Texmaco Rail & Engineering Limited , a prominent player in the rail and engineering sector, has reported robust financial performance for the third quarter. The company's strong results reflect significant growth across key financial metrics and operational achievements.

Financial Highlights

Texmaco Rail demonstrated impressive growth in its quarterly performance:

The company's revenue from operations surged to ₹1,326.00 crore, marking a substantial 47.90% increase compared to the same quarter in the previous year. This growth was accompanied by a strong EBITDA performance, which reached ₹139.00 crore, representing a 51.70% year-on-year increase. The EBITDA margin stood at a healthy 10.50%.

Profitability also saw improvement, with the profit after tax (PAT) growing to ₹76.00 crore, translating to a PAT margin of 5.80%.

Operational Performance

Texmaco Rail's operational achievements were equally noteworthy:

• The company delivered 2,714 freight cars during the quarter, showcasing a significant 54.60% increase from 1,756 cars in the corresponding period of the previous year.
• For the nine-month period, Texmaco reported a revenue growth of 59.40%, reaching ₹3,760.00 crore, with an EBITDA of ₹411.00 crore.
• As of December 31, the company maintained a robust order book of ₹7,612.00 crore, indicating a strong pipeline of future projects.

Strategic Developments

Texmaco Rail has announced several strategic initiatives to strengthen its business structure:

1. The company has approved the merger of Texmaco West Rail Limited, which is expected to be completed within six months.
2. Plans are in place to transfer the Infra-Rail and Green Energy business to a subsidiary within the next 12-15 months, potentially streamlining operations and focusing on core competencies.

Credit Rating Upgrade

In a testament to its improved financial performance and outlook, CARE Ratings has upgraded Texmaco Rail's credit ratings:

• Long-term bank facilities: Upgraded to CARE A (RWD)
• Short-term facilities: Upgraded to CARE A1 (RWD)

These upgrades reflect the company's strengthened financial position and may potentially lead to improved borrowing terms in the future.

Texmaco Rail & Engineering's strong quarterly performance, coupled with its strategic initiatives and improved credit ratings, positions the company well for continued growth in the rail and engineering sector. The substantial order book provides visibility for future revenue streams, while the planned restructuring may enhance operational efficiency in the coming years.

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.