Texmaco Rail & Engineering Ltd. witnessed a positive movement in its share price on Thursday, May 29, as the stock recovered from earlier losses and turned positive following a significant order announcement. The company revealed via an exchange filing that it had secured a ₹140 crore order from the Railway Board under the Ministry of Railways for the supply of multi-purpose wagons.

Details of the ₹140 Crore Railway Order

As per the official exchange disclosure made on May 28, Texmaco Rail has been awarded a contract to manufacture and supply 8 rakes of Flat Multi-Purpose Wagons. These rakes are typically used to transport a variety of goods and are crucial for enhancing freight movement within Indian Railways.

The timeline for the order completion is six months, which suggests the company has a strict delivery schedule. This short execution window also indicates Texmaco's strong production capabilities and readiness to fulfil bulk orders within tight deadlines.

This new order is expected to boost Texmaco’s order book and contribute to its short-term revenue stream, while also reinforcing its presence in the core wagon manufacturing sector.

Previous Strategic Collaboration with Nevomo

Earlier this year, in February 2025, Texmaco Rail made headlines by entering into a Memorandum of Understanding (MoU) with Polish tech firm Nevomo. This collaboration aimed to explore next-generation railway technologies, such as:

• Magrail technology, a hybrid solution that can upgrade existing railway lines for higher-speed maglev-style trains.

• Linear propulsion systems, which can power trains without traditional engines.

• AI-powered railway solutions, aimed at automating diagnostics and improving operational efficiency.

This move marked Texmaco’s intent to future-proof its business model and integrate cutting-edge technology into its operations, setting the stage for international collaborations in railway innovation.

Financial Performance: Q4 FY24 Results

In the quarter ending March 2024, Texmaco Rail reported a net profit of ₹40 crore, which was a 12% decline compared to the ₹45 crore it had reported in the same quarter of the previous year. However, the drop in net profit did not overshadow other positive financial indicators.

• Revenue: The company's topline increased by 17.5% year-on-year to ₹1,346.4 crore, reflecting healthy business growth despite inflationary headwinds and execution challenges.

• EBITDA: Earnings Before Interest, Tax, Depreciation, and Amortisation stood at ₹97.6 crore, marking a 14.7% growth year-on-year. This shows operational efficiency and resilience in cost management.

Despite the decline in bottom-line profit, Texmaco’s revenue and EBITDA growth reflect a stable demand environment and successful project execution.

Stock Market Reaction

After the announcement of the wagon order, Texmaco Rail’s share price climbed 1%, reaching ₹161.39 on Thursday. This upward movement marks a 15% gain in the stock price over the last one month, signaling robust investor sentiment around the company’s business pipeline and strategic growth.

The order win acts as a positive trigger for market participants, who see this as a sign of continued trust from Indian Railways in Texmaco’s manufacturing capabilities.

Strategic Outlook and Industry Impact

Texmaco Rail's recent activities show a diversified and forward-looking strategy, balancing both short-term execution (₹140 crore order) and long-term technological innovations (MoU with Nevomo).

In an industry where public sector clients such as Indian Railways play a dominant role, having continuous inflow of contracts is critical. This order also underlines the government's ongoing push to modernize and expand the country’s rail freight infrastructure.

Given the Make-in-India initiative, companies like Texmaco Rail are poised to benefit significantly from large-scale indigenous manufacturing projects supported by public investment.

Conclusion

Texmaco Rail & Engineering Ltd.’s ability to secure large orders, partner in futuristic tech collaborations, and maintain financial resilience makes it a standout player in the railway manufacturing space. The ₹140 crore wagon order from the Railway Board not only enhances its short-term order book but also validates its execution strength and reliability as a vendor to the Indian Railways.

With a solid track record, rising stock price, and innovative collaborations, Texmaco Rail continues to be one of the most watched companies in the railway infrastructure space. Market analysts and retail investors alike are expected to closely follow the company’s execution timeline and future order announcements.

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