Titagarh Rail Systems: Rail Orders Rise, Revenue Fell

Titagarh Rail Systems (NSE : TITAGARH) manufactures metro coaches, passenger trains and railway wagons. It has delivered 34 trainsets for Pune Metro and supplied driverless metro trains for Bengaluru. Its Uttarpara plant is the main production site. Passenger Rail Systems (PRS) now represents 77% of its standalone order book as of March 2026. What happened: In FY26, standalone revenue fell 16.1% year on year to Rs 3,143.6 crore. Net profit rose 95.8% to Rs 150.7 crore, driven by lower exceptional charges, not from stronger operating earnings. PRS revenue grew 111% to Rs 539.3 crore, with coach deliveries rising to 63 from 12. The total PRS order book stands at Rs 10,395 crore. Q2 FY27 results are not yet declared. Why it matters: Titagarh holds a Rs 2,481 crore contract for 132 coaches for Mumbai Metro Line 5, a contract for 108 coaches for Line 6 and a Rs 430 crore Pune Metro extension order. Bengaluru and Gujarat Metro deliveries are expected during FY27. It also signed a non-binding agreement with Siemens to explore international metro rolling stock opportunities. What I am watching: Revenue declined in FY26 despite a growing order book, because freight wagon demand slowed while metro deliveries are still ramping. An aluminium coach line at Uttarpara targets commissioning in Q1 FY28 to cut imported components. EV/EBITDA is 24.5 times against a peer multiple of 21.05 times. ROCE is 10.9% and ROE is 6.8%. My stance: The shift toward passenger rail is clear, and the order pipeline is substantial. But revenue fell last year and profit recovery was accounting-driven. Execution on metro deliveries and improvement in operating margins are what matters now. I do not hold a position in Titagarh Rail Systems at the time of writing. This is not investment advice.