Event Participants
Executives
3
Umesh Chowdhary (CEO), Prithish Chowdhary (Deputy Managing Director), Sourav Singhania (CFO)
Analysts
9
Amay Sharda (Purnartha Investment Advisers), Amit Gupta (ICICI Securities), Amitoj Singh (360 ONE Capital), Koundinya Nimmagadda (Jefferies), Navin Sahadeo (ICICI Securities), Parvez Qazi (Nuvama), Rajesh Bhandari (Nakoda Engineers), Sandeep Mukherjee (SKP Securities), Utsav Shah (Val-Q Investment)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| PRS Revenue Share | 31% of total revenue | Q1 marked highest-ever PRS contribution; revenue grew from ₹130 crores → ₹170 crores → ₹230 crores over trailing quarters |
| Coach Dispatches | 30+ coaches | Historic milestone; up ~400% YoY and 43% QoQ |
| Wagon Dispatches | 1,284 wagons | Deliberately muted; production scaled down due to order book visibility constraints |
| Total Order Book (incl. JV) | ₹26,635 crores | Includes company share of JV orders |
| Standalone Order Book | ₹13,335 crores | Split: ₹10,395 crores PRS (78%), ₹2,470 crores FRS (18%) |
| Wagon Production Run Rate | 600-650 wagons/month | Downscaled from 1,000/month capacity pending new Indian Railways tender |
| PRS Production Target | 45-50 coaches/quarter | Target for FY27 with further ramp-up to 850 coaches/annum by FY29 |
Geographic & Segment Commentary
Passenger Rail Systems (PRS): PRS achieved its highest revenue share at 31% of total revenue in Q1 FY27, with 30+ coaches dispatched — a historic milestone. Growth trajectory is steep: revenue climbed from ₹130 crores to ₹230 crores over two quarters, with 400% YoY growth in coach dispatches. Vande Bharat and Metro orders (Bangalore, Gujarat, Mumbai, Pune) are executing in parallel, with bulk of Bangalore and Gujarat deliveries expected by FY27/FY28 Q1.
Freight Rail Systems (FRS): Wagon dispatches at 1,284 units were deliberately muted, with production consciously downscaled to 600-650 wagons/month from 1,000/month capacity. Order book stands at ~5,300 wagons; management maintains there is no plan to scale down further as current production aligns with delivery commitments, running slightly ahead of schedule. Company is actively pursuing private sector orders alongside expecting new Indian Railways tender.
Aluminum Coach Manufacturing (Pune Metro): Company is completing full backward integration for aluminum coaches at its Pune production line, moving from importing flat packs from Italian associate to fully self-sufficient in-house manufacturing. All machinery is under installation; production line to be fully commissioned by Q1 FY28. This positions Titagarh as the only Indian company with end-to-end aluminum coach capability, critical for upcoming bullet train projects.
Shipbuilding (Cheetah Naval Systems): Shipbuilding division hived off into wholly-owned subsidiary Cheetah Naval Systems with new shipyard at Palta under construction. Work started on ground and MD/CEO appointed (Commodore Rahman Khatri, former CMD of Hindustan Shipyard). Shipyard expected fully operational by Q1-Q2 FY28; first ship delivery in 30 months.
Wheelset JV (with Ramakrishna Forgings): Hot trials ongoing at Chennai forging line, sample production starting August 2026. Phase 2 progressing on track from April 2027. Railway has underwritten ~₹500 crores/year for next 20 years; balance to be sold to TRSL or other customers.
Company-Specific & Strategic Commentary
Backward Integration - Propulsion Systems: Company has supplied two rakes of propulsion equipment for EMU; MEMU propulsion sets planned by end of Q1 FY27 or beginning of Q2 FY27. This represents a key technology upgrade enabling higher value capture in the passenger rail segment.
Vande Bharat Consortium Structure: Supply portion accounted directly in top line (consortium, not JV) with ~51% of car value accruing to Titagarh; AMC portion routed through JV entity with BHEL, accounted as share of profit from JV. First Vande Bharat prototype expected end of Q3 FY27 or beginning of Q4 FY27.
Capacity Expansion - 850 Coaches by FY29: Company targeting 850 coaches/annum production capacity by FY29, translating to potential revenue of ₹8,500 crores from PRS alone. Freight capacity of 12,000 wagons translates to ₹4,000-4,500 crores potential revenue. Management refrains from giving forward revenue guidance, emphasizing this is capacity/business potential.
Pune Metro Self-Reliance: Company transitioning from importing sub-assemblies from Italian associate Pirama to fully in-house aluminum coach manufacturing. This establishes end-to-end aluminum coach capability critical for bullet train project positioning. Delivery of 12 trains scheduled Q3-Q4 FY28.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| PRS Coach Target FY27 | ~200 coaches (±10%) | Target intact with no shift; achieved 30+ in Q1, ramping to 45-50/quarter |
| Wagon Production | 600-650 wagons/month | Maintained until clarity on new Indian Railways tender; no further scale-down planned |
| PRS Capacity | 850 coaches/annum by FY29 | Established in strategic plan; supported by healthy order book |
| Mumbai Metro Prototype | Q4 FY27 (Q1 CY27) | Prototype delivery targeted end of calendar year 2026; execution running parallel to Bangalore/Gujarat completion |
| Vande Bharat Prototype | End Q3-Q4 FY27 | Same timeline as Mumbai Metro submission |
| Pune Aluminum Line Commissioning | Q1 FY28 | Machinery under installation; full self-sufficiency for aluminum coaches |
| Shipyard Operational | Q1-Q2 FY28 | Palta shipyard under construction; MD/CEO appointed |
| Wheelset JV Phase 2 | From April 2027 | Railway underwriting ~₹500 crores/year for 20 years |
Risks & Constraints
| Risk | Context |
|---|---|
| Wagon Tender Delay | 2,470-crore FRS order book (~5,300 wagons) being executed at 600-650/month run rate. New Indian Railways tender delayed due to government priorities shifting to Middle East war. Management believes wagon requirement can be deferred by months/quarters but not dropped, given 3 billion ton freight target (current: 1.5 billion tons). |
| MRVC Tender Cancellation | Indian Railways cancelled MRVC local train tender to execute in-house. Management sees no change to total addressable market (ICF has finite capacity), expects offsetting Vande Bharat tenders to private sector. Near-term negative sentiment but not a business setback per management. |
| Execution Ramp-Up Risk | Steep PRS ramp-up from 30+ coaches/quarter to 45-50/quarter requires flawless execution across parallel metro projects (Bangalore, Gujarat, Mumbai, Pune). Previous year saw one quarter of postponement; management expresses high confidence in current trajectory. |
| Customer Concentration | FRS segment remains dependent on Indian Railways for large tenders; company diversifying into private sector orders but public sector remains primary demand driver. |
Q&A Highlights
Wagon Production Strategy
Question: At 5300 wagons in order book, if new orders don't materialize, will you scale down further? Any penalties? (Koundinya Nimmagadda, Jefferies)
Answer: No plan to scale down further. Current 600-650 wagons/month plan is based on delivery commitments — company is running a couple of months ahead of most delivery schedules. Aggressively pursuing private orders alongside expecting new tender. (Umesh Chowdhary)
Question: Any color on new wagon tender timing? (Koundinya Nimmagadda, Jefferies)
Answer: Government machinery takes time; priorities shifted due to Middle East war. Wagon requirement can be deferred by quarters but not dropped — railways must move from 1.5 to 3 billion tons of freight, impossible with current wagon fleet. (Umesh Chowdhary)
PRS Execution Timeline
Question: Is the 200-coach PRS target intact? Any delays in Bangalore, Gujarat, Mumbai projects? (Koundinya Nimmagadda, Jefferies)
Answer: Target intact at ~200 coaches ±10%. Completing Bangalore and Gujarat first, Mumbai prototyping in parallel. Infrastructure delays of 2-3 months are not significant given buffer. (Umesh Chowdhary)
Question: When will Mumbai Metro prototype be delivered? (Parvez Qazi, Nuvama)
Answer: Q4 FY27 (Q1 CY27). Vande Bharat prototype also end Q3-Q4 FY27. Pune Metro is an extension order — no prototype needed, can start series directly. (Umesh Chowdhary)
Pune Metro & Aluminum Integration
- Question: Status of Pune Metro execution? (Parvez Qazi, Nuvama)
- Answer: Previously imported sub-assemblies (flat packs) from Italian associate. Now acquiring all machines for full in-house aluminum coach manufacturing — extrusion to final coach. Production line fully commissioned by Q1 FY28; delivery of 12 trains in Q3-Q4 FY28. Establishes aluminum capability for bullet train positioning — only Indian company with aluminum coach experience. (Umesh Chowdhary)
MRVC Tender Cancellation Impact
- Question: Does MRVC tender cancellation risk the total addressable market? (Navin Sahadeo, ICICI Securities)
- Answer: Freight and passenger capacity are not fungible. Total addressable market unchanged — ICF has finite capacity, product mix shifts may redirect other train types (Vande Bharat) to private players. Cancellation was to expedite Mumbai suburban supply using railway production units. May lead to more Vande Bharat tenders for private sector. (Umesh Chowdhary)
Vande Bharat Accounting
- Question: How will Vande Bharat consortium with BHEL be accounted — proportional revenue or JV share? (Navin Sahadeo, ICICI Securities)
- Answer: Supply portion directly in top line (consortium accounting, ~51% of car value). AMC portion through JV entity accounted as share of profit from JV. (Umesh Chowdhary)
Wheelset JV Progress
Question: Is the wheelset JV with Ramakrishna on track for Phase 2 from April 2027? (Utsav Shah, Val-Q)
Answer: Hot trials ongoing at Chennai forging line; sample production starts August 2026. JV progressing very much on track. (Umesh Chowdhary)
Question: What is the profitability trajectory for the wheelset JV? (Amit Gupta, ICICI Securities)
Answer: Margins expected in line with standard forging businesses (referencing RTFS-like margins). Selling price to Indian Railways is public domain based on per kg pricing. ~₹500 crores/year underwritten by railways for 20 years; balance sold to TRSL or other customers. (Umesh Chowdhary & Prithish Chowdhary)
Shipbuilding Timeline
- Question: Timeline for shipbuilding order execution? (Amay Sharda, Purnartha)
- Answer: First ship delivery in 30 months, then deliveries over two years. Executed through wholly-owned subsidiary Cheetah Naval Systems. Not executing this year. (Umesh Chowdhary)
Metro Order Book Visibility
- Question: What is visibility for Metro orders beyond FY28? Will orders be lumpy? (Navin Sahadeo, ICICI Securities)
- Answer: Multiple tenders to be floated in near future across Western, Southern, Central, and North India. Government plan to double metro network from 25 to 50 cities. Existing cities (Mumbai, Delhi, Chennai) constantly expanding. National rail plan supports buoyant passenger rail and urban mass transit market for years to come. (Umesh Chowdhary & Prithish Chowdhary)
Key Takeaway
Titagarh Rail Systems delivered a historic quarter for its Passenger Rail System vertical, with PRS contributing 31% of revenue (₹230 crores, up from ₹130 crores in the prior quarter) and 30+ coaches dispatched — a ~400% YoY increase. The standalone order book stands at ₹13,335 crores, with PRS comprising 78% (₹10,395 crores). Freight was deliberately muted at 1,284 wagons as the company awaits a new Indian Railways tender, running production at 600-650 wagons/month against 1,000/month capacity. Management maintains its FY27 target of ~200 coaches (±10%) and is executing Bangalore, Gujarat, Mumbai, and Pune metro projects in parallel, with Vande Bharat prototypes due by Q4 FY27. Key strategic initiatives include full aluminum coach backward integration (Pune line commissioning by Q1 FY28), propulsion system localization, wheelset JV progress (sample production from August 2026), and shipbuilding subsidiary Cheetah Naval Systems targeting operational shipyard by Q1-Q2 FY28. The 850 coach/annum capacity target by FY29 (translating to ₹8,500 crores potential revenue) anchors the long-term growth story, with management confident that passenger rail will become the dominant business segment even as freight volumes normalize. Key watch points include timing of the wagon tender, execution of the steep PRS ramp-up, and competitive dynamics in metro tenders as the government expands urban transit from 25 to 50 cities.