Titagarh Rail share price in focus: Headquartered in Kolkata, India, Titagarh Rail Systems Limited (Titagarh) is a leading railway rolling stock manufacturer.

Established as a rolling stock foundry unit in the 1980's, Titagarh started its journey by producing railway castings such as bogies and couplers for the Indian railways.

The company, which is a constituent of the BSE 500, has reported its Q4 results on May 30. Titagarh Rail Systems (TRS) reported a 14%/53% YoY fall in Q4FY26 revenue/PAT as a dwindling wagon order book took its toll. On the positive side, execution/margins in the passenger coach segment ramped up. Order book remained healthy at Rs 142 billion.

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Brokerage on Titagarh Rail Systems

Titagarh Rail share price in focus: Nuvama bullish on railway rolling stock; raises target price - 5 reasons why

The brokerage firm, Nuvama Research maintain a 'BUY' call with a revised TP of Rs 1,089 (earlier Rs 1,061) on a valuation rollover to Q4FY28E (35x EPS). At CMP, the stock trades at 25.8x FY28E EPS.

While subdued wagon tendering compels the brokerage to cut FY27E/28E EPS by 14%/3%, the brokerage remains bullish on TRS's long-term prospects.

The timing/quantum of likely wagon tender (Link) from Indian Railways (IR) would be a significant trigger for the stock, according to the brokerage.

Wagon production in Q4FY26 was 1,700 (1,770 in Q3FY26, 2,455 in Q4FY25, 6,970 in FY26 and 9,431 in FY25). TRS delivered 24 coaches (18 in Q3FY26, six in Q4FY25, 63 in FY26 and 12 in FY25). The company has exited its Italian arm, Firema, and completely written down its investment. It does not foresee any further losses/liabilities/cash infusion in future in Firema.

Order book split: TRS ended FY26 with an overall order book of Rs 142 billion (Rs 145 billion at end-Q3FY26) and a book-to-bill of 4.5x. Of this, Rs 31 billion pertains to the freight segment, Rs 106 billion to the passenger coach segment and the balance to shipbuilding/defence, etc. The company's existing wagon order book shall last till Q3FY27; in this backdrop, new wagon tenders from IR have become critical.

Management indicated that the company can clock a monthly wagon production of Rs 1,000, provided it has enough wagon orders. Work on the Gujarat (Ahmedabad/Surat) and Bangalore metro rail projects is in full swing and likely to be completed by Q4FY27/Q1FY28E.

The company has also commenced production of Vande Bharat (VB) trains and expects to deliver the prototype by Q3FY27/Q4FY27E.

TRS expects delivery for Mumbai Metro coaches to commence in Q3FY27/Q4FY27E and for the Pune Metro too soon. The company also expects the JV with RK Forgings to commence production on June 26 onwards.

Titagarh Rail Q4 results

TRS reported Q4FY26 revenue of Rs 8.6 billion (down 14% YoY). EBITDA margin rose 50bp YoY to 12.1 per cent while adjusted PAT plummeted 53 per cent YoY. While freight segment revenue plunged 25 per cent YoY (up 4% QoQ), that of the passenger segment shot up 96% YoY/rose 4% QoQ to Rs 1.7 billion.

Wagon production in Q4FY26 was 1,700 (1,770 in Q3FY26, 2,455 in Q4FY25, 6,970 in FY26 and 9,431 in FY25).

TRS delivered 24 coaches (18 in Q3FY26, six in Q4FY25, 63 in FY26 and 12 in FY25). The company has exited its Italian arm, Firema, and completely written down its investment. It does not foresee any further losses/liabilities/cash infusion in future in Firema.

Titagarh Rail dividend 2026

The company recommended a dividend of 50%, i.e. Rs 1 per equity share of Rs 2/- each for the financial year 2025-2026.

Recommended dividend of 50% (i.e. Rs 1) per equity share of Rs 2/- each for the financial year 2025-2026, for approval of the shareholders at the ensuing Annual General Meeting of the Company, date whereof will be intimated in due course, the company informed in an exchange filing.

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(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)