Jupiter Wagons Limited — Q1 FY26 earnings call

Call held 13 Aug 2025

Management summary

Jupiter Wagons reported a challenging Q1 FY26 with significant revenue and profit declines, primarily due to short supply of wheelsets from Indian Railways. However, management confirmed that wheelset supplies have normalized since July, and they expect to recover lost production in subsequent quarters. The company remains bullish on its diversified portfolio, with strong progress in Jupiter Electric Mobility, the battery division, and the upcoming Odisha wheel and axle project, maintaining its full-year guidance.

Highlights

  • Standalone total income declined 53% YoY to INR425 crore in Q1 FY26, from INR902 crore in Q1 FY25.

  • Standalone EBITDA stood at INR51 crore, and Profit After Tax (PAT) was INR33 crore.

  • Consolidated total income reached INR476 crore, with EBITDA at INR60 crore and PAT at INR31 crore.

  • The confirmed order book stands at INR5,972 crore, providing continued visibility for coming quarters.

  • Jupiter Electric Mobility (JEM) commenced production and sales, dispatching 50 vehicles and opening its first showroom in Bengaluru in June.

  • The battery division reported 100% month-on-month growth and commenced supply to Siemens for Vande Bharat.

  • The wheelset business expects to achieve INR550 crore revenue in FY26, increasing to INR1,000 crore in FY27.

  • Long-term credit rating upgraded to ACUITE AA with a stable outlook.

Concerns

  • Short supply of wheelsets from Indian Railways

Key financials

2 periods

Headline

  • Total Income (Standalone)
    ₹425 Cr
    YoY -53%
  • EBITDA (Standalone)
    ₹51 Cr
  • PAT (Standalone)
    ₹33 Cr
  • Total Income (Consolidated)
    ₹476 Cr
  • EBITDA (Consolidated)
    ₹60 Cr
  • PAT (Consolidated)
    ₹31 Cr
  • Order Book
    ₹5,972 Cr
  • Gross Debt
    ₹496 Cr
  • Cash
    ₹426 Cr

Q1 FY26

  • Wagons Supplied
    826 units
  • Wheelsets Supplied
    4,811 units

What they filed

Q1 FY27: revenue up 50.6%, net profit up 15.2% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue974 1,000 1,002 411 707 −27%776 −22%645 −36%619 +51%
EBITDA133 141 145 51 88 −34%94 −33%67 −54%66 +29%
Net profit89 98 97 33 53 −40%58 −41%39 −60%38 +15%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Revenue

  • Top Line Growth (Overall) Revenue · FY26 · Medium confidence 10-15%
    So, I wanted to understand if we'll still be able to meet that kind of a projection because our margins have kind of contracted this quarter. So, if you could just provide some more highlights around that. Thank you. So, we still maintain our guidelines

    — Vivek Lohia, Managing Director

  • Wheelset Business Revenue (Aurangabad) Revenue · FY26 · High confidence INR550 crore
    we expect to achieve revenue of approximately INR550 crore in the current financial year

    — Vivek Lohia, Managing Director

  • Wheelset Business Revenue (Aurangabad) Revenue · FY27 · High confidence INR1,000 crore
    which would further increase to around INR1,000 crore next year.

    — Vivek Lohia, Managing Director

  • Wheels Revenue (Odisha) Revenue · FY27-FY28 · Medium confidence INR3,000 crore
    from FY27, FY28, I think wheels should be close to about INR3,000 crore in terms of revenue.

    — Vivek Lohia, Managing Director

  • Vehicle & Battery Segment Revenue Revenue · Next 2-3 years (FY27-FY28) · Medium confidence INR500 crore to INR1,000 crore
    next 2 to 3 years the vehicle business which we have just started as well as the battery business, that should be a significant business. So that we are expecting that business to be upward of anything between INR500 crore to INR1,000 crore business for us by that time.

    — Vivek Lohia, Managing Director

  • Brake System Business Volume (Kovis JV + Dako JV) Revenue · FY26 · High confidence >INR250 crore
    on the brake system, including our Kovis JV as well as the Dako JV this year, we should do a business of more than INR250 crore

    — Vivek Lohia, Managing Director

  • Brake System Business Revenue (Dako JV + Stone India) Revenue · FY27 · High confidence INR300 crore to INR500 crore
    from next financial year, I'm expecting anything between INR300 crore to INR500 crore revenues coming out from that business.

    — Vivek Lohia, Managing Director

  • Battery Business Revenue (Bangalore) Revenue · By FY27 · Medium confidence INR200 crore to INR300 crore
    by FY27, we expect the battery business to be anything between INR200 crore to INR300 crore of business for us.

    — Vivek Lohia, Managing Director

  • Orissa Business Revenue (existing facility) Revenue · FY26 · High confidence INR500 crore plus
    guidelines from our Orissa business to be INR500 crore plus the revenues

    — Vivek Lohia, Managing Director

  • Orissa Business Revenue (existing facility) Revenue · FY27 · High confidence INR1,000 crore
    which will go up to about INR1,000 crore next year.

    — Vivek Lohia, Managing Director

  • Wagon Business Revenue Revenue · FY27-FY28 · Medium confidence INR4,000 crore to INR4,500 crore
    wagon revenue will continue to be there around INR4,000 crore, INR4,500 crore.

    — Akash Vora, Dalal & Broacha

  • Orissa Plant Revenue (new plant live) Revenue · FY28 · Medium confidence INR2,000 crore to INR3,000 crore
    Yes, between INR2,000 crore to INR3,000 crore depending upon the pricing because it's too early to predict the pricing right now.

    — Vivek Lohia, Managing Director

  • Battery Business Revenue (eLCVs inclusive) Revenue · By FY28 · High confidence INR500 crore to INR1,000 crore
    By FY28, we expect, yes, anything between INR500 crore to INR1,000 crore, definitely.

    — Vivek Lohia, Managing Director

  • Overall Revenue (Orissa plant online) Revenue · FY28 · Medium confidence INR8,000 crore to INR10,000 crore
    I've talked about INR8,000 crore to INR10,000 crore, I'm talking about FY28 once our Orissa plant comes online.

    — Vivek Lohia, Managing Director

  • Orissa Plant Contribution to Top Line Revenue · FY28 · Medium confidence INR2,000 crore to INR3,000 crore
    I continue to maintain that guideline because that business itself will add to anything between INR2,000 crore to INR3,000 crore in terms of top line revenue.

    — Vivek Lohia, Managing Director

Profitability

  • EBITDA Margin (Overall) Profitability · FY26 · Medium confidence 14-15%
    So, I wanted to understand if we'll still be able to meet that kind of a projection because our margins have kind of contracted this quarter. So, if you could just provide some more highlights around that. Thank you. So, we still maintain our guidelines

    — Vivek Lohia, Managing Director

Capacity

  • Odisha Facility Operational Status Capacity · End of FY27 · High confidence Online
    our Odisha facility should be online by the end of next year.

    — Vivek Lohia, Managing Director

  • eLCV Dealerships Capacity · By September 2025 · High confidence At least 6
    by September end, we expect at least six dealerships across the country.

    — Vivek Lohia, Managing Director

Volume

  • Wagons Production per month Volume · Year-end (FY26) · Medium confidence 1,000
    holding on to our guidance of almost around 10,000 wagons by the year-end. So that probably works out to almost from Q2 onwards it has to work out to around 1,000 wagons per month.

    — Akash Vora, Dalal & Broacha

Product Launch

  • New eLCV Vehicles Product Launch · FY26 · High confidence Two (2-ton payload, 1-ton segment)
    in the process of launching two other vehicles, a 2-ton payload vehicle as well as in the 1-ton segment, another vehicle in the current financial year itself.

    — Vivek Lohia, Managing Director

Capex

  • Odisha Project Investment Capex · FY26 and FY27 · High confidence INR2,500 crore
    between FY26 and FY27, overall, we'll be spending about INR2,500 crore on the Orissa project.

    — Vivek Lohia, Managing Director

Risks & concerns

  • Short supply of wheelsets from Indian Railways

    high

    Continued short supply of wheelsets from Indian Railways resulted in sub-optimal plant utilization and substantially reduced production volumes in Q1 FY26.

    Management acknowledged

  • Dependence on Indian Railways for wheelset supply for railway contracts

    medium

    Indian Railways contracts do not permit the use of imported wheelsets, and there is a substantial price differential for imported wheels which is not reimbursed, making imports financially unviable for railway orders.

    Management acknowledged

  • Execution delays for brake system orders

    medium

    Supplies for brake system tenders are skewed towards the end of the year, with strong EBITDA margins expected only from the next financial year.

    Management acknowledged

Q&A highlights

2 direct
FY26 guidance and Q1 margin contraction Direct
we still maintain our guidelines, and as I've already mentioned that July onwards, the wheel supplies have stabilized. So, we expect that in the last 2 quarters, we'll make up a lot of the lost ground, which we had in the first quarter.

Addressed concerns about Q1 underperformance and reaffirmed full-year guidance, attributing Q1 issues to temporary wheelset supply.

Asked by Sahil Patani, Strokes Capital

Order book, production capacity, and FY26 wagon targets Direct
The total number of wagons is approximately 11,500. ... No, we definitely have the capacity to go up to that scale. As I've told you our target this year was to scale up production, and we are already focused on that.

Clarified the current order book size and confirmed the company's capacity to meet ambitious production targets for the year, contingent on wheelset supply.

Asked by Akash Vora, Dalal & Broacha

Competitive landscape and aggressive growth in Battery Energy Storage Systems (BESS) Partial
We are very aggressive, see, whenever you give numbers, you have to be very, very conservative. As I have told you, there is a huge opportunity which is there in the market. So, what I'm saying is, in terms of the growth potential, it is very huge. But today, it would not be right on our part to give a very strong guidance.

Revealed management's conservative approach to guidance despite acknowledging a 'huge opportunity' and 'very aggressive' internal strategy in the high-growth BESS market, suggesting potential for upside surprises.

Asked by Hardik Gandhi, HPMG Shares and Securities

3 min read 5 chapters

Detailed narrative

Q1 FY26 Performance Overview and Wheelset Challenges

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.

Jupiter Electric Mobility (JEM) and Battery Division Progress

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.

Odisha Wheel and Axle Project and Future Wheel Business Outlook

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.

Order Book and Railway Business Outlook

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.

Brake System Business and Financial Position

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.

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