Titagarh Rail Systems Limited (NSE: TWL) Q4 2025 Earnings Call dated Jun. 02, 2025
Corporate Participants:
Unidentified Speaker
Saurav Singhania — Joint Chief Financial Officer & Group finance Controller
Prithish Chowdhary — Director, Marketing & Business Development
Umesh Chowdhary — Vice Chairman and Managing Director
Anil Kumar Agarwal — Director of Finance and Chief Financial Officer
Prachi Ambre — Investor Relations
Analysts:
Unidentified Participant
Balasubramanian — Analyst
Parvez Qazi — Analyst
Koushik Mohan — Analyst
Amay Sharda — Analyst
Sandeep Mukherjee — Analyst
Rajesh Bhandari — Analyst
Darshil Jhaveri — Analyst
Raj Patel — Analyst
Ravi Gupta — Analyst
Presentation:
operator
Ladies and gentlemen, you are connected in the Q4 and FY25 earnings conference call of the Tagar Rail Systems Limited. Please stay connected, the call will begin shortly. Ladies and gentlemen, you are connected to the Q4 and FY25 earnings conference call of the Tagar Rail Systems Limited. Please stay connected, the call will begin shortly. Ladies and gentlemen, good day and welcome to the Q4 and FY25 earnings conference call of Titagar Rail Systems Limited. 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. Please note that this conference call is recorded. I now hand the conference over to Ms. Prachi Ambre from MUFG Investor Relations. Thank you. And over to you, Ma’ am.
Prachi Ambre — Investor Relations
Thank you, Pooja. On behalf of Titava Rail Systems Ltd. I extend a very warm welcome to all the participants on Q4 and FY25 financial results discussion call today. On the call we have Mr. Umesh Chaudhary, Vice Chairman and Managing Director. Mr. Anil Agarwal, Deputy Managing Director. Mr. Pritesh Chaudhary, Deputy Managing Director and. Mr. Saurav Sigania, Chief Financial Officer. Before we begin the call I would. Like to give a short disclaimer. This call may contain some of the. Forward looking statements which are completely based upon our beliefs, expectations and opinions as of today. These uncertainties are not a guarantee of. Our future performance and involve unforeseen risks and uncertainty. With this I would like to hand. Over the call to Mesh, sir for his opening remarks. Over to you, sir.
Umesh Chowdhary — Vice Chairman and Managing Director
Thank you. Thank you. Very good afternoon to everybody and thank you very much for joining this Q4, FY25 and FY25 earnings call of Systems. It is always indeed a pleasure joining this call to share the updates and and to get feedback from the investors of the company. The year gone by has been pretty much on as expected in terms of the freight rail system of the company. Although it was the target of the company to stabilize at about 950 to 1000 wagons per month.
But unfortunately due to the shortage of wheel sets in the last two quarters. The last two quarters were impacted and as a result of which we could not achieve exactly the number of wagons that we were wanting to. Just to bring everybody up to speed, the railway board contract that we get. The wheel sets have to be essentially procured from rail Wheel Factory Bangalore and they had some problems in terms of axles and output of wheels. So right from the Q3 of FY25 there has been a shortage of wheels that has been plaguing the industry.
We understand that from the month of June, that is the current month, the production of Rain Wheel Factory will get normalized and going forward this problem should not be existing. However, we are happy to report that FY25 has been the highest ever production of wagons that our company has seen or industry in general has seen in India. We have produced in FY25 9431 wagons which to the best of my knowledge is the highest produced by any company in a single year in the country ever, which in itself is a record. In terms of the order book, we have an order book which is at our targeted production will see us through for this current financial year and we expect that by the end of the year the new tenders should come up and will give us visibility for the coming years as well in terms of the frs, the freight rail systems.
Just to conclude on the other updates for the foundry side, which is a very important part of backward integration and ensuring that the costs are kept under control, the company has taken up measures to enhance the self reliability of the entire foundry capacity and as a result of this we have again in the foundry achieved record productions. I believe that the production numbers have not been disclosed so we will first update them in the. Sorry, the production numbers have been disclosed. We have produced 27,240 metric tons in the foundry this year and this in itself is a record production ever for the company going forward.
In FY26 we would have completed the expansion of the foundry. We are installing completely modern foundry production facilities in both our boundaries and this will enhance our production to a substantially higher number. We are targeting in the first phase to get to around 40,000 tonnes of castings which we are confident of being able to achieve on a monthly run rate basis within the current financial year. As far as the passenger rail system is concerned, once again there were initial feeding troubles that we faced. As we had reported in the past setting up of the plant due to initially the Chinese visa problems because a lot of technology transfer as well as equipment were coming in from China as well as the Bangalore Metro is a project that we are working and executing with crrc.
The project kickoff was delayed. However, the first train for this project was dispatched in December, January 2025, January 25, so that is in the quarter and thereafter we have dispatched another train and now the production for the car body and the assembly has started picking up. The supply chain. Problems that were also existing for materials to come in from China have gotten resolved. And now we expect that the production for the Bangalore Metro within this quarter should get reasonably well streamlined and from Q2 of FY26 it will be fully streamlined. We have started the car body production for the Gujarat Metro specifically for the Ahmedabad Metro as well as for the Vande Bharat in the last couple of months.
The Gujarat Metro was started in March and the Vande Bharat has started in April of 2025. We are expecting the first train of Gujarat Metro, that is Ahmedabad Metro to be done in Q2 of the current financial year and the Vande Bharat is expected in end of Q4 or beginning of Q1 of the next financial year. The other great development that we’ve had is the propulsion division of the business has picked up during the year. We have supplied 636 traction motors as a part of the propulsion and electrical sub business unit of the prs. This being a new division to have reached a run rate of 636 in the past year is is quite satisfying.
We are now targeting to ramp this up to between 125 to 150 traction motors per month. So that is 1500 to 1800 traction motors per month from this financial year itself. As far as the propulsion is concerned, the prototype set of the EMU propulsion is now ready. It is under the final testing and approval of rdso. We are expecting and are confident that the first set of propulsion which is the EMU propulsion, will be supplied within Q1 of this financial year or the beginning of Q2 of the financial year. This is in a nutshell the business of the PRs.
We are quite hopeful and confident that we will be able to achieve the run rate of between 20 to 25 cars a month within the financial year and all the facilities are set up. And once the Vande Bharat production also comes in stream, we will be able to enhance this to double of that which we expect to be able to do in FY27 which where our target would be to get to a run rate of between 40 to 50 cars command in terms of the order book pipeline or the tender pipeline. In the Metro segment there are a number of tenders where the company has participated and a number of tenders that are expected to be floated.
As a matter of policy, we are not speaking about specific tenders or opportunities till the results of those are finalized during the year the company has enhanced its activity in two new business areas. One is the SSS which is the safety and signaling systems. This business, while we have taken up as a sbu is working more as a subset of the PRS as well. And we have already started participating in tenders where we have gotten qualified for certain safety and signaling systems. And we are in the process of further entering into technology tie ups and joint ventures to enhance our presence in the vast scope of business that exists in the safety and signaling system within the railways and the metros.
And the fourth business segment that we have re embarked upon is the shipbuilding and maritime systems, what we call sms. As you would be aware, the company has been in the shipbuilding venture for a while and has very good credentials as a company. We have delivered several marquee projects including vessels for National Institute of Ocean Technology. Some of these vessels had found its way into being. One of the most coveted vessels which found which were included in the Presidential Fleet review which is a very prestigious thing. The company has also exported through GRSE vessels to Waianae under the Indo Guyanese friendship schemes and has done many warships as in past patrol vessels for Indian Coast Guard.
Again along with grse. As we speak, the company is delivering several vessels to the Indian Navy and considering the trust of the Indian government on attaining Atma Nirbharpa on the naval and the shipbuilding side and the incentives and focus given in this segment. As we had heard during the budget of the Hon. Finance Minister earlier this year, the company has re embarked on this venture and has got land in Palta which is on the south side of the Khabra Bridge which takes away the impediments that the company used to face in building more important or larger vessels.
As it did not have the air clearance owing to the Navra Bridge, the company is now in the process of revamping that facility or building up on that facility. And of course, as was announced a few quarters ago, the company has also constituted a board level committee to define the strategy on the way forward for the Shanghai and maritime systems, whether it would be part of the parent company or a subsidiary or a strategic joint venture etc. We believe that within the next few months we would be able to finalize and come back to the market as to what the final strategy capex plan and the business plan for the shipbuilding and maritime systems would be.
This is in a nutshell the past year and the future years outlook for the company. And with this I would open up the floor to any questions or any suggestions that Might be there. Thank you.
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 their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two 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 the line of Bala Subramanyam from Arihant Capital. Please go ahead.
Balasubramanian
Good evening, sir. Thank you so much for the opportunities. So my first question regarding signaling systems. Who are our global JV partner and what are the timeline for products and approval? And what kind of revenue visibilities we can expect over three to five years? My first question, sir.
Umesh Chowdhary
Thank you. So this is a new business unit. It will definitely take some time. We have started participating in some tenders. We have participated in particular tender. The results of which is. Hello. Yes. As regard joint venture partners is concerned, we have for different products that we are doing in this segment.
We are in partnership or in dialogue in some cases with different partners. As was announced, we are working with a company called Mermec in Italy for some of the products. There are other companies in different parts of the world for different products that we are working on. We would not announce any of these on a premature basis. As and when we are able to succeed in a particular venture, we would definitely come back and announce the market. Both the exact specific opportunity which materializes along with the names and details of the strategic partner. In that case, as a matter of policy, we would like to be conservative in our approach not to announce something before it is completely finalized.
Balasubramanian
Okay. So on that traction motor side, I think our revenue is around 300 crore. I think opportunity size is around 2000 crore. As per the presentation. Like what are the steps to tap the opportunity?
Umesh Chowdhary
I missed your last part of the question, sir.
Balasubramanian
On the traction motor side, I think our top line is around the 300 crores. And the opportunity size is mentioned. Around 2000 crore kind of opportunity size. And like how we are going to tap that opportunity. I think we are doing around 100 motors per month.
Umesh Chowdhary
Yeah. I don’t know where you get the revenue number from.
But I will just give you about the opportunity. The opportunity indeed is quite large. As far as how we are tapping the opportunity. As I just mentioned, we have already gotten to a run rate of about 125 traction motors a month. So we are confident of being able to from an average of 50 motors per month last year we will be able to increase it to between 125 to 150 motors a month this year but that is only one part of the business segment of the propulsion and electrical. Apart from that, once our EMU and NEMU propulsion is approved by the railways that in itself we have an order book of close to 400 crores on that and there are several tenders in the pipeline for that.
So we believe that this business we are fully. We have been working on this for a while now and to take off on this business and within the next maybe two years or so we will be fully into this business and this will be one of the main lines of business for us.
Balasubramanian
Okay sir, on that wheel sets planned earlier a year back is estimated around 1300,400 crore I think as far as RK forging side they have mentioned around 2004 kind of capex is estimated but the CAPEX file keeps increasing. Is there any because of the delays that plant and how do you see cost estimation side?
Umesh Chowdhary
No, there is no CAPEX estimate delay.
The earlier estimation that was given was a very basic estimate Once the project report was finalized including two phases of the project the cost is what has been announced by rksl the project is going on pretty much on track and pretty much within the budget that was approved in the budget report in the project report based on which the project has been taken up.
Balasubramanian
Okay sir, on the wheelset side like still we are facing issues so when we can expect normal feed.
Umesh Chowdhary
I’m sorry I could not hear you again sir.
Balasubramanian
Actually the delay in wagon production is because of the wheel sets issues and when we can expect normalcy.
Umesh Chowdhary
I already mentioned that in my opening comments that we understand from the month of June the production of VSET will become.
Balasubramanian
Okay, thank you.
operator
Thank you. The next question is from the line of Parve Qazvi from Nuvama Group. Please go ahead.
Parvez Qazi
Hi, good afternoon sir and thanks for taking my question. So my first question is on the wagon ordering side. I mean you mentioned that we expect a tender from Indian Railways maybe sometimes towards the end of this year but wanted to get your views on private sector wagon ordering. How has it been and which are the sectors which are driving private sector wagon order?
Umesh Chowdhary
Yes. Hi Bharvet. So I mean the market is aware that there was a moratorium that was put on the wagon investment scheme which has actually dampened the private sector offtake over the last few quarters.
This moratorium we believe should not last for long because there is a lot of appetite from the private sector to Buy wagons and there have been continuous representations. And I also believe that it is a win win situation that the wagon is invested in into by the private sector. So as of now the wagon procurement that was happening was primarily on SFPO scheme which is Special Freight Train Operations scheme and Southern Specialized Wagon. But the bulk of the wagon demand from the private sector really come once the wagon investment scheme is reopened. So we are waiting and seeing if and when the scheme is reopened which we believe will be giving a large pilot to the private sector wagon investment.
Having said that, we have always maintained as a company that whatever the situation may be, 80% of the wagons are likely to be procured by the Indian Railways. And that’s the reason why as a strategy we always did not want to put our eggs in a basket which is not sustainable. And we always try to maintain our order book ratio and our execution ratio in a manner that quarter to quarter apart we should always have the larger chunk of the dependence and focus on the Indian Railway wagon off bay. As a result of that, today we are in a position where we have at least a good order visibility and not dependent only on the private sector.
Having said that, private sector is definitely likely to come back and we are waiting for the wagon investment scheme ban or the moratorium to be reconsidered by the railways hopefully very soon.
Parvez Qazi
Sure. Thanks. Two questions on the passenger business. One would be great to get an update on the Surat Metro and second over the medium to long term what is the kind of annual potential in terms of revenues etc that we see from the propulsion business? Thank you.
Umesh Chowdhary
As far as Surat Metro is concerned, these are extension of the two projects which is Ahmedabad and Surat actually are extensions of Gujarat Metro.
Two projects together side by side. And when I say that the Ahmedabad Metro will start in Q2 or of this financial year, it is going to be followed immediately thereafter by the Surat Metro. So the trains are going to be supplied in tandem of each other. So within this financial year both these projects will attain their peak production and supplies. As far as the propulsion business is concerned, to give you the very high level order of magnitude potential and I’m talking about propulsion for sales, that is not propulsion for our own consumption. We believe that we can easily look at doing approximately 2,000 traction motors a year which will give us a revenue of about 300 to 400 crores.
And as far as the EMU, MEMU and other propulsion systems for the railway is concerned, this should be another about 500, 700 to 1000 crores of course it will take a couple of years, two to three years to mature. But outside propulsion business has a large potential. And our capacity that we are building. The capability that we are building is to be able to achieve overall business of close to 1500 crores only on the sales of propulsion.
Parvez Qazi
That’s great sir. Thanks and all the best. Thank you.
operator
Thank you. The next question is from the line of Kaushik Mohan from Ashika Group. Please go ahead.
Koushik Mohan
Hi sir. Sir, I just wanted to understand one single thing like on the timeline and what will be our capacities and how many units side we are going to come for wheel set and when it will the revenue will start reflecting in our books.
Umesh Chowdhary
Sure. As far as the wheel set is concerned, the contractual delivery is supposed to start from June 2026. And we are very much well in track to be able to achieve that. I think more details have also been given by the other joint venture partner in their call about the real plant.
And it is exactly the same in terms of the revenue ramp up that has been already shared by Dan.
Koushik Mohan
And second thing, I just wanted to understand what will be our timelines to deliver one vehicle. So one car, one metro car. How much timeline that do we take it to get it from zero to fully manufactured in that in our warehouse? Exactly how much time do we.
Umesh Chowdhary
Sorry, your voice was breaking up. Can you. Can you repeat your question? Your voice broke up.
Koushik Mohan
I’m audible, sir.
Umesh Chowdhary
I don’t know if you have been speaker or. Because your voice is waking up.
Koushik Mohan
Sir. Hello? Hello? I’m audible now, sir. Hello? Yeah.
Umesh Chowdhary
Yeah.
Koushik Mohan
Yes. I just wanted to understand how long will we take to manufacture one car? One metro car?
Umesh Chowdhary
You mean to say the cycle time from beginning to end?
Koushik Mohan
Yes, from beginning to end. Full from the start to wire harnessing and enter.
Umesh Chowdhary
So it depends upon the different type of cars. There are different configurations that are there and each one of them have a different. So if I can just explain to you, probably it will be easier. So after designing is done, then prototype stage is done, then there is the control series production and then there is the series production.
Each one of them have a separate cycle time and which are quite different from each other because there is a learning curve involved. So I will probably just speak about. Once the product is matured, once the maturity level is reached, then the total production time when you start cutting the sheet to the time you are able to roll out the car is considered to be around 60 to 90 days.
Koushik Mohan
60 to 90 days. Okay, sir. And in this year how many cars that we are we planning to sell. Any guidance do we have? Is that any in specific number?
Umesh Chowdhary
We do not give a specific number as a policy.
But I have this mentioned to you that we are now within this year we are looking at ramping up our production to be able to achieve a run rate of between 20 to 24 cars or 25 cars a month. We should be able to do that by end of the financial year. And by that time it is going to be a ramp up on a monthly basis.
Koushik Mohan
20 to 25. Is it we are talking about selling or is it only with the manufacturing?
Umesh Chowdhary
It’s the same. I mean we’re definitely not going to produce. Not first.
I mean this is a made to order product. It’s not a made to stock product. So we only produce when we have the orders.
Koushik Mohan
Got it? Got it. And any new development in Bangalore Metro? Sir, Are we having any new developments in Bangalore Metro? New development, sir. Because recently there was one announcement by Bangalore Metro telling on their yellow line that has been delayed by three months. So I just wanted to understand is the. Is it affecting us or like what was this announcement came from Bangalore Metro?
Umesh Chowdhary
I have not read the announcement so I cannot comment upon that.
But as far as we are concerned, our production is going on. There were some hiccups in the beginning because as I have already informed, this is a contract where we are doing only the manufacturing. The material comes in as a free supply from CRRC. And there were some challenges to get the materials on time from crrc. Now things have gotten streamlined and now the production is happening as we are expecting this to happen.
Koushik Mohan
Got it. Thanks. I’ll get back in the queue.
operator
Thank you. Participants, in order to ensure that the management is able to answer questions from all the participants in the conference, please limit your questions to two per participant. The next question is from the line of Ames Sharda from Poornartha Investment Advisors. Please go ahead.
Amay Sharda
Hi. Am I audible? Yes, you are. Yeah. Thanks for the opportunity. Sir, I just had two questions. One was regarding the passenger segment. I think the margins in this quarter have been low as compared to previous quarter. Any reason for that?
Umesh Chowdhary
I think the margins have been better for in this quarter. If I am correct, we have a EBITDA margin of about 10% in this quarter. So in fact it’s a positive trend. From 9.44% it has gone up to 10.4%.
Amay Sharda
Speaking specifically for passenger segment, I think they have been reduced from 9 to 3 or 4%.
Umesh Chowdhary
I do not know. Which slide are you referring to? If you Refer to slide 15, it will be clear.
Amay Sharda
Okay, I’ll do that. Second was regarding the Theta Firema audit qualification that was there in the results. Can you explain that? Like what can be the maximum impact we can expect for that?
Umesh Chowdhary
So as far as Peter Panama is concerned, first I would like to clarify whatever has been mentioned in the notes to our account. It is a situation which is still developing. We still do not have clarity as to which way the situation is going to develop.
But we are watching the situation with great care and caution. Whatever was the investment made substantial part of it was already earlier provided for in our books. And the balance, whatever is the potential non cash loss that is possible has been quantified in our annual accounts.
Amay Sharda
So just to confirm the maximum impairment, if at all we can expect will be to the tune of book value of the investment in our books.
Umesh Chowdhary
Right? Nothing more than that. That’s right.
Amay Sharda
Okay, sure. Thank you so much sir. Thank you.
operator
Thank you. The next question is from the line of Sandeep. Sir. Sandeep Mukherjee from SKP securities. Please go ahead.
Sandeep Mukherjee
Yes sir. Thank you for taking my question. Sir, what could be our ship building revenue this for FY25.
Umesh Chowdhary
As you can make out from the investor presentation, we do not disclose this as a separate revenue segment, sir.
Sandeep Mukherjee
Okay sir, my next question is in the opportunity pipeline you have mentioned that propulsion system has a opportunity pipeline of 2000 crores. So is this including traction motor or so can we understand it? Like you will be delivering it in a kit basis which includes traction motor, TCMs and traction converter. Or the traction motor is separate from this link to each other.
Umesh Chowdhary
There is the traction motors also that are separate. And then you know if we go into the details of this it will be becoming too technical in nature for this kind of a call. But this. The configuration of propulsion systems are made into different segments. And this is a combination. So I would rather stay with the financial outlook of this rather than getting into the technical nitty gritties of it. And it is a combination of both. All the items that you mentioned which is propulsion, traction motor, PCMS etc.
Sandeep Mukherjee
Okay sir. And my next question is like you have mentioned in the opportunity pipeline that Metro coaches contract is opportunity pipeline of 5 15,800 and Vande Bharat coaches are used 70 to 2000.
So is this opportunity pipeline for. This is the opportunity pipeline for the private sector or is that something that ICF is also included in? It means ICF also produces Vandevarat and Metro coaches. If I’m not wrong. So does this opportunity pipeline includes the the government Part also.
Umesh Chowdhary
Opportunity is in general, we do not still know what in case the railway decides to get some of these manufactured in government sector. But normally we are expecting that this should be. This is the kind of business at least as far as the metro is concerned. It only comes to a private sector and we expect this is the business that should come to the private sector.
But then of course government policies is something that we do not have the. We do not have the visibility and the control to comment upon.
Sandeep Mukherjee
Okay, sir. Understood sir. Thank you. Thank you very much.
operator
Thank you. Participants who wish to ask a question may Press Star and 1. The next question is from the line of Rajesh Bhandari from Nakoda Engineers. Please go ahead.
Rajesh Bhandari
Hello. Good afternoon sir. Our main production. Good afternoon sir. Our main production items are wagons, propulsion system, traction, metro, rails, vandevarat and wheat. Sir, in financial year 26, 27 and 28, what kind of turnover we can expect, sir? Total.
Umesh Chowdhary
So we cannot give any forward looking guidances in terms of turnovers we have already shared and that we can share with you is what is the company’s capacity for the different segments.
Rajesh Bhandari
Yeah, from capacity point of view. Okay, right. From capacity point of view.
Rajesh Bhandari
So as far as the segments are concerned, the freight business segment, we have a capacity of doing 12,000 wagons a year which if we look at just extrapolating the sales number can give us a potential revenue of around four, four and a half thousand crores.
As far as the passenger segment is concerned, the three years are going to completely give a different story as we are in the process of ramping up. You can see it in the investor presentation how we are ramping up our coach production capacity. So let me speak about the coach production capacity. At peak, a coach, I mean a Vande Bharat in a metro on an average gives us around 10 crores per coach of revenue. So that is the kind of capacity that we are creating in terms of the coach production and the propulsion I’ve already spoken about.
So all the three segments that we have, which is the wagon segment, propulsion and the coach segment, all three of them are being scaled up to be one of if not the largest capacities in the country. And of course you know, depending upon a host of other factors, I.e. the overall market demand, the buoyancy of the country’s growth, etc. We should be in a leadership position for all of them. As far as the wheels is concerned, again we have already mentioned it’s a joint venture between cells and Ramakrishna forgings. And the overall capacity that is being Created there is for about 220,000 wheels per year out of which 80,000 wheels is on a guaranteed offtake basis by the Indian Railways.
So that you know on a ballpark number each wheel sells for about a lakh rupees or some lakh plus minus 10%. So that’s the kind of capacity that we are creating for the wheel venture. I hope that answers your question.
Rajesh Bhandari
Yeah sir, for wheels that is only the part or with RK forging 20,000 crores.
Umesh Chowdhary
The order is about 14,000 crores and that is for the company that is not thetagar’s part. In our investor presentation we have only we have mentioned about our share of the joint venture as you can see it in in one of the pages of the order book where the our share of joint venture is.
operator
Sorry to interrupt you but we request you to rejoin the queue for follow up only.
Rajesh Bhandari
Last question .
operator
Sir you can join back.The queue as there are other participants waiting for their turn. Thank you. The next question is from the line of Darshil Javeri from Crone Capital. Please go ahead.
Darshil Jhaveri
Hello. Good evening sir. Thank you for taking my question. Hopefully I’m audible sir.
Umesh Chowdhary
Hello. Yes sir you are.
Darshil Jhaveri
Yeah. Yeah hi. Hi. Thank you. So a lot of my questions have been answered but I have got dropped in the call in the between so I had to rejoin the queue. So just wanted to know from an order book perspective I think we have around 11,000 crores for our company itself and I think around 13,000 crore in the JV. So just want to know the execution timeline for those sir.
Umesh Chowdhary
So each of the order has a separate execution and I speak about our company’s orders the freight wagon, the FRS segment orders primarily have about approximately a one year execution whereas the passenger segment has a a longer execution particularly on the Vande Bharat.
As far as the JV is concerned both the service as well as the wheel JV both have a longer term execution. So you know the execution of these contracts are all. They cannot be clubbed up in one basket. They are all very different in terms of their timelines.
Darshil Jhaveri
Fair enough. And I just wanted to know like I think the railway I think a new order with should come in sometime. So any kind of conversation that we are hearing when the you tender will come in like obviously it’s all speculation but any rough timeline that you all are anticipating or you know preparing we foresee something coming up soon or maybe maybe first half, second half anything you could you know just comment on.
Umesh Chowdhary
See as you very self, very rightly yourself commented that you know, commenting anything will be speculative and we would not like to indulge in that. But you know, the railways have set up their target of achieving a 3 billion ton of growth on one side. On the other side, the Gati Shakti program of the honorable Prime Minister very clearly defines that the logistics cost of India has to be brought down as a percentage of the GDP in order to. Now we are already the fourth largest economy which is a great development for us as Indians.
And in order to now jump and cut to the third largest economy which I believe is just an arm length away, we will have to improve upon our cost efficiency. And one of the most lowest hanging fruit and essential cost efficiency measures that can be adopted and targeted is the logistics cost for which enhanced railway movement of goods and commodities is must. So having said that, we cannot speak about discussions or speculative. But it is our estimate and our belief that the growth in the railway segment or the railway cargo segment should also continue. And being a market leader, being one of the most front runners and being prepared for this enhanced growth, we should be in a good pole position to be able to be a part of this growth.
Darshil Jhaveri
Fair enough. Yeah. Hello. Yes, we can hear you. Yeah. No, I thought. I think so. I thought so. I was saying something and just like on the. On something different part maybe.
operator
Sorry to interrupt you but we request you to rejoin the queue participants. It is requesting to restrict your questions to two per participant. The next question is from the line of Raj Patel from RK Securities. Please go ahead.
Raj Patel
Hello. Am I audible?
Umesh Chowdhary
Yes, sir.
Raj Patel
Yeah. Thank you for the opportunity. So, considering the production challenge and the segmental revenue fluctuation, observe in FY25, how does the management view the outlook for. For quarter one FY26 especially should we anticipate a meaningful improvement in execution compared with Quarter 1 FY25 particularly in relation to FRS and metro deliveries.
Umesh Chowdhary
Thank you, sir. I’ve already mentioned that the view set problem that was there that was plaguing the industry continues in the first part of Q1 FY26 as well. The production of UCS is started from today as a matter of fact in the Avill factory as we are informed in the line that was shut.
So we expect that from the month of June the production should pick up and therefore normalcy, if I can call it normalcy, should attain. From this month onwards there has been a shortage of wheel sets in the earlier parts of the quarter. As is very well known is in public domain. The metro production is picking up and it is continuously going to pick up. And we will achieve the targeted production, as I mentioned, by the end of this financial year.
Raj Patel
Okay. And my next question was. We understand that a recent tender was floated for the Nagpur Metro project.
So has the TITA participated in this bid? And if so, could you please provide us insight on the scope of the project and the competitive landscape?
Umesh Chowdhary
Number one, Titagarh is participating in every single Metro project that comes up in the country. So there would be no Metro project where we would not be interested and we will not be participating. Secondly, the Nagpur project is still on the tender phase. So it is not yet finalized or. It’s not yet. The tender has not been submitted as yet.
Raj Patel
Okay. That was all from my side. Thank you.
operator
Thank you. The next question is from the line of Ravi Gupta from RT Investment. Please go ahead.
Ravi Gupta
Hello. Am I audible?
Umesh Chowdhary
Yes, sir.
Ravi Gupta
Hello. Yes, sir. My first question is could you provide an update on the timeline for achieving the targeted run rate of 1,200 wagons per month? And based on current production trends and operational readiness, is there any revised guidance or internal milestone the company is working towards?
Umesh Chowdhary
As far as the company is concerned, we are already at. We have already touched on a number of occasions a thousand wagons a month. The overall wagon capacity is calibrated also on the overall business opportunity available. As far as the company is concerned, it is also ready to ramp up and get to 1,200 wagons per month.
But we shall be only doing that once we see sustainable business demand in terms of the business outlook. And that would also happen once the new tender of the railways is finalized. But I can confirm that particularly with the expansion of the foundry that we are going to bring on stream within this financial year. We are as a company ready to ramp up our production should the market support us in terms of adequacy of volumes to produce 1200 wagons a month.
Ravi Gupta
Understood, sir. So my next question is what is the management’s outlook on revenue growth and EBITDA margin performance for the upcoming quarter in FY26 as a whole? And are there any updated targets or internal benchmarks that can be shared?
Umesh Chowdhary
Unfortunately, internal targets cannot be shared.
Whatever could have been shared has already been shared in our investor presentation. So I apologize, we will not be able to share any further numbers apart from that.
Ravi Gupta
All right, sir. Thank you. That’s all from my side.
operator
Thank you. The next follow up question is from the line of Rajesh Bhandari from Nakoda Engineers. Please go ahead.
Rajesh Bhandari
Thank you, sir, for giving the opportunity. I just wanted to know our projected turnover. Like for wagons you said 4,500 crores per year. 12,000 wagons for metro and for Vanje Bharat. What is our kind of capacity?
Umesh Chowdhary
Total investor presentation. Also in the first phase which we are expecting taking since you were asking on a timeline of 20, 27, 28 we are targeting to achieve a target of 800 to 850 cars per annum and about 200 to 250 traction motors per month. About 3,000 motors, sir.
Rajesh Bhandari
Like you said, 850 cars. 10 crores per car means 8,500.
Umesh Chowdhary
Your max is better than mine. I need a calculator. Yeah, yeah, yeah.
Rajesh Bhandari
This was my main question. Right sir. Thank you sir. Thank you sir.
Umesh Chowdhary
Thank you sir.
operator
Thank you. Ladies and gentlemen, in the interest of time we’ll take this as a last question. I now hand the conference over to the management for closing comments.
Umesh Chowdhary
Thank you very much. Thank you everybody for joining the call and enriching us with very interesting and very kind of thought provoking questions. To sum up, I would say that this year FY26 is going to be a very critical year for the company. It is going to be a transformative year. I would say FY26 and then FY27 are two very, very critical transformative years for the company. Because historically the company as also was the name of the company was a wagon company. Wagon is a stable commoditized business. The passenger rail segment that we have is a big upgrade on technological competence is a big upgrade on value addition that we are doing which is very reflective from the fact that one wagon which weighs approximately or which volumes approximately the same as a passenger coach sells at between 35 to 40 lakhs.
Whereas one passenger coach of the same volume sells at 10 crores. So that is the kind of technological or the difference in intricacies and complexities that exist. And for Sitagarh this year is going to be the year where we will transform the passenger rail system into the next level. And FY27 is going to be the year where the Vande Bharat and the Metro simultaneously will start production at full capacity. So these two years are going to be transformational for the year. At the same time we are very bullish on the shipbuilding and maritime systems which we are relaunching.
We believe that in the years to come this is something that is going to be a very important part of the group’s strategy. And of course not having taken or not taking away the importance that the wagon business continues to have for us which is upgraded but business we believe these two new businesses along with the safety and signaling systems which is going to be primarily on the business development stage over the next one or two years. I don’t expect that to get reflected into our PNL but more into our order book is going to cast the way for the years to come.
The company is fully prepared for all these segments and is very excited and the Government of India has continued to give a big focus on infrastructure, particularly on mobility and urban mobility. We have seen number of announcements of projects whether it is for Metro, whether it is for local trains like Mumbai Locals or Vande Bharat etc. And we are very excited and very honored and very privileged to be in this industry in this time of growth of the country. So thank you very much for the support from everybody and we look forward to reporting substantive progress, particularly the PRs during this financial year.
Thank you very much and have a great year ahead. Thank you.
operator
Thank you. On behalf of the Tagar Rail Systems Ltd. That concludes this conference. Thank you for joining us and you may now disconnect your lines.