Texmaco Rail Shares Jump ~10% After Winning ₹240+ Crore in Orders

Texmaco Rail & Engineering saw strong buying interest after announcing two fresh railway contracts, triggering a sharp move in the stock during Tuesday’s session. The orders strengthen the company’s signalling and electrification maintenance portfolio across key Indian Railways corridors, even as recent quarterly numbers point to near-term pressure on earnings.

What Orders Did Texmaco Win?

Under the Mumbai Urban Transport Project - Phase IIIA (MUTP-IIIA), Texmaco Rail won the contract of:

• Designing,

• Supplying,

• Installing,

• Testing, and

• Commissioning

of signalling systems for a total of ₹219.18 crore under the Mumbai Railway Vikas Corporation.

The signalling project includes end-to-end deployment of sophisticated equipment on a new Mumbai suburban rail line, completion of which is expected to last 36 months, starting with the notice to proceed.

South Western Railway also awarded the company a ₹27.67 crore contract to carry out total annual maintenance and restoration of the breakdown of the Overhead Equipment (OHE) and power supply system.

What Is The Scope Of The OHE Contract?

The two-year contract covers 1,046 track kilometres (TKM) of electrification infrastructure within the Mysore Division, which comprises a substantial portion of the operation in which maintenance work is to be continuously done.

Texmaco will perform:

• Regular

• Preventive

• Emergency

maintenance activities to maintain uninterrupted operations of traction power to improve the reliability of the major suburban and regional railways.

After the recent victories, the cumulative OHE service and power supply footprint of Texmaco has grown to 3,702.62 TKM to various railway segments and corridors with recurring services, thereby increasing its base of services.

How Did The Stock React?

Although the one-day movement was sharp, the stock has experienced short-term pressure, with a 1.89% gain over five sessions and a 3.58% decline over one month, suggesting variable short-term sentiment.

In the long-term perspective, the stock has gone down by 10.55% over six months and 15% over one year and has paid back 358% returns over five years, which highlights the longer-term volatility, besides its good performance over the past five years.

What Do Q3 Numbers Show?

• Texmaco Rail has experienced a steep decline to ₹42.8 crore (44% down YoY), highlighting significant immediate profit pressure for the current financial year.

• Revenue fell 21% YoY, from ₹1,326 crore to ₹1,041 crore, due to reduced activity/execution and reduced top-line momentum this quarter.

• Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) fell 32% YoY ($88.3 crore, 8.5% margin), indicating some of the challenges being faced with respect to operating leverage.

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Key Investor Takeaway

To the investors, the new order boosts the order book visibility of Texmaco Rail in the medium term, and its standing in signalling and railway electrification services, despite short-term earnings being strained as per the performance in Q3. As the stock is trading at ₹118.59 as of mid-morning on 17 February 2026, the key question is whether the execution of these projects can translate into sustained revenue recovery and margin improvement over the next few quarters.

Sources:

LiveMint

EconomicTimes