Shares of Titagarh Rail Systems soared after a flat opening on Tuesday despite a 54 per cent fall in profit in Q1FY26.
The company posted a consolidated net profit for the quarter ended June 2025 at ₹30.86 crore compared to ₹67.01 crore in the corresponding quarter last year.
The revenue from operations also declined 25 per cent to ₹679.30 crore for the quarter under review as against ₹903.05 crore in the same quarter last year.
New orders booked during the period stood at ₹2,469 crore.
The wagon despatches stood at 1,628 as against 2,455 wagons in the previous quarter and 2,073 wagons in the corresponding first quarter last year on account of lower supply of wheelsets from Rail Wheel Factory.
Umesh Chowdhary, Vice Chairman and Managing Director, Titagarh Rail Systems, said, “The drop in production during the quarter is only a blip and the company has already started recovering due to improved wheelset supplies in the past weeks by the Indian Railways and the company will be able to rerun to normal production within Q2FY26.”
Titagarh Rail Systems’ board approved setting up of a wholly owned subsidiary — Titagarh Naval Systems Private Limited (TNSPL) — by acquisition of entire share capital thereof consisting of 1,000 equity shares of ₹10 each fully paid up aggregating ₹10,000.
The board also granted in-principle the transfer of the shipbuilding and maritime systems (SMS) business, including the undertaking thereunder of the Company to its wholly owned subsidiary, Titagarh Naval Systems Pvt. Ltd, as a going concern, and delegated a committee to finalise the business transfer agreement, subject to necessary compliances/approvals.
As per the company’s statement, the move aims to focus on the company’s core business and enable SMS to grow through a dedicated structure and potential strategic investors.
The stock traded with 2.33 per cent gains at ₹794.20 on the NSE as at 10.33 am, hitting an early high of ₹818 after opening flat at ₹776.
More Like This
Published on August 12, 2025
