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Titagarh Rail System's share price rose 2.2 per cent on Tuesday to trade higher at Rs 769 apiece despite a target price cut from Nuvama.
The brokerage noted that the company in its third quarter results for the financial year 2026 posted a 9 per cent decline in revenue, it further added that wheelset availability issues resurfaced in Dec-25, hampering wagon production.
However, despite the wheelset issues, the brokerage noted that, "While subdued wagon tendering and erratic wheelset availability is a dampener for near-term earnings, we remain bullish on TRS’s long-term prospects. Maintain ‘Buy’ with a revised target price"
- Maintain 'Buy' with a target price of Rs 1,061 (cut from Rs 1,088)
- Revenue down 9 per cent YoY to Rs 819 crore; PAT down 10 per cent YoY
- EBITDA margin improved to 12 per cent despite lower wagon output
- Wagon production impacted by wheelset shortages; freight revenue weak
- The passenger segment is strong with a sharp ramp-up in execution.
- Order book robust at Rs. 145bn with book-to-bill of 4.4x
- Freight order book visibility is limited beyond H1FY27; new IR tenders critical.
- Wheelset supply normalised in Q4; production guided at 800 wagons monthly.
- Metro coach deliveries and Vande Bharat ramp-up key near-term triggers
- The Estimated Earnings Per Share for Fiscal Years 2026, 2027, and 2028 have been reduced due to near‑term execution risks.
Titagarh Rail Systems delivered a subdued performance in Q3 FY26, with profitability taking a notable hit. The company reported a profit of Rs 48.03 crore, down 23.5 per cent year‑on‑year compared to Rs 62.77 crore in Q3 FY25. The decline in the bottom line reflects margin pressures and a softer operating environment during the quarter.
Revenues also moderated, coming in at Rs 832 crore, a 7.8 per cent decline from Rs 902 crore a year earlier. Operationally, the company witnessed a contraction in profitability metrics as EBITDA fell to Rs 92.02 crore, down 8 per cent year‑on‑year from Rs 100.06 crore.
The EBITDA margin remained steady at 11.1 per cent, though the slight 3 basis‑point movement indicates stable operating efficiency.
(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.)
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