Synopsis:
Oriental Rail Infrastructure Limited, gained after bagging fresh supply and installation orders from Integral Coach Factory, Chennai.
A railway stock was in focus as investors reacted to the announcement of a fresh contract win from Indian Railways. The new order lifted sentiment despite muted sequential performance in the June quarter, with sales and profits showing a mixed trend.
Oriental Rail Infrastructure Limited, with a market capitalization of Rs. 1,139.52 crore, opened at Rs. 169.90 against the previous close of Rs. 165.15. The stock touched an intraday high of Rs. 176, marking a gain of 6.57 percent from the prior close.
What’s the News?
Oriental Rail Infrastructure Limited has secured orders worth Rs. 3.3 crore from Integral Coach Factory (ICF), Chennai, Indian Railways. The contract involves the supply and installation of 38 sets of one coach set of seats and berth complete (HL3) for LWSCWAC/EOG coaches.
As per the agreement, payment terms include up to 90 percent of the supply portion being cleared upon proof of inspection certificate and Provisional Physical Receipt Certificate, while the remaining 10 percent of the supply portion along with 100 percent of installation charges will be paid after receipt and acceptance of stores by the consignee based on installation certification. The order is scheduled to be executed by December 31, 2026.
According to its FY25 report, Oriental Rail Infrastructure Limited has initiated an expansion of its wagon manufacturing capacity from 2,400 to 3,600 wagons annually. During FY25, the company’s subsidiary, OFPL, also secured wagon orders worth Rs. 1,000 crore from Indian Railways, strengthening its position in the rail infrastructure sector.
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Financial Snapshot
On a quarter-on-quarter basis, revenue declined by 15.9 percent from Rs. 140.2 crore in Q4FY25 to Rs. 117.9 crore in Q1FY26. Operating profit fell 16.6 percent from Rs. 17.5 crore to Rs. 14.6 crore, while profit before tax dropped 30.8 percent from Rs. 12 crore to Rs. 8.3 crore. Net profit, however, grew 9.2 percent sequentially from Rs. 5.4 crore to Rs. 5.9 crore.
On a year-on-year basis, revenue declined 4.2 percent from Rs. 123.1 crore in Q1FY25 to Rs. 117.9 crore in Q1FY26. Operating profit increased 5 percent from Rs. 13.9 crore to Rs. 14.6 crore, while profit before tax rose 5.1 percent from Rs. 7.9 crore to Rs. 8.3 crore. Net profit remained flat at Rs. 5.9 crore.
About the Company
Oriental Rail Infrastructure Limited is an India-based company involved in the manufacturing, trading, and supply of various railway and industrial products. Its portfolio includes Recron, seats and berths, lavatory doors, and compreg boards.
The company also trades in timber, ferrous and non-ferrous metals, casting tools, slabs, and rods. Its products serve both domestic and international markets and are widely used across different types of railway coaches, from premium trains like Rajdhani Express and Duronto Express to local and passenger trains.
Written by – Manan Gangwar
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