TITAGARH - Titagarh Rail

📊 NSE: TITAGARH 🏢 Engineering 📅 Last Updated: 12/14/2025 14:25

💰 Financial Performance

Revenue Growth by Segment

Freight Rail Systems (FRS) revenue grew 5.64% in FY25, though it saw a 32.83% YoY decline in Q2 FY26 to INR 666.11 Cr. Passenger Rail Systems (PRS) revenue grew 114.70% YoY in Q2 FY26 to INR 122.21 Cr, despite a 41.35% decline in FY25 due to project lifecycle stages.

Geographic Revenue Split

The company operates primarily in India with plants in Titagarh (West Bengal) and Bharatpur (Rajasthan). International strategy focuses on exports from India rather than overseas manufacturing, with plans to dilute the stake in the Italian JV, Firema.

Profitability Margins

Operating Profit Margin was 13.30% in FY25 compared to 12.91% in FY24. PRS segment PBIT margin improved significantly from 6.18% to 11.44% YoY in Q2 FY26 due to operating leverage.

EBITDA Margin

EBITDA margin for Q2 FY26 was 11.25%, down from 12.82% YoY. For the full fiscal 2024, EBITDA margin improved to 11.7% from 9.4% in fiscal 2023, driven by healthy execution of a large wagon order.

Capital Expenditure

Planned incremental capex of approximately INR 600 Cr over FY25-2027 to fund infrastructure and capacity expansion. Additionally, INR 200 Cr is being invested in a wheelset manufacturing JV.

Credit Rating & Borrowing

The company maintains a healthy financial risk profile with an adjusted interest coverage ratio of 6.28 times in fiscal 2024. Debt-to-equity ratio stood at 0.20 in FY25.

⚙️ Operational Drivers

Raw Materials

Key raw materials include steel, steel castings (targeting 40,000 tonnes monthly run rate), traction motors (capacity of 2,400 per annum), and forgings.

Key Suppliers

Ramkrishna Forgings Limited is a key strategic partner and supplier through a joint venture for wheelset manufacturing.

Capacity Expansion

Wagons: 12,000 per annum (current). Passenger Coaches: 250 per annum (current), expanding to 850 per annum through phased investment. Shipbuilding: Planned capacity for 15-18 vessels per year.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company manages commodity price risk through forward hedging contracts.

Manufacturing Efficiency

Operating leverage in the PRS segment is achieved at a run rate of 150-200 coaches per year, expected to be reached by Q4 FY26.

📈 Strategic Growth

Expected Growth Rate

35%

Growth Strategy

Growth will be driven by scaling passenger coach capacity from 250 to 850 units/year, executing the INR 28,076 Cr order book, and operationalizing the wheelset JV by end of FY26. The company is also spinning off its naval division to tap into the Shipbuilding Financial Assistance Policy.

Products & Services

Freight wagons, loco shells, bogies, couplers, metro coaches, Vande Bharat trainsets, traction motors, Fast Patrol Vessels, and Coastal Research Vessels.

Brand Portfolio

Titagarh

New Products/Services

Aluminium coach line and wheelsets (commercial production by end of FY26) are expected to contribute meaningfully to future revenue and import substitution.

Market Expansion

Focusing on the robust Indian market while pursuing exports from India to international customers, including Firema in Italy.

Market Share & Ranking

Largest installed capacity in India for wagons at 12,000 units per annum.

Strategic Alliances

Joint Venture with Ramkrishna Forgings Limited for wheelsets; Joint Venture with the Government of Italy for Firema (currently being diluted).

🌍 External Factors

Industry Trends

The industry is shifting toward modernization with 136 Vande Bharat trainsets rolled out and 103 stations redeveloped. There is a growing demand for high-speed rail and Kavach safety upgrades.

Competitive Landscape

Leading player in the Indian rail manufacturing ecosystem, benefiting from 'Make-in-India' and 'Aatmanirbhar Bharat' initiatives.

Competitive Moat

Moat is built on being the largest wagon manufacturer in India and having specialized approvals from the Indian Navy and Coast Guard for shipbuilding, which are difficult for new entrants to obtain.