Q4 2026 Texmaco Rail & Engineering Ltd Earnings Call Transcript
Key Points
- Texmaco Rail & Engineering Ltd (BOM:533326) reported a strong operational performance in Q4 FY26, with an EBITDA of INR 116 crores, reflecting a year-on-year improvement of 1.2%.
- The company's Infra division, particularly the electrification business, showed significant growth, with a 66% increase in revenue to INR 610 crores and an EBIT margin of 10.8%.
- Texmaco Rail & Engineering Ltd (BOM:533326) has successfully reduced its net debt to INR 444 crores, improving the net debt to equity ratio from 0.22 in FY25 to 0.18 by the end of FY26.
- The company has a robust order book, including a significant order from South Africa for 2,200 wagons and 30 diesel locomotives, with a 15-year maintenance partnership.
- Texmaco Rail & Engineering Ltd (BOM:533326) is diversifying its business with strategic moves into defense and digital services, aiming to double its top-line and improve EBITDA margins as part of its Vision 2030 plan.
- The company experienced a 14% decline in revenue for the financial year 2026 compared to the previous year, primarily due to supply chain challenges.
- Global supply chain disruptions and U.S. tariffs have adversely affected production schedules and export volumes.
- Texmaco Rail & Engineering Ltd (BOM:533326) has created a provision for contingencies of INR 700 crores due to geopolitical tensions and trade uncertainties, impacting financial results.
- The statutory auditors have qualified their report due to the provision being adjusted against free reserves instead of the profit and loss account.
- The company faces challenges in the cyclical nature of the railway industry, which affects the predictability of order inflows and revenue.
Ladies and Gentlemen, Good day and welcome to the earnings conference call Q4 FY26 of Texmaco Rail Engineering Limited hosted by ICIC Securities.
As a reminder, all participant clients will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.
(Operator Instructions).
I now hand the conference over to Mr. Navin Sahadeo from ICICI Securities.
Thank you and over to you, sir.
Thank you. Shailendra.
Good afternoon, all. I welcome you all to the Q4 FY26 conference call of Texmaco Rail and Engineering Limited.
From the management, we have with us Mr. Indrajit Mookerjee, Executive Director and Vice Chairman, Mr. Sudipto Mukherjee, Managing Director, Group CFO, Mr. Pramod Gupta, Company CFO, Mr. Kishore Kumar Rajgaria, and also the Deputy CFO of the company, Mr. Sandeep Banka.
So without any further ado, I hand over the floor to the management for their opening comments. Over to you, sir.
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