Freight Cars Delivered (Q4)
2,196
-42% YoY
Q4 freight car deliveries fell sharply due to supply chain disruptions and US tariff impacts.
TEXMACORAILENGINEERING
Other
15 May 2026
Texmaco Rail & Engineering Ltd — Q4 FY26
Texmaco Rail reported Q4 FY26 revenue of ₹1,167 crore, down 13.3% YoY due to supply chain disruptions and US tariffs, but EBITDA margin expanded 120 bps to 10% and PAT margin rose 206 bps to 5%, driven by cost controls and a 66% surge in the electrification...
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2-Min Summary
Texmaco Rail reported Q4 FY26 revenue of ₹1,167 crore, down 13.3% YoY due to supply chain disruptions and US tariffs, but EBITDA margin expanded 120 bps to 10% and PAT margin rose 206 bps to 5%, driven by cost controls and a 66% surge in the electrification (Bright Power) division. The full-year revenue fell 14% to ₹4,377 crore, while PAT stood at ₹194 crore. Management highlighted a ₹4,000 crore South African order (2,200 wagons, 30 locomotives, 15-year maintenance) to be delivered by FY28, and outlined Vision 2030 (Texmaco 2.0) targeting 2x revenue and margin improvement through core strengthening, rail electrification, signaling, defense, and AI. A ₹700 crore contingency provision was created from reserves (non-cash) to de-risk large contracts. Risks include delayed Indian Railways wagon orders and execution challenges on the large export contract.
Key Numbers
Foundry Volume (Q4)
8,964 MT
flat YoY
Foundry division volume remained stable despite challenging conditions.
Bright Power Division Revenue (FY26)
₹610 crore
+66% YoY
Electrification business grew strongly, with EBITDA margin of 10.8%.
Net Debt to Equity
0.18x
-4pp YoY
Leverage improved from 0.22x in FY25 to 0.18x at FY26 end, reflecting disciplined debt reduction.
Management Guidance
Revenue growth in FY27 vs FY26
Management expects top-line and bottom-line growth in FY27 compared to FY26, driven by export orders and core business recovery.
revenueSouth African order delivery by FY28
The ₹4,000 crore order for 2,200 wagons and 30 locomotives with 15-year maintenance is to be completed by FY28, with bulk revenue likely in FY28.
revenueCapex plan of ₹1,500-2,000 crore by 2030
Board approved ₹200 crore for defense; total capex envelope of ₹1,500-2,000 crore over the next few years for diversification.
capexEBITDA margin improvement trajectory
Management aims to sustainably improve EBITDA margins from current ~10% towards mid-teens, supported by value-added products and cost optimization.
marginsKey Risks
Delayed Indian Railways wagon orders
No new large wagon tender from Indian Railways has been announced; management expects orders by Q3 FY27 but uncertainty remains.
high · analyst_questionExecution risk on South African order
The large export contract involves complex delivery (wagons, locomotives, maintenance) and raw material cost pass-through is not fully disclosed.
medium · analyst_questionWheel set supply dependency
Continued reliance on Indian Railways for wheel sets; any supply disruption could impact production schedules.
medium · management_commentaryContingency provision impact
A ₹700 crore provision (non-cash) against free reserves signals potential project risks; auditors qualified the report on this treatment.
high · data_observationNotable Quotes
We are not only strengthening our core business but also investing in the development of future ready growth engines.
Volume to value is the journey. That's what is the one of the fundamental theme of Texmaco 2.0.
We have taken the services of the top management gurus of the world... to see whether we are making any mistakes or not.