Synopsis: A stock that has given a compounded return of 32 percent in the last 3 years has now secured a Rs 219 crore Mumbai rail signalling order. The stock has surged by 11 percent post the news.
A small cap company in the business of diversified rail and infrastructure engineering that serves the Indian Railways and metro corporations, has now won a Rs 219 crore signalling contract from Mumbai Railway Vikas Corporation Ltd for a suburban line. This order adds on to its Rs 5,661 Cr order book
With a market cap of almost Rs 5000 Cr, Texmaco Rail & Engineering Ltd saw its stock hit an intraday high of Rs 123 which is 11 percent higher than the previous close of Rs 111. The company stock has given a compounded return of 32 percent in the last three years.
What’s the News?
Texmaco Rail & Engineering Limited has secured a Rs 219 crore domestic order from Mumbai Railway Vikas Corporation Ltd for the design, supply, installation, testing, and commissioning of advanced signalling equipment for a proposed Mumbai suburban railway line under the MUTP-IIIA project, strengthening its order book and presence in urban rail infrastructure.
The project will be executed within 36 months from the issuance of the notice to proceed and involves end-to-end signalling solutions critical for safe and efficient railway operations.
The company previously secured a Rs 28 crore contract from South Western Railway for two-year comprehensive maintenance of OHE and power supply systems across 1,046 TKM in Mysore Division. This order had expanded its cumulative electrification maintenance portfolio to 3,702.62 TKM.
The Order Book
As of Q3FY26, Texmaco Rail & Engineering Ltd reported a consolidated Q3FY26 order book of Rs 5,661 crore, led by freight car orders contributing 42 percent, followed by electrical infra at 32 percent, other subsidiaries 17 percent and rail and green energy 9 percent.
Additionally, out of the total freight order 60 percent freight demand comes from Indian Railways, while 40 percent comes from the private sector and export business.
In Q3FY26, the company reported total revenue of Rs 1,042 crore, with the Freight Car Division contributing a dominant 81 percent. Infra- Rail & Green Energy accounted for 8 percent, while Infra- Electrical made up 11 percent, highlighting dependence on freight car manufacturing with smaller growing infrastructure segments.
Texmaco Rail & Engineering Ltd is a multi discipline engineering and infrastructure company engaged in manufacturing freight wagons, coaches, loco components, steel castings, bridges, and hydro-mechanical equipment. It also executes rail EPC, electrification, signaling, telecom, and infrastructure projects across railways, power, and industrial sectors in India and export markets.
Its clients include Indian Railways, metro corporations, Rail Vikas Nigam Ltd., BARC, Indian Oil, JNPT, and private industrial firms across cement, steel, power, and petrochemical sectors. Key projects include metro track works, railway electrification systems, hydro-power equipment, optic-fiber rail networks, and freight wagon exports to global customers.
In the latest quarter the company saw its YoY revenue fall by 21 percent, going from Rs 1,326 Cr in Q3FY25 to Rs 1,042 Cr in Q3FY26, while the QoQ went down by 17 percent from Rs 1,258 Cr in Q2FY26.
The YoY Net Profits also fell by 44 percent, going from Rs 76 Cr in Q3FY25 to Rs 42 Cr in Q3FY26, while the QoQ fell by 34 percent from Rs 64 Cr in Q2FY26. The company has a 3 year sales CAGR of 33 percent, while the TTM is at 3 percent. The company’s 3 year profit CAGR is at 109 percent, while the TTM number is at negative 9 percent. The company also has a ROCE of 11 percent and a ROE of 6 percent.
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