Texmaco Rail & Engineering has secured 2 Letters of Acceptance from South Central Railway, with a total value of Rs. 191.99 Crores (including taxes), for Comprehensive Signalling and Telecommunication Works. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The contracts pertain to the Provision of an Automatic Block Signalling System, a critical component of modern railway infrastructure.

Order Details at a Glance

The key parameters of the awarded contracts are outlined below:

Contract Scope and Compliance

The contracts have been awarded by a domestic entity and are classified as domestic orders. Texmaco Rail & Engineering has confirmed that neither the promoter, promoter group, nor any group companies hold any interest in South Central Railway. Additionally, the transactions do not fall within the purview of related party transactions under applicable regulations. The disclosure was made in accordance with SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated 30th January, 2026.

Significance of the Order

The award of these Letters of Acceptance underscores Texmaco Rail & Engineering's continued engagement in railway signalling and telecommunication infrastructure. The Automatic Block Signalling System is integral to enhancing train safety and operational efficiency on railway networks. With an execution window of 480 days from the Appointed Date, the company is positioned to deliver on this significant domestic contract. The disclosure was signed by Sandeep Kumar Sultania, Company Secretary and Compliance Officer, on 15th May, 2026.

Texmaco Rail & Engineering announced its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The board recommended a dividend of 75%, or Re. 0.75 per share, subject to shareholder approval. In a significant commercial development, the company secured a massive export order worth $430.57 million (~₹4,045 crore) from Tsiko Africa Logistics and Barberry Holdings. The board also approved strategic investments in the defence sector and a new collaboration for railway signalling. However, the company acknowledged tough marketing and operating conditions in Q4 FY26, citing global supply chain issues, US tariffs, geopolitical tensions, and trade uncertainties as key performance factors — leading to a contingency provision of INR 700 crore. According to the company's latest investor presentation, Texmaco Rail expects over 3 times growth in exports of components and railway castings in the next 2-3 years, with the current order book standing at Rs. 5,408 Cr.

Q4 Financial Performance

The company reported a notable improvement in its Q4 consolidated financial performance despite the challenging environment. Net profit rose 45.1% to Rs. 58 Cr compared to Rs. 39.8 Cr in the same period last year. EBITDA stood at Rs. 116 Cr versus Rs. 118 Cr year-on-year, with the EBITDA margin expanding to 10.0% from 8.8%. Revenue for the quarter stood at Rs. 1,167 Cr, compared to Rs. 1,346 Cr in the corresponding quarter of the previous year.

Operating Challenges and Contingency Provision

Texmaco Rail flagged tough marketing and operating conditions during Q4 FY26 that adversely affected revenue. The company cited global supply chain disruptions, US tariffs, geopolitical tensions, and broader trade uncertainties as key factors impacting performance. In response to these headwinds, the company has made a contingency provision of INR 700 crore. This provision reflects the company's cautious approach to navigating an uncertain global trade environment.

Operational Highlights

Operationally, Texmaco Rail & Engineering delivered 2,196 Freight Cars during Q4 FY26, while Foundry Division volumes totalled 8,964 MT. For the full year, Freight Car deliveries reached 8,372 units, and the Foundry Division achieved 34,301 MT in sales. The company maintained a strong order book of Rs. 5,408 Cr as of March 31, 2026.

Major Export Order Win

Texmaco Rail & Engineering secured a landmark export order valued at $430.57 million (~₹4,045 crore) from Tsiko Africa Logistics and Barberry Holdings. This order represents a significant international business milestone for the company, underscoring its growing footprint in global railway and logistics markets. The company expects major revenue from the South African order by FY28, with deliveries concluding by FY28. The investor presentation further highlights the company's expectation of over 3 times growth in exports of components and railway castings over the next 2-3 years.

Outlook and Strategic Targets

Looking ahead, Texmaco Rail has set a goal to double its revenue and reach sustainable mid-teen EBITDA margins. For FY27, the company anticipates growth in both revenue and profit compared to the previous year. On the domestic front, the company anticipates a short-term demand of 150,000 to 200,000 wagons from Indian Railways, along with a steady annual requirement of 25,000 to 30,000 wagons for the next 5-7 years.

Strategic Decisions

The board approved entering the defence business through its subsidiary, Texmaco Defence Technologies Ltd. (TDTL), with an investment of up to Rs. 200 Crores over 3 to 5 years. Shares will be acquired at par value of Rs. 10 per share. Texmaco Rail & Engineering also entered into an agreement with Sigma Rail Systems Pvt. Ltd. for collaboration in railway signalling, components, safety, and power electronics. This domestic arrangement is a related party transaction involving promoter group members Abhishek Holdings Pvt. Ltd., Shri S.K. Poddar, and Smt. Jyotsna Poddar, conducted on an arm's length basis.

Auditor Reappointments

The board approved the reappointment of key auditors for FY 2026-27. M/s Deloitte Touche Tohmatsu India, LLP was reappointed as Internal Auditors, while M/s DGM & Associates, Cost Accountants was reappointed as Cost Auditors. Both reappointments were effective May 12, 2026.