Titagarh Rail Systems (TITAGARH) Q3 24/25 earnings summary

Executive summary

• Q3 and nine-month results showed revenue growth, with 9M FY25 revenue at ₹2,862.18 crore and net profit at ₹225.37 crore; Freight Rail Systems remained the main contributor.

• Q3 performance was steady despite muted production in October due to wheelset supply issues, with recovery in November and December.

• Board approved expansion into Safety and Signaling Systems and shipbuilding/maritime systems, and increased ESOP pool.

• First stainless steel coach for Bangalore Metro rolled out; traction motor production hit 100 units in Q3, targeting 150 by June/July 2025.

• Vande Bharat project execution started after contract clarification; first train delivery expected by March 2026.

Financial highlights

• 9M FY25 revenue grew 2.19% year-over-year to ₹2,862.18 crore; net profit up 5.56% to ₹225.37 crore.

• Q3 FY25 revenue was ₹902.18 crore; Q3 net profit was ₹68.94 crore; consolidated Q3 net profit was ₹62.77 crore.

• EBITDA margin for nine months was around 11.09-11.58%; PAT margin at 7.64-7.87%.

• Freight business EBITDA margin is 11-12%, with private sector orders offering 2-3% higher margins but with more risk.

• Maintained net debt negative status and strong order book position.

Outlook and guidance

• Targeting annual output of 12,000 wagons, with plans to surpass 23% year-over-year growth in Q4.

• Metro coach production to ramp up to 20 cars/month by end of FY26, with capacity for 36 cars/month; sweet spot expected at 25 cars/month in FY27.

• Revenue from new signaling/safety and shipbuilding businesses expected from H2 FY27 and FY28; FY26 focus on alliances and tender participation.

• Capacity expansion underway for passenger coaches and propulsion systems, with phased increases through FY28.

• Government’s continued CapEx and railway budget allocation support positive sector outlook.