Rs 26,000 crore order book : Railway expanding its business by entering the shipbuilding industry
KOLKATA : Titagarh Rail Systems Limited (TRSL) is expanding its business by entering the shipbuilding industry. TRSL’s Board of Directors approved the creation of a wholly-owned subsidiary named Titagarh Naval Systems Private Limited (TNSPL). This involves acquiring TNSPL’s entire share capital of 1,000 equity shares for Rs 10,000. The Board also gave in-principle approval to transfer TRSL’s existing Shipbuilding and Maritime Systems (SMS) Business to TNSPL as a going concern. This strategic move aims to allow TRSL to focus on its core rail systems business while enabling the SMS business to grow independently and attract potential strategic investors.
TNSPL was incorporated on December 2, 2024, with an authorised share capital of Rs 5,00,000 and a paid-up capital of Rs 10,000. As of its incorporation date, it has no turnover. The transfer of the SMS business to TNSPL, a domestic entity, will involve a Business Transfer Agreement to be finalised by a designated committee. This acquisition, which does not require governmental or regulatory approvals, is expected to be completed by the end of August 11, 2025, and is not considered a related-party transaction. TNSPL’s business will encompass the manufacturing, marketing, and selling of naval systems, including shipbuilding and related components.
Earlier, TRSL received a Letter of Acceptance from NCC Limited for a significant domestic contract valued at approximately Rs 1,598.55 crore for the Mumbai Metro Rail Project, Line 6. As a specialised subcontractor, TRSL will be responsible for the design, manufacture, supply, installation, integration, testing, and commissioning of 18 trains, each comprising 6 cars, totalling 108 metro coaches. The contract also includes a two-year Defect Liability Maintenance Period followed by five years of Comprehensive Maintenance, with an initial Design-Build period of 104 weeks.
About the Company
Titagarh Rail Systems Limited stands as a premier comprehensive mobility solutions provider, boasting advanced manufacturing facilities in India and Italy. Their expertise lies in the design and production of a diverse portfolio of world-class rolling stock, encompassing everything from modern semi-high-speed trains and urban metros to comfortable passenger coaches and specialised freight wagons, alongside crucial propulsion systems. Driven by innovation and a commitment to excellence, Titagarh Rail Systems actively contributes to India’s growth as a manufacturing hub and aims to redefine global transportation standards. The company has a market cap of over Rs 12,000 crore.
According to the Quarterly Results, the net sales decreased by 25 per cent to Rs 679 crore and net profit decreased by 54 per cent to Rs 31 crore in Q1FY26 compared to Q1FY25. In FY25, the company reported net sales of Rs 3,867.75 crore and net profit of Rs 276.39 crore.
The order book stands at Rs 26,000 crore as of June 30, 2025, excluding GST and including its share in the Joint venture. The stock gave multibagger returns of 500 per cent in just 3 years and a whopping 1,860 per cent returns in 5 years.