Titagarh Rail Systems secures over ₹1,900 crore order from Indian Railways

Kolkata-based company Titagarh Rail Systems has clinched an order worth ₹1,909 crore from Indian Railways for supplying 4,463 wagons, specially designed to transport bulk goods such as coal and ore.

The order is expected to be executed in two years.

Speaking to CNBC-TV18, Umesh Chowdhary, Vice Chairman & MD, Titagarh Rail Systems said, “This recent order is on the freight side, in which we have been maintaining about 11-12% EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin, and this order also would be no different.”

The company’s total order book is at ₹28,000 crore, of which, the freight order book is roughly around ₹7,000-8,000 crore.

Chowdhary said the company also has multiple tenders in the pipeline on the passenger rail segment, including two from Chennai and three for Mumbai metro.

The company targets EBITDA margin of around 15% in the passenger segment, Chowdhary said, adding that. “From FY25, we will really start getting the revenue from the passenger segment, which will significantly ramp up in FY26 when Vande Bharat execution starts.”

The company aims to achieve a run rate of 1,000 wagons per month by the year 2025.

In October-December 2023, Titagarh Rail Systems revenues grew nearly 25%, on year to ₹955 crore, while profit after tax (PAT) grew 136% to ₹75.12 crore.

The company has a market capitalisation of ₹11,763.75 crore. The shares have gained 86% over the last year.