Texmaco Rail & Engineering Limited has secured a substantial rail electrification contract from Western Railway, marking another significant addition to its order book. The company announced the contract award in compliance with regulatory disclosure requirements under SEBI regulations.

Contract Details and Specifications

The awarded contract encompasses rail electrification work specifically for the provision of a long feeder in Bhavnagar division. This domestic contract demonstrates the company's continued engagement in critical railway infrastructure development projects across India.

Project Scope and Timeline

The rail electrification contract focuses on providing essential infrastructure for power supply systems in the Bhavnagar division. The project timeline spans 12 months from the date of Letter of Acceptance issuance, indicating a structured execution schedule for the electrification work.

The contract value of ₹6.70 crores excludes applicable taxes, representing the base consideration for the electrification services. This project adds to Texmaco Rail & Engineering's portfolio of railway infrastructure contracts across various divisions of Indian Railways.

Regulatory Compliance and Disclosure

The company has confirmed that this contract constitutes a domestic order with no international entity involvement. Additionally, the disclosure reveals that no promoter, promoter group, or group companies have any interest in Western Railway, the entity awarding the contract.

The order award disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency in material contract announcements. This regulatory compliance demonstrates the company's commitment to maintaining proper disclosure standards for significant business developments.

Texmaco Rail & Engineering Limited has announced a significant contract win through its joint venture operations, with the order being awarded by M/s. Touax Texmaco Railcar Leasing Private Limited. The company disclosed this development under Regulation 30 of SEBI regulations, highlighting the ₹132.00 crore order for specialized railway wagons.

Order Details and Award Entity

The contract has been secured from M/s. Touax Texmaco Railcar Leasing Private Limited, a joint venture entity where Texmaco Rail & Engineering Limited serves as one of the promoters. The order encompasses the supply of rake of BLSS wagons comprising both BLSS and BVCM wagons for domestic operations.

Regulatory Compliance and Related Party Transaction

The company has confirmed that this transaction falls within the scope of related party transactions, as Texmaco Rail & Engineering Limited is one of the promoters of the awarding entity. However, the company has explicitly stated that the transaction is conducted at arm's length basis, ensuring no conflict of interest arises from this arrangement.

Strategic Significance

This order represents a substantial addition to the company's order book, demonstrating the effectiveness of its joint venture structure in the railway wagon manufacturing sector. The phased execution approach through tranches until July 2026 allows for systematic production planning and delivery scheduling.

The ₹132.00 crore contract value, excluding taxes, provides significant revenue visibility for the company over the execution period. The domestic nature of the order reinforces the company's strong position in the Indian railway rolling stock market, particularly in specialized wagon categories like BLSS and BVCM variants.