Jupiter Wagons Limited (JWL) released the transcript of its Investor/Analyst Meet call pertaining to the Financial Results for the quarter and year ended March 31, 2025, held on May 19, 2025.

• Financial Performance for FY25:

  • Standalone: Total income was ₹3,905 crore, marking a growth of 6.6% year-on-year. EBITDA increased by 11.6% to ₹548 crore, with an EBITDA margin of 14.2% (up from 13.5% last year). Profit after tax (PAT) rose by 12% year-on-year to ₹373 crore, achieving a PAT margin of 9.6%.
  • Consolidated: Total income reached ₹4,008 crore, an increase of 9.3% year-on-year. EBITDA was ₹578 crore, higher by 18% year-on-year, and the consolidated EBITDA margin improved to 14.6%. Consolidated PAT grew by 15% to ₹380 crore.

• Strategic Progress and Operational Highlights in FY25:

  • Electric Vehicles (EVs): JWL successfully launched commercial production of the JEM Tez eLCV in Indore and inaugurated a state-of-the-art vehicle manufacturing facility at Pithampur with an annual production capacity of 8,000 vehicles. The JEM TEZ, a fully indigenous one-tonne electric vehicle, is undergoing a phased rollout in key metros like Delhi, Mumbai, and Bengaluru.
  • Clean and Sustainable Energy Solutions: The company commenced production and supply of advanced battery systems to Indian Railways and private clients. It also secured battery energy storage system orders and orders from leading forklift segment players such as Godrej and TruckCraft.
  • Core Railway Segment: JWL secured a ₹600 crore order from Ambuja Cement and ACC Limited for BCFCMRake Wagons. Its subsidiary, Jupiter Tatravagonka Railwheel Factory Pvt Limited, also won a ₹255 crore order from Braithwaite & Co.
  • Brake System Division: The division delivered a strong performance, securing a ₹65 crore order for brake discs and a ₹150 crore order for passenger segment brake systems.

• Odisha Rail Wheel and Axle Forging Facility Project:

  • This transformational initiative involves acquiring land in Khordha, Odisha, to set up the first private sector heavy engineering plant of its kind in the state for rail wheels and axles.
  • The planned investment is ₹3,500 crore, with financial closure achieved through a funding structure of 35% equity and 65% debt, led by a consortium of PSU banks including SBI.
  • Approximately 50% of the equity investment has been made, and advance payments for critical equipment and construction packages are underway.
  • Once operational, the facility will produce 100,000 forged wheel sets annually, serving both domestic and international markets.
  • The axle line is expected to be commissioned by mid-2026, and the wheel line by early 2027.

• Management Outlook and Future Guidance:

  • Wagon Production: For FY26, JWL targets manufacturing about 10,000 wagons, contingent on the regularization of wheel set supplies by Indian Railways, expected by mid-June 2025.
  • Existing Wheel Set Business: Revenues from this segment, which exceeded ₹300 crore in FY25, are expected to double in FY26.
  • Brake Business: Revenues are also projected to double in FY26 from over ₹100 crore in FY25.
  • eLCV Segment: The company expects to achieve average sales of over 100 eLCVs per month in the next three to four months.
  • Battery Business: The market is growing significantly (around 200% year-on-year), with the battery storage segment in India projected to reach 10 GW by 2030, presenting a huge opportunity for JWL.
  • Odisha Project Contribution: This facility is expected to contribute around ₹3,000 crore in revenue by FY28-29 at an 80% utilization level, with an expected Return on Capital (ROC) of above 20% and a payback period of approximately five years.
  • Overall Revenue Target: JWL aims for a ₹10,000 crore revenue by FY28, with a significant portion of this growth stemming from the Odisha project.
  • EBITDA Margins: Consolidated EBITDA margins are expected to remain in a similar range (around 14.5%) for FY26 and FY27, with substantial improvement anticipated only after the Odisha facility is fully commissioned.
  • Joint Ventures: Management addressed past losses in the DAKO JV due to reliance on imports for critical parts, stating that localization efforts are now advanced and expected to improve profitability.
  • Labor Unrest: A temporary plant closure due to a wage dispute has been resolved, and the plant is back to full capacity. The financial impact in Q1 FY26 is expected to be minimal due to concurrent wheel set supply issues and planned annual maintenance.