Texmaco Rail & Engineering Limited , a leading manufacturer of freight wagons and provider of railway infrastructure in India, has announced plans for its infrastructure contracts and product expansion. The company expects to complete 30-40% of its infrastructure contracts in the current financial year, indicating progress in its project execution capabilities.

Infrastructure Contract Progress

Texmaco Rail's focus on infrastructure contracts aligns with the Indian Railways' significant capital expenditure, which reached ₹1.42 trillion in the first half of the fiscal year. This investment is primarily directed towards electrification, multi-tracking, and safety upgrades—areas where Texmaco is well-positioned to contribute.

Product Portfolio Expansion

The company is expanding its product offerings to capture new market opportunities:

This diversification is expected to strengthen Texmaco's position in the railway equipment market and potentially open up new revenue streams.

Production Outlook

Texmaco Rail aims to maintain steady or higher wagon production in the second quarter. In Q2, the company delivered 2,334 freight cars, marking a 28.5% increase compared to the previous quarter. This production boost demonstrates the company's manufacturing capabilities and its ability to meet growing demand in the freight car segment.

Financial Performance and Targets

The company has set its sights on improving profitability:

• Current EBITDA Margin: 10.5% in Q2
• Target: Increase EBITDA margins into the mid to high teens

Strategic Initiatives

Texmaco Rail is undertaking several strategic initiatives to enhance its market position:

1. Integration of Texmaco West Rail Limited: This move is expected to streamline operations and improve execution efficiency.
2. Joint Venture with Rail Vikas Nigam Limited (RVNL): This partnership aims to strengthen capabilities in rolling stock manufacturing and infrastructure projects.
3. Collaboration with Hörmann Vehicle Engineering GmbH: Under the Global Capability Centre initiative, this collaboration will provide design services for passenger mobility and locomotives.

Market Outlook

The adoption of the 2×25 kV electrification system by Indian Railways is driving demand for traction systems and specialized freight stock. Texmaco expects stronger growth in its Rail and Infrastructure division, supported by a favorable policy environment and an expanding project pipeline.

As of September 30, Texmaco Rail's order book stood at ₹6,367.00 crore, indicating a pipeline of projects and potential for growth in the coming quarters.

With these strategic moves and a focus on execution, Texmaco Rail & Engineering Limited appears positioned to capitalize on the ongoing investments in India's railway infrastructure and rolling stock modernization.

Texmaco Rail & Engineering , a leading player in the railway equipment manufacturing sector, has reported its financial results for the second quarter along with several corporate updates.

Financial Results and Board Approval

The Board of Directors of Texmaco Rail & Engineering Limited has approved the unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025. The company reported increases in its financial performance for the second quarter:

• Net Profit: Rose to 618.00 million rupees, a 27.7% increase from 484.00 million rupees in the same period last year.
• Revenue: Reached 12.58 billion rupees, up from 11.20 billion rupees year-over-year.
• EBITDA: Improved to 1.25 billion rupees from 926.00 million rupees year-over-year.
• EBITDA Margin: Expanded to 9.94% from 8.30% in the corresponding quarter of the previous year.

Corporate Updates

1. Monitoring Agency Reports: The company received monitoring agency reports from CARE Ratings Limited for the preferential issue.

2. Scheme of Amalgamation: The Scheme of Amalgamation of Texmaco West Rail Limited became effective following NCLT Order filing.

3. Scheme of Arrangement: The company received NOCs from BSE and NSE for a Scheme of Arrangement with its subsidiary Belgharia Engineering Udyog Private Limited for the transfer of the Infra-Rail Green Energy division.

4. Subsidiaries and Joint Ventures: As of September 30, 2025, the company has 8 subsidiaries and 2 joint ventures.

Preferential Issue Update

The monitoring report indicates:

• No amount was utilized during the quarter ended September 30, 2025, from the Rs. 150 crore preferential issue proceeds.
• Rs. 33.16 crore remains invested in mutual funds.
• Warrants worth Rs. 5.42 crore lapsed in October 2025 as they were not exercised by one investor.

Segment Performance

The company's financial results reveal performance across its business segments:

The Freight Car Division continues to be the primary revenue driver, while the Infra - Electrical segment shows growth and profitability.

Management Commentary

Sudipta Mukherjee, Managing Director of Texmaco Rail & Engineering, stated, "Our Q2 results demonstrate the company's resilience and strategic focus. The significant improvement in our EBITDA margin reflects our commitment to operational efficiency and cost management."

Investor Notes

• The Board of Directors approved the unaudited standalone and consolidated financial results for Q2 and H1 on November 11.
• The company's cash and cash equivalents stood at 4,850.38 million rupees at the end of the quarter.

Texmaco Rail & Engineering's Q2 performance, coupled with corporate developments, underscores its market position and operational efficiency in the railway equipment manufacturing sector.