Coach Production Set to Double as Titagarh Eyes Major Indian Railways Wagon Tender
Titagarh Rail Systems is aggressively scaling up its manufacturing capacity, targeting a doubling of passenger coach output by the second quarter of FY27. The company is not only focused on improving internal production efficiency but is also anticipating a significant order in the highly lucrative freight wagon segment from Indian Railways. This expansion signals Titagarh's strong pivot toward addressing evolving needs across the Indian railway ecosystem.Aggressive Expansion Targets in Passenger Coach Manufacturing
The company, through Managing Director Umesh Chowdhary, has set ambitious targets for its passenger coach division. The current run rate stands at 10 to 12 passenger coaches per month. Titagarh aims to increase this production significantly, targeting 20 to 25 coaches monthly by Q2FY27. Over the course of FY27 alone, the company plans to manufacture approximately 200 passenger coaches, expecting a threefold growth in the passenger wagon business segment.Securing Major Freight Wagon Orders from Indian Railways
Beyond passenger railcars, Titagarh is actively pursuing large-scale contracts in the freight sector. The company is currently awaiting a substantial tender from Indian Railways for wagons. If this major contract is secured, Titagarh expects orders sufficient to provide around 1,000 wagons daily. Chowdhary assured that he does not anticipate delays concerning these railway wagon tenders, despite Q1 being identified as a seasonally weak period.Leveraging New Wagon Policy and Strategic Customization
The shift in the national wagon policy presents a key growth opportunity for Titagarh. Previously, specialized wagons were custom-designed by RDSO, which limited flexibility. Under the revised framework, however, private companies are now able to propose their own wagon designs, enabling complete customization that aligns with specific railway needs.Building Future Capacity through Metro and Wheelset Business
Titagarh's business diversification remains robust. The company is fully booked in its metro division until FY28 and plans to execute necessary capital expenditure to expand this capacity further. Furthermore, the wheelset business is entering a phase of ramping up production. Trial runs for wheelsets have begun, with samples scheduled for supply to Indian Railways in Q2FY27. Titagarh is targeting 45,000 to 50,000 wheels during FY27, projecting annual output to reach 80,000 from FY28 onward.Profitability Outlook and Financial Milestones
Titagarh Rail Systems projects steady improvements in profitability over the medium term. The company anticipates that its EBITDA margins will settle around 12% through FY29. These margins are set to climb further, reaching 16% by FY30. The wheelset business holds particular promise, with expected EBITDA margins of 18 to 20% once operations achieve the desired scale.Shares of Titagarh Rail Systems were trading at ₹884.05 in morning trade on Monday, showing a minor dip of 0.50%.
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