Jupiter Wagons

Jupiter Wagons reported a challenging Q1 FY26, with standalone total income declining 53% year-on-year to INR425 crore from INR902 crore in Q1 FY25. Standalone EBITDA was INR51 crore and PAT was INR33 crore. Consolidated figures showed total income of INR476 crore, EBITDA of INR60 crore, and PAT of INR31 crore. The primary reason for this underperformance was a continued short supply of wheelsets from Indian Railways, leading to sub-optimal plant utilization and reduced production volumes. However, management stated that wheelset supplies have normalized since July 2025, and they expect to recover lost production in the coming quarters, maintaining their full-year guidance of 10-15% top-line growth and 14-15% EBITDA margins.

The Jupiter Electric Mobility (JEM) segment has commenced production and sales, with 50 vehicles dispatched and the first dedicated showroom opened in Bengaluru in June 2025. The company plans to open another 4 to 6 showrooms by September 2025 and has signed an MOU with Pickkup to deploy 300 JEM TEZ vehicles by year-end. The battery division is experiencing 100% month-on-month growth, having started supplying to Siemens for Vande Bharat. The BESS market in India is projected to grow significantly, with the DG market alone estimated at INR10,000 crore annually. The company is installing and commissioning a new battery module line in Indore by late September, complementing its existing Bangalore facility.

The Odisha wheel and axle project is progressing as per schedule, with critical equipment procurement and construction contracts finalized. This project involves a planned investment of INR2,500 crore in phases. Management expects the existing Aurangabad wheelset unit to generate approximately INR550 crore in revenue in FY26, increasing to INR1,000 crore in FY27. Once the Odisha facility is online by the end of FY27, the wheels business is projected to reach INR3,000 crore in revenue by FY27-FY28, with the new plant contributing INR2,000-3,000 crore to the top line by FY28.

The confirmed order book stands at INR5,972 crore, with approximately 11,500 wagons in total. The order book split is roughly INR4,000 crore for Indian Railways and INR7,000 crore for the private sector. Management anticipates substantial new tenders from Indian Railways in Q3 or Q4 FY26. Despite Q1 challenges, the company aims to achieve a higher growth rate than last year, with capacity to produce around 1,000 wagons per month. The Indian logistics sector is expected to grow to USD 500 billion by 2030, with rail modal share targeted to increase from 27% to 40% under Gati Shakti.

The brake system business, including Kovis JV and Dako JV, is expected to achieve over INR250 crore in business this year. Supplies for these tenders are largely skewed towards the end of the year, with strong EBITDA margins and INR300-500 crore in revenues projected from FY27. The company reported gross debt of INR496 crore and cash of INR426 crore, maintaining a net debt-free position. The INR2,500 crore capex for the Odisha project will primarily occur in FY27, with interest costs capitalized, thus not significantly impacting financial years FY26 and FY27.