Texmaco Rail Shares Jump Over 13% Intraday After Q4 Profit Rises 45%

Shares of Texmaco Rail & Engineering climbed as much as 13.4% on Wednesday, touching ₹119.90 on the National Stock Exchange (NSE). The move came after the company reported a higher quarterly profit and fresh business visibility from a large overseas order.

At 12:26 pm, Texmaco Rail & Engineering shares were trading at ₹119.15 apiece, up 12.71% on NSE.

The stock saw buying interest even as revenue declined year-on-year, with investors focusing more on margin improvement and order inflows.

Net Profit Rises 45% Despite Revenue Fall

Texmaco Rail reported a net profit of ₹57.7 crore for the quarter, up 45.1% from ₹39.8 crore in the same period last year.

Revenue for the quarter dropped 13.3% to ₹1,167 crore from ₹1,346.4 crore a year earlier. The decline in the top line did not fully impact profitability.

A Big South Africa Order Drives Long-Term Visibility

Analysts believe that the key driver of the sentiment remains Texmaco Rail’s ₹4,045 crore export order from South Africa. The contract covers the supply of more than 2,235 freight wagons across multiple variants and 30 diesel locomotives.

It also includes a proposed 15-year maintenance partnership, which the company expects to generate long-term lifecycle revenue. The company said the deal is one of its largest international rolling stock opportunities and aligns with South Africa’s rail sector reforms and open-access freight framework.

Growth In EBITDA And Dividend Details

The company maintained better operating performance through the quarter, which supported earnings growth. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 9% to ₹106.4 crore compared with ₹97.6 crore a year ago. EBITDA margin improved to 9.1% from 7.3% in the corresponding period last year.

The margin expansion came despite weaker revenue, indicating better cost control and operational efficiency during the quarter.

Along with the quarterly results, the board recommended a dividend of ₹0.75 per equity share.

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Expands Into Defence Through New Subsidiary

Separately, the board approved entry into the defence sector through Texmaco Defence Technologies, a subsidiary of the company.

The planned investment is up to ₹200 crore over three to five years. The move marks diversification beyond core rail engineering into defence-linked manufacturing and systems.

Sources:

The Economic Times

CNBC TV18