Jupiter Wagons

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%.

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.

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.

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.

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.

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).