Neetu Yoshi Limited received prototype approval from the Research Designs and Standards Organisation (RDSO) for its Friction Wedge product on September 19, 2026. The clearance allows the company to commence supplies to Indian Railways.

The approval covers Item ID 3100430, described as a Friction Wedge with a specified range of coefficient of friction (C.O.F.). The RDSO, under the Ministry of Railways, confirmed the decision as "Prototype Approved" in its communication to the company.

Regulatory Disclosure

Neetu Yoshi Limited filed the disclosure pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notice was submitted to the BSE Limited SME Platform by Himanshu Lohia, Managing Director, on September 19, 2026.

Strategic Implications

The company characterised the Friction Wedge as a critical safety component used in new-generation, high-speed ("Raftar") bogie designs. Management stated that this is a high-value addition item expected to strengthen the product portfolio.

With this approval, Neetu Yoshi Limited is now eligible to participate in upcoming procurement opportunities within the railway components segment. The company indicated this move would further consolidate its presence in the sector.

Neetu Yoshi reported a 52.03% year-on-year increase in profit after tax (PAT) to ₹25.01 crore for the financial year ended March 31, 2026. The company crossed the ₹100 crore revenue mark for the first time, with total income rising 43.47% to ₹101.59 crore.

The results reflect a strategic shift from wagon-only components to a broader portfolio including coach, track, and locomotive parts. Management highlighted that direct sales to Indian Railways surged significantly in the first half of the year, contributing to the bottom-line expansion.

Financial Performance

Revenue from operations grew 39.3% to ₹98.35 crore, while EBITDA rose 44.6% to ₹33.87 crore. The EBITDA margin remained stable at 33.34%, compared to 33.09% in the previous year. Profit before tax increased 49.5% to ₹30.16 crore.

Momentum accelerated in the second half of the fiscal year. Total income for H2FY26 grew 56.61% to ₹55.63 crore, while PAT for the period rose 58.61% to ₹13.47 crore.

What the Numbers Show

Other income saw a sharp increase, jumping from ₹0.22 crore in FY25 to ₹3.24 crore in FY26. This represents a significant contribution to total income, accounting for approximately 3.2% of the top line, up from negligible levels previously. This surge, largely driven by interest income on unutilised IPO proceeds held in deposits, bolstered the overall profitability alongside operational growth.

Balance Sheet and Cash Flow

The company became effectively debt-free during the year, supported by internal accruals and the deployment of IPO proceeds. Total assets expanded from ₹63.51 crore to ₹147.68 crore, reflecting the capital infusion from the July 2025 initial public offering, which raised ₹77.04 crore.

Approximately ₹57.67 crore of the IPO proceeds had been utilised by year-end, primarily towards setting up a new manufacturing facility in Haridwar. The current ratio improved sharply to 5.96 from 1.96, indicating strong liquidity backed by cash reserves and term deposits.

Strategic Diversification

Neetu Yoshi broadened its product portfolio beyond wagons into critical components for coaches, tracks, and locomotives. Key approvals secured during the year include:

• Integral Coach Factory (ICF) approval for coach Buffer Assembly.
• Rail Coach Factory (RCF) approval for FIAT-bogie Brake Support.
• Fresh RDSO registration for manganese-steel liners and wear plates.

Direct sales to Indian Railways in the first half of FY26 rose to ₹13.24 crore, up from ₹1.83 crore in the corresponding period of the previous year. The company secured over ₹150 crore in purchase orders during the year, maintaining an order book in excess of ₹160 crore.

Outlook

Management guided for revenue of approximately ₹210 crore to ₹220 crore for FY27, with PAT margins expected to remain around 25% as the new Haridwar bogie facility ramps up operations from June 2026. The company aims to evolve into a complete railway-engineering partner, supplying integrated solutions like complete bogies and couplers.