TITAGARH

The company has decisively overcome wagon wheelset availability issues, now producing 800-850 units monthly with solid visibility for 8,500-9,000 wagons over the next year, anticipating new tenders by Q1 FY27. Passenger rail is a standout, securing significant new Mumbai Metro orders, offering deep order book visibility for Metro coaches until FY28 and Vande Bharat trains to FY31. Management projects 100-120 Metro cars in FY26, ramping to 150-200 annually from Q4. Strategically, the shipbuilding division, with its ₹500 crore order book and projected 15-17% EBITDA margins, is being spun off for independent growth. High-margin service contracts (20-25% EBITDA) for Metro lines are also poised to become a larger revenue stream, while the propulsion systems unit targets backward integration to supply its own Metro systems within 2-3 years with 15-20% margins. Opinion: This update paints a distinctly positive picture. Strong operational recovery, deep long-term order visibility in high-growth segments, and strategic initiatives to enhance margins and unlock value position the company exceptionally well for sustained growth. A compelling outlook for investors.