Titagarh Rail shares zoom 13% as arm gets nod for ₹610 crore project; check what Jefferies said

The proposed expansion project under the Centre’s Shipbuilding Development Scheme involves an investment of around ₹610 crore and is aimed at strengthening shipbuilding and maritime manufacturing capabilities in the country, according to a regulatory filing.

Under the scheme, the government extends capital assistance of around ₹129 crore towards eligible plant and machinery, subject to compliance with guidelines.

The expansion is expected to enhance the shipyard’s infrastructure and technological capabilities, enabling it to cater to defence, commercial, and export-oriented shipbuilding requirements, while also supporting India’s ambitions in the global maritime sector.

Vice Chairman and MD of Titagarh Rail Systems, Umesh Chowdhary, said the approval reflects the government’s commitment to strengthening the domestic shipbuilding ecosystem.

“This in-principle approval is a strong endorsement towards building a self-reliant and globally competitive maritime nation,” Chowdhary said.

He said the proposed expansion would help develop a state-of-the-art shipyard in West Bengal, contributing to defence indigenisation and catering to domestic as well as global shipbuilding requirements.

The project is also expected to reinforce West Bengal’s position as an emerging hub for advanced maritime manufacturing, the company said.

Titagarh Rail: Recent updates

Titagarh Rail Systems Ltd (TRSL) in early March 2026 announced that its Italian associate, Titagarh Firema SpA, had completed the sale of its business unit to the Italian government-owned Fabbrica Italiana Treni S.p.A for a net consideration of 66.09 million EUR.

The strategic divestment is aimed at stemming the financial drain on the Indian parent company, as Firema had been incurring substantial losses despite repeated cash infusions from TRSL over the last few years.

In a regulatory filing, the Kolkata-based railway major stated that the proceeds from the sale have been utilised to settle payments for Firema's secured and unsecured creditors. This settlement was conducted under the CNC (Composizione Negoziata della Crisi) - a negotiated crisis settlement framework - under the supervision of the Court of Naples.

Vice chairman and MD Umesh Chowdhary told PTI that Titagarh has around 45% stake in the company, and this deal would protect them from future losses from the associate firm to the tune of ₹40-50 crore, which used to be losses in the past.

Titagarh acquired Firema in 2015 to bolster its capabilities in the passenger rolling stock segment. While the associate played a pivotal role in helping TRSL establish its aluminium car body manufacturing facility in India, its persistent losses necessitated a decoupling.

What Jefferies said on Titagarh Rail Systems

According to news reports, Jefferies expects Titagarh Rail Systems to be a key beneficiary of rising demand for passenger and metro coaches.

Jefferies also expects margins in the passenger segment to improve by around 1.4 percentage points as the company moves up the technology value chain.

Additionally, return on equity (RoE) is projected to nearly double from 6% in FY26 to 13% by FY28 and further to 16% by FY30, supported by improved plant utilisation.

About Titagarh Rail Systems

Titagarh Rail Systems Ltd is a Kolkata-based manufacturer of passenger coaches, freight wagons, metro coaches, components, and ships. Titagarh, earlier known as Titagarh Wagons Ltd, is a leading player in the Indian rail manufacturing sector.

In addition to rail and freight coach manufacturing, the company also makes electric propulsion equipment such as traction motors and vehicle control systems. It also provides engineering services such as design, development, and manufacturing of railway rolling stock components.

Titagarh started its journey as a rolling stock foundry unit in the 1980s in Titagarh to supply railway castings and couplers to the Indian Railways. Titagarh produced the first rail freight wagon in 1997. The company, in 2015, bought Italian company Titagarh Firema SpA, which is a major passenger rolling stock manufacturer.