Vande Bharat - A tailwind for

TITAGARH

Railways remain centre-stage in capital allocation, with budgetary support and a pivot to modernisation (Vande Bharat, station upgrades, freight corridors).

(TRSL) offers broad exposure—wagons, metro/Vande Bharat coaches, and propulsion. As of Dec-24, TRSL’s order book included ~13,700 wagons and ~1,600 passenger coaches; recent quarters added propulsion orders and fresh metro wins. The ABB partnership deepens capabilities in metro propulsion, while Vande Bharat orders come with long-term maintenance annuities—improving revenue quality. Execution is the crux: supply bottlenecks (e.g., wheelsets) and vendor readiness can swing quarterly deliveries, though management commentary suggests normalising inputs and healthy tender pipelines. Macro support helps: higher rail capex and an emphasis on speed, safety and network capacity underpin multi-year demand for freight rolling stock and EMUs/MEMUs; additional Vande Bharat units are slated over the plan period. Risks: state ordering cadence, input inflation (steel), and working-capital stretch in a fast-ramping book. If TRSL sustains delivery rates and margins while scaling propulsion and export options via Firema (Italy), the earnings cadence can smoothen from lumpy to compounding. This is a manufacturing-plus-systems play on India’s rail upgrade.