Titagarh Rail Systems Limited has informed stock exchanges that its Italian associate, Firema SpA, has completed the transfer of one of its business units to Fabbrica Italiana Treni S.p.A., a company owned by the Italian state rail group.
The move follows financial challenges faced by Firema in recent years and is expected to reduce ongoing capital requirements from Titagarh while leaving its current operations and projects unaffected.
As of 6 March 2026 at 11:11 AM, the shares of Titagarh Rail Systems Limited were trading at ₹686, reflecting a rise of ₹28 or 4.26% from the previous close of ₹658.
During the session, the stock opened at ₹657.95, reached an intraday high of ₹694.40, and recorded a low of ₹653.10.
Titagarh Rail Systems stated that its associate company Titagarh Firema SpA has finalised the transfer of one of its business units to Fabbrica Italiana Treni S.p.A..
The transaction was completed for a net consideration of €66.095 million. Fabbrica Italiana Treni is part of the Italian state railway system, linked to the government-owned rail operator.
According to the disclosure, the funds received from the sale have been directed towards settling obligations with both secured and unsecured creditors of Firema.
These payments were made under the CNC restructuring process supervised by the Court of Naples. Following the transfer, any remaining assets within Firema will be addressed by the company’s board at a later stage.
Titagarh Rail Systems acquired Firema in 2015 as part of its strategy to expand its presence in passenger rolling stock manufacturing.
The association contributed to the development of Titagarh’s passenger train segment in India, including the establishment of an aluminium car body manufacturing facility used for modern train projects.
Despite the strategic benefits from the acquisition, Firema has faced financial difficulties in recent years and has recorded ongoing losses.
Titagarh Rail Systems had provided financial support to the Italian entity over this period. The transfer of the business unit is expected to limit the need for further capital support from the Indian parent.
Titagarh Rail Systems stated that the transaction does not affect its operational activities. The company continues to execute several domestic rolling stock projects, including:
As of the most recent quarterly disclosure, the company reported an order book of ₹10,791 crore for its passenger rolling stock segment.
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The transfer of Firema’s business unit marks a restructuring step for Titagarh Rail Systems’ overseas associate. While it addresses financial pressures within the Italian entity, the company has indicated that its core manufacturing activities and existing railway projects in India will continue without operational changes.
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Published on: Mar 6, 2026, 11:16 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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