Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Texmaco Rail and Engineering Ltd (NSE: TEXRAIL) Q4 2026 Earnings Call dated May. 13, 2026
Corporate Participants:
Indrajit Mookerjee — Executive Vice-Chairman
Sudipta Mukherjee — Managing Director
Analysts:
Naveen Sahdev — Analyst
Unidentified Participant
Darshan Saveri — Analyst
Sandeep Mukherjee — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the earnings conference call Q4FY26 of Text Macro Real Engineering Ltd. Hosted by ICIC Securities. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. I now hand the conference over to Mr. Naveen Sahdev from ICICI Securities.
Thank you. And over to you sir.
Naveen Sahdev — Analyst
Thank you, Shailendra. Good afternoon all. I welcome you all to the Q4FY26 conference call of Texmaco Rail and Engineering Ltd. From the management, we have with us Mr. Indrajit Mukherjee, Executive Director and Vice Chairman, Mr. Sudipto Mukherjee, Managing Director, Group CFO Mr. Pramod Gupta, Company CFO Mr. Kishore Kumar Rajgaria and also the Deputy CFO of the company Mr. Sandeep Banka. So without any further ado, I hand over the floor to the management for their opening comments. Over to you sir.
Indrajit Mookerjee — Executive Vice-Chairman
Good afternoon everyone. This is Indrajit Mukherjee. I have been. It’s always been pleasure talking to you every quarter. This is also will continue like this and you will have more pleasure when we talk because of our advancing and our growth. So having said that, I’d like to welcome once again to today’s earning call of Techsnap Oral and Engineering Limited. We shall be predominantly discussing the financial performance for the quarter just passed which is the fourth quarter and the full year results of financial year 2526.
We will also discuss with you of our growth plan and some of the milestones which we are achieving or we are yet to achieve. The financial results and presentation materials have already been filed with the stock exchanges and I’m sure that you had the opportunity to review them ahead of our discussion today. During quarter four FY26 we demonstrated strong operational performance reflecting the effectiveness of our focused execution, disciplined financial management and commitment to our long term growth strategy.
In spite of various challenges, we continue to improve our operations, maintain stability and drive value for our stakeholders. We are steadily enhancing our position as the leading provider of rail and infrastructure solutions. And with the expanding range of capabilities across manufacturing engineering, rail systems, technology driven services. These efforts reinforce our vision for sustainable growth and our dedication to meeting the evolving needs of our clients in the market. Having given a brief overview, let me take you through some of the important parameters or some of the important performance parameters of Q4 of FY25 26 we reported a revenue from operations of 11.67crore reflecting although it’s reflecting at 13.3% compared to the same quarter last year which you know and we have explained earlier why it happened primarily due to the challenging marketing conditions.
We also despite this difficult conditions which all of you know, despite this revenue drop, the company resilience EBITDA for the quarter stood at 116 crores which is about 10% which represents a year on year improvement of almost 1.2% basic point 1.2 percentage profit after tax stood at 58 crores reflecting a PAT margin of 5% which also increase of 206 basis point compared to the same period last year. Additionally, Direct expenses decreased 0.8% QoQ which really made us to turn out the Starling performance underscoring the success of our efficiency and effectiveness improvements.
These margin expansions highlight our ability to manage costs effectively improve profitability under any circumstances. Now let me turn into the financial year. In the financial year of 2026 we reported a revenue from operations of 4377 crore which once again is a decline of 14% compared to the last year. From the profitability perspective, EBITDA for the year was 450 crores with an EBITDA margin of 10.2% while profit after tax was 194 crores translating into a margin of 4.4%. In our conference in our investors call earlier we had mentioned that one of the very major impediments that we pass through is because of challenging positions in the supply chain which special emphasis to sorry with a special emphasis to availability of bill sets which hampered our performance in the quarter.
1 of FY2526 performance during the year was impacted lower level as I said because of supply chain issues and rail and green energy which is our which we normally call our Kalindi division’s performance. However the good news is that the infra which is the electrical business electrification business which also we term as Bright Power division has grown by 66% to a revenue of 610 crores with an EBIT margin of 10.8% and it shows phenomenal growth for days to come. The company has remained focused on maintaining a strong balance sheet driving cost optimization throughout the year and as a part of this strategy our cash flow improved.
The net Debt decreased to rupees 444 crores reflecting a disciplined financial management and a focus on reducing leverage. The net debt to equity ratio improved from 0.22 in FY25 to 0.21 in H1 of FY26 and further strengthened to 0.18 in the end of FY26. This consistent reduction in debt levels underscores our commitment to enhancing financial stability, ensuring long term growth and improving shareholder value. It puts us into a unique position to satisfy our growth aspirations for the coming years.
On the operational front, we delivered 2,196 freight cars in Q4 of FY 2026 while the foundry divisions recorded a total volume of 8,964 metric tonnes. For the full year company delivered 8,372 freight cars which could be lower than last year where we had record numbers. But still we are one of the top primary manufacturer of freight cars and possibly one of the high market shareholder. The foundry division achieved a 34,000 metric ton performance. The performance of both the quarter and year wise was impacted strongly by global supply chain disruptions which affected production schedules, shipping transformations on export, imposition of US tariffs also destabilized some of our very strong business with the US and these had no doubt some amount of adverse effects on our volume which as you understand was beyond our control.
There is one more subject which I have to which I have to say to you that you would have noticed from our published results that the company has created a provisions for contingencies of 700 crores from its free reserves. We would like to talk about this before we discuss all other exciting. Around adjacencies and breakaway growth business in context of ongoing geopolitical tension and trade uncertainties which includes energy supply, shipping, transportation supply chain. We have seen instances of large contracts not meeting their expected outcome due to these uncontrollable external factors.
Keeping this in mind, keeping in mind of this volatile and uncertain macroeconomic situation, the Company wanted to start the next phase of Texmaco or transformation of Texaco as you can call Texaco 2.0 journey with adequate safety net. Accordingly, as a risk mitigation measure, our risk management committee, audit committee and the board and the management decided that it would be most prudent to make a contingency provisions against any possible unforeseen circumstances. I must tell you that this has no cash impact because of this provision.
It is an exercise in strengthening our balance sheet and improving our risk taking capability as we bid to win large contracts. Overall, the company believes the provision enhances financial resilience, transparency which is very important long term sustainability while preserving visibility of the underlying operational performance and supporting continued growth. In this respect, I also must say that there are a huge amount of claims for our projects which are pending and these are the one which takes a little bit of time.
So we need to hold some patience. The company believes that this contingency provision is a maximum potential risk under the worst case scenario. As we get more visibility of implementation of the ongoing and the future contracts and realizations of significant claims that it has in relation to the ongoing project, there will be scope for potential savings out of these contingency provisions. And I already have mentioned some huge claims also which are lying which we are working on with our customers.
You would also have noticed that the statutory auditors have thus qualified their report. This has been done only on account of provision being adjusted against the free results in instead of taking it from the profit and loss account which the management believes is the right thing to do as the which we think the taking out from the reserves is the right thing to do and as the contingency provision is not related to any specific risk or within any specific time frame. As we commence our journey on for FY 2027 with a refreshed strategic path, we are looking forward to scaling the railways business profitably even as we complement its cyclical nature with nonlinear growth drivers across new and nascent industries.
Dear investors, I think there are great stories to say because it’s just a story is reality. Our future looks absolutely strong and we are sitting on a very strong solid foundation as we go forward. You will see that while we are excelling our dependence on the wagon industry, we also are ensuring at the same time that our over dependence is reduced because of the cyclical nature of the industry. We thus have our successful move into EPC projects, railway related projects, adjacencies and also few other related growth areas.
And I think there is no one else who should be able to narrate this to you other than the person who is making it to happen. So I would like to hand it over to our Managing Director Sudipta Mukherjee to tell you what we are doing, how we have all as a team agreed into a vision to 2030 and this is just not a vision, it’s becoming a reality day by day you will have more, you will hear more good news about it. So sudipto
Sudipta Mukherjee — Managing Director
Thank you. Good afternoon everybody. It’s always a pleasure to connect with you. So you must have noticed or seen the document we have uploaded as a presentation and the vision and the way forward for the company. But to explain the rational and to paths to you, the underneath thinking thought that we use this platform as a kind of Interaction and a kind of pitch from our end. So, you know, I mean, of course, while we are continuously doing and growing in the core segment. And we are differently approaching it.
So in the whole team of it, what we have identified that of course the predominancing the rolling stock, freight rolling stock and its components. While we have a robust market domestic market in India. But it always goes through such cyclicalities which sometimes takes it upward. And sometime, I mean, you need to take a seat back. So we as a company, I mean, considering the present situation, we of course have to grow. And the theme which we have picked for us is of course that we as a company wants to grow in the top line at least 2x.
And of course one of the large and biggest focus that we wanted to have that we take our bottom line or the EBITDA percentages. So considering all of this, we took time and crafted very carefully after a thorough study a kind of a plan which we called text MAP4.2.0. Where we have considered all kind of risks which could come in and what is the volatility or whatever. And in that way we have divided these three theme into primarily three parts. One is strengthening the core. Why we need to strengthen the core?
Because this is one segment. Of course, we admit that there will be effect of cyclicality. But if we see that the relevance of railway cannot go away. And in the present circumstances, overall, such an efficient and sustainable energy solution will where it has always a positive impact on the commodity pricing or the GDP growth of a country. So it will always be relevant. And that’s why we thought of focusing more and more on the capability of us. And of course de risk the business, which we call as a strengthening the core.
So strengthening the core is of course will also involve certain inclusions of certain product lines having the design and engineering capability. And also to reach to newer regions. And second theme of the vision is of course the synergistic diversification the way forward that how we take take the company to multiples of the top revenue and the growth. So there of course we have have carefully analyzed that what is going to change in the way forward. And the fund flow. So far the government expenditures are concerned.
And we all know that there is a huge reliance and importance. And fund allocation is happening in and around the safety and network of the railways. And also in and around the passenger mobility segment. So in the whole ecosystem. And while we have an infrastructural division, which is now has a tailwind of growth. So we always have felt that Rather than having. Technology products within the company, which gives us and leverage an advantage to work around the ecosystem and the supply chain. So while we are remaining dedicated to give a total solution in and around the passenger mobility or the railway safety network.
So there the focus is of course in also to have the propulsion and also to have this. I mean other power electronic items and also in signaling, including electronic interlocking Ms. TAG DPWIS so all of these makes us more complete and strategic players where we have more control over the ecosystem while we deliver or commit to deliver. Then of course we felt that railway has always remained a very efficient, lucrative, sustainable business vertical. While we want to focus and continue to focus and work together, making us a prominent technology company.
And around that we felt that in the whole process of IT, we needed to also look for a kind of a breakout diversification, which actually helps us mitigate a lot of risks. And we can always find out some sunshine sector and which is also on a technical maturity index. Maybe sounds little breakout, but there is a lot of integration on the engineering side of it. So we chose defense as part of it. Of course we have focused on the digital business while we have launched our global capability center and that we have now of course you all know that we have launched a platform called Invaris AI which is powered by ServiceNow which is one of the global largest company and also who works for companies like Nvidia and all.
And we are taking the integration support of AI through that. And we are here to provide service in and around railway as well as the whole value chain of a business to start with. And then we are going into different path to provide service all over the globe. So this remains the theme and as part of the Vision 2030 roadmap or the text MAP O 2.0. So therefore we are not only strengthening our core business, but also investing in the development of future ready growth engines. So in addition to our focus on the wagon and rail infrastructure, as I have mentioned, you can see that we are scaling up on the strategic opportunities with emerging areas into the signaling safety system, cover system, propulsion technologies, metro and urban mobility.
So. So these are of course all you will agree that are expected to play a key role in the modernization of the whole railway network. And there is a huge global traction in and around that if you along with it just not to have a transaction mindset, but to imbibe the technology and develop the capability in and around this and our control over the ecosystem. It makes us a distinct player in the whole system. So we are Proud to be an Indian company being in this horizon and coming up as a global solution provider, as a complete solution provider with a technology backup.
So I mean the theme remains very strong and and our commitment to excellence supported by the ongoing investments in technology and human capital that of course positions us navigate the challenges and pursue the growth opportunities more holistically. So these efforts are intended to drive long term value which is I think that would be very appreciated and more of a bulletproof I think for the interest of the all the stakeholders and the company. So in the way forward of course we are looking forward to make this text macro 2.0 in new avatar which we of course want to achieve in next 12 to 36 months.
Thank you for the patient clearing. So of course we can have questions and answers now.
Questions and Answers:
Operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the test on telephone. If you wish to remove yourself from the question queue you may Press Star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from Kandinya Nimagarda from Jefferies. Please go ahead.
Unidentified Participant
Yeah, hi sir, thanks for the opportunity. I hope I’m audible couple of questions from my end. Firstly, on the wagon side of things, what is the kind of visibility that you have with respect to new orders from railways? Is something being discussed out there or is it like completely blank? I mean if you can throw some color on that. Before I move on to the next question.
Sudipta Mukherjee
Hi, thank you for asking. We believe very strongly that Indian railway or the Indian rail story will remain robust. And I repeat that you all have seen that there have been a significant large order. First time in the history of the country was awarded in the year 2022-23. And of course due to our execution rate because we remained the highest supplier to Indian Railways. So the railway order portfolio, you may not may be hearing more but it’s voice to come because you see that the as per the national rail plan, the kind of achievement India and Indian Railway wants to achieve.
So there is a huge requirement is going to come and we believe that in near terms it should be not no less than a range of 1.5 to 2 lakhs of wagons. And it is further getting boosted because last one, and I mean one and a half, I mean two years rather than if the wagon order has not come, government has very carefully worked to decongest the whole Railway tracks, so many double lines and corridors have been announced. And we are also happy to let you know that the WDFC and EDFC are also coming into operation.
Some of them are already into operation and the whole integration will happen. So it’s the new wave of the cycle is all poised for start. So we have a great hope and it can come anytime. So sometime a little bit of silence is not a bad news. So we always believe that a lot of work is happening behind and you will see that flow of orders will come in second is that government is also encouraging private companies to invest and participate into this system. And there is a lot of traction, I mean in terms of if you see that the commodity like cement, steel, automobile.
So everybody wants an efficient system of transportation and everybody wants to have a sustainable way of transportation and everybody wants to have a reduction of logistic cost. So railway has remained the most efficient solutions within the country.
Naveen Sahdev
And
Sudipta Mukherjee
I mean lot of investments are coming in and around it and a lot of private wagon orders are coming and railway is also working to come up with a lot of policies for introduction of new design wagons. So in a combination and as a whole it gives us a huge hope that there will be a good momentum of road rolling, straight rolling stock procurement in the country for a longer term.
Unidentified Participant
Sir, just on that railway order, right? No. Is it. Have any bids been called out or is it something still not had been there?
Sudipta Mukherjee
We have not seen any carving out. So we rather find it as a very strategic move because the whole national rail plan, I mean if we as a layman, if we convert it into the percentages of achievement target was made because that was the first disclosed published document of the government that the railway model share they wanted to have around 47% so far the whole logistics of the country and we remain still at the 27, 28% mark because all these sectors are equally growing. And if you see that off late recently Prime Minister has again asked people to go for railway.
So I mean overall the system is that. I mean say those 3 lakh or 4 lakh of wagons could not be procured at a go. So there was a first stage which came out around 1.3, 1.4 lakh of wagon from 2022-23, the balance are to come and which you believe will come very soon.
Unidentified Participant
Sure, sir. My second question is on your Vision 2030 plan. So I mean see, with respect to, you know, your diversification to wheels or even the metro and everywhere, right? Especially something like a wheels. Couple of your peers have Already ventured out there. Do you think you’re little late to the party and if and there could be a potential oversupply scenario out here what’s the right to win here for the company? If you can elaborate a bit please.
Sudipta Mukherjee
It’s a very good question. First of all the whole intent is not to copy and our strategy to enter into the wheel segment is not being envisaged to play in the same ground so it has in the coming days we will get to know of course it helps us in our internal consumption and there are some kind of assured optic business opportunities we are working around so is going to help us as a whole and we see the business in a different light and different playground perhaps.
Indrajit Mookerjee
Yeah we have considered the supply demand situation sir as Sudipto says we are just not jumping into a bandwagon so we have looked at the supply demand and the product which is going to be that we are going to be preparing or making it ready for. This is one of our designed movement to the adjacency railway adjacency it’s not come out of certain one day sort.
Sudipta Mukherjee
So one to answer I mean in this strategy Regarding your first point of course you have asked me specifically on the railway wagon Indian railway wagon order perhaps but for Texmacu if you have seen that we are also consciously focusing as a de risk percentile share that while we want to remain the leading position so far supply to Indian railways are concerned and at the same time increasing our reach to new other geographies and also to cater to the private segment is also the theme of the whole growth story and I mean today I’m happy to let you know that our whole order book if you analyze the wagon so around 70% is from private I mean this is of course whatever we are talking on the earning call on 31st March but one of the recent few developments I can mention that the company is progressing very strongly in the African continent and in I mean we had seen some major order wins including the Cameroon, now the South Africa and we are expecting few more so for us widen order for the core business.
I mean we find that it is going to remain very very niche and very close to our heart.
Unidentified Participant
Sure sir. Thank you very much and all the best.
Sudipta Mukherjee
Thank you.
Operator
Thank you. The next question is from Parve Kazi from Nuama Group. Please go ahead.
Naveen Sahdev
Hi, good afternoon sir. Thanks for taking my question. So wanted some more details on the South African order that we announced yesterday. The order mentions that we need to supply some 2200 wagons some 30 diesel locomotives by FY28. And there’s also some 15 year maintenance partnership involved. So couple of questions on this one. Of this 4000 odd crore order is it all to be delivered over the next two years or is there some maintenance component also included in this 4000 crore order?
Sudipta Mukherjee
Good afternoon Mr. Parvej. So thank you for flagging the question. So it’s a complete solution providing contract right from design to maintain the whole life cycle which they define as 15 years. So to answer you, the pricing is inclusive of all of the rolling stock or the wagon and the maintenance of it for 15 years. And regarding delivery, yes, the delivery has to be completed within as of now as per the letter of the award by the financial year in 2028. But there could be some modifications depending upon the situation at the customer cent.
It may be less also. It may be more also. So that provision is there but
Unidentified Participant
In
Sudipta Mukherjee
Terms of the delivery time. So it is not based on us but we are taking it as a financial year in 2020.
Naveen Sahdev
So on this order what kind of revenues do we expect to book over the next two years with FY27 and 28?
Sudipta Mukherjee
I think this is very far fetched an answer. You know the order value. So definitely that is. That is going to be the bucket as of now.
Naveen Sahdev
And lastly who will do this locomotive part? I mean we obviously have capabilities on the wagon side. But for the locomotive production do we tie up with someone or how will this be handled? So
Sudipta Mukherjee
We have our strategy and process in place. Now at this point of time we are not able to disclose everything. But definitely we have accepted the award and definitely we are eligible to do that. Hence we got it. So we will. You will come to know and I will be happy to. I mean once we. Once we progress we will have. I mean we’ll be happy to let you know.
Indrajit Mookerjee
See right now there is a little bit of disorder issue. So we’ll come back to you.
Naveen Sahdev
Sure. And just for my knowledge, I mean I know our contacts with Indian Railways have commodity pass through. Now considering that the global supply chain situation is quite volatile this contract also does it have raw material cost pass through or is it a fixed price contract?
Sudipta Mukherjee
So there is a lot of this kind of global. This thing like as I cannot be too specific now because it is in an envelop of the total value. So many things in the way forward has to be worked out because there is a lot of stuff involved into it including localization and all. So all these things are getting worked out. And to answer you Very straight. The risk is very well covered.
Naveen Sahdev
Thanks and
Operator
Thank you. The next question is from Mr. Karan from Asitsi Method. Please go ahead.
Naveen Sahdev
Hello.
Operator
Yeah. Yes sir, you are audible.
Naveen Sahdev
Yes. No, no, my question has been answered. Yeah, thanks.
Operator
Thank you. The next question is from Dashil Javeri from Crown Capital. Please go ahead.
Darshan Saveri
Hello. Good evening sir. Thank you so much for taking my question. Sir firstly congratulations on the great order. So sir, just wanted to understand like with our current order book as a new author how would we look at FY27 sir as a whole year sir in terms of our revenue and ebitda.
Sudipta Mukherjee
So I mean we definitely envisage a growth and in terms of top line and very good achievement in terms of growth in the bottom line also we cannot be too specific for a forward looking statement but I can tell you that now we have also come out with a vision document that where exactly we want to be and definitely this is not that is going to happen only on the last year. So we see that there will be incremental progress in the whole journey and you will find it there is a significant improvement in both.
Darshan Saveri
Okay sir, not anything specific but in tender in terms of margin like we’ve done around 9% so can we aim for at least you know, 10 to 11 in the next year how would the margin trajectory been? I don’t want any exact numbers but if you know, because the South Africa order is also come up so is that more margin accretive? How could we just look at you know our pad or ebitda whatever margin you were able to, you know discuss.
Sudipta Mukherjee
You are very right and I’m so happy that you have narrated it so nicely. And our Vision 30 document, I mean whatever I have spelled out as a, as a target or a vision that we want to 2x our top line but at the same time we want to sustainably remain on the meat of the, the I mean meet the team of the Evita. So that is a journey which we want to do and definitely the answer is that it will see good improvement over and above whatever we have achieved in this year, in the coming year. But forward looking you can appreciate, you know that I can’t.
No,
Darshan Saveri
No worries, no worries about that sir. And so just on the lines like in terms of our new products or something we’re going into, you know a lot of different segments. So number one like to build that will we need any more capex that you know we have outlined, I think we’ve outlined 200 crores for a defense but for Metros and everything. Will we need any more other capex and and with regards to that. So like what about our debt position? Will we increase that also or how will funding our new capacity.
Sudipta Mukherjee
So you have seen that you have significantly improved on the debt position. And it is today I think a little more than 400 crore. And on a ratio it is less than 0.2. And we are very hopeful that we will generate good amount of money out of the businesses while we have our growth plan intact. Yes, there will be requirement of capex and that capex in spite of that capex we expect that our ratio should remain within the range and we’ll have a good trajectory not disproportionate.
Darshan Saveri
Okay sir, I just wanted to understand like what’s our interest cost in general Because I think we are you know doing around 120 crores of interest for the full year. Right. So just wanted to understand in terms of interest what is you know what is the rate of interest that we are getting or if you know we are also very you know a plus record. So how can we you know focus a bit on reducing that. Sir.
Sudipta Mukherjee
Yeah. So Kishore will come back to you on the interest. One point. Just I wanted to add on the capex side of it. Of course you have seen now that the board has Approved for a 200 capex for our defense business. So we’ll be progressively assessing and doing the way we are going and eating to the market. But in. I mean what what we have. We have seen that we have. I mean we will be coming back to you and letting you know that what is the kind of. But on a. On a envelope as of now it should be within 1500 crore kind of a.
For the
Darshan Saveri
Over till 2030.
Sudipta Mukherjee
Yeah.
Naveen Sahdev
But our finance cost also include the bank guarantee commission healthy charges. So that is not only related to interest.
Darshan Saveri
Okay. Okay. So a lot of irand code will be just. Thank you so much.
Operator
Thank you. The next question is from Abhinavhandari from Bandhan amc. Please go ahead.
Unidentified Participant
Yeah. Thanks for the opportunity. Just jumping on this South African order once again. Just wanted to understand was it an internationally competitive bidded order or a negotiated order. What kind of peers were there along with us? If it is, what if it was a competitively bidded order and you know what played to our strengths in winning this order. Just some more understanding on that.
Sudipta Mukherjee
I would rather love to mention to you because I am also not privy to the all the competition what our customer has chosen from. But yes, Texmaco is the only Company in India. India who has the supply track record of 16 countries in the world. And we have the capability of producing various standard bogies and wagons of various gauges like from meter gauge, Cape gauge, standard gauge, broad gauge and we have the credential of ar, we
Unidentified Participant
Have the credential of
Sudipta Mukherjee
Other continents and our products are successfully running so far as a qualification is concerned. And this is not the only order which Texmaco has won. This is one of the largest of course in the history by any Indian company. But our products are already running in that sector successfully over the years and the ages. And when we go to such international competition, yes, we compete with Europeans, we compete with Chinese to name few. And sometime of course you also have a local competition.
Unidentified Participant
Sure, that’s helpful and just some more understanding on if there are such similar prospects lined up for us or the Indian industry as such across the globe just to understand on that piece.
Sudipta Mukherjee
So as I said that we work on multi continent and we are already existing there and we have these qualifications. So definitely, I mean Texmacro as a company will look forward and is engaged in various such business prospects. I can’t talk about others.
Unidentified Participant
Got it, Got it. Thank you sir. Congratulations and best wish you.
Sudipta Mukherjee
Thank you sir.
Operator
Thank you. The next question is from Sandeep Mukherjee from SKP Securities Ltd. Please go ahead.
Sandeep Mukherjee
Yes sir. Thanks for taking my question. Sir, my first question is like to create a text macro to aligning with the vision, your vision of 2030. So how much capex incremental capex do you need? Sir,
Sudipta Mukherjee
I think I have just answered
Sandeep Mukherjee
Was not audible. Actually it was. I said that
Sudipta Mukherjee
See we cannot predict a specific number for the entering into the defense business. Now the board has approved about 200 crore but this the whole bucket can be. I mean we can. We can predict a range of 1500-2000 crore as of now. But I say that we promise that as we progress in each and we come back to you and let you know what is the kind of estimation we have done.
Sandeep Mukherjee
All right sir. All right, thank you. Because lot of jobs
Sudipta Mukherjee
Have to be done and it’s in a progressive manner and it could also have a very. I mean frequently we have to come back to you and you will get to know.
Sandeep Mukherjee
Okay. Okay sir. And my next question is how much wagons were produced in Jindal means text macro waste. How much? So you have asked me actually
Sudipta Mukherjee
To be very honest we have started looking at the vehicle number which unit has produced because it’s a unit of text macro now so we have to see that but on a consolidated number, I think this, this year we have produced 8,000. What is the total? 350. So one thing I must tell you that we have to. I mean we as a company has started believing in that we have to come out of this vehicle number. Because when we started talking about this the whole industry was manufacturing commodity wagons which railway initially first entered.
Okay. So now there is a whole matrix change in the game. And I mean as I have said about the texmaco story that in automobile, in steel, in cement, in alumina, in petroleum, then all of these specialized wagons we are manufacturing and we are doing this export wagon. So each wagon, food, grain. So all of these are unique numbers. And at a point of time I think we are making 11 types of
Unidentified Participant
Wagons.
Sudipta Mukherjee
So this was never, never will be seen. And because we are, we have that kind of an infrastructure, we are able to do so more than the wagon numbers or the vehicle units. What we are looking forward is the quality and the delivery we are making. So volume to value is the journey. I mean very. I’m very thankful for you to ask this question. So that’s what is the one of the fundamental theme of text macro 2.0. Whatever we will do, we will more look for value internal, internally as well as external.
Sandeep Mukherjee
Understood sir. Helpful. Thank you sir.
Operator
Thank you. The next question is from Mr. Naveen Sadhguru from MyCIC Securities. Please go ahead sir.
Naveen Sahdev
Yeah, thank you for the opportunity. Two quick questions. One was regarding the South African order. Will it be fair to assume that significant portion of the revenues will accrue largely in FY28? I know you didn’t give a precise answer to the previous question around this. But at least directionally or to a large extent, is it fair to assume that since we have just received the order, a bulk of the revenues would be booked in FY28 since our endeavor was to you know, finish this or meet this order by FY28.
Sudipta Mukherjee
You are right as of now. Yes.
Naveen Sahdev
Right. Thank you. And
Sudipta Mukherjee
One thing, one thing just to mention to you that while that South Africa order is covering that presently we are serving Cameroon
Indrajit Mookerjee
And we are expecting
Sudipta Mukherjee
You for this. We are, we are exporting wagons to Cameroon now in this financial year primarily
Indrajit Mookerjee
That’s also substantial
Sudipta Mukherjee
Large order and that also comes with maintenance. And we are also expecting few more which the delivery will also include in this year.
Naveen Sahdev
Understood. So just from a like you know, run rate point of view, it. It seems then that given the exit order book, it’s possible that FY27 can be a little softer versus 26 and 28 then can see a meaningful jump. Is that the correct understanding?
Sudipta Mukherjee
No.
Naveen Sahdev
Okay. I
Sudipta Mukherjee
Said that we will grow in the top line and bottom line both in this financial year compared to last year. That’s our work which is going on.
Naveen Sahdev
Understood. Second then my question was around the announcement foray into defense segment. So I would just request to throw some more light into this as to what exactly are we are we trying to like you know do here? Which verticals are we like you know looking at and when can we possibly expect the first commercial order in this particular space. Thanks.
Sudipta Mukherjee
So the company is into advanced stage of technology tie ups into certain various strategic segments which may include autonomous kind of vehicles and other stuffs. So if I apologize and I believe he will support me not to. I am not in a position to disclose today in this call but within, within few weeks you will get to know. As things progress in each of this the board has of course sanctioned the budget because there are some outflow will also happen along with it. So we are pretty certain that in this financial year we will see positive step forward towards that.
Naveen Sahdev
Understood. Helpful and thank you.
Operator
Thank you. The next question is from Mr. Ashok Shah from McLove UNESCO Family Office. Please go ahead. Yeah.
Darshan Saveri
Yeah. Thanks for taking my question sir. Are we ready for any acquisition in the wheel sector if the any private company is making it Because Wales is always in demand and there is always shortage.
Sudipta Mukherjee
We while in all of the business segments what we have indicated we are open for meaningful collaboration and acquis. We are of course working on certain prospects. But if anything comes we remain open.
Darshan Saveri
Thank you sir. Thank you. That’s all from my side.
Operator
Thank you. The next question is from Mr. Rupesh Tatia from Long Equity Partners. Please go ahead.
Unidentified Participant
Hello sir. Thank you. Thank you for the opportunity. My. My question sir is a wheel set shortage issue that industry was grappling with. Can you give some view about where how this issue will play out in FY27 and FY28? Is it fair to assume that there will be no major shortage in let’s say from second half of FY27 once the large order comes.
Sudipta Mukherjee
I can answer you from the. I can answer you from the current macroeconomic scenario and the various government is taking so as of now or the policy guidelines what government has. So the wheel we are dependent on. We remain historically dependent on Indian railway supply because it was mandated for Indian railway ordered wagons. Now when the private is increasing we have to see that what is the level of what is the policy decision government takes in terms of allowing us import or they insist us buying?
As of now they say that Indian Railway has enough capacity and they can supply. So we are yet to check this. And I mean we will be very happy to not to import if things works out in that way. As of now it’s going smooth. There was often on it comes on. But there have been a ramp up in terms of the capacity by Indian Railway also. So it’s a kind of a mixed answer. I do not have right now. But for ex maco you see that we have as of now a good backup in terms of the private orders. And with the exports coming in, we are not dependent exactly, exactly on this crisis.
So in that way we, we should not encounter much as of now.
Unidentified Participant
Okay. Okay, thank you for that answer, sir. The second question, sir, is the private sector in India, right? Specifically I’m asking about India. What, what would be our market share? And, and can you give, you know, some idea about the opportunity?
Sudipta Mukherjee
So I think in the private sector overall target we are in the range of anything around 40% as of now. 40 to 45%
Unidentified Participant
And it changes, the scenario changes. But when it’s more of a specialized type wagon, so our percentage has gone up.
Sudipta Mukherjee
And so we feel that this continuity will remain and we will improve upon if not remain here. I mean it’s a good share because the volume in the private is increasing.
Unidentified Participant
But the size is like let’s say 10,000 wagons a year. In the private sector, sir,
Sudipta Mukherjee
It depends. There was around 10,000. Sometime it is 7,000. But we feel that on a consistent basis it can remain in the range of 12 to 15,000.
Unidentified Participant
Okay, okay. And then the final quick question, sir, if I mean this large wagon tender that is expected in, in your assessment, what would be, you know, the latest time by which the tender will be out? Q3. Q3 is latest. Is that a fair assumption to make?
Sudipta Mukherjee
First of all, sir, it may come at a go or it may be divided into few tranches also. But the requirement will remain. Even if it comes at a go or if it comes every year, it hardly matters. But we know there is a need and requirement of consistent. If I even divide it into year, I mean year wise. So there will be a requirement about 25 to 30,000 wagon for the coming five to seven years. And even whatever wagons retires, you know, that’s also in the range of around 10 to 14,000 per annum. So I mean combining, I mean on a worst case scenario, there should be a requirement of around 25 to 30,000.
That’s what we feel to ramp up the railway share. And I feel that government is quite actively working. But when it will come, how it will come, what would be the priority? You and me, we are in the same state. We can’t just comment on that.
Unidentified Participant
Okay. Okay. Thank you. Thank you for answering my question sir. And all the best.
Sudipta Mukherjee
Thank you. Thank
Operator
You. The next question is from Harshit from ICICI securities. Please go ahead sir.
Naveen Sahdev
Yeah, hi. Thanks for the opportunity. So just a couple of questions. So firstly on the real estate plan that we have mentioned in our results press release. So we have some land bank and we plan to develop a real estate project on it. And we have also created this new vertical. So if you could throw some light on how big this land bank is and what could be the size of a portfolio.
Sudipta Mukherjee
So basically it is that you can put it in a theme of land bank unlocking. So there are so many unutilized things or in and around. So for making our say balance sheet stronger or to utilize it properly, I mean that, that was the whole theme of it.
Indrajit Mookerjee
So actually it’s absolutely just supplementing Sulipto in addition to his question that we have reorganized and restructured our operations. As a result we have some prime land which has come up. It is not a distressed sale of land. So it’s a. It’s just that it has come up which is a good value and the competency requirement for development of land is totally different from making wagons. So we decided that this would be a separate business division and I don’t think this division is going to be a long continuing one because we don’t have that much of land.
But whatever we have, we will start developing it. As you know that Bengal has some issues on the land Ceiling act etc. Which I hear is going to be going off because today there is a press statement given by the BJP president. But whatever it happens, so when we come to that situation we will start developing this land through our own development company. So this is the scenario. It’s not that we are selling land to sort of get money out of it but we, it’s a good opportunity since we have restructured, we have got good land at premium places.
Why not we develop.
Naveen Sahdev
Understood. And so secondly on you know our last month’s announcement of the launch of inveries and the foray into gcc. So I believe we had done a soft launch towards the end of 2025 in Faridabad, you know, so just wanted more color on this. I mean if you could. It’s a very interesting
Indrajit Mookerjee
Project. Actually we are. We. We are launching. We have actually already launched AI platform in collaboration with an international American company which is also a partner of Nvidia. So we have access to most of the cloud and we will also have access to AWS and Microsoft of the cloud. Basically we are this GCC will be working on portfolios Instead of going into a huge amount of back to back, wall to wall kind of services we will work on specific portfolios for example rail solutions, rail design.
Then we also will look into the CRM, the customer relationship management. Then we also look into cost reductions in productions, automations operation, maintain inefficiency as through monitoring and then getting data. So this is going to be a very interesting one. It’s not going to be only. We are also looking at the fertilizer use, how we can reduce water consumption, how can optimize healthy farmers. So it’s a problem whether this is an interesting. Yeah. Also we have a furniture unit but we are there.
We need to do a lot of service as well as the after sales service is lacking so we are all putting it together and going by portfolio instead of getting into a world to work at. However, we shall also be available. This is not only for internal, we are also going out to market. So I expect that this is going to be one of the major, major growth area for us.
Naveen Sahdev
Yeah, that was precisely the question. So is the primary goal to digitize our own internal manufacturing process or you know largely of the Adams Group or you know vision to build a standalone, you know, commercial AI services business.
Indrajit Mookerjee
Ultimately the vision is that it will be a commercially I right now it is being anchored by Tex Franco because there are a lot of internal work also we need to do. However it will also go to go to and it will be
Unidentified Participant
Go
Indrajit Mookerjee
To market. In fact it will have lots of opportunities and we started already bringing in number of seats. We don’t want too many number of seats. But as happening in today’s GCC we start everyone starting with an optimized number because as you have the AI you can cut down on the numbers of people. And that’s exactly what we are doing.
Naveen Sahdev
Understood sir. Thanks and all the best.
Indrajit Mookerjee
We have got a. We have got very strong team actually working for us. We have a very, very strong team in this.
Operator
Thank you ladies and gentlemen. We will take this as a last question for today’s call. I now hand the conference over to management for the closing comments. Over to you sir.
Indrajit Mookerjee
Well, this is Indrajit Mukherjee. Once Again and I’ll have to thank the investors from the bottom of my heart because I know that you are asking these questions because you love the company and you want the company to prosper. And it is our duty as the operators of the company, as a management of the company to give you correct precise information. But I also have to say that somewhere we couldn’t have given you exactly the exact numbers that you wanted because we also are bound by certain guidelines with our partners confidentiality disclosures.
So we also have to sort of do a. We have to be something doing a balance walking while we want to satisfy with all your questions and tell you what we are doing. But at the same time somewhere we have to restrict certain disclosure of information. So if we have not satisfied you on this, then this was completely unintended and please, I do apologize I on behalf of all my colleagues and friends. However, I see you can see that your company is poised for growth and we are transforming as you have seen.
We are transforming. We are reducing the cyclical onto the risk of cyclical type of business. We are moving into the sustainability is one of our major areas that we are going because this sustainable sustaining growth is very important as you start exporting because it becomes also very important from the environmental sustenance as well as whatever we want to do, we want it for a long term, long term sustaining. We just don’t want it to be just one opportunity and do it. So everything is very well thought out.
We had many, many sessions of strategy before we came to this. We also have taken the services of the top management gurus of the world. You know, the people who are considered to be the topmost management advisors and they work mostly in the US and Europe. And we also have interacted with them to sort of see whether we are making any mistakes or not so that we don’t have mistakes. Having said this, I wish to thank all of you for spending your time with us. Thank you.
Naveen Sahdev
Thank you. Thank
Operator
You on on behalf of ICICI Securities. That concludes this conference. Thank you for joining us and you may now disconnect your lines.