Titagarh Rail Systems eyes 12,000-Wagon Annual Production, Strong Order Pipeline In FY26

KOLKATA : Titagarh Rail Systems Ltd., formerly known as Titagarh Wagons, aims to ramp up its production capacity to 12,000 wagons annually, according to Deputy Managing Director Prithish Chowdhary. 

“Our internal capabilities are fully geared up to produce 12,000 wagons per annum. In FY26, we expect to achieve a run rate of 900 to 1,000 wagons per month,” he told NDTV Profit. 

Commenting on the margin projection going into the new financial year, the top executive mentioned that the company is currently looking to achieve an Ebitda margin of 12% to 13% in its Freight Rail Systems (FRS) division and aims to stabilise its Passenger Rail Systems (PRS) margin at 9% to 10% before scaling up to 15% through backward integration.”

“For the signalling and safety systems, it is one of the key focus areas for the Ministry of Railways. So, we see that market with huge growth potential. For shipbuilding, apart from the domestic potential, the export market would be very interesting to look at. Roughly 90% of the world’s ships are built in only three countries. And India has a huge potential to break into that market and establish itself as a leader. So that’s the angle or the vision that we have for this segment,” he said.

Chowdhary remains bullish on demand in FY26, citing strong interest from steel and cement companies, logistics firms, and media reports suggesting a 15% increase in railway capital expenditure. He expects a robust order book for both PRS and FRS.

He also underscored FY26 as a game-changing year for the PRS business, with key metro and rail projects moving from design to execution. This includes the Ahmedabad Metro, Surat Metro, Bangalore Metro, and Vande Bharat. 

All our projects which have been in their design phase, which is the Ahmedabad Metro, the Surat Metro, as well as the Vande Bharat, All of them will start execution at different points, in the coming financial year,” he said. 

The prototype of the Vande Bharat sleeper train is now scheduled for March 2026, delayed from the earlier July 2025 timeline.

Shares of Titagarh Rail Systems ended Friday’s session 2.72% down  at Rs 793, while the benchmark Nifty50 closed 0.31% lower at 23,519.35 points.