Titagarh Rail Systems (TITAGARH) Q2 25/26 earnings summary

Executive summary

• Strategic plan presented to shift from freight wagons to passenger trains, metro coaches, and high-value manufacturing, supported by joint ventures, backward integration, and business restructuring.

• Wheelset supply issues resolved, restoring production to 800-850 wagons per month, with a new wheel manufacturing JV operational by Q1 next year.

• Robust order book for metro and Vande Bharat coaches, with confirmed deliveries extending to FY 2028 and FY 2031, and total order book as of Sep 2025 at ₹15,077 Cr (company) and ₹13,326 Cr (JV share).

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025.

• Strategic investment of up to Rs. 50 crore in subsidiary Titagarh Naval Systems Limited to support expansion with a strategic investor.

Financial highlights

• Q2 FY26 wagon dispatches totaled 1,872 units.

• Net revenue for H1 FY26 stood at ₹1,462.3 Cr, down 22.1% year-over-year; Q2 FY26 revenue was ₹788.3 Cr, a 24.8% decline from Q2 FY25.

• EBITDA for H1 FY26 was ₹165.8 Cr, down 29.8% year-over-year; Q2 FY26 EBITDA margin was 11.25%.

• Standalone net profit for Q2 FY26 was Rs. 47.29 crore, compared to Rs. 42.75 crore in Q1 FY26 and Rs. 85.12 crore in Q2 FY25.

• H1 FY26 EPS was ₹6.68, compared to ₹11.62 in H1 FY25.

Outlook and guidance

• Freight wagon production to remain at 800-850 units per month until new tenders are finalized, with capacity for 1,000 wagons per month.

• Metro coach deliveries guided at 100-120 cars for the year, with significant ramp-up planned in subsequent years.

• Shipbuilding capacity targeted at 15-18 vessels per year, with an addressable market of INR 100-250 crore per vessel.

• Board approved investment in TNSL and wagon leasing business to diversify and expand revenue streams.