Texmaco Rail Forms Joint Venture with RVNL to Boost Rail Modernisation and Exports; Share Prices in Focus

Texmaco Rail & Engineering Ltd said on August 27, 2025, that its board has approved a joint venture agreement with Rail Vikas Nigam Ltd (RVNL). The agreement was executed immediately after the board meeting.

As per the exchange filing, RVNL will hold 51% of the new entity, while Texmaco Rail will hold the remaining 49%. Texmaco’s contribution will be ₹4.90 crore in cash. The transaction is expected to be completed by December 31, 2025, subject to necessary approvals.

Areas of Operation

The joint venture will manufacture and maintain freight and passenger rolling stock, including locomotives, wagons, coaches, metro coaches, and trainsets. It will also take up engineering, procurement and construction projects, manage depots and workshops, and bid for domestic as well as international railway tenders.

Texmaco stated that the proposed business of the joint venture is in line with its existing operations. The partnership is expected to expand its manufacturing base and capabilities in the railway sector.

Regulatory and Transaction Details

The agreement does not qualify as a related party transaction since RVNL is a public sector undertaking and has no promoter group links to Texmaco. The new entity will be incorporated as a separate company, with its size and turnover to be determined by future operations.

Texmaco Rail Q1FY26 Earnings Results

Texmaco Rail & Engineering's consolidated net profit dropped significantly by 50.5% to ₹29 crore in the June quarter compared to the previous year. The company attributed this decline to a shortage of wagon wheelsets supplied by the Railways. This shortage also contributed to a 16.3% decrease in revenue from operations, which fell to ₹911 crore from ₹1,088 crore, putting a strain on the company's profit margins.

RVNL Q1FY26 Earnings Results

For the June quarter, Rail Vikas Nigam saw a 4.1% drop in revenue, bringing in ₹3,908 crore. The company's profit before interest, taxes, depreciation, and amortisation (EBITDA) saw a sharp 71% decline, falling to just ₹52 crore, from the same period last year. 

The EBITDA margin also shrank significantly, from 4.5% to 1.4%. Ultimately, net profit was also hit, decreasing by 40% to ₹134 crore, down from ₹224 crore in the same period last year.

Read more: Texmaco Rail Secures ₹103.16 Crore Wagon Order from Leap Grain Rail Logistics!

Texmaco Rail and RVNL Share Price Performance

As of August 28, 2025, 09:20 AM, Texmaco Rail share price was trading at ₹137.75, a 0.45% decrease from the previous closing price. 

While at the same time, RVNL share price was trading at ₹315.70, a 0.96% increase from the previous closing price.

Conclusion

The joint venture will establish a new company with a focus on rolling stock manufacturing, EPC rail projects, and workshop operations in India and abroad.

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