Texmaco Rail & Engineering Limited (Texmaco) has announced a significant move in the railway sector by entering into a joint venture agreement with Rail Vikas Nigam Limited (RVNL). This strategic partnership aims to establish a new company focused on expanding their presence in the railway equipment manufacturing and infrastructure space.

Key Details of the Joint Venture

• Ownership Structure: Texmaco will hold a 49% stake, while RVNL will maintain a majority 51% shareholding in the new entity.
• Investment: Texmaco's investment in the joint venture amounts to INR 4.90 crores, to be made through cash consideration.
• Completion Timeline: The transaction is expected to close by December 31, 2025, subject to necessary regulatory approvals.

Scope of Operations

The newly formed joint venture company will engage in a wide range of activities within the railway sector:

1. Manufacturing and Maintenance: The entity will focus on producing and maintaining various types of rolling stock, including:

   • Freight and passenger rolling stock
   • Locomotives
   • Coaches
   • Wagons
   • Trainsets
   • Metro coaches
   • Specialized equipment

2. Project Execution: Participation in both domestic and international tenders for railway projects.

3. EPC Projects: Execution of Engineering, Procurement, and Construction projects in rail infrastructure.

4. Workshops and Depots: Operation and maintenance of railway workshops, sheds, and depots.

Strategic Rationale

The joint venture is strategically aligned with Texmaco's core operations and is expected to expand its market capabilities. By leveraging the complementary strengths of both Texmaco and RVNL, the new entity aims to:

• Pursue mutually beneficial business opportunities in the railway sector
• Enhance competitiveness in both domestic and international markets
• Combine Texmaco's manufacturing expertise with RVNL's project execution capabilities

Regulatory Compliance

As per the LODR (Listing Obligations and Disclosure Requirements) filing dated August 27, 2025, Texmaco's Board of Directors approved the execution of the joint venture agreement. The company has duly informed the National Stock Exchange of India and BSE Limited about this development, in compliance with Regulation 30 of the SEBI Listing Regulations.

Outlook

This strategic partnership between Texmaco Rail & Engineering and Rail Vikas Nigam Limited represents a significant development in India's railway sector. By combining their respective strengths, the joint venture is positioned to capitalize on the growing opportunities in railway equipment manufacturing and infrastructure development, both domestically and internationally.

As the railway sector continues to evolve and modernize, this collaboration could play a crucial role in meeting the increasing demand for advanced rolling stock and efficient rail infrastructure solutions.

Texmaco Rail & Engineering Ltd , a prominent player in the rail infrastructure sector, has recently secured a significant order worth ₹103.16 crore from Leap Grain Rail Logistics Private Limited. This development comes amidst a challenging quarter for the company, highlighting a mix of positive and negative trends in its business operations.

New Order Details

The company announced that it has been awarded a contract to deliver BCBFG wagons along with BVCM Brake Vans. The order, valued at ₹103.16 crore, is to be executed within a tight timeline of 10 months. This domestic order from Leap Grain Rail Logistics Private Limited demonstrates Texmaco's continued relevance in the Indian rail logistics sector.

Recent International Success

The new order follows on the heels of a significant international contract that Texmaco secured in June. The company bagged a $62.24 million order from CAMALCO SA, Cameroon, which included the supply of 560 open-top wagons and a 20-year maintenance contract. This international order underscores Texmaco's expanding global footprint in the rail engineering sector.

Quarterly Performance Challenges

Despite these positive developments in order acquisition, Texmaco's recent quarterly results paint a picture of financial challenges:

The significant declines across key financial metrics indicate that the company is navigating through a tough business environment. The sharp drop in net profit and the compression of operating margins suggest pressures on both the top and bottom lines.

Market Response

Following the announcement of the new order, Texmaco's shares closed at ₹141.60, marking a 2.14% increase. This positive market reaction indicates that investors view the new order as a favorable development, despite the recent quarterly performance challenges.

Looking Ahead

As Texmaco Rail & Engineering Ltd works to fulfill its order book, including the newly acquired domestic contract and the earlier international order, the company's ability to improve its financial performance will be closely watched by investors and industry observers alike. The execution of these orders within the stipulated timeframes could play a crucial role in the company's efforts to reverse the recent decline in financial metrics.

Upcoming Annual General Meeting

In related news, Texmaco has announced its Twenty-Seventh Annual General Meeting (AGM) to be held virtually. The company has set the record date for dividend eligibility as September 15, should a dividend be declared at the AGM. This meeting may provide further insights into the company's strategies to address the current challenges and capitalize on new opportunities in the rail engineering sector.