Texmaco Rail & Engineering Limited conducted its Q3FY26 earnings conference call on February 9, 2026, hosted by ICICI Securities. The management team, led by Executive Director and Vice Chairman Indrajit Mookerjee and Managing Director Sudipta Mukherjee, outlined the company's performance and strategic roadmap for sustainable growth.

Q3FY26 Financial Performance Overview

The company reported consolidated revenue from operations of ₹1,042 crores for Q3FY26, reflecting moderation compared to the same period last year due to transient supply-side disruptions and export headwinds. Despite revenue challenges, operational discipline was maintained with EBITDA of ₹102 crores and an EBITDA margin of 9.6%.

Nine Months FY26 Consolidated Results

For the nine months ended December 31, 2025, the company achieved revenue from operations of ₹3,210 crores. EBITDA stood at ₹313 crores with a margin of 9.7%, while Profit After Tax was ₹136 crores. Freight car deliveries totaled 6,176 units with foundry division achieving cumulative sales of 25,326 metric tons.

Strategic Vision: Texmaco 2.0

Managing Director Sudipta Mukherjee outlined the company's ambitious Texmaco 2.0 strategy aimed at creating a 2x larger organization in terms of top line with higher EBITDA margins over the next 3-5 years. The strategy encompasses three key pillars: strengthening core businesses, synergistic diversification, and breakout diversification.

Order Book and Market Position

As of December 31, 2025, the company's order book stood at ₹5,661 crores, providing strong execution visibility. The order book includes a balanced mix across freight mobility, rail electrification, and urban transit infrastructure.

Operational Challenges and Recovery

The management addressed ongoing wheelset availability constraints that impacted production levels, with deliveries reduced by approximately 20-25% compared to the corresponding period last year. However, these constraints are progressively easing, and export operations have resumed in Q4FY26 after facing challenges in previous quarters.

Foundry export business faced near-term pressures due to U.S. tariff issues, resulting in 30% lower export volumes. Despite these headwinds, average realization per wagon improved over the past two quarters, supported by a richer product portfolio and superior design integration.

ESG Initiatives and Future Outlook

Texmaco commissioned a 10 MW solar power installation at its Urla Foundry in Raipur and converted a high-tension furnace from LDO to LPG at Belgharia Foundry. CRISIL upgraded the company's ESG rating from 50 to 51, placing it in the 'Adequate' risk category.

The Union Budget 2026-27's record allocation of ₹2.93 lakh crores to Indian Railways, with emphasis on rail electrification, freight capacity enhancement, and safety infrastructure, aligns closely with Texmaco's strategic priorities and growth plans.

Texmaco rail & engineering Limited has notified stock exchanges regarding a structural change in its statutory auditors' constitution under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Auditor Conversion Details

The company's statutory auditors, M/s. L. B. Jha & Co., have converted from a Partnership Firm to a Limited Liability Partnership (LLP) structure. The conversion became effective from January 21, 2026, with the new entity operating under the name M/s. L. B. Jha & Co. LLP.

Impact on Audit Engagement

Texmaco Rail & Engineering has clarified that this conversion represents solely a change in the audit firm's constitution. The company emphasized two key points regarding the transition:

• No change in the existing audit engagement
• M/s. L. B. Jha & Co. LLP will continue to function and discharge their obligations as statutory auditors for the remaining period of their appointment tenure

Regulatory Compliance

The notification was filed on January 22, 2026, and signed by Sandeep Kumar Sultania, Company Secretary & Compliance Officer. The intimation was sent to both the National Stock Exchange of India Limited and BSE Limited, fulfilling the company's disclosure obligations under SEBI regulations.

This structural change in the auditing firm's constitution maintains continuity in Texmaco Rail & Engineering's audit processes while allowing the auditors to operate under the LLP framework.