Titagarh Rail Systems is preparing for a significant expansion in its passenger rail business while positioning a new wheelset joint venture to address supply chain challenges and support long-term growth.
The rail equipment manufacturer currently holds an order book worth INR 275.4 billion, equivalent to around 8.6 times its projected FY26 revenue, providing visibility over future earnings. Analysts at Arihant Capital Markets say upcoming wagon tenders could further strengthen the company’s pipeline over the next two quarters.
Passenger coach production is expected to be a key growth driver. The company increased output from 12 cars in FY25 and is targeting 63 cars in FY26. Management has outlined an ambitious goal of 200 cars in FY27, although Arihant estimates production at a more conservative 120 cars. The expansion is supported by the completion of major metro rail contracts in Gujarat, Pune and Bengaluru.
Titagarh is also progressing with its Vande Bharat programme, with prototype deliveries expected in the second half of FY27. Two trains are scheduled for delivery during the year.
The company’s freight wagon division continues to provide stable cash flows, although production has been affected by wheelset shortages. Analysts expect manufacturing rates to improve once supply constraints ease.
A key development is the Ramkrishna-Titagarh wheelset joint venture, which is scheduled to begin commercial production in June 2026. The project is backed by a 20-year contract with Indian Railways and is expected to generate recurring revenue while improving supply chain security.
Beyond manufacturing, Titagarh has secured a wagon leasing licence, creating an additional revenue stream. Its naval systems business is also expected to commence production in FY27 at the Falta facility, supported by a 25% government capital subsidy.
According to Arihant Capital Markets, revenue could grow at a compound annual rate of 33.2% between FY26 and FY28. Maintaining a “Buy” recommendation, the brokerage has set a target price of INR 1,143 per share, implying a potential upside of 42.7% from current levels.
