Texmaco Rail & Engineering reported its results for the quarter ending December 31, 2025 (Q3 FY26). Revenue from Operations stood at ₹1,042 Cr, a year-on-year decline of 21.5%, primarily driven by lower wagon production and export environment challenges. Despite this, EBITDA was ₹102 Cr (9.6% margin), and PAT reached ₹42 Cr (4.0% margin). The company highlighted an order book of ₹5,661 Cr, positioning it for future growth.
Management Commentary on Performance and Outlook
Executive Director and Vice Chairman, Indrajit Mookerjee, noted that while the Indian rail sector continues to grow, Q3 revenue saw a 21.5% year-on-year decline due to constraints in wheelset availability and an unfavorable export environment. However, the company secured key orders in electrification and infrastructure. The order book as of December 31, 2025, stood robustly at ₹5,661 crores, ensuring execution visibility. Furthermore, the company advanced its sustainability focus by commissioning a 10 MW solar plant and converting a furnace from LDO to LPG.
Managing Director, Sudipta Mukherjee, pointed out that the Union Budget 2026 allocated ₹2.93 lakh crore to Indian Railways. Despite operational challenges, Texmaco delivered 2,027 freight cars and 7,646 MT of Foundry volumes in Q3 FY26. He emphasized a strategic focus on enhancing core capabilities, expanding into specialized components, and diversifying into new areas like the wheelset supply business and a mobility vertical (metro/EMU coaches).
Consolidated Q3 FY26 Financial Summary
The company reported the following key financial figures for the quarter ending December 31, 2025:
- Revenue from Operations: ₹1,042 Cr (down 21.5% YoY)
- EBITDA: ₹102 Cr, achieving a margin of 9.6%
- Profit After Tax (PAT): ₹42 Cr, translating to a margin of 4.0%
- Basic and Diluted EPS: ₹1.07 per share
The nine-month (9M FY26) figures showed Revenue from Operations at ₹3,210 Cr (down 14.6% YoY), with EBITDA at ₹313 Cr (9.7% margin) and PAT at ₹136 Cr (4.2% margin).
Operational Highlights (Q3 FY26)
Operational performance metrics were:
- Wagon Sales: 2,027 units
- Foundry Sales: 7,646 MT
- Freight Car Division Sales: ₹842 Cr
Revenue Contribution by Business Segment (Q3 FY26)
The revenue breakdown for the ₹1,042 Cr operation income highlights segment contributions:
- Freight Car Division: 81%
- Infra – Rail & Green Energy: 8%
- Infra – Electrical: 11%
Within the Freight Car Order Book (₹5,661 Cr total), 60.3% is attributed to Private Sector and Export, while 39.7% is from Indian Railways.
Investment Case Highlights
Texmaco continues to build its investment case on several pillars:
Strengthening the Core
- Sustained leadership: Manufacturing one out of every four wagons on the IR network.
- Current manufacturing rate: 2,500 – 3,000 wagons per quarter.
Cost and Technology
- One of the largest foundries, with capacity, is being accredited by the Association of American Railroad (AAR).
- Strategic partnerships include collaborations with Touax Texmaco, Nymwag Texmaco, Wabtec Texmaco, and Rail Vikas Nigam.
Industry Dynamics and Outlook
- Government investment in DFC is ₹1.5 lakh crores.
- IR plans to procure 1,00,000 – 1,30,000 freight cars over the next 3–4 years.
- The company anticipates 3-5x growth in export of components and castings over the next 2-3 years.
Source: BSE
