Synopsis:
Shares surged after securing an ₹86.85 crore order for BCFC wagons and brake vans. A robust ₹7,053 crore order book, diversified demand, and growth-focused guidance underscore strong long-term expansion and margin improvement potential.
The shares of the rail solution provider gained up to 4 percent in the morning session after the company bagged a significant work order from Ultratech Cement Limited worth Rs 86.85 crore.
With a market capitalization of Rs 6,015.98 crore, the shares of Texmaco Rail & Engineering Ltd were trading at Rs 150.60 per share, increasing around 2.17 percent as compared to the previous closing price of Rs 147.40 apiece.
Significant order
The shares of Texmaco Rail & Engineering Ltd have seen bullish movement after bagging a significant work order from Ultratech Cement Limited worth Rs 86.85 crore for BCFC Wagons, along with Brake Van to be delivered by March 2026.
Financial & Operational Highlights
The company’s Q1FY26 performance shows a sharp decline, with revenue falling 16% to ₹911 crore from ₹1,088 crore in Q1FY25. Net profit dropped even more steeply, down 51% to ₹29 crore. This indicates weaker demand or higher costs, reflecting significant pressure on margins and overall profitability compared to the previous year’s performance.
Texmaco showcases robust growth potential with a ₹7,053 crore order book, expecting exports to grow 3–5x in 2–3 years. It operates 5 manufacturing sites and 2 foundries with 48,000 MTPA capacity. With 550+ freight cars exported in 3 years, 20+ product types, and global collaborations, Texmaco leverages scale, technology, and cost efficiency to drive expansion.
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Texmaco’s consolidated Q1 FY26 order book stands strong. The Freight Car Division leads with 51.1%, followed by Infra-Electrical at 24.9%, other subsidiaries and JVs at 13.8%, and Infra-Rail & Green Energy at 10.2%. If we talk about the freight cars order book, 65.8% orders are from Indian Railways, while 34.2% come from the private sector and exports, showing balanced demand sources.
The management reaffirmed FY26 guidance despite Q1 slowdown, emphasizing long-term growth. The Freight Car Division targets 35–40% annual growth, while EBITDA margins are expected to reach double digits, moving toward the lower teens. They highlighted consistent improvement over the past two years and remain committed to enhancing the bottom line, aiming for 35–40% PAT growth for FY26.
As a leading manufacturer of freight cars and rail components, Texmaco Rail & Engineering Ltd. has a legacy in serving India’s core sectors since 1939. The company’s vision focuses on always putting the customer first, delivering excellence, and manufacturing world-class railway products for a global client base.
Written by Abhishek Singh
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