Oriental Rail Infrastructure Limited (ORIL) has announced that its wholly-owned subsidiary, Oriental Foundry Private Limited, secured a contract worth Rs. 3,67,35,127.52 from Eastern Railway. This order marks an important milestone for the company, potentially boosting its revenue and reinforcing its position in the railway infrastructure sector.

Contract Details

The contract awarded to Oriental Foundry Private Limited involves the manufacture and supply of crucial railway components. Here are the key details of the order:

Significance of the Order

This contract is noteworthy for several reasons:

1. Revenue Boost: The Rs. 3.67 crore order is expected to contribute positively to the company's financial performance.
2. Sector Positioning: By securing this contract with Eastern Railway, ORIL strengthens its foothold in the railway infrastructure sector.
3. Product Specialization: The order for knuckles, a critical component in freight wagons, showcases the company's specialized manufacturing capabilities.
4. Strategic Importance: This order underlines the company's role in supporting the modernization and maintenance of India's railway infrastructure.

Payment Terms

The contract includes the following payment terms for ORIL:

• 95% payment against inspection certificate and receipted challan
• 5% payment against receipt note

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

Market Implications

While this order represents a positive development for Oriental Rail Infrastructure, investors and market watchers should consider it in the context of the company's overall financial health and market position. The successful execution of this contract could potentially lead to more opportunities in the railway sector, but this remains to be seen as the project unfolds.

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

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

Implementation Progress and Challenges

1. 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.

2. 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.

3. 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%.

4. 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.