Jupiter Wagons Limited — Q3 FY25 earnings call

Call held 30 Jan 2025

Management summary

Jupiter Wagons reported a strong Q3 FY25, driven by robust revenue and profit growth across its operations. The company's order book remains healthy, providing clear visibility for future quarters. Strategic initiatives in the wheel, brake, and electric mobility segments are gaining traction, with significant expansion plans and new product launches on the horizon, positioning the company for substantial long-term growth and diversification.

Highlights

  • Revenue from operations stood at ₹1,029 crore, reflecting a 15% year-on-year increase.

  • EBITDA grew by 19.5% year-on-year to ₹148 crore, with an EBITDA margin expansion to 14.4% from 13.9% in Q3 FY24.

  • PAT increased 18.4% year-on-year to approximately ₹97 crore, achieving a PAT margin of 9.2%.

  • EPS for the quarter was ₹2.29 per share.

  • The order book stood at ₹6,320 crore as of December 31, 2024, providing strong revenue visibility.

  • The Jupiter Tatravagonka Railwheel Factory (formerly Bonatrans India) achieved ₹225 crore turnover in 9M FY25 and is expected to close FY25 at ₹300 crore, with EBITDA margins over 12%.

  • The Electric Mobility segment has secured order confirmations for over 500 TEZ vehicles, with commercial launch scheduled for February 26, 2025.

Key financials

  1. Revenue from Operations ₹1,029 Cr +15%YoY
  2. EBITDA ₹148 Cr +19.5%YoY
  3. EBITDA Margin 14.4%
  4. PAT ₹97 Cr +18.4%YoY
  5. PAT Margin 9.2%
  6. EPS ₹2.29

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.

Segment breakdown

  • Jupiter Tatravagonka Railwheel Factory (Wheel Business)
    ₹225 Cr Revenue (9M FY25)12% EBITDA Margin

Guidance & targets

Volume

  • Wagon Sales Volume · FY25 · High confidence close to 9,000 odd wagons
    No, what we had said was that we have increased our capacity to about 10,000 wagons. But I was very clear that we would be doing close to 9,000 odd wagons in this financial year and I am very confident that we will be achieving those numbers.

    — Vivek Lohia, Managing Director

  • Wagon Sales Volume · FY26 · High confidence up to 10,000 wagons
    And for the next financial year I had mentioned that yes our target is to go to up to 10,000 wagons and again we are very confident on those numbers also and we have the necessary order books also to execute that.

    — Vivek Lohia, Managing Director

Revenue

  • Jupiter Tatravagonka Railwheel Factory Revenue Revenue · FY25 · High confidence close to about Rs. 300 crore
    So, it's a substantial turnaround for us and we expect to close this year close to about Rs. 300 crore.

    — Vivek Lohia, Managing Director

  • Jupiter Tatravagonka Railwheel Factory Revenue Revenue · FY26 · High confidence double this revenue (approx. Rs. 600 crore)
    Yes, we are reporting EBITDA of over 12%. And I think next year we are looking to double this revenue and once the Orissa project for the backward integration kicks in, then as I have already mentioned that this would be a more than Rs. 2,000 crore opportunity for us with substantial exports to the European market.

    — Vivek Lohia, Managing Director

  • Jupiter Tatravagonka Railwheel Factory Revenue (Long-term) Revenue · once Orissa project kicks in · High confidence more than Rs. 2,000 crore
    And I think next year we are looking to double this revenue and once the Orissa project for the backward integration kicks in, then as I have already mentioned that this would be a more than Rs. 2,000 crore opportunity for us with substantial exports to the European market.

    — Vivek Lohia, Managing Director

  • Overall Topline Revenue · FY26 · High confidence close to Rs. 5,000 crore
    So, in FY26, we are looking at revenue of close to Rs. 5,000 crore. I think that is what we have targeted.

    — Vivek Lohia, Managing Director

  • Overall Topline Revenue · FY27-28 · High confidence Rs. 8,000 crore to Rs. 10,000 crore
    As I mentioned, FY27-28 is when we are expecting.

    — Vivek Lohia, Managing Director

  • Brake Business Revenue Revenue · FY25 · High confidence About 250 odd crore
    About 250 odd crore, I think that's what we had projected also for this financial year. We'll be achieving that.

    — Vivek Lohia, Managing Director

  • Overall Revenues Revenue · next 3 years · High confidence double our revenues
    And in terms of the growth, in the next 3 years, we are looking to double our revenues.

    — Vivek Lohia, Managing Director

Profitability

  • Consolidated Margins Profitability · FY26 · High confidence better than this financial year
    Yes, definitely and that will be. I think our margins, again I will not give out any definite numbers, but what I can very confidently say is that the margins profile will be better than this financial year.

    — Vivek Lohia, Managing Director

Electric Mobility

  • Vehicle Launch Electric Mobility · FY25 · High confidence February end
    Yes, we will be because as I have told you February end is when we are launching the vehicle. So, our delivery will start from March onwards.

    — Vivek Lohia, Managing Director

  • Vehicle Deliveries Electric Mobility · FY25 · High confidence start from March onwards

    — Vivek Lohia, Managing Director

  • Plant Capacity Electric Mobility · Annual · High confidence close to 10,000 vehicles annually
    In terms of the capacities, I think we have set up a plant to manufacture close to 10,000 vehicles annually.

    — Vivek Lohia, Managing Director

Order Inflow

  • Private Order Book Addition Order Inflow · Next Financial Year · High confidence at least close to more than Rs. 2,000 crore
    As I said, we expect a substantial tender to come from Indian Railways for the next financial year, the requirements for the next financial year. Again to give numbers is very difficult but we expect it to be, the numbers to be decent. As I mentioned the private order book continues to be strong for us. So, we expect at least close to more than Rs. 2,000 crore of private order book which we are going to add.

    — Vivek Lohia, Managing Director

Risks & concerns

  • Quarter-to-quarter decrease in order book

    medium

    Analyst noted order book peaked in March and has been decreasing Q-o-Q; management attributed it to excellent execution of large orders and strong private order inflows.

    Analyst acknowledged

  • Lumpy nature of railway orders and potential delays

    medium

    Analyst questioned the regularity of large railway orders; management stated private orders are regular, and railway tenders are expected to be substantial but not as large as previous 3-year orders.

    Analyst acknowledged

  • Equity dilution due to QIP

    low

    Analyst expressed concern about equity dilution; management reiterated QIP is an enabling resolution for future growth opportunities, not an immediate fundraise, and would consider a mix of debt and equity.

    Analyst downplayed

  • Impact of global tariffs (e.g., Trump's actions) on export markets

    low

    Analyst asked about potential risks from global tariffs; management stated minimal exposure to North American market and no challenges expected in European market.

    Analyst downplayed

Areas of evasion (2)

  • Exact order inflows for the quarter for wagons
  • Specific cost per kilometer for Battery-as-a-Service

Q&A highlights

2 direct
Utilization of the Rs. 3,000 crore QIP Direct
So, Darshil, see honestly, this is basic. It's just an enabling resolution. So, there is nothing, it's not that we are going to go for any kind of fund raise. As you are aware that this time we expect the railway budget to be very substantial and very growth oriented. So, it is just a resolution the company has taken in case, post budget there are major growth opportunities which come about.

Clarifies that the QIP approval is a precautionary enabling resolution, not an immediate plan for fundraise, linking it to potential future growth opportunities from the railway budget.

Asked by Darshil Pandya

Wagon sales targets for FY25 and FY26 Direct
No, I am not sure because we had always mentioned that the capacity we had mentioned this year would be about 10,000. And next year we said that we will increase with our new foundry coming online, we'll increase the capacity to 12,000. In terms of the execution numbers, no, we have never mentioned 10,000.

Corrects a misunderstanding about wagon sales targets, clarifying 9,000 for FY25 and 10,000 for FY26, and linking future capacity to a new foundry.

Asked by Garvit Goyal

Competitive intensity and margin profile of the Electric Mobility segment Partial
Okay. So, on the electric mobility, right now I think the only vehicle which is available in the market is in the segment which we are launching is Tata has a vehicle that is the only vehicle which is available. So, honestly, I don't know what vehicles are going to come in future. So, yes, competitors, we have just one competitor in that segment right now. In terms of I think the margins and other things, I think it's too early. Let us I think once we start delivering our products, I think that will become more clear. But definitely it is, I would say the margins are positive in that business for us.

Provides insight into the competitive landscape (currently only one major competitor, Tata) and confirms positive margins, though specific figures are withheld as it's a new business.

Asked by Devesh Kasliwal

2 min read 6 chapters

Detailed narrative

Q3 FY25 Financial Performance Highlights

Jupiter Wagons reported a robust Q3 FY25, with revenue from operations growing 15% year-on-year to ₹1,029 crore. EBITDA saw a 19.5% increase to ₹148 crore, leading to an EBITDA margin expansion to 14.4% from 13.9% in Q3 FY24. Profit After Tax (PAT) rose 18.4% year-on-year to approximately ₹97 crore, with a PAT margin of 9.2% and an EPS of ₹2.29 per share. This strong performance was attributed to consistent revenue growth and improved profitability.

Order Book and Railway Sector Outlook

The company's order book stood at a healthy ₹6,320 crore as of December 31, 2024, providing strong revenue visibility. Management expressed optimism for the 2025-2026 Union budget, anticipating a transformative leap for Indian Railways with capital expenditure expected to surpass ₹3 lakh crore, a 15-20% increase. They expect substantial railway tenders in the next 3-4 months, complementing a strong private order book, which is projected to add at least ₹2,000 crore in the next financial year.

Jupiter Tatravagonka (Wheel Business) Growth

The Jupiter Tatravagonka Railwheel Factory, acquired as Bonatrans India, has been successfully commercialized. It achieved a turnover of ₹225 crore in the first nine months of FY25 and is projected to close the full FY25 at approximately ₹300 crore, demonstrating a significant turnaround from previous losses and achieving an EBITDA margin of over 12%. For FY26, the company aims to double this revenue, and with the Orissa project for backward integration, expects long-term revenue from this segment to exceed ₹2,000 crore, including substantial exports to the European market.

Electric Mobility Segment Expansion

Jupiter Wagons is making significant strides in electric mobility, increasing its stake in Jupiter Electric Mobility (JEM) from 60% to 75%. JEM acquired Log9 Technology's railway and electric truck battery division, securing proprietary battery technology. The commercial launch of TEZ vehicles is scheduled for February 26, 2025, with deliveries commencing in March, backed by over 500 confirmed orders. The company has established a plant with an annual capacity of 10,000 vehicles and is introducing a Battery-as-a-Service model to ensure cost parity with ICE vehicles.

Strategic Diversification and Future Revenue Targets

Beyond wagons, the company's strategic initiatives in brake discs, axle boxes, specialized containers, axles, CMS crossing, and brake systems are paying dividends. The brake business is projected to achieve ₹250 crore revenue in FY25, with better margins than wagons. Overall, Jupiter Wagons targets a revenue of approximately ₹5,000 crore for FY26 and aims to double its revenues to ₹8,000-10,000 crore by FY27-28, driven by growth across both wagon and non-wagon segments.

Capital Allocation and Funding Strategy

The company approved a ₹3,000 crore QIP as an enabling resolution, not an immediate fundraise, to capitalize on potential growth opportunities arising from a substantial railway budget. Management clarified that existing businesses are well-funded, and any future growth requiring capital would be met through a mix of debt and equity. The funds from the earlier ₹800 crore QIP are being utilized for the wheel project, with advances released to the EPC contractor as per schedule.

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