The article outlines the growth outlook and order book analysis of the company, which is involved in the business of manufacturing Rolling stock, hydro-mechanical equipment, steel castings & construction of Rail EPC, bridges, and other steel structures.
With a market capitalization of Rs 4,819 crore, Texmaco Rail & Engineering Ltd’s share closed at Rs 118 per share, up by 3.49 percent from its previous close. The stock of the company gave a negative return of 20 percent over the last year.
Order Book Analysis
Texmaco Rail reported a consolidated order book of Rs 9,923 crore as of Q1 FY27. The Freight Car Division accounted for the largest share at 62.3 percent, followed by Infra Electrical at 18.2 percent, Infra Rail and Green Energy at 9.9 percent, and other subsidiaries and JVs at 9.6 percent.
Within the Freight Car Division, the order book has seen a sharp shift towards private sector and export customers. These orders accounted for 96.4 percent of the freight car order book in Q1 FY27, while Indian Railways contributed only 3.6 percent. This shows the growing contribution of non railway customers to the company’s wagon business.
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The mix has changed significantly over the past two years, with private sector and export orders rising from 21 percent in FY25 to 79 percent in FY26 and 96.4 percent in Q1 FY27. This indicates strong traction from private and overseas customers, while Texmaco continues to maintain its presence in the railway segment.
Guidance from Texmaco Management
- Stronger Growth in H2 FY27: Management expects Q2 FY27 to be better than Q1 FY27, with H2 FY27 likely to be stronger than H1 FY27. The improvement is expected to be supported by better order execution across its business verticals and a changing business mix.
- Defence Business: Texmaco plans to make an initial investment of around Rs 200 crore in its defence business. Management expects the segment to generate Rs 2,500 to Rs 3,000 crore in revenue over the next 2 to 3 years, with margins expected to remain above the mid teens.
- Order Execution: The company has an order book of around Rs 11,500 crore, providing visibility for future revenue. Management expects around 20 to 30 percent of this order book to be executable in FY27, while the remaining orders will be executed over the following years.
- FY30 Growth Vision: Texmaco aims to more than double its revenue by FY30 while achieving EBITDA margins in the higher mid teens or above. The growth is expected to come from freight rolling stock, passenger mobility, wheels, defence, renewable energy and other emerging businesses.
- Railway and Private Order Mix: Texmaco currently has around 30 percent of its wagon order book from Indian Railways and 70 percent from private and export customers. Going ahead, management sees a sustainable mix of around 35 to 40 percent railway orders, with the balance coming from private orders, exports, maintenance and other businesses.
Conclusion
Texmaco Rail enters the coming quarters with a strong order book and expectations of better execution in H2 FY27. The company is also expanding into defence, passenger mobility, wheels, and other businesses, while maintaining railway orders as a key part of its future business mix.
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About the Company
Texmaco Rail & Engineering Ltd. is a Kolkata-based multi-discipline engineering and infrastructure company engaged in manufacturing railway rolling stock, steel castings, and hydro-mechanical equipment. Founded in 1939, the company is part of the Adventz Group and has businesses spanning railway equipment, infrastructure, and engineering solutions.
Financial Highlight: Texmaco Rail’s revenue declined to Rs 757 crore in Q1 FY27 from Rs 911 crore in Q1 FY26, down 17 percent YoY. EBITDA declined to Rs 57 crore in Q1 FY27 from Rs 70.9 crore in Q1 FY26, down 20 percent YoY. Net profit increased to Rs 50.1 crore in Q1 FY27 from Rs 29.3 crore in Q1 FY26, up 67 percent YoY. EPS stood at Rs 1.23 in Q1 FY27 compared with Rs 0.75 in Q1 FY26, up 64 percent YoY.