About Titagarh Rail Systems Limited
Titagarh Rail Systems Limited (NSE: TITAGARH) is an Indian engineering and manufacturing company specializing in railway rolling stock and mobility solutions. Headquartered in Kolkata, West Bengal, the company designs and manufactures freight wagons, passenger coaches, metro trains, propulsion systems, and other railway equipment for domestic and global markets.
Titagarh operates across multiple segments of rail and heavy engineering, including freight wagons, metro rail coaches, semi-high-speed trains such as Vande Bharat trainsets, propulsion systems, and rail maintenance vehicles. It also has interests in shipbuilding, defence engineering, and bridges.
Titagarh has manufacturing facilities in India and international partnerships and acquisitions, enabling it to supply rolling stock and rail solutions to global markets.
Strong Order Book Position
Titagarh Rail Systems Limited has a robust consolidated order book of about ₹13,955 crore, primarily driven by its Passenger Rail Systems business. Freight Rail Systems contribute around ₹3,126 crore (22.4%), Passenger Rail Systems account for approximately ₹10,791 crore (77.3%), and Defence & Bridges contribute about ₹38 crore. Additional orders include nearly ₹500 crore from Shipbuilding through its subsidiary Titagarh Naval Systems Limited. Including joint ventures such as forged wheel manufacturing and Vande Bharat AMC partnerships, the total opportunity pipeline expands to roughly ₹27,755 crore, indicating strong revenue visibility.
Passenger Rail Segment – Key Growth Driver
The Passenger Rail Systems segment has become the company’s main growth engine, reflecting a strategic shift from freight-focused manufacturing to passenger rolling stock aligned with Indian Railways’ modernization plans. Government initiatives such as Vande Bharat trains, metro expansion, and semi-high-speed corridors are driving sustained demand. This segment delivered record turnover in the quarter, with revenue growing about 237% year-on-year and segment profit rising around 364%, highlighting strong execution momentum.
Key Financial Highlights – Q3 FY26
For Q3 FY26, revenue from operations stood at ₹822.72 crore, increasing 4.36% quarter-on-quarter. EBITDA reached ₹99.02 crore with margins improving to 12.04% from 11.25% in the previous quarter. Profit after tax was ₹55.72 crore, up 17.83% sequentially, supported by strong performance in the Passenger Rail Systems segment.
Q3 & 9M FY26 Standalone Profit & Loss Summary
Titagarh Rail Systems Limited reported revenue from operations of ₹822.72 crore in Q3 FY26, declining 5.62% year-on-year but improving 4.36% quarter-on-quarter. For the nine-month period FY26, revenue stood at ₹2,285.04 crore compared to ₹2,748.94 crore in 9M FY25, reflecting a 16.88% decline mainly due to execution timing and project mix.
Cost of materials consumed in Q3 FY26 was ₹635.11 crore, down 5.92% year-on-year but higher sequentially due to increased production activity. Employee benefit expenses rose to ₹27.74 crore in Q3 FY26, reflecting higher workforce requirements, while other expenses were ₹96.47 crore. Overall, cost pressures impacted margins during the period.
EBITDA for Q3 FY26 was ₹99.02 crore, largely flat year-on-year but up 11.62% quarter-on-quarter, with EBITDA margin improving to 12.04% from 11.25% in Q2 FY26. However, for 9M FY26 EBITDA declined 21.20% year-on-year to ₹264.83 crore, indicating softer operating performance over the longer period.
Profit before tax in Q3 FY26 stood at ₹80.05 crore, down 15.46% year-on-year but up 10.16% sequentially. Profit after tax from continuing operations was ₹62.26 crore in Q3 FY26, while total PAT was ₹55.72 crore compared with ₹68.47 crore in Q3 FY25. For 9M FY26, PAT declined to ₹145.76 crore from ₹224.91 crore in 9M FY25.
Earnings per share for Q3 FY26 were ₹4.13 compared to ₹5.09 in Q3 FY25, reflecting lower profitability, while 9M FY26 EPS was ₹10.82 compared to ₹16.70 in the previous year.
Overall, Titagarh Rail Systems delivered sequential improvement in revenue, EBITDA, and profit in Q3 FY26, supported by strong passenger rail execution. However, year-on-year performance remained lower due to project timing, higher expenses, and lower revenue recognition in earlier quarters, even as the strong order book provides confidence for future growth.
Major Strategic Updates
The company transferred its shipbuilding and maritime systems business to Titagarh Naval Systems Limited to focus on core rail operations. It also received approval to operate as a Wagon Leasing Company under Indian Railways’ Wagon Leasing Scheme, enabling entry into wagon leasing. A new agreement with ABB will support development of Train Control and Management Systems and traction equipment under the Make in India initiative, while its EMU propulsion system for ICF Chennai has successfully passed testing and validation.
Key Milestone
Titagarh unveiled its first indigenously built stainless-steel driverless metro trainset at its Uttarpara facility for Ahmedabad Metro, marking a significant step toward self-reliant rail manufacturing in India.
Opportunities in Metro Projects
India currently has metro systems in 23 cities, expected to expand to about 50 cities, creating strong demand for metro rolling stock. Major projects in cities like Mumbai, Chennai, Bangalore, Patna, Nagpur, Pune, Kochi, and Delhi offer significant opportunities, and the company is expanding capacity to meet this pipeline.
Opportunity in MRVC Tender
Mumbai Railway Vikas Corporation has issued a major tender for 2,856 Vande Metro suburban cars with 35-year maintenance. Delivery is expected over 6-7 years, and Titagarh is strengthening its capabilities to participate in such large-scale projects.
Update on Rail Wheel Project
A consortium with Ramkrishna Forgings received a Letter of Acceptance to manufacture forged wheels for Indian Railways. The JV, in which Titagarh holds a 49% stake, plans a ₹2,000-crore project in Chennai with capacity of 228,000 wheels annually, with trial production expected by March 2026.