Titagarh Rail Systems (TITAGARH) Q4 25/26 earnings summary

Executive summary

• Achieved record revenue and profitability in passenger rail systems, with a 111% YoY increase to ₹539 crore and highest-ever dispatches of 63 coaches, up from 12 last year.

• Completed exit from loss-making Italian business Firema, fully providing for liabilities and eliminating future losses.

• Shipbuilding business hived off into Titagarh Naval Systems Limited, with production at the new Palta yard expected to start within FY 2027 and brownfield expansion planned.

• Secured wagon leasing license and signed first contract, expanding product offerings to the private sector.

• Freight Rail Segment maintained a strong order book and operational ramp-up plans despite supply chain constraints.

Financial highlights

• Consolidated revenue for FY26 was ₹3,867.75 crore, up from ₹3,491.83 crore YoY, with Q4 FY26 revenue at ₹1,005.57 crore.

• Passenger rolling stock EBIT margin reached 19% in Q4 FY26 and 14.3% for the full year.

• PAT for FY26 was ₹122.98 crore, compared to a loss of ₹122.39 crore in FY25 (restated); Q4 PAT was ₹71.4 crore.

• Free cash flow generated was INR 380 crores in FY26, with cash flow from operations turning positive at ₹311 crore.

• Dividend of ₹1 per share (50% of face value) recommended for FY26.

Outlook and guidance

• Confident of ramping up passenger coach production from 63 cars in FY26 to at least 200 cars in FY27.

• Vande Bharat prototype delivery scheduled for end of Q3 or beginning of Q4 FY27, with two trains to be delivered in the year.

• FRS targeting 650-700 wagons/month in FY27, scalable to 1,000/month with new tenders.

• Wheelset JV to start production in June, with a 20-year contract for 80,000 wheels per annum.

• Preparing to enter the high-speed train segment in coming years.