Texmaco Rail & Engineering Limited has secured a substantial contract worth ₹27.67 crore from South Western Railway for comprehensive maintenance of overhead equipment and power supply installations. The two-year contract encompasses the Mysore Division's entire electrification infrastructure, covering 1,046 track kilometres of railway network.

Contract Details and Scope

The order involves undertaking comprehensive annual maintenance and breakdown restoration of Overhead Equipment (OHE) and power supply installations across the Mysore Division. The contract value stands at ₹27.67 crore inclusive of GST, equivalent to ₹23.45 crore excluding taxes.

Service Portfolio and Responsibilities

Under this mandate, Texmaco will undertake multiple categories of maintenance services to ensure reliable and uninterrupted operation of traction power systems. The scope includes:

• Routine maintenance of overhead equipment
• Emergency breakdown restoration services
• Preventive maintenance of power supply installations
• Maintenance of associated electrical assets across the division

Expanded Market Presence

This new contract significantly enhances Texmaco's footprint in railway electrification services. With the addition of this order, the company's cumulative OHE and power supply maintenance portfolio has expanded to 3,702.62 TKM across multiple railway divisions and corridors of Indian Railways.

The expanded portfolio now includes:

• Bengaluru Division maintenance contracts
• Select sections of Dedicated Freight Corridor Corporation of India Limited
• The newly acquired Mysore Division contract

Regulatory Compliance

The company has disclosed this order under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015. The contract represents a domestic order with no related party transactions involved. The promoter group has no interest in the entity that awarded the contract, ensuring arm's length transaction principles.

This contract reinforces Texmaco Rail & Engineering Limited's growing credentials in railway electrification services and demonstrates the company's capability to handle large-scale infrastructure maintenance projects across India's expanding railway network.

Texmaco Rail & Engineering Limited conducted its Q3FY26 earnings conference call on February 9, 2026, hosted by ICICI Securities. The management team, led by Executive Director and Vice Chairman Indrajit Mookerjee and Managing Director Sudipta Mukherjee, outlined the company's performance and strategic roadmap for sustainable growth.

Q3FY26 Financial Performance Overview

The company reported consolidated revenue from operations of ₹1,042 crores for Q3FY26, reflecting moderation compared to the same period last year due to transient supply-side disruptions and export headwinds. Despite revenue challenges, operational discipline was maintained with EBITDA of ₹102 crores and an EBITDA margin of 9.6%.

Nine Months FY26 Consolidated Results

For the nine months ended December 31, 2025, the company achieved revenue from operations of ₹3,210 crores. EBITDA stood at ₹313 crores with a margin of 9.7%, while Profit After Tax was ₹136 crores. Freight car deliveries totaled 6,176 units with foundry division achieving cumulative sales of 25,326 metric tons.

Strategic Vision: Texmaco 2.0

Managing Director Sudipta Mukherjee outlined the company's ambitious Texmaco 2.0 strategy aimed at creating a 2x larger organization in terms of top line with higher EBITDA margins over the next 3-5 years. The strategy encompasses three key pillars: strengthening core businesses, synergistic diversification, and breakout diversification.

Order Book and Market Position

As of December 31, 2025, the company's order book stood at ₹5,661 crores, providing strong execution visibility. The order book includes a balanced mix across freight mobility, rail electrification, and urban transit infrastructure.

Operational Challenges and Recovery

The management addressed ongoing wheelset availability constraints that impacted production levels, with deliveries reduced by approximately 20-25% compared to the corresponding period last year. However, these constraints are progressively easing, and export operations have resumed in Q4FY26 after facing challenges in previous quarters.

Foundry export business faced near-term pressures due to U.S. tariff issues, resulting in 30% lower export volumes. Despite these headwinds, average realization per wagon improved over the past two quarters, supported by a richer product portfolio and superior design integration.

ESG Initiatives and Future Outlook

Texmaco commissioned a 10 MW solar power installation at its Urla Foundry in Raipur and converted a high-tension furnace from LDO to LPG at Belgharia Foundry. CRISIL upgraded the company's ESG rating from 50 to 51, placing it in the 'Adequate' risk category.

The Union Budget 2026-27's record allocation of ₹2.93 lakh crores to Indian Railways, with emphasis on rail electrification, freight capacity enhancement, and safety infrastructure, aligns closely with Texmaco's strategic priorities and growth plans.