Titagarh Rail Systems shares jump over 2% on securing LoA from NCC

Shares of Titagarkh Rail Systems jumped 2% on Monday after the company announced a major order win from leading infrastructure company NCC for 18 metro trains. The shares traded 2.3% higher at ₹855 apiece on the NSE.

Titagarh Rail Systems has received Letter of Acceptance (LoA) from NCC for ‘Design, Manufacture, Supply, Installation, Integration, Testing and Commissioning of Rolling Stock (18 trains of 6 cars each to taking to 108 metro coaches) including 5 years of Comprehensive Maintenance after 2 years of Defect Liability Maintenance Period of Line 6 [Swami Samarth Nagar to Vikhroli (EEH)] of Mumbai Metro Rail Project of Mumbai Metropolitan Region Development Authority (MMRDA). The order value is about ₹598.55 crore.

Earlier in July, the company secured a letter of advance acceptance (LoA) worth ₹312.69 crore from the Ministry of Railways for the manufacture and supply of 780 BVCM-C Wagons. The order execution is scheduled to be nine months from the date of placement of the contract.

In the previous quarterly results, the company’s revenue remained flat at ₹1,006 crore as compared to ₹1,052 crore. The operating profit for the quarter dropped 11.2% YoY to ₹93 crore as compared to ₹118 crore in the same period last year. Lastly, the net profit for the quarter also dropped to ₹64 crore as against ₹79 crore in the previous year’s similar quarter.

As of FY25, the company’s annual capacity stood at 12,000 wagons per year, translating to revenue visibility of ₹4,000 to ₹4,500 crore a year at full capacity utilisation. In FY25, the company manufactured 9,431 wagons, which is also the highest amongst the country.

Titagarh Rail Systems is formerly known as Titagarh Wagons. The company is mainly engaged in the manufacturing and selling of Freight Wagons, Passenger Coaches, Steel Castings, Specialised Equipment & Bridges, Ships, Heavy Earthmoving and Mining Equipment, etc.