Titagarh Rail Systems Limited reported mixed financial results for the quarter ended December 31, 2025, with declining profitability amid ongoing business restructuring activities. The railway systems manufacturer announced key leadership changes alongside its Q3FY26 financial performance.

Financial Performance Overview

The company's financial metrics for Q3FY26 showed a downward trend compared to the previous year:

For the nine-month period ended December 31, 2025, the performance decline was more pronounced, with net profit falling 35.2% to ₹145.76 crores from ₹224.91 crores in the corresponding period of FY25. Revenue for the nine-month period decreased to ₹2,285.04 crores from ₹2,748.94 crores, representing a 16.9% decline.

Segment-wise Performance

The company's two primary business segments showed contrasting performance during Q3FY26:

The Freight Rail Systems segment, which includes bridges and defence products, experienced a significant revenue decline of 20.2%. In contrast, the Passenger Rail Systems segment demonstrated robust growth with revenue increasing by 236.8% year-on-year.

Leadership Changes and Business Restructuring

The company announced the resignation of Shri Saket Kandoi from his position as Director & CEO (Shipbuilding & Maritime Systems), effective from the close of business hours on February 13, 2026. This resignation is directly linked to the strategic transfer of the Shipbuilding & Maritime Systems business to Titagarh Naval Systems Limited, a wholly-owned subsidiary.

The Board of Directors acknowledged Mr. Kandoi's contributions during his tenure and noted that the restructuring will enable focused attention on the SMS business under the subsidiary structure.

Discontinued Operations Impact

The Shipbuilding & Maritime Systems business, now classified as discontinued operations, reported a loss of ₹6.54 crores for Q3FY26 compared to a profit of ₹0.34 crores in Q3FY25. For the nine-month period, discontinued operations recorded a loss of ₹13.21 crores versus a loss of ₹5.50 crores in the previous year.

Investment Concerns and Risk Factors

The company continues to face uncertainty regarding its investments in Titagarh Firema SpA, an Italy-based associate company. The total exposure includes investments worth ₹112.73 crores and receivables of ₹66.44 crores as of December 31, 2025. Additionally, the company has provided collateral security through a land parcel valued at ₹156.61 crores.

Firema is currently undergoing restructuring proceedings under Italian Crisis Code, with a binding offer received from Ferrovie dello Stato Italiane SpA for acquiring identified business undertakings. The Court of Naples has ordered competitive bidding with a deadline of February 16, 2026, for improved offers.

Titagarh Rail Systems Limited has announced that its Board of Directors will convene on February 12, 2026, to review and approve the company's unaudited financial results for the third quarter of fiscal year 2026. The meeting will focus on both standalone and consolidated financial results for the quarter ended December 31, 2025.

Board Meeting Details

The company has formally notified both BSE Limited and the National Stock Exchange of India Limited about the upcoming board meeting in accordance with Regulation 29 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Trading Window Restrictions

In compliance with insider trading regulations, Titagarh Rail Systems has implemented trading window restrictions for designated persons. The trading window closure began on January 1, 2026, and will continue until 48 hours after the declaration of the unaudited financial results.

This measure aligns with the company's Code of Conduct to Regulate, Monitor and Report Trading by Insiders, which was adopted pursuant to SEBI Prohibition of Insider Trading Regulations, 2015. The company had previously communicated about these restrictions in an intimation letter dated December 26, 2025.

Corporate Information

The announcement was signed by Aditya Purohit, Company Secretary and Compliance Officer, on February 2, 2026. Titagarh Rail Systems Limited operates from its registered office at Poddar Point, Park Street, Kolkata, with its corporate office located at Titagarh Towers, Anandapur, Kolkata.