Titagarh Rail Systems Limited held its Q4 & FY25 earnings call on June 2, 2025, with key management members including Mr. Umesh Chowdhary (Vice Chairman and Managing Director) and Mr. Saurav Singhania (CFO).
FY25 saw the highest-ever wagon production in India with 9,431 wagons produced by Titagarh, despite wheelset shortages in the last two quarters due to issues at Rail Wheel Factory, Bangalore. Normalization of wheelset production is expected from June 2025.
The company's order book provides visibility for the current financial year, with expectations of new tenders by year-end.
Foundry operations achieved record production of 27,240 metric tons in FY25. Expansion plans are underway to increase capacity to approximately 40,000 tonnes of castings with modern facilities.
Passenger Rail System (PRS) faced initial delays due to Chinese visa problems and delayed project kickoff for the Bangalore Metro (CRRC collaboration). The first train for Bangalore Metro was dispatched in December-January 2025, and production is expected to streamline from Q2 FY26.
Car body production has commenced for Gujarat Metro (Ahmedabad Metro) and Vande Bharat projects, with the first train for Ahmedabad Metro expected in Q2 FY26 and Vande Bharat by the end of Q4 FY26 or early Q1 FY27.
The propulsion division supplied 636 traction motors in its first year and aims to ramp up to 125-150 motors per month (1,500-1,800 per year). The EMU propulsion prototype is undergoing final testing and approval, with supply expected in Q1 or early Q2 FY26.
The company anticipates achieving a run rate of 20-25 cars per month within FY26, potentially doubling in FY27 to 40-50 cars per month once Vande Bharat production is fully integrated.
Titagarh has enhanced its activity in Safety and Signaling Systems (SSS) and Shipbuilding and Maritime Systems (SMS).
The company is revamping its shipbuilding facility in Falta and considering various strategic options for the SMS division, with a final strategy and CAPEX plan expected in the coming months.
Regarding the wheelset plant, commercial delivery is expected to start from June 2026.
Management expects to produce approximately 2,000 traction motors a year, potentially generating revenue of approximately ₹300 crore to ₹400 crore. EMU/MEMU propulsion systems could contribute another ₹500 crore to ₹1,000 crore over 2-3 years.
Management Comment: "The year gone by has been pretty much as expected in terms of the freight rail system of the company."