CALCULATE YOUR SIP RETURNS

Titagarh Rail Systems Targets 1,500 Wagons Monthly by FY26

Written by: Aayushi ChaubeyUpdated on: 18 Aug 2025, 8:18 pm IST
Titagarh Rail Systems aims to produce 1,500 wagons monthly in FY26, driven by a shift towards passenger rail growth.
Titagarh Rail Systems Targets 1,500 Wagons Monthly by FY26
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

Titagarh Rail Systems, a leading name in railway manufacturing, is planning to ramp up its monthly wagon production to 1,500 units in FY26. The announcement was made by Umesh Chowdhary, Vice Chairman and Managing Director of the company. He said the company is relying on a strong order book to meet this ambitious target and recover from production shortfalls in the first quarter of FY26.

Currently, the company has the capacity to produce between 1,000 to 1,200 wagons a month. “But considering the overall market demand and our confirmed orders, we are aiming for approximately 1,500 wagons per month,” said Chowdhary in an interview with NDTV Profit.

Titagarh Rail Systems Q1 FY26 Earnings Results

In its Q1FY26 results, the company reported a 54% drop in profit, mainly due to delays in wagon dispatches. This was largely caused by a shortage of wheelsets from the Rail Wheel Factory, a unit under the Ministry of Railways.

However, Chowdhary assured that the issue is now resolved. “From the end of July or early August, this problem seems to be behind us,” he said. With improved supply, the company expects to match last year’s performance, when it delivered 9,431 wagons.

Strong Order Book Supports Growth

Titagarh’s freight rail segment has an order book worth ₹4,114 crore for 10,772 wagons. In addition to this, there are more private and government tenders in the pipeline. The company expects fresh orders from Indian Railways by the end of the financial year.

For investors looking to benefit from the growth in railway manufacturing, opening a demat account can be a smart move to invest in stocks like Titagarh Rail Systems.

Shift Towards Passenger Rail Business

While freight has historically made up 90-95% of the company’s revenue, there is now a major shift. “Out of our total ₹26,000 crore order book, only ₹4,000 crore is for freight. The rest is for passenger rail and other segments,” said Chowdhary.

This marks a major change in the company’s business focus and is expected to drive future growth.

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

Conclusion

Titagarh Rail Systems is on a strong path of growth, despite facing recent challenges. With a clearer supply chain and a solid order book, the company is optimistic about achieving its goal of producing 1,500 wagons monthly. The shift towards the passenger rail segment also signals a brighter future. For investors, this could be a key opportunity to watch.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Published on: Aug 18, 2025, 2:47 PM IST

Aayushi Chaubey

Know More

We're Live on WhatsApp! Join our channel for market insights & updates

Open Free Demat Account!

Join our 3 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy ₹0 Account Opening Charges

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 3 Cr+ happy customers