Synopsis:
Titagarh Rail Systems secured a Rs. 445 crore LOI from Garden Reach Shipbuilders for two research vessels, boosting its Rs. 12,695 crore order book and growth prospects.
A leading player in rail systems and engineering solutions, the company is well recognised for its expertise in designing and manufacturing advanced transportation and industrial products. In a significant development, it has recently secured a major order for shipbuilding, signalling an expansion of its capabilities into new and strategic domains.
Titagarh Rail Systems Limited’s stock, with a market capitalisation of Rs. 11,436 crore, it fell to Rs. 846.20, hitting a low of up to 1.04 percent from its previous closing price of Rs. 855.10. Furthermore, the stock over the past year has given a negative return of 40 percent.
Order Update
The company has secured a Letter of Intent (LOI) from Garden Reach Shipbuilders & Engineers Ltd. for the construction of two research vessels valued at Rs. 445 crore, with an additional Rs. 22.25 crore towards GST.
These vessels are intended for coastal exploration activities such as offshore geological mapping, mineral exploration including dredging, ocean environment monitoring, and shipboard data processing in modern scientific laboratories. The order is a domestic contract awarded by Garden Reach Shipbuilders & Engineers Ltd.
The execution of the order is scheduled to be completed within 28 months from the date of the LOI. The vessels will be built under the classification regulations of the Indian Register of Shipping. This contract does not involve any interest from promoters or promoter groups.
Also read: 4 Smallcap stocks in focus after promoters offload stake in the company
Order Book segments
Titagarh Rail Systems Limited has shown strong order book growth, securing new contracts for 966 waggons worth about Rs. 396 crores, as well as 12 more trainsets for Pune Metro valued at Rs. 431 crores.
Additionally, they received approval for 108 metro coaches along with five years of comprehensive maintenance for Mumbai Metro’s Line 6, bringing in an order of approximately Rs. 1,599 crores. Their total order book now includes 10,772 waggons, 1,280 VB coaches, and 441 metro coaches as of June 30, 2025.
Financially, the company’s order value stands at around Rs 12,695 crore, with 67.6% of this value linked to freight rolling stock and 32.4% to passenger rolling stock. The joint venture share as of June 30, 2025, is Rs 13,326 crore, split between Vande Bharat with BHEL (53%) and wheelsets with Ramakrishna Forgings Ltd. (47%).
This robust mix of orders and partnerships puts Titagarh Rail Systems in a strong position for continued growth and expansion in both freight and passenger rail markets.
Q1 Financial Highlights
In Q4FY25, the company reported revenue of Rs. 679 crore, a sharp decline of −25% YoY (vs Rs. 903 crore in Q4FY24) and −33% QoQ (vs Rs. 1006 crore in Q3FY25). Profit stood at Rs. 31 crore, down −54% YoY (Rs. 67 crore in Q4FY24) and −52% QoQ (Rs. 64 crore in Q3FY25), reflecting margin pressures.
Despite the weak quarter, long-term performance remains robust with a 3-year profit CAGR of 883%, a sales CAGR of 38%, and an ROE CAGR of 14%, indicating strong structural growth momentum even as near-term earnings have contracted sequentially and annually.
Written By Fazal Ul Vahab C H
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