Texmaco Rail & Engineering Limited (TEXRAIL) has announced a significant contract win from Delhi Metro Rail Corporation Ltd. (DMRC), marking an important step in the company's expansion into urban transportation infrastructure.

Contract Details

The company has been awarded a contract valued at ₹12.77 crore (excluding taxes) for the installation, testing, and commissioning of ballastless track, including the supply of buffer stops. This project represents a new revenue stream for Texmaco Rail & Engineering in the rapidly growing urban transportation sector.

Key Information

Project Significance

This contract win is noteworthy for Texmaco Rail & Engineering as it:

1. Diversifies the company's project portfolio
2. Strengthens its position in the urban transportation infrastructure sector
3. Provides an opportunity to showcase its expertise in metro rail projects

Execution Timeline

The project is set to commence on December 1, 2025, with a completion deadline of 12 months. This timeline underscores the efficiency expected in the execution of urban infrastructure projects.

Company Disclosure

Texmaco Rail & Engineering has confirmed that this contract does not involve any related party transactions, and there is no interest from the promoter, promoter group, or group companies in the entity awarding the contract.

The timely disclosure of this contract win demonstrates Texmaco Rail & Engineering's commitment to transparency and compliance with SEBI regulations, keeping investors and stakeholders well-informed about significant business developments.

As urban transportation continues to evolve and expand across India, contracts like these highlight the growing opportunities for engineering and infrastructure companies in the metro rail sector. Texmaco Rail & Engineering's success in securing this project may position it favorably for future urban transportation infrastructure contracts, potentially contributing to long-term growth and shareholder value.

Texmaco Rail & Engineering Limited , a leading manufacturer of freight wagons and provider of railway infrastructure in India, has announced plans for its infrastructure contracts and product expansion. The company expects to complete 30-40% of its infrastructure contracts in the current financial year, indicating progress in its project execution capabilities.

Infrastructure Contract Progress

Texmaco Rail's focus on infrastructure contracts aligns with the Indian Railways' significant capital expenditure, which reached ₹1.42 trillion in the first half of the fiscal year. This investment is primarily directed towards electrification, multi-tracking, and safety upgrades—areas where Texmaco is well-positioned to contribute.

Product Portfolio Expansion

The company is expanding its product offerings to capture new market opportunities:

This diversification is expected to strengthen Texmaco's position in the railway equipment market and potentially open up new revenue streams.

Production Outlook

Texmaco Rail aims to maintain steady or higher wagon production in the second quarter. In Q2, the company delivered 2,334 freight cars, marking a 28.5% increase compared to the previous quarter. This production boost demonstrates the company's manufacturing capabilities and its ability to meet growing demand in the freight car segment.

Financial Performance and Targets

The company has set its sights on improving profitability:

• Current EBITDA Margin: 10.5% in Q2
• Target: Increase EBITDA margins into the mid to high teens

Strategic Initiatives

Texmaco Rail is undertaking several strategic initiatives to enhance its market position:

1. Integration of Texmaco West Rail Limited: This move is expected to streamline operations and improve execution efficiency.
2. Joint Venture with Rail Vikas Nigam Limited (RVNL): This partnership aims to strengthen capabilities in rolling stock manufacturing and infrastructure projects.
3. Collaboration with Hörmann Vehicle Engineering GmbH: Under the Global Capability Centre initiative, this collaboration will provide design services for passenger mobility and locomotives.

Market Outlook

The adoption of the 2×25 kV electrification system by Indian Railways is driving demand for traction systems and specialized freight stock. Texmaco expects stronger growth in its Rail and Infrastructure division, supported by a favorable policy environment and an expanding project pipeline.

As of September 30, Texmaco Rail's order book stood at ₹6,367.00 crore, indicating a pipeline of projects and potential for growth in the coming quarters.

With these strategic moves and a focus on execution, Texmaco Rail & Engineering Limited appears positioned to capitalize on the ongoing investments in India's railway infrastructure and rolling stock modernization.