Jupiter Wagons Limited — Q4 FY25 earnings call

Call held 19 May 2025

Management summary

Jupiter Wagons delivered strong consolidated financial performance for FY25, with total income growing 9.3% to ₹4,008 crores and PAT increasing 15% to ₹380 crores. The company made significant strategic progress, including the launch of eLCV commercial production, expansion in battery systems, and securing substantial orders in its core railway and brake system segments. A major highlight is the ₹3,500 crore Odisha rail wheel and axle forging facility, which is progressing rapidly and is expected to be a key revenue driver by FY28-29.

Highlights

  • FY25 Consolidated Total Income: ₹4,008 crores, up 9.3% YoY.

  • FY25 Consolidated EBITDA: ₹578 crores, up 18% YoY, with a margin of 14.6%.

  • FY25 Consolidated PAT: ₹380 crores, up 15% YoY.

  • Odisha Rail Wheel & Axle Forging Facility: ₹3,500 crores investment, 100,000 wheel sets annual capacity, expected to contribute ₹3,000 crores revenue by FY28-29.

  • Wagon Manufacturing Target: ~10,000 wagons for FY26, subject to wheel set availability.

  • Brake Systems & Wheel Sets: Revenues expected to double in FY26, reaching above ₹800 crores combined.

  • eLCV Segment: Targeting average sales of 100 vehicles per month in the next 3-4 months.

Concerns

  • Wheel Set Supply Constraint

Key financials

  1. Consolidated Total Income ₹4,008 Cr +9.3%YoY
  2. Consolidated EBITDA ₹578 Cr +18%YoY
  3. Consolidated EBITDA Margin 14.6%
  4. Consolidated PAT ₹380 Cr +15%YoY
  5. Standalone Total Income ₹3,905 Cr +6.6%YoY
  6. Standalone PAT ₹373 Cr +12%YoY

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

Volume

  • Wagons manufactured Volume · FY26 · Medium confidence ~10,000
    So for FY26, as I mentioned earlier, we have set out a target to manufacture about 10,000 wagons and we are confident given that railways have committed to regularize supplies of wheel sets from mid-June onwards, we will be able to achieve those commitments in the numbers.

    — Vivek Lohia, Managing Director

  • eLCV average monthly sales Volume · Next 3-4 months / Next 6-8 months · Medium confidence Above 100 vehicles per month
    in the next three to four months we expect to achieve average sales of above 100 eLCV month-on-month basis.

    — Vivek Lohia, Managing Director

Revenue

  • Wheel set business revenue growth Revenue · FY26 · High confidence Double FY25 revenue (>Rs.300 crores)
    On our own production of wheel sets, as you have seen that this year our numbers have been higher than what we had projected. So we have done revenues of above Rs.300 crores, and in the coming year we expect this numbers to double

    — Vivek Lohia, Managing Director

  • Brake business revenue growth Revenue · FY26 · High confidence Double FY25 revenue (>Rs.100 crores)
    On the brake business, as I mentioned that we have already secured an order of about Rs.150 crores for our JV with Dako and about Rs.60 crores for a JV with KOVIS... So this year we expect that on the brake business, revenues will be fairly strong... we are definitely looking to double the same.

    — Vivek Lohia, Managing Director

  • Combined brake and wheel set revenues Revenue · FY26 · High confidence Above Rs.800 crores
    So between brake and wheel sets, I think the revenues will be above Rs.800 crores.

    — Vivek Lohia, Managing Director

  • Odisha project revenue contribution Revenue · FY28-29 · High confidence Close to Rs.3,000 crores
    Rs.10,000 crores will come in once our wheel project in Odisha is commissioned, because that itself is going to bring in revenues of close to Rs.3,000-odd crores.

    — Vivek Lohia, Managing Director

Capacity

  • Odisha project axle line commissioning Capacity · Mid-next year · High confidence Mid-2026
    So the axle line would be commissioned by the middle of next year

    — Vivek Lohia, Managing Director

  • Odisha project wheel line commissioning Capacity · Early '27 · High confidence Early 2027
    and early '27 is when we are expecting a wheel line to get commissioned.

    — Vivek Lohia, Managing Director

  • Odisha project annual forge wheel sets production Capacity · Once operational · High confidence 100,000
    Once operational, the facility will produce 100,000 forge wheel sets annually

    — Vivek Lohia, Managing Director

Profitability

  • Odisha project Return on Capital (ROC) Profitability · From the project · High confidence Above 20%
    So we are expecting an ROC of above 20% from the project

    — Vivek Lohia, Managing Director

Growth

  • Overall growth rate Growth · Until wheel business operational, then after · Medium confidence 10-15% (initially), then definite upsurge
    So definitely I think we will maintain a growth rate of about 10% to 15%, and once the wheel business is operational, then you will see a definite upsurge in growth

    — Sanjiv Keshri, Chief Financial Officer

Margin

  • EBITDA margins Margin · FY26/FY27 · Medium confidence Similar range, slight improvement
    As I mentioned that it will continue to be in a similar range, there could be slight improvement, however, we don't expect any substantial improvement from this year, but as revenues go up, obviously, absolute numbers will definitely improve.

    — Vivek Lohia, Managing Director

  • Wheel set project margins Margin · FY29 (at 80% utilization) · High confidence Over 20%
    We expect margins of over 20% as I mentioned

    — Vivek Lohia, Managing Director

Other

  • Wheel set project payback period Other · High confidence Around five years
    Around five years roughly.

    — Vivek Lohia, Managing Director

Risks & concerns

  • Wheel Set Supply Constraint

    high

    Shortage of wheel sets impacted Q4 FY25 and Q1 FY26 execution, making FY26 wagon targets conditional. Management expects regularization by mid-June.

    Management acknowledged

  • Debt Servicing for New Odisha Facility

    medium

    Analyst questioned potential dilution of shareholder value or PAT due to debt servicing for the ₹3,500 crore Odisha project. Management stated debt is on the subsidiary, not JWL directly, and expressed confidence in the project's demand.

    Analyst downplayed

  • Labor Unrest

    low

    Temporary closure of a facility due to wage dispute, now resolved. Financial impact in Q1 FY26 was muted due to concurrent wheel set supply issues and planned maintenance.

    Management acknowledged

Areas of evasion (3)

  • Explanation for Indian Railways' wheel set challenges
  • Specific cash flow statement anomaly
  • Exact private segment wagon supply numbers

Q&A highlights

2 direct
Wheel Set Shortage and its Impact on Production Partial
Again, for me it would be wrong to comment on the challenges which Indian Railways is facing in terms of wheel sets and not be very prudent to do that. I think it's the question best asked to Indian Railways.

This recurring issue directly impacts wagon manufacturing targets and revenue recognition, and management's deflection suggests sensitivity or lack of full control/information regarding the root cause.

Asked by Mohit Kumar, ICICI Securities

Odisha Plant Commissioning, Revenue, and Profitability Projections Direct
So the axle line would be commissioned by the middle of next year and early '27 is when we are expecting a wheel line to get commissioned... Rs.10,000 crores will come in once our wheel project in Odisha is commissioned, because that itself is going to bring in revenues of close to Rs.3,000-odd crores... We expect margins of over 20% as I mentioned and I think the debt repayment is over 10-years... Around five years roughly.

This project is a major growth driver, and management provided detailed timelines, revenue projections, margin expectations, and payback period, offering clear visibility into its future contribution.

Asked by Sahil Patani, Strokes Capital

JV Losses and Localization Strategy for Brake Systems Direct
No, I think the only joint venture we have posted losses is on the DAKO JV... because we didn't want to lose out on order books and get to from a development to a Part-I status parallelly where we achieve the localization. So this year I think we are now very much ahead in terms of our localization. So going forward there also you will see change in terms of our profitability profile.

Addresses a specific concern about JV profitability and explains the strategic rationale behind initial losses, outlining a clear path to improved margins through localization efforts.

Asked by Akash Vora, Dalal & Broacha

3 min read 6 chapters

Detailed narrative

Strong FY25 Financial Performance

Jupiter Wagons delivered robust consolidated results for FY25, with total income increasing 9.3% year-on-year to ₹4,008 crores. Consolidated EBITDA grew 18% to ₹578 crores, improving the margin to 14.6%, while Profit After Tax rose 15% to ₹380 crores. This performance was driven by progress across diversified business segments, positioning JWL as a comprehensive mobility solutions provider.

Strategic Expansion with Odisha Rail Wheel & Axle Project

A key transformational initiative is the ₹3,500 crore rail wheel and axle forging facility in Khordha, Odisha, the first private sector plant of its kind. This project, funded by 35% equity and 65% debt, is progressing rapidly with 50% of equity invested. Once operational, the facility will produce 100,000 forge wheel sets annually, aiming for ₹3,000 crores in revenue by FY28-29 with an expected ROC above 20% and a payback period of approximately five years. The axle line is expected to be commissioned by mid-2026, followed by the wheel line in early 2027.

Growth in Core Railway and Brake Systems

The company secured a significant ₹600 crore order for BCFCM Rake Wagons from Ambuja Cement and ACC Limited, alongside a ₹255 crore order for its subsidiary Jupiter Tatravagonka Railwheel Factory. The brake system division also performed strongly, winning orders of ₹65 crores for brake discs and ₹150 crores for passenger segment brake systems. Management expects revenues from both the wheel set business (over ₹300 crores in FY25) and the brake business (over ₹100 crores in FY25) to double in FY26, collectively exceeding ₹800 crores.

Entry into Electric Mobility and Battery Systems

Jupiter Wagons successfully launched commercial production of its JEM Tez eLCV in Indore, with an annual capacity of 8,000 vehicles, and is targeting average sales of over 100 eLCVs per month within the next 3-4 months. The company also commenced production and supply of advanced battery systems to Indian Railways (including Vande Bharat) and private clients, securing orders for battery energy storage systems and from forklift manufacturers like Godrej. The battery market is projected to grow significantly, with the storage segment alone expected to reach 10 GW by 2030 in India.

FY26 Outlook and Wheel Set Supply Challenges

For FY26, Jupiter Wagons aims to manufacture approximately 10,000 wagons, contingent on the regularization of wheel set supplies from Indian Railways, expected by mid-June. The recurring wheel set shortage was a constraint in Q4 FY25 and Q1 FY26, impacting execution. While management expressed confidence in railways' commitment to resolve the issue, they deferred detailed explanations of the underlying challenges to Indian Railways directly.

EBITDA Margin and Overall Growth Trajectory

The consolidated EBITDA margin improved to 14.6% in FY25, and management expects slight improvements in FY26/FY27, though no substantial jump until the Odisha facility is fully commissioned. Overall growth is projected at 10-15% until the wheel business becomes fully operational, after which a 'definite upsurge' is anticipated, with the Odisha project alone contributing 30-40% of future revenues. The company also addressed concerns about JV losses, explaining that localization efforts for specialized brake systems are underway to improve profitability.

This is an AI-generated summary of a publicly available earnings call transcript.
View original transcript

More Capital Goods earnings calls