Oriental Rail Infrastructure's Subsidiary Secures Multiple Railway Orders Totaling Rs. 9.16 Crore

Oriental Rail Infrastructure Limited (ORIL) has announced that its wholly-owned subsidiary, Oriental Foundry Private Limited, has secured three significant contracts from Indian Railways, totaling approximately Rs. 9.16 crore. These orders mark important milestones for the company, potentially boosting its revenue and reinforcing its position in the railway infrastructure sector.

Contract Details

The contracts awarded to Oriental Foundry Private Limited involve the manufacture and supply of crucial railway components. Here are the key details of the orders:

Order 1: Eastern Railway

Aspect	Details
Order Value	Rs. 3,67,35,127.52
Client	Eastern Railway, Indian Railways
Product	4,172 Knuckles for freight stock wagons
Usage	Freight stock wagons

Order 2: Southern Railway

Aspect	Details
Order Value	Rs. 2,93,86,602.00
Client	Southern Railway, Indian Railways
Product	826 units of Coupler Body with Shank Wear Plate

Order 3: North Western Railway

Aspect	Details
Order Value	Rs. 2,55,45,135.60
Client	North Western Railway, Indian Railways
Product	762 units of Coupler Body with Shank Wear Plate for wagons
Execution Deadline	November 30, 2026

Significance of the Orders

These contracts are noteworthy for several reasons:

Revenue Boost: The combined value of approximately Rs. 9.16 crore is expected to contribute positively to the company's financial performance.
Sector Positioning: By securing these contracts with different railway zones, ORIL strengthens its foothold in the railway infrastructure sector across India.
Product Specialization: The orders for knuckles and coupler bodies, which are critical components in railway wagons, showcase the company's specialized manufacturing capabilities.
Strategic Importance: These orders underline the company's role in supporting the modernization and maintenance of India's railway infrastructure.

Payment Terms

The contracts include the following payment terms for ORIL:

For the Eastern Railway order:
- 95% payment against inspection certificate and receipted challan
- 5% payment against receipt note
For the Southern Railway order:
- 95% against inspection certificate
- 5% after receipt and acceptance of goods by the consignee
For the North Western Railway order:
- 95% against receipt challan
- 5% against receipt note

These terms suggest a potentially positive impact on the company's cash flow during the contract periods.

Market Implications

While these orders represent positive developments for Oriental Rail Infrastructure, investors and market watchers should consider them in the context of the company's overall financial health and market position. The successful execution of these contracts could potentially lead to more opportunities in the railway sector, but this remains to be seen as the projects unfold.

Stakeholders are advised to monitor future announcements and financial reports from the company to gauge the full impact of these contracts on ORIL's performance and market standing.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.39%	-1.18%	-11.69%	-13.69%	-57.75%	+222.71%

Oriental Rail Infrastructure Limited has submitted its monitoring agency report for the quarter ended September 30, 2025, confirming no deviation from approved objects for its Rs 212.20 crore preferential allotment of equity shares and convertible warrants. The report, issued by CARE Ratings Limited, provides insights into the company's fund utilization and implementation progress.

Key Highlights

No Deviation: The company reported no deviation in the utilization of proceeds raised through the preferential issue.
Over-Utilization: Working capital funds were over-utilized by Rs 12.15 crore (5.73% of issue size).
Delayed Deployment: The second tranche of funds experienced delays in deployment.
Unutilized Funds: Rs 42.00 crore remain deployed in fixed deposits.

Fund Utilization Breakdown

Object	Amount Proposed (Rs Crore)	Amount Utilized (Rs Crore)	Amount Unutilized (Rs Crore)
Repayment of Debt/Borrowings	50.00	3.78	46.22
Working Capital Requirements	147.20	159.35	-12.15
General Corporate Purpose	15.00	6.66	8.34
Total	212.20	169.79	42.41

Implementation Progress and Challenges

Working Capital Over-Utilization: The company has utilized Rs 24.77 crore towards working capital requirements of its subsidiary, Oriental Foundry Private Limited, for vendor payments. This led to an over-utilization of Rs 12.15 crore, approximately 5.73% of the total funds raised.
Delayed Deployment: The second tranche of funds, amounting to Rs 31.69 crore, was scheduled to be deployed by March 27, 2025. However, the company completed the deployment on July 29, 2025, resulting in a delay of 124 days.
Unutilized Funds: As of September 30, 2025, Rs 42.00 crore remain unutilized and are primarily deployed in fixed deposits with Bank of Baroda, earning interest rates ranging from 4.25% to 7.55%.
General Corporate Purpose: The company has utilized Rs 2.27 crore from the General Corporate Purpose fund for income tax payments.

Monitoring Agency's Observations

CARE Ratings Limited, the appointed monitoring agency, noted that part of the unutilized proceeds were deployed in the subsidiary's current account at the end of the reporting quarter. This deployment is not explicitly allowed as per the Offer Document, and the Board has been advised to take note of this matter.

The monitoring agency report provides a comprehensive overview of Oriental Rail Infrastructure's fund utilization, highlighting both adherence to approved objects and areas requiring attention. While the company has maintained overall compliance, the over-utilization of working capital funds and delays in deployment of the second tranche indicate potential areas for improved financial management.

Investors and stakeholders may want to monitor the company's progress in fully utilizing the remaining funds and addressing the noted delays in implementation to ensure optimal use of the raised capital for the company's growth and operations.