Texmaco Rail Shares Up 9% on Rs 535 Crore Export Order

On Thursday, Texmaco Rail shares surged 9 percent, touching a day’s high price of Rs. 189 on the NSE. It is one of the leading players in the railway manufacturing sector and part of the Adventz Group. Recently, the company has secured a significant international order, further strengthening its global presence. Texmaco announced the receipt of a Rs. 535-crore order from CAMALCO SA of Cameroon, comprising the manufacture and supply of 560 open-top wagons valued at Rs. 282 crore and a 20-year long-term maintenance contract worth Rs. 253 crore. The execution of this order is expected to take place in two phases over 24 months, and notably, the contract includes a provision for an additional 1,040 wagons in the subsequent years, along with their maintenance, potentially expanding the engagement’s value substantially.

Financially, Texmaco reported consolidated revenue from operations of Rs. 5,107 crore in FY25, marking a 45.8 percent year-on-year growth, driven by increased volumes across its core railway and engineering segments. The company’s EBITDA (excl. other income) rose by 76.89 percent to Rs. 467 crore, with margins improving to 9.14 percent from 7.53 percent. Profit before tax (PBT) surged by 113 percent to Rs. 345 crore, while net profit for the year stood at Rs. 249 crore, more than doubling from the previous year. The company delivered 10,612 freight cars in FY25, a 51 percent jump over FY24, and the foundry division achieved sales volumes of around 41,500 metric tonnes.

Management credits this strong performance to strategic initiatives, including the consolidation of Texmaco West Rail (formerly Jindal Rail Manufacturing Company), which has expanded production capacity and diversified product offerings. The company has established strategic global partnerships in FY25, which include one with Nevomo, a European high-speed rail solutions provider, and another with Trinity Rail, a prominent U.S.-based rolling stock manufacturer. These alliances are expected to improve Texmaco’s technological capabilities and open new export markets. They aim to keep EBITDA margins of 12 percent to 13 percent in FY26.

Looking ahead, Texmaco’s management has outlined a growth strategy. Texmaco is also in the process of demerging its rail infrastructure systems and solutions business, a move aimed at unlocking value and streamlining operations. The management sees significant growth potential in this segment, especially with the Indian government’s increased financial allocations for rail infrastructure and signalling. 

Furthermore, the acquisition of Jindal Rail Infrastructure is a key step in this direction, improving Texmaco’s ability to serve both domestic and international markets more effectively. Management remains optimistic about the sector’s prospects, given the Indian government’s long-term goal to increase the railway’s share in national logistics from 27 percent to 45 percent by 2030, which is expected to drive demand for approximately 1.5 lakh wagons over the next 3 to 4 years. With an annual consolidated production capacity of around 15,000 wagons, Texmaco is expected to benefit from the significant share of this opportunity while contributing to the modernisation and expansion of rail infrastructure, both in India and abroad.