Titagarh Rail Systems Limited, formerly known as Titagarh Wagons Limited, is a leading Indian company engaged in the manufacturing and selling of freight wagons, passenger coaches, metro trains, train electricals, steel castings, specialized equipment, bridges, and ships. The company was incorporated on July 3, 1997, and changed its name to Titagarh Rail Systems Limited on May 19, 2023.
Titagarh Rail Systems holds a unique position in the Indian railway industry as the only Indian company that manufactures both wagons and coaches, commanding a market share of 25-30% in the wagon manufacturing industry. The company caters to both domestic and export markets, establishing itself as a significant player in the global railway equipment sector.
The company's business is divided into four key divisions: Railway Freight, Railway Transit, Engineering, and Shipbuilding. The company's diverse product portfolio includes freight wagons, passenger coaches, metro trains, heavy earthmoving and mining equipment, train electricals, steel castings, specialized equipment, bridges, ships, Bailey bridges, and EMUs, structured along five broad business lines: Wagon Manufacture, Heavy Earth Moving & Mining Equipment, Foundry Division, Rail Coach Division, and Special Projects.
The Railway Freight division offers rolling stock and components such as cast bogies, couplers, draft gear, loco shells, and cast manganese steel crossing. The Railway Transit division provides passenger rolling stock, propulsion and electrical equipment, along with services including maintenance, assistance, global service repair, inspection, and refurbishing.
The company has also diversified into specialized applications, entering into production of special purpose wagons to suit varying customer needs, such as Merry-Go-Round (MGR) wagons and special wagons for Defence. TWL is the only private company registered with the Ministry of Defence, Government of India to manufacture Bailey bridges and related accessories.
As of recent data, Titagarh Rail Systems has a market capitalization of ₹12,676 crore, though the market cap has experienced significant volatility over the past year. For the full year FY25, the company reported revenue from operations of ₹3,867.75 crore, representing a marginal increase of 0.37% year-on-year, while net profit declined by 3.40% to ₹276.39 crore.
The company's quarterly performance has shown some challenges. In Q3 FY25, Titagarh Rail Systems reported revenue of ₹925.07 crore, representing a decline of 4.56% compared to the same period last year, while net profit fell 16.11% to ₹62.77 crore. The company's EBITDA declined by 9.6% to ₹100.1 crore in Q3 FY25, with the EBITDA margin contracting by 50 basis points to 11.1%.
Key financial metrics as of recent reporting:
- Market Cap: ₹12,676 crore
- Revenue (FY25): ₹3,868 crore
- Net Profit (FY25): ₹275 crore
- Stock P/E Ratio: 46.1
- Book Value: ₹184
- Dividend Yield: 0.08%
- ROCE: 16.6%
- ROE: 11.7%
On June 28, 2025, Titagarh Rail was awarded an order worth ₹430.53 crore for 12 additional trainsets for the Pune Metro, with a 30-month execution timeline. This order includes the supply of 12 additional trainsets as quantity variation, covering design, manufacture, supply, testing, and commissioning of passenger rolling stock for the Pune Metro Rail Project, valued at ₹430.53 crore with completion scheduled within 30 months.
In April 2025, Titagarh Rail Systems, in partnership with BHEL, inaugurated a production line for Vande Bharat Sleeper trains under a ₹24,000 crore contract. The company is also pursuing partnerships for Kavach development and expanding its shipbuilding vertical, exploring locations for new dockyards and aiming to ramp up activities in both sectors.
Titagarh Rail Systems is the largest private sector manufacturer of wagons and an established player in passenger coaches. Despite facing production challenges, particularly a shortage of wheelsets in Q4 FY25, the company achieved record wagon production and maintained a robust order book, signaling strong future growth potential with anticipated private sector demand.
The company's subsidiary, Titagarh Firema SpA, is an Italian company engaged in manufacturing passenger rolling stock, providing the group with international manufacturing capabilities and expertise.
Analysts maintain a positive outlook with 85.71% recommending a 'BUY' rating for Titagarh Rail Systems. The company shows strong growth potential with a reported 42% upside potential according to Geojit BNP Paribas.
Management remains optimistic about expanding the passenger rail segment and enhancing production capabilities across various sectors, including traction motors, which are projected to significantly boost revenues. Strategic diversification into shipbuilding and safety systems further positions the company to capitalize on government infrastructure initiatives.
Current promoter holding stands at 40.4%, though it has decreased over the last 3 years by 6.60%. The company's board has recommended a dividend of ₹1 per equity share for FY25, subject to shareholder approval.
The company continues to benefit from India's railway infrastructure development programs and the government's focus on modernizing the country's transportation network, positioning it well for future growth despite near-term operational challenges.
