In the freight wagon segment, Titagarh is anticipating a significant Indian Railways tender. If awarded, the order could involve around 1,000 wagons per day. Chowdhary noted that the first quarter is typically seasonally weak but does not anticipate delays in forthcoming railway wagon tenders.
Regarding the new wagon policy, Chowdhary explained that previously, specialised wagons were customised by RDSO, which limited flexibility. The revised framework allows private companies to propose wagon designs, enabling full customisation.
The company is fully booked for its metro business through FY28 and plans capacity expansion through planned capital expenditure.
On profitability, Titagarh expects to maintain EBITDA margins of around 12% through FY29, increasing to 16% by FY30. The wheelset business is projected to generate EBITDA margins between 18-20% once operations reach scale.
Trial production of wheelsets has commenced, with sample wheels scheduled for delivery to Indian Railways in Q2 FY27. The company targets supplying 45,000-50,000 wheels in FY27, scaling up to 80,000 wheels annually from FY28 onwards.
As of the morning trade on Monday, Titagarh Rail Systems shares were priced at Rs 884.05, down 0.50%.
