P/E of 34.61.
Market Outlook
India’s engineering and infrastructure sectors are set for significant growth, driven by strong demand and policy support. The electrical equipment market is projected to reach $125 billion by 2027, while the construction equipment sector is expected to grow at a 15 percent CAGR. Government initiatives, including a $133.5 billion infrastructure budget and national highway expansion, are expected to create lucrative opportunities. Policies like 100 percent FDI and competitiveness schemes further boost industry prospects. With increasing investments, India is on track to become a global infrastructure hub by 2030.
Written By Fazal Ul Vahab C H
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