Detailed Narrative
Q1 FY26 Financial Performance and Order Book
Texmaco Rail reported a revenue from operations of ₹911 crores for Q1 FY26, with an EBITDA of ₹79 crores, translating to an 8.7% margin. Profit After Tax (PAT) stood at ₹29 crores, achieving a 3.2% margin. As of June 30, 2025, the company's order book was robust at ₹7,053 crores, providing strong revenue visibility for upcoming quarters. Management highlighted that the order book is diversified across various business domains, not heavily tilted towards one sector.
Wagon Business Operations and Supply Chain Resolution
During Q1 FY26, Texmaco delivered 1,815 freight cars. The decline in revenue was primarily attributed to a sector-wide shortage of wagon wheel sets from Indian Railways and restrictions on imports. Additionally, the acquired Texmaco West experienced a temporary revenue dip due to inspection holdups by RDSO. Management confirmed that both issues have been resolved, with wheel set supply normalizing and Texmaco West operating at full steam, expecting revenues to normalize in the future.
Strategic Joint Ventures and International Expansion
Texmaco's joint venture with Wabtec Corporation (USA) is expected to achieve a decent 15% to 20% growth in FY26. The freight rolling stock leasing JV with Touax from France, which historically grew 12%-15%, is now targeted for significant growth due to rising private investment. A third JV with Slovakian and Czech entities, Nymburk, for a specialized freight rolling stock manufacturing plant, is expected to commence operations in FY26 or by Q2/Q3 FY26, targeting both domestic and European markets.
Foundry and Components Business Outlook
The Foundry division achieved a sales volume of 8,667 metric tons in Q1 FY26. Management projects the components and railway castings business to grow 3 to 5 times over the next 2-3 years. This growth will be supported by debottlenecking existing foundry facilities in Kolkata and Raipur, aiming to increase capacity to 80,000-90,000 metric tons. The company is also expanding into new markets like Automobile and Mining for coupler manufacturing.
Amalgamation of Texmaco West and Bangladesh Projects
The amalgamation of Texmaco West is nearing completion, with the NCLT final order received and certified true copy applied for, expected within 10-15 days. The amalgamation will be effective from April 1, 2025. Regarding Bangladesh railway EPC projects, management reported successful completion of the first project despite political uncertainties and stated that the second project is progressing at a fast rate, expected to finish by March 2026, with the 'worst being over'.
Financial Stability and Credit Rating
Texmaco's long-term bank facilities rating has been upgraded to CARE A (stable outlook) by CARE, with the short-term rating reaffirmed at CARE A1. This upgrade reflects the market's confidence in the company's strong financial performance and stable growth trajectory. The consolidated net debt was reported to be in the range of ₹650-700 crores as of July 1, 2025.