Jupiter Wagons Limited — Q2 FY26 earnings call

Call held 12 Nov 2025

Management summary

Jupiter Wagons reported a strong sequential recovery in Q2 FY26, driven by improved wheelset supplies, with consolidated revenue growing 71% QoQ to INR 786 crore and EBITDA up 73% QoQ to INR 104 crore. The company maintains a robust order book of INR 5,538 crore and is making significant progress on its Odisha manufacturing facility and new business verticals like Electric Mobility and BESS. While acknowledging a likely miss on the initial FY26 revenue target of INR 5,000 crore due to Q1 headwinds, management remains confident in margin maintenance and long-term growth across diversified segments.

Highlights

  • Q2 FY26 Consolidated Revenue from operations stood at INR 786 crore, a strong 71% sequential growth.

  • Q2 FY26 EBITDA rose 73% quarter-on-quarter to INR 104 crore, with an EBITDA margin of 13.2%.

  • Q2 FY26 Profit After Tax (PAT) reached INR 45 crore, reflecting a PAT margin of 5.8%.

  • H1 FY26 Consolidated Revenue was INR 1,245 crore, with EBITDA at INR 163 crore and PAT at INR 76 crore.

  • The company's order book stands at INR 5,538 crore, providing strong visibility.

  • Secured significant orders for subsidiary Jupiter Tatravagonka Railwheel Factory: INR 113 crore for 9,000 LHB Axles and INR 215 crore for 5,376 wheelsets for Vande Bharat.

  • Odisha forged wheel and axle facility is progressing with an INR 2,500 crore investment, aiming to produce 100,000 wheelsets annually by 2027.

  • Jupiter Electric Mobility (JEM) revenues are expected to be close to INR 100 crore in FY26 and double in FY27, with the business aiming for break-even by end of FY26 and EBITDA positive in FY27.

Concerns

  • Not meeting FY26 revenue target of INR 5,000 crore

Key financials

2 periods

Q2 FY26

  • Revenue
    ₹786 Cr
    QoQ +71%
  • EBITDA
    ₹104 Cr
    QoQ +73%
  • EBITDA Margin
    13.2%
  • PAT
    ₹45 Cr
  • PAT Margin
    5.8%

H1

  • FY26 Revenue
    ₹1,245 Cr
  • FY26 EBITDA
    ₹163 Cr
  • FY26 PAT
    ₹76 Cr

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

Profitability

  • EV Business Break-even Profitability · by end of FY26 · High confidence Break-even
    So, we are very confident that by end of this financial year, this business will break even.

    — Vivek Lohia, Managing Director

  • EV Business EBITDA Profitability · FY27 · High confidence EBITDA positive
    And in FY27, we expect it to be EBITDA positive, and EBITDA margins will be similar to the other existing business.

    — Vivek Lohia, Managing Director

  • Margin Expansion Profitability · by FY28 · High confidence expand
    So, by FY28, we expect the revenues to also expand, and we expect margin expansion also.

    — Vivek Lohia, Managing Director

  • Stone India PAT Profitability · Next year (FY27) · High confidence PAT positive
    Next year, definitely, Stone India is also going to become even PAT positive. I am very confident on that.

    — Vivek Lohia, Managing Director

  • Dako Business PAT Profitability · next year (FY27) · High confidence turn positive
    So, I think Dako is the only business, and that also, next year, we expect that to also turn positive.

    — Vivek Lohia, Managing Director

Revenue

  • JEM Electric Mobility Revenue Revenue · FY26 · High confidence close to INR 100 crore
    And this year, our JEM, Electric Mobility revenues, we will be very close to our INR 100 crore target.

    — Vivek Lohia, Managing Director

  • JEM Electric Mobility Revenue Growth Revenue · FY27 · High confidence double the revenues
    And next year, we are looking to double the revenues in FY27.

    — Vivek Lohia, Managing Director

  • FY26 Revenue Target Revenue · FY26 · Low confidence difficult to give a very clear picture

    Previously INR 5,000 crore → difficult to give a very clear picture

    But definitely INR 5,000 crore is something, unfortunately, I don't think we will be able to reach those numbers.

    — Vivek Lohia, Managing Director

Capacity

  • Odisha Axle Line Operational Capacity · Calendar Year 2026 · High confidence Open
    Next year our axle line will be open, and in 2027 we expect wheel line to be fully commissioned.

    — Vivek Lohia, Managing Director

  • Odisha Wheel Line Commissioning Capacity · Calendar Year 2027 · High confidence Fully commissioned

    — Vivek Lohia, Managing Director

Revenue Mix

  • Wagon Revenues Contribution Revenue Mix · by FY28 · High confidence close to about 50%
    So the whole idea is that, as is the stated position of the company, that by FY28, wagon revenues would constitute close to about 50% of the overall revenues.

    — Vivek Lohia, Managing Director

Commissioning

  • Stone India Commissioning Commissioning · by the last quarter of FY26 · High confidence commissioning to happen
    I think by the last quarter of FY26, Stone India, we expect the commissioning to happen because our final trials are going on, and we are in the process of getting the final certification also done from Indian Railways.

    — Vivek Lohia, Managing Director

Risks & concerns

  • Not meeting FY26 revenue target of INR 5,000 crore

    high

    Due to Q1 headwinds from wheelset issues, the company will not meet its previously guided revenue target for FY26.

    Management acknowledged

  • Supply-side disruptions (wheelsets)

    medium

    Affected Q1 FY26 and extended into July, impacting revenue. Management states conditions improved meaningfully from late July.

    Management acknowledged

  • Delay in Indian Railways wagon tenders

    medium

    Railways are waiting for existing order books to reduce before issuing new tenders, impacting future order inflow.

    Analyst acknowledged

  • Intense competition in wheel manufacturing

    low

    Competitor (Titagarh) setting up facility. Management highlights Jupiter's integrated facility and export focus as differentiators.

    Analyst downplayed

Areas of evasion (4)

  • Specific investment numbers for BESS capacity
  • Specific margins for BESS business
  • Exact cost of wheelsets for Vande Bharat/LHB
  • Exact number of wagons in the order book

Q&A highlights

3 direct
Delay in Indian Railways wagon tenders Direct
I think one of the reasons for the delay was because of the wheelset position. The outstanding order book was substantial. So, I think Railways is looking for the existing order books to reduce before they come out with the new tender.

Reveals the reason for the tender delay, linking it to supply chain issues and existing order book execution, which impacts future order inflow visibility.

Asked by Balasubramanian A. from Arihant Capital

Localization strategy for BESS key components Direct
So, see, the BMS as well as EMS for us is local only. EMS, Jupiter is already doing, I think, our own EMS, and we should be ready with our EMS very shortly. From China, we are mainly dependent on the battery cells. Besides that, I think the entire design, all BESS and the entire system is in-house for us.

Clarifies the company's progress on indigenization for its BESS business, highlighting reduced reliance on Chinese imports for critical components (BMS, EMS) except for battery cells, which is key for cost advantage and supply chain resilience.

Asked by Balasubramanian A. from Arihant Capital

Revision of FY26 revenue target of INR 5,000 crore Direct
So, I am sorry, Sahil. I don't think we will be able to do it because in Q1, we faced significant headwinds because of the wheelset issue. Q2, definitely, as you could see, there is an improvement, but the first month of Q2, again, there was a challenge. So, we will try to make up a lot of ground. But again, if you ask me what our revenue numbers by end of this year will be, I think very difficult for me to give you a very clear picture. But definitely INR 5,000 crore is something, unfortunately, I don't think we will be able to reach those numbers.

This is a critical admission of not meeting previously guided revenue targets for the current fiscal year, directly impacting investor expectations and requiring a re-evaluation of growth projections.

Asked by Sahil Patani from Strokes Capital

2 min read 6 chapters

Detailed narrative

Q2 FY26 Performance and Sequential Recovery

Jupiter Wagons demonstrated a strong sequential recovery in Q2 FY26, with consolidated revenue from operations reaching INR 786 crore, marking a 71% quarter-on-quarter growth. This improvement was primarily attributed to the normalization of wheelset supplies, which had previously impacted Q1. EBITDA for the quarter rose 73% sequentially to INR 104 crore, achieving an EBITDA margin of 13.2%. Profit After Tax (PAT) stood at INR 45 crore, with a PAT margin of 5.8%.

Robust Order Book and Strategic Projects

The company maintains a strong order book of INR 5,538 crore, providing significant revenue visibility for coming quarters. Key orders secured include INR 113 crore for 9,000 LHB Axles and INR 215 crore for 5,376 wheelsets for the Vande Bharat high-speed train project, both for its subsidiary Jupiter Tatravagonka Railwheel Factory. Management noted that the delay in new Indian Railways wagon tenders is due to the substantial existing order book, which needs to be executed first.

Electric Mobility (JEM) and BESS Business Expansion

Jupiter Electric Mobility (JEM) is showing encouraging traction, with vehicle sales growing 20-30% monthly. The company expects JEM revenues to be close to its INR 100 crore target for FY26 and aims to double this in FY27. The EV business is projected to break even by the end of FY26 and become EBITDA positive in FY27. In the Battery Energy Storage Systems (BESS) segment, Jupiter Wagons has built significant capacity, capable of producing 40-50 Megawatts monthly, with BMS and EMS components being localized, and only battery cells imported.

Odisha Forged Wheel and Axle Facility Progress

Progress on the INR 2,500 crore forged wheel and axle facility in Odisha is on track. The axle line is expected to become operational in Calendar Year 2026, with the full wheel line commissioning anticipated in Calendar Year 2027. This facility is designed to produce 100,000 wheelsets annually, significantly enhancing the company's backward integration and reducing dependence on external supplies, while also catering to export requirements.

FY26 Revenue Outlook and Guidance Revision

Management acknowledged that the initial FY26 revenue target of INR 5,000 crore will likely not be met due to significant headwinds faced in Q1, particularly related to wheelset supply disruptions. While Q2 showed strong recovery, the first month of Q2 also presented challenges. The company is striving to make up ground but found it difficult to provide a clear revised revenue picture for the full year, though it expects to maintain margin guidance.

Long-Term Diversification and Growth Strategy

Jupiter Wagons is focused on scaling responsibly, innovating, and diversifying its product portfolio. By FY28, wagon revenues are projected to constitute about 50% of overall revenues, with significant growth expected from other businesses like wheelsets, containers, and electric mobility. The company is also exploring entry into the passenger side of the business (Vande Bharat, Metro) and expects its new subsidiaries, including Stone India and Dako, to turn PAT positive by next year (FY27).

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