Shares of Titagarh Rail Systems Limited surged nearly 5% on Tuesday, August 12, even as the company posted a steep decline in its Q1 FY26 earnings. Revenue for the April–June quarter fell 24.8% year-on-year (YoY) and quarter-on-quarter (QoQ) to Rs 679.3 crore. EBITDA dropped 28.2% YoY to Rs 85.9 crore, with the margin narrowing to 12.6%. Profit before tax came in at Rs 46 crore, down 48.9% YoY, while net profit slumped 53.8% YoY to Rs 30.94 crore. Earnings per share stood at Rs 2.30, compared to Rs 4.98 a year ago.
Despite these weak financials, market sentiment was buoyed by operational milestones and a robust pipeline. The company booked fresh orders worth Rs 2,469 crore (including GST) during the quarter, taking its total order book to approximately Rs 26,000 crore (excluding GST), inclusive of its joint venture share. The freight rail segment, which was impacted by wheelset shortages from the Rail Wheel Factory, is expected to recover from Q2 as supplies have normalised since late July. Management reiterated confidence in matching last year’s delivery of 9,431 wagons.
In the passenger rail segment, Titagarh secured major metro orders — including Rs 1,599 crore for Mumbai Metro Line 6 and Rs 431 crore for additional Pune Metro trainsets — raising its metro coach order book to about Rs 3,100 crore, covering 441 coaches. The company inaugurated its first stainless steel metro coach for Bangalore Metro in August and commenced production for the Ahmedabad Metro prototype, targeting dispatch in Q3 FY26. It is also advancing its Vande Bharat train project, with an order book of Rs 9,600 crore for supply and Rs 14,000 crore for maintenance, where its share stands at around Rs 7,000 crore.
Strategically, Titagarh has entered into a 99-year lease for 40 acres of land adjoining its Uttarpara facility at a cost of about Rs 137 crore. This will support enhanced production infrastructure and allow for a 1.6 km test track for metro and Vande Bharat trains. The company also approved the transfer of its shipbuilding and maritime business to a wholly owned subsidiary and is reviewing strategic options for its defence and bridge business, enabling a sharper focus on core railway operations.
Management emphasised that the shortfall in Q1 was temporary and that growth momentum, particularly in the passenger rail segment, is set to accelerate in the coming quarters.
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