The story
A transition year confirmed the underlying momentum. Revenue declined to ₹3,186 Cr on deliberate shifts toward passenger work rather than demand weakness. Passenger-segment revenue surged 110% to ₹540 Cr, with 63 metro cars shipped versus 12 previously. The company exited with net debt of ₹93 Cr and positive operating cash flow.
Two non-recurring drags compressed reported margins: a freight wheelset supply bottleneck that has since eased, and a metro contract where customers supplied materials at no cost. These effects are known, quantified and non-recurring; the underlying passenger margin and the freight run-rate are intact.
The investment thesis centres on converting an order book already 65% passenger-focused into revenues currently representing only a sixth of the business. That conversion drives the next two years: metro deliveries scaling from 63 cars (FY26) to ~133 (FY27) and ~176 (FY28); the Vande Bharat prototype delivering in H2 FY27 with scheduled shipments from FY28; and wheel joint-venture production commencing June 2026.
Q4 & FY26 results
| Metric | FY26 actual |
|---|---|
| Revenue | ₹3,186 Cr (−20% YoY) |
| EBITDA | ₹348 Cr |
| EBITDA margin | 10.9% |
| PAT | ₹122 Cr |
| EPS | ₹9.0 |
| Net debt | ₹93 Cr (0.3× EBITDA) |
Freight contributed ₹2,604 Cr at roughly 12% segment margin. Passenger generated ₹540 Cr at a record 12.9% segment margin. Naval, carved into its own subsidiary, recorded ₹42 Cr at a loss while establishing series-production capability.
