Titagarh Rail Share Price in Focus; Profit Slips to ₹30.94 Crore in Q1 FY26 Results

Titagarh Rail Systems Limited announced its unaudited financial results for the quarter ended June 30, 2025. 

Titagarh Rail Systems Financial Highlights

For the quarter ended 30 June 2025, Revenue from Operations stood at ₹679.30 crore, compared to ₹903.05 crore in the same quarter last year. Total Income was ₹690.95 crore versus ₹915.34 crore in Q1 FY25. The company reported a Profit for the Period of ₹30.94 crore, down from ₹67.01 crore in the corresponding quarter of the previous year.

Operational Highlights

During the quarter, wagon dispatches were limited to 1,628 units due to severe shortages in wheelset supplies from Rail Wheel Factory, Bangalore. This constraint has now been resolved, and the company is optimistic about recovering lost production in the remaining quarters to match FY25 delivery levels of 9,431 wagons. Despite the supply challenges, Titagarh maintained its leadership position, delivering the highest number of wagons to the Indian Railways during the quarter.

Order Book Growth

New orders worth ₹2,469 crore (including GST) were booked during the quarter, translating to around ₹2,092 crore excluding GST. This increased the company’s total order book to approximately ₹26,000 crore (excluding GST), including its share in joint ventures, ensuring strong revenue visibility for the coming years.

Capital and Expansion Initiatives

The board approved the issuance of 21,11,932 convertible warrants at ₹947 each to promoter group entities, raising approximately ₹199.99 crore. Shareholder approval for this capital infusion is already in place.

Additionally, Titagarh signed a 99-year lease agreement for about 40 acres of land contiguous to its Uttarpara, West Bengal, facility at an estimated cost of ₹137 crore. This strategic acquisition will support expanded production capabilities and provide dedicated areas for testing and commissioning metro coaches and Vande Bharat trains.

Business Restructuring

To sharpen its focus on the core railway systems business, the company has initiated the transfer of its shipbuilding and maritime business to a wholly owned subsidiary. It has also formed a committee to strategize for the defence and bridge business segments, enabling these divisions to develop independently.

Management Commentary & Future Outlook

Commenting on the results, Mr Umesh Chowdhary, Vice Chairman and Managing Director, said, “In the Q1 of FY 25-26, the Company generated standalone revenue of INR 679 crores even as the performance of FRS was impacted by shortage of wheel sets. However, the drop in the production during the quarter is only a blip and the company has already started recovering due to improved wheelset supplies in the past weeks by the Indian Railways and the company will be able to rerun to normal production within Q2FY26.”

 Speaking of the future growth of the company, he said that “the real growth driver for the Company over the next quarters and years will come from the PRS business which is very much at the take off point now. The production of all the SBUs in the PRS has started picking up and the order book is also very robust. With the additional land, the facilities available in Uttarpara becomes very comprehensive and can house a 1.6 km long level test track to manufacture and test all kind of trains.” 

He further added, “True to its name, the company intends to focus only on its core business of Railway Systems and therefore has approved the restructuring in order to pursue the non-core growth opportunities independently or along with strategic partnerships.”

Titagarh Share Price Performance

On August 12, 2025, Titagarh share price (NSE: TITAGARH) opened at ₹776.00, the same as its previous close of ₹776.15. At 10:29 AM, the share price of Titagarh was trading at ₹797.15, up by 2.71% on the NSE.

Also Read: Titagarh Rail Secures A Big Metro Order From NCC!

Conclusion

While Q1 FY26 saw lower revenues and profits due to temporary supply chain disruptions, Titagarh Rail Systems is poised for recovery in the coming quarters. With a order book, strategic land acquisition, capital infusion, and a streamlined business focus, the company is positioning itself for sustained growth in FY26 and beyond.

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