Q1 2027 Titagarh Rail Systems Ltd Earnings Call

August 14, 2026

Speaker #4: Ladies and gentlemen, good day and welcome to the Titagarh Rail Systems Limited Q1 and FY27 earnings conference call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Operator 2: Ladies and gentlemen, good day, and welcome to Titagarh Rail Systems Limited Q1 and FY27 earnings conference call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Mr. Umesh Chowdhary, Vice Chairman and Managing Director, Titagarh Rail Systems Limited. Thank you, and over to you, sir.

Operator: Ladies and gentlemen, good day, and welcome to Titagarh Rail Systems Limited Q1 and FY27 earnings conference call. As a reminder, all participant lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Mr. Umesh Chowdhary, Vice Chairman and Managing Director, Titagarh Rail Systems Limited. Thank you, and over to you, sir.

Speaker #4: Should you need assistance during this conference call, please signal an operator by pressing star, then zero, on your touchscreen phone. And now, I have the conference order: Mr. Umesh Chaudhary.

Speaker #4: Vice Chairman and Managing Director, Titagarh Rail Systems Limited, thank you. Over to you, sir.

Speaker #5: Very good afternoon, and thank you for joining the Q1 FY27 earnings call. I am joined by Mr. Prithish Chaudhary, the Deputy Managing Director; Mr. Anil Agarwal, Deputy Managing Director; Mr. Saurav Singhaniya, the CFO; and the team.

Umesh Chowdhary: Very good afternoon, and thank you for joining the Q1 FY27 earnings call. I am joined by Mr. Pritish Chowdhary, the Deputy Managing Director, Mr. Anil Agarwal, Deputy Managing Director, Mr. Saurav Singhania, the CFO, and the team. I would like Mr. Pritish Chowdhary to give an overview of the developments during the quarter. After which, we would be very happy to take any questions that may be there. Pritish.

Speaker #5: I would like Prithish—Mr. Prithish Chaudhary—to give an overview of the developments during the quarter. And of course, after that, we'd be very happy to take any questions that may be there.

Speaker #5: Prithish, so good evening, everybody, and thank you for logging in to the, Q1 investor call. So before we, before we start, I'd like to share some key updates and key highlights of the quarter.

Prithish Chowdhary: Good evening, everybody, and thank you for logging in to the Q1 investor call. Before we start, I would like to share some key updates and key highlights of the quarter. Firstly, we are happy to share that the Q1 was the highest share of the revenue for the PRS vertical, meaning the passenger rail system vertical for the company. In Q1, the PRS contributed almost 31% share of the revenue, with more than 30 coaches dispatched in the first quarter which for the company is a milestone, a historic milestone. In terms of wagon dispatches, the number was at 1,284 wagons, which was a little bit muted as the conscious call.

Speaker #5: Firstly, we are happy to share that Q1 was the highest share of the revenue for the PRS vertical, meaning the Passenger Rail Systems vertical, for the company.

Speaker #5: In Q1, the PRS contributed almost 31%, or a 31% share of the revenue, with more than 30 coaches dispatched in the first quarter, which for the company is a milestone—a historic milestone.

Speaker #5: In terms of wagon dispatches, the number was at 1,284 wagons, which was a little bit muted, as a conscious call. This is largely on account of the wagon order book currently standing at an order of 5,300 wagons.

Prithish Chowdhary: This is largely on account of the wagon order book currently standing at an order of 3,300 wagons. While we await for a larger tender to be announced from the Indian Railways and while the company actively pursues orders from the private sector, we aim to manufacture anywhere between 600 to 650 wagons per month, until such time that there is a clarity from the Indian Railways on a larger tender for freight wagons. At the end of the quarter, the total order book for the company stands at INR 26,635 crores including the company's share of JV orders. The TRSL order book as a standalone is INR 13,335 crores, with INR 10,395 crores coming in from passenger rail systems and INR 2,470 crores coming in from freight rail systems. This is also to highlight the growth of the PRS business for the company over the coming quarters.

Speaker #5: And while we await for a larger tender to be announced from the Indian Railways, and while the company actively pursues, orders from the private sector, we aim to, aim to manufacture anywhere between 600 to 650 wagons per month, until such time that there is a clarity from the Indian Railways, on a larger tender for freight wagons.

Speaker #5: At the end of the quarter, the total order book for the company stands at ₹26,635 crore, including the company's share and the share of JV orders.

Speaker #5: The PRSL order book, as a standalone, is ₹13,335 crore, with ₹10,395 crore coming in from passenger rail systems and ₹2,470 crore coming in from freight rail systems.

Speaker #5: This is also, you know, just to highlight the growth of the PRS business for the company over the coming quarters. We intend to increase coach production to 45 to 50 coaches per quarter in this financial year, and then further, as the company has stated multiple times, by '28-'29 we will establish a total production capacity of 850 coaches plus.

Prithish Chowdhary: We intend to increase the coach production to 45 to 50 coaches per quarter in this financial year and then further, as the company has stated multiple times, by 2028/2029, to establish a total production capacity of 850 coaches plus per annum, for which the company has a healthy order book supporting these plans for growth. With this, I think we can close the major business updates for this quarter and open it up for questions. Thank you.

Speaker #5: per annum. For this, we, the company, have a healthy order book supporting these plans for growth. With this, I think we can close the major business updates for the quarter.

Speaker #5: And, I'll open it up for questions. Thank you.

Speaker #4: Thank you very much. Sorry, sir. Go ahead.

Operator 2: Thank you very much.

Operator: Thank you very much.

Prithish Chowdhary: Yeah.

Operator 2: Sorry for the noise.

Operator: Sorry for the noise.

Speaker #5: Yeah, we are happy to take questions now.

Prithish Chowdhary: Yeah, we are happy to take questions now.

Umesh Chowdhary: Yeah, we are happy to take questions now.

Speaker #4: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchscreen telephone.

Operator 2: Thank you very much. We now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may press star and one to ask a question. First question is from the line of Rajesh Bhandari from Nakoda Engineers. Please go ahead.

Operator: Thank you very much. We now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may press star and one to ask a question. First question is from the line of Rajesh Bhandari from Nakoda Engineers. Please go ahead.

Speaker #4: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking your questions.

Speaker #4: Ladies and gentlemen, we will wait for a moment while the question queue assembles. Participants, you may press star and one to ask a question.

Speaker #4: First question is from the line of Rajesh Bhandari from Koda Engineers. Please go ahead.

Speaker #6: Sir, good afternoon and good evening, sir. Hello, can you hear me, sir?

Rajesh Bhandari: Sir, good afternoon and good evening, sir. Hello, can you hear me, sir?

Speaker #4: Sir, yes, please go ahead. Your audio is clear.

Operator 2: Yes, sir. Go ahead with your order.

Operator: Yes, sir. Go ahead with your order.

Rajesh Bhandari: Yes, sir.

Umesh Chowdhary: Yes, sir.

Speaker #6: Yes, sir. Yeah. Yes, sir. Sir, in fact, if I am not wrong, probably the best pure railway company is Titagarh Rail. We have a lot of orders also.

Prithish Chowdhary: Yeah.

Rajesh Bhandari: Yeah.

Rajesh Bhandari: Yes. Sir, in fact, if I am not wrong, the best probably the pure railway company is Titagarh Rail Systems. We have a lot of orders also. But somehow I find that these orders are not fructifying on the ground, sir.

Speaker #6: But somehow I find that these orders are not fructifying on the ground. Up to the turnover is, sir, wo—बढ़ नहीं रहा है. उसका क्या main कारण है, sir?

Prithish Chowdhary: So sir, thank you very much for your observation about Titagarh. Your second observation is on data, very, very accurate, but one has to see it from the perspective of the quality of the order book and of the business plan. As was highlighted by Pritish, 80% of our standalone order book today is relating to the passenger rail system, which is a new business that the company has entered into. Quarter on quarter, we have registered a very healthy growth. If you look at actually on a year-on-year basis, the increase for the coach dispatch, as has been given in the presentation also, on a year-to-year basis, it has increased by almost 400% and a quarter to quarter by 43%. Even in terms of the revenue of the PRS from the last quarter, which was INR 130 odd crores, we have INR 170 crores.

Umesh Chowdhary: So sir, thank you very much for your observation about Titagarh. Your second observation is on data, very, very accurate, but one has to see it from the perspective of the quality of the order book and of the business plan. As was highlighted by Pritish, 80% of our standalone order book today is relating to the passenger rail system, which is a new business that the company has entered into. Quarter on quarter, we have registered a very healthy growth. If you look at actually on a year-on-year basis, the increase for the coach dispatch, as has been given in the presentation also, on a year-to-year basis, it has increased by almost 400% and a quarter to quarter by 43%. Even in terms of the revenue of the PRS from the last quarter, which was INR 130 odd crores, we have INR 170 crores.

Speaker #5: So, sir, thank you very much for your observation about Titagarh. And your second observation on data is very, very accurate. But one has to see it from the perspective of the quality of the order book and of the business plan.

Speaker #5: So, as was highlighted by Prithish, 80% of our standalone order book today is related to the passenger rail system, which is a new business that the company has entered into.

Speaker #5: And, quarter on quarter, we have registered a very healthy growth. If you look at, actually, on a year-on-year basis, the increase for the, coach dispatch in the as, as has been given in the presentation also, it is, on a year-to-year basis, it has increased, by almost 400%.

Speaker #5: And a quarter-on-quarter growth of 43%. Even in terms of the revenue of the PRS, from the last quarter, which was ₹130-odd crore.

Speaker #5: We are now at ₹230 crore, and it is going to now register quarter-on-quarter growth every quarter as we go ahead. So, amongst the order book, we have two types of orders.

Prithish Chowdhary: We are now at INR 230 crores, and it is going to now register a quarter-on-quarter growth every quarter as we go ahead. Amongst the order book, we have two types of orders. One is the Vande Bharat order, which is going to be supplied over a period of the next five years, and the Metro order, which is going to be supplied over the period of the next two years. If you refer to the strategic plan that was published by the company last year, about six, eight months ago, or maybe a year ago, the overall growth and the execution plan of the existing order has been given therein, and we are very confident to be able to meet with that execution or ramp-up plan, barring maybe some, like in the last year, there was some postponement in one quarter or so.

Umesh Chowdhary: We are now at INR 230 crores, and it is going to now register a quarter-on-quarter growth every quarter as we go ahead. Amongst the order book, we have two types of orders. One is the Vande Bharat order, which is going to be supplied over a period of the next five years, and the Metro order, which is going to be supplied over the period of the next two years. If you refer to the strategic plan that was published by the company last year, about six, eight months ago, or maybe a year ago, the overall growth and the execution plan of the existing order has been given therein, and we are very confident to be able to meet with that execution or ramp-up plan, barring maybe some, like in the last year, there was some postponement in one quarter or so.

Speaker #5: One is the Vande Bharat order, which is going to be supplied over a period of the next five years. And the Metro order, which is going to be supplied over a period of the next two years.

Speaker #5: So, if you refer to the strategic plan that was published by the company last year—about six, eight months ago, or maybe a year ago—the overall growth and the execution plan of the existing order has been given therein, and we are very confident to be able to meet that execution or ramp-up plan, barring a comp— you know, maybe some, like in the last year, there were some postponements in one quarter or so.

Speaker #5: But barring that, we are very confident of being able to ramp up the passenger rail business. So, to sum it up, there are two business segments that we have.

Prithish Chowdhary: But barring that, we are very confident of being able to ramp up the passenger rail business. To sum it up, there are two business segments that we have. One is the freight rail segment, one is the passenger rail segment, and both need to be evaluated individually. On the freight rail segment, we have a capacity to produce 1,000 wagons per month. We have deliberately now kept it a little scaled down because of the new order visibility, which we are hoping to get in the next few months. Till we have that order visibility, we would like to downscale the operation to around 600, 650 wagons so that the overhead absorption can be kept in an equal manner.

Umesh Chowdhary: But barring that, we are very confident of being able to ramp up the passenger rail business. To sum it up, there are two business segments that we have. One is the freight rail segment, one is the passenger rail segment, and both need to be evaluated individually. On the freight rail segment, we have a capacity to produce 1,000 wagons per month. We have deliberately now kept it a little scaled down because of the new order visibility, which we are hoping to get in the next few months. Till we have that order visibility, we would like to downscale the operation to around 600, 650 wagons so that the overhead absorption can be kept in an equal manner.

Speaker #5: One is the freight rail segment. One is the passenger rail segment. And both need to be evaluated individually. On the freight rail segment, we have the capacity to produce 1,000 wagons per month.

Speaker #5: We have deliberately now kept it a little scaled down because of the new order visibility, which we are hoping to get in the next few months.

Speaker #5: Till we have that order visibility, we would like to downscale the operation to around 600–650 wagons, so that the overhead absorption can be kept in an equal manner.

Speaker #5: As far as the passenger rail system is concerned, the ramp-up is going to be steep. And, quarter on quarter, we should be able to see very healthy growth going forward.

Umesh Chowdhary: As far as the passenger rail system is concerned, the ramp up is going to be steep and quarter on quarter, we should be able to see a very healthy growth going forward.

Speaker #6: Okay. Sir, let me—ek sir ne bataya tha, 850 cars per annum for the passenger railway. Did I hear that correct? Yes, sir.

Rajesh Bhandari: Sir, one sir had told me 850 cars per annum for the passenger railway. Did I hear it right?

Umesh Chowdhary: Yes. It is there in the strategic plan also, sir. That by 2029-

Umesh Chowdhary: Yes. It is there in the strategic plan also, sir. That by 2029

Speaker #5: Yes, yes, it is there in the strategic plan also, sir, that by 2020.

Rajesh Bhandari: By which year, sir?

Speaker #6: By which year? By which year, sir?

Speaker #5: 2029, 2030. We will have a capacity. 850 गाड़ियों की capacity अपन create कर रहे हैं, Metro Vande Bharat Commuter लेकर के.

Umesh Chowdhary: 2029, 2030.

Rajesh Bhandari: Okay.

Umesh Chowdhary: We will have a capacity of 850 cars by creating metro, Vande Bharat, commuter, etc.

Speaker #6: Sab milakar? Because each car is going to cost around approximately ₹10 crore. So we can expect by...

Rajesh Bhandari: Everything combined. Because each car is going to cost approximately INR 10 crores.

Speaker #5: The total cost, the total cost of a car is ₹10 crores when we are supplying Vande Bharat, which is in consortium. So, about only 51% of the car value comes to us.

Umesh Chowdhary: The total cost of a car is INR 10 crores when we are supplying Vande Bharat, which is in consortium. About only 51% of the car value comes to us for the current contract. For the future, we will see whether we are still going consortium or we go by ourselves.

Speaker #5: For the current contract, in the future, we will see whether we are still going with consortiums or we go by ourselves.

Speaker #6: Okay. And for the Vande Bharat, okay, for other metro cars, what is our share, sir? 100%?

Rajesh Bhandari: Okay. For Vande Bharat, okay. For other metro cars, what is our share, sir? 100%?

Speaker #5: Yes, that's right. For metro cars, we participate ourselves; we don't go in consortiums.

Umesh Chowdhary: Exactly. Metro cars, we participate ourselves. We don't go in consortium.

Speaker #6: So by 2029-30, we can expect that we will have a turnover of approximately maybe around three times?

Rajesh Bhandari: So by 2029, 2030, we can expect that we will have a turnover of approximately maybe around three times?

Speaker #5: Sir, the capacity that we have, it is if you refer to the strategic plan, it will be visible there, that we have we have given it out in, in public domain.

Umesh Chowdhary: Sir, the capacity that we have, if you refer to the strategic plan, it will be visible there. We have given it out in public domain, that the total capacity-wise the company is going to have a capacity to do 850 cars.

Speaker #5: That, total capacity-wise, the company is going to have a capacity to do 850 cars, if it gets translated, eight and a half thousand crore of potential revenue.

Rajesh Bhandari: Yeah.

Umesh Chowdhary: Which gets translated to INR 8,500 crore of potential revenue, and the freight is going to be 12,000, which is a potential revenue of INR 4,500 crores. So that is the capacity that we are building. Execution of that is also dependent on receipt of orders and other factors. We would not like to give any forward-looking statement here by saying that this is the revenue that is likely to be or not likely to be. But what we are saying is that this is the overall capacity, the business potential from the company that we are generating to be ready within 2029 or 2030.

Speaker #5: And the freight is going to be 12,000, which is a potential revenue of 4,000 to 4,500 crore. So that is the capacity that we are building.

Speaker #5: Execution of that is also dependent on the sheet of orders and other factors. So we would not like to give any forward-looking statement here by saying that this is the revenue that is likely to be or not likely to be.

Speaker #5: But what we are saying is that this is the overall capacity, the business potential from the company that we are generating to be ready within 2029 or 2030.

Speaker #2: Thank you. The next question is from Kundini Embigada from Jefferies. Please go ahead.

Operator 2: Thank you. Next question is from line of Koundinya Nimmagadda from Jefferies. Please go ahead.

Operator: Thank you. Next question is from line of Koundinya Nimmagadda from Jefferies. Please go ahead.

Speaker #3: Yeah. Hi, sir. Thanks for the opportunity. I hope I am audible. Sir, my first question is on the FRS segment, right? You know, obviously, we did hear you that you scaled.

Koundinya Nimmagadda: Yeah. Hi, sir. Thanks for the opportunity. I hope I am audible. Sir, my first question is on the FRS segment. Obviously, we did hear you that it is a calibrated scale on the wagon side. What I am trying to understand here is that, this 5,300 odd wagons that you have in your order book, at least from the presentation, our understanding is that you will have to execute it this year. God forbid, if you do not get a new order flow, that 1 lakh wagon tender, whatever we are hearing. If it does not happen, do you intend to slow it down further? If so, are there any penalties which the company may need to incur? That is my first question.

Speaker #3: It's a calibrated scale on the wagon side. Now, what I'm trying to understand here is that, you know, these 5,300-odd wagons that you have in your order book—I mean, at least from the presentation, our understanding is that you will have to deliver them this year.

Speaker #3: God forbid, if you do not get a new order flow, that one lakh wagon trend or whatever we are hearing—if it does not happen—do you intend to slow it down further?

Speaker #3: If so, are there any penalties which the company may need to incur? That's my first question.

Speaker #5: So, for me, good afternoon. Yes, very clear. But, so there is no plan to scale it down even further because this plan has been done on the basis of the delivery commitment that we have.

Umesh Chowdhary: Kundani, good afternoon. Yeah, very clear. There is no plan to scale it down even further because this plan has been done on the basis of the delivery commitments that we have. In fact, with this plan of production of about 600 odd wagons, we would be maybe a couple of months ahead of the delivery schedule of most of the orders, but not much. So, the possibility of scaling this down should not be very significant. As far as new orders are concerned, we are now aggressively going and booking private orders also alongside with hoping for the new wagon tender to come out.

Speaker #5: In fact, there is there with this with this plan of production of about 600-odd wagons, we would be maybe a couple of months ahead of the delivery schedule of, most of the orders.

Speaker #5: But not much. So, the possibility of scaling this down should not be very significant. As far as new orders are concerned, we are now aggressively going and booking private orders also, alongside hoping for the new wagon tender to come out.

Speaker #3: Sir, is there anything that you're hearing on the new wagon tender? Because I think that's been in the news for some time now. We were also optimistic that it could have happened anytime in the third quarter or so.

Koundinya Nimmagadda: Sir, anything that you are hearing on the new wagon tender, because I think that has been in the news for some time now, and we were also optimistic that it could happen anytime in Q3 also. Any color on that? Has it been pushed out or is it on track?

Speaker #3: Any color on that? Has it been pushed out? Or is it on track?

Speaker #5: So, in the government machinery, you know, things do take time, as we all know. And unfortunately, the last few months have been months where the priorities overall have shifted.

Umesh Chowdhary: In the government machinery, things do take time, as we all know. Unfortunately, the last few months have been months where the priority overall have shifted because of the Middle Eastern war and all of those extraneous factors. I have always maintained that if we look at the overall macroeconomics of the railways, the requirement of the wagon can be deferred by a few months or a couple of quarters, but not dropped. The railways continue to have their target of going to 3 billion tons of freight movement. They are currently at half of that. It is a very simple arithmetic that if they have to double up their freight movement, they cannot do it with the same number of wagons.

Speaker #5: Because of the Middle Eastern war and all of those extraneous factors, I have always maintained that if we look at the overall macroeconomics of the railways, the requirement for the wagons can be deferred—not deferred by just a few months or a couple of quarters, but not dropped altogether.

Speaker #5: The railways continue to have their target of reaching 3 billion tons of freight movement. They are currently at half of that. So, it's a very simple arithmetic: if they have to double their freight movement, they cannot do it with the same number of wagons.

Speaker #3: That's clear, sir. Sir, my second question is on the PRS segment. So, two parts to it. One, is there any change to that 200-odd coaches that we were targeting—that guidance?

Koundinya Nimmagadda: That is clear, sir. Sir, my second question is on the PRS segment. So two parts to it. One, is there any change to that 200 odd coaches that we were targeting that guidance? Is it still intact or is there some change? Within that, if you can briefly comment on the key Metro projects, Bengaluru, Gujarat, and Mumbai projects. Are things on track? Do you see any delays either for things that you can control or you cannot control? If you can comment on that, please.

Speaker #3: Is it still intact, or is there some change? And within that, if you can briefly comment on the key Metro projects—Bangalore, Gujarat, and Mumbai—the projects, are things on track? Do you see any delays, either for things that you can control or that you cannot control?

Speaker #3: Are there—if you can comment on that, please.

Speaker #5: So the target remains intact. There is no shift in the target that we have. I had mentioned in the last call also that, plus or minus 10%, we should be able to achieve the target fully.

Umesh Chowdhary: The target remains intact. There is no shift in the target that we had. I had mentioned in the last call also that 10% plus minus, we should be able to achieve the target fully. As far as the projects that we are focusing on now, we are intending to complete Bengaluru and Gujarat first and get onto the prototyping of Mumbai.

Speaker #5: As far as the projects that we are focusing on now, we are intending to complete Bangalore and Gujarat first, and then get onto the prototyping of Mumbai.

Speaker #3: Sure. Sir, are there any tentative timelines that you could indicate to us on when we can expect Gujarat to complete, and when we can expect Mumbai to start?

Koundinya Nimmagadda: Sure, sir. Any potential timelines that you could indicate to us on when do we expect Gujarat to complete and when do we expect Mumbai to start? Also on Mumbai, there were some news flows of project potential delays on the civil work side. Would that in any way impact our execution?

Speaker #3: Because, and also on Mumbai, there was some news source of project potential delays on the civil work side. Would that, any which way, impact our execution?

Speaker #5: No, that will not impact our execution. you know, in infrastructure projects, two or three months delays, are not significant. They are, there is enough buffer to keep coaches also in between.

Umesh Chowdhary: No, that will not impact our execution. In infrastructure projects, two or three months delays are not significant. There is enough buffer to keep coaches also in between. As far as timeline is concerned, bulk of the Bangalore and Gujarat will be over within this financial year, maybe spilling over a little bit to the Q1 of the next financial year. The prototype of Mumbai will start simultaneously. It will not be subsequential, but it will be parallel.

Speaker #5: As far as timelines are concerned, the bulk of the Bangalore and Gujarat projects will be over within this financial year, maybe spilling over a little bit into the first quarter of the next financial year.

Speaker #5: And the prototype of Mumbai will start simultaneously. It will not be sequential, but it will be parallel.

Speaker #3: Sure, sir. If I may ask one last question: how are things panning out with respect to your backward integration and technology upgradation on the propulsion system side? If you can, maybe speak a little bit about those plans?

Koundinya Nimmagadda: Sure, sir. If I may ask one last question. How are the things panning out with respect to your backward integration/technology upgradation on the propulsion system side? If you can maybe speak a little bit about those plans.

Speaker #5: So that is also going on fully when we've already supplied two racks of propulsion equipment for EMU. We are now planning to supply the propulsion sets for MEMU, which should be done within the end of this quarter or beginning of next quarter.

Umesh Chowdhary: That is also going on fully well. We have already supplied two rigs of propulsion equipment for EMU. We are now planning to supply the propulsion sets for MEMU, which should be done within the end of this quarter or beginning of next quarter. That is the plan, which is very well on track.

Speaker #5: So that's the plan, which is very well on track.

Speaker #3: Got it, sir. Thank you very much, and all the best.

Koundinya Nimmagadda: Got it, sir. Thank you very much, and all the best.

Speaker #5: Thank you so much.

Umesh Chowdhary: Thank you so much.

Operator 2: Thank you. Next question is from the line of Parvez Qazi from Nomura Group. Please go ahead.

Operator: Thank you. Next question is from the line of Parvez Qazi from Nomura Group. Please go ahead.

Speaker #3: Thank you. Thank you. Next question is from the line of Parvesh Kazi from Noama Group. Please go ahead.

Speaker #5: Hi, good evening, and thanks for taking my question. So, continuing on with the previous participant, you indicated that we will target to complete the bulk of the Gujarat Metro order this year, with maybe some portion to be done early next year.

Parvez Qazi: Hi, good evening, and thanks for taking my question. So continuing on with the previous participant, you indicated that we will target to complete bulk of the Gujarat Metro order in this year, with maybe some portion to be done early next year. Did I get that right?

Speaker #5: Did I get that right? That's right, Parvesh. Yes, absolutely. Sure. And by when do we expect to supply the prototype for Mumbai Metro? Should be done in Q1—sorry, Q4 of this financial year, Q1 of calendar year next year.

Umesh Chowdhary: That's right, Parvez. Absolutely.

Parvez Qazi: Sure. By when do we expect to supply the prototype for Mumbai Metro?

Umesh Chowdhary: It should be done in Q4 of this financial year, Q1 of calendar year next year.

Speaker #5: Sure. And will the Vande Bharat prototype also follow a similar timeline? Q4 '27? That's right. We are targeting the same timeline; we will be giving the Vande Bharat for spring also.

Parvez Qazi: Sure. Will the Vande Bharat prototype also follow a similar timeline, Q4 2027?

Umesh Chowdhary: That is right. Within the same timelines, we will be giving the Vande Bharat first train also. End of this calendar year. That is end of this third quarter and beginning of fourth quarter, between that.

Speaker #5: End of this calendar year. That is, end of this third quarter and beginning of fourth quarter—between that. Sure. And lastly, what about the Pune Metro?

Parvez Qazi: Sure. Lastly, what about the Pune Metro? Do we need to supply a prototype there, or is it because it is an extension of an earlier order, we can just start with these products and deliver?

Speaker #5: By when do we need to supply a prototype there? Or is it because it's an extension of an earlier order, we can just start with these products instead of it?

Speaker #5: So, Pune Metro—I think, I mean, it's a very relevant question that you raised, Parvesh. So maybe I'll speak a few words about the Pune Metro.

Umesh Chowdhary: Pune Metro, I think it is a very relevant question that you raised, Parvez Qazi. Maybe I will speak a few words about the Pune Metro. This is an extension order. We do not need to do prototypes again. This is an aluminum metro, as you are already aware, most of the investors are already aware. In the past, the Pune Metro that we executed, the first 34 trains that we have supplied, we used to bring in the subassemblies or the body packs from our associate in Italy. This time, we have already acquired all the machines, which are now under the different stages of installation and commissioning, so that we are fully independent and self-sufficient to make the complete coach, right from the extrusion up to the final coach. Earlier, the subassemblies were made by Firema. Now we will be making those subassemblies very much in India.

Speaker #5: So this is an extension order. We don't need to do prototypes again. But this is an aluminum Metro, as we had already—as you are already aware, most of the investors are already aware.

Speaker #5: In the past, for the Pune Metro that we executed, the first 34 trains that we supplied, we used to bring in the sub-assemblies or the flat packs from our associate in Italy.

Speaker #5: This time, we have already acquired all the machines, which are now in different stages of installation and commissioning, so that we are fully independent and self-sufficient to make the complete coach, right.

Speaker #5: The extrusion up to the final coach—earlier, the subassemblies were made by Pirama. Now we will be making those subassemblies very well, very much in India.

Speaker #5: This will give us two things. One is, of course, we will be able to become self-reliant in the Pune Metro production line.

Umesh Chowdhary: This will give us two things. One is, of course, we will be able to become self-reliant in the Pune Metro production line. We will also set up our facility for aluminum coaches for the upcoming projects, particularly projects like the bullet train, which has to be of aluminum. While we are the only company in India which has done aluminum coaches in India, the backward integration of the manufacturing with this coach will also get established with this line. We are expecting that this production line will be fully commissioned by Q1 of next financial year. The delivery schedule of these 12 trains is Q3 or Q4 of next financial year. Even maybe before that, we will be able to deliver those trains and also be ready to produce aluminum trains in general, end to end.

Speaker #5: But we've also set up our facility for aluminum coaches for the upcoming projects, particularly projects like the bullet train, which has to be of aluminum.

Speaker #5: And while we are the only company in India which has done aluminum coaches in India, the backward integration of the manufacturing with this coach will also get established with this line.

Speaker #5: We are expecting that this production line will be fully commissioned by Q1 of next financial year, and the delivery schedule for these 12 trains is Q3 or Q4 of next financial year.

Speaker #5: So even, maybe before that, we will be able to deliver those trains, and also be ready to produce aluminum trains in general, end to end.

Speaker #5: Sure. And last question on our shipbuilding side—what are our plans there? I saw your interview where you were saying that we are making progress on construction parts.

Parvez Qazi: Sure. Last question on our shipbuilding side, what are our plans there? I saw your interview where you were saying that we are making progress on certain parts. Some update on that would be useful. Thank you.

Speaker #5: So, some update on that would be useful. Thank you. I… I… I, Parvesh, I lost your voice. Can you repeat the question? I was asking about some update on our shipbuilding venture, where we are expanding our capacity.

Umesh Chowdhary: Parvez, I lost your voice. Can you repeat the question?

Parvez Qazi: I was asking about some update on our shipbuilding venture, where we are expanding our capacity. Some perspective on that would be good. Thank you.

Speaker #5: So some perspective on that would be good. Thank you. So, on the shipbuilding, as you are aware, we have got the shipbuilding division through a wholly-owned subsidiary, which is called Titagarh Naval Systems.

Umesh Chowdhary: On the shipbuilding, as you are aware, we have spun off the shipbuilding division to a wholly owned subsidiary, which is called Titagarh Naval Systems. The new shipyard that has to come up in Palta, the work has started on the ground. We have appointed a Managing Director and CEO for this project, a person who comes with extensive knowledge and background, Commodore Hemant Khatri. He was the Chairman, Managing Director of Hindustan Shipyard before. The plan is that between the Q1 of next financial year or Q2 of next financial year, the shipyard will be fully up and running.

Speaker #5: And the new shipyard that has to come up in Palta has started—the work has started on the ground. We have appointed a Managing Director and CEO for this project.

Speaker #5: A person who comes with extensive knowledge and background, Commodore Hemant Khatri. He was the Chairman and Managing Director of Hindustan Shipyard before. And the plan is that in between Q1 of next financial year or Q2 of next financial year, the shipyard will be fully up and running.

Speaker #5: Sure. Thanks, and all the best. Please. Thank you, Parvesh.

Parvez Qazi: Sure. Thanks and all the best.

Umesh Chowdhary: Thank you.

Speaker #3: Thank you. Next question is from the line of Naveen Sahadev from ICICI Securities. Please go ahead.

Operator 2: Thank you. Next question is from the line of Naveen Sahdev from ICICI Securities. Please go ahead. Yeah. Good evening, sir. Am I audible? Hello. Yes. Yes, sir. Yes, absolutely. Right. Thank you. Thank you for the opportunity. Sir, my first question was on the recent cancellation of the MRVC tender altogether. Just to understand, does it anyway risk the total addressable market for us? Because that project now, Indian Railways says is to be done in-house versus a tender system or to private manufacturers in the past. That was the plan earlier. Just wanted to understand that is it in a way risks the total addressable market? Or the way to look at it is that since Indian Railways now will be focusing on that, the typical freight wagon things could be out to the public much sooner. Some color on that will be helpful.

Operator: Thank you. Next question is from the line of Naveen Sahdev from ICICI Securities. Please go ahead.

Speaker #5: Yeah. Good evening, sir. Am I audible? Hello? Yes. Yes, sir.

Navin Sahadeo: Yeah. Good evening, sir. Am I audible? Hello.

Umesh Chowdhary: Yes.

Umesh Chowdhary: Yes, sir.

Speaker #3: Yes, sir.

Speaker #5: Yes, absolutely. Right. Thank you. Thank you for the opportunity. Sir, my first question is about the recent cancellation of the MRVC tender altogether. Just to understand, does it in any way risk the total addressable market for us?

Umesh Chowdhary: Yes, absolutely.

Navin Sahadeo: Right. Thank you. Thank you for the opportunity. Sir, my first question was on the recent cancellation of the MRVC tender altogether. Just to understand, does it anyway risk the total addressable market for us? Because that project now, Indian Railways says is to be done in-house versus a tender system or to private manufacturers in the past. That was the plan earlier. Just wanted to understand that is it in a way risks the total addressable market? Or the way to look at it is that since Indian Railways now will be focusing on that, the typical freight wagon things could be out to the public much sooner. Some color on that will be helpful.

Speaker #5: Because that project now, Indian Railways is to be done in-house versus the tender system or to private manufacturers in the past. So, I mean, that was the plan earlier.

Speaker #5: So just wanted to understand that is it, in a way, risks the total addressable market or the way to look at it is that since Indian Railways now will be focusing on that, the wagon, the, the typical freight wagon things could be like, you know, out, to, to the public much sooner.

Speaker #5: Some color on that will be helpful. So, the freight and the passenger capacity is not fungible with each other; they are completely, you know, chalk and cheese.

Umesh Chowdhary: The freight and the passenger capacity is not fungible with each other. They are completely chalk and cheese. Both may be white, but they are completely different from each other. The question whether the shifting of this load to railway PSU can help the freight wagon demand come up, that would not be the case. As far as your question on the total addressable market is concerned, the total addressable market is not changing at all. It is only the product mix that is changing. The total addressable market and the total capacity available remains intact. It is not that ICF is a new capacity which is coming up. It has a finite capacity, does not have an infinite capacity. It is only the product mix that can keep on changing.

Speaker #5: Both may be wiped, but they are completely different from each other. So, you know, the question whether the shifting of this load to railway PSU can help the freight wagon demand come up—that would not be the case.

Speaker #5: As far as your question on the total addressable market is concerned, the total addressable market is not changing at all. It is only the product mix that is changing.

Speaker #5: The total addressable market and the total capacity available remain intact. It's not that ICF is a new capacity which is coming up; it has a finite capacity.

Speaker #5: It does not have an infinite capacity. It is only the product mix that can keep on changing. So, let us say the total requirement of the system is X, and the total supply—including ICF, including us, including Alstom, including BML—is Y.

Umesh Chowdhary: Let us say the total requirement of the system is X, and the total supply, including ICF, including us, including Alstom, including BEML is Y, those X and Y do not change. If ICF gets busy to produce a particular type of product, there will be other types of products that they will not be able to produce within the passenger segment, for which we believe that the business will come to the private sector. So we do not see this as a setback in terms of the overall business potential. Yes, of course, a large tender going off the market is not a very happy situation.

Speaker #5: Those X and Y do not change. If ICF gets busy producing a particular type of product, there will be other types of products that they will not be able to produce within the passenger segment, for which we believe the business will come to the private sector.

Speaker #5: So we do not see this as a setback in terms of the overall business potential. Yes, of course, a large tender going off the market is not a very happy situation.

Speaker #5: But as the Honorable Minister announced in his public appearance, this was done only for the reason of expediting the local train supply so that the railway’s capacity and the railway’s muscles can be used to bring these trains earlier into the Mumbai suburban system.

Umesh Chowdhary: But as the honorable minister announced in his public appearance, this was done only for the reason of expediting the local train supply so that the railway's capacity and the railway's muscles can be used to bring these trains earlier into the Mumbai suburban system. I am not quoting him, but I am just giving my own estimate. This probably will mean more Vande Bharats that were being produced by the railway production units who will be busy to produce these trains than get tendered out and be supplied by people like us.

Speaker #5: And this probably, you know, I mean, and this I'm, I'm not quoting him, but I'm, I'm just giving my own estimate. This probably will need mean more Vande Bharat that were being produced by the railway production.

Speaker #5: Units who will be busy producing these trains can get tendered out and be supplied by people like us. That's helpful. That's helpful. My second question then was on the prototype approval.

Naveen Sahdev: That is helpful. My second question then was on the prototype approval. You mentioned bulk of Gujarat will get delivered this year or early next year. Is it safe to assume that the prototypes for both Ahmedabad and Surat have already been approved and hence the confidence, or it is likely anytime soon in coming weeks or days?

Navin Sahadeo: That is helpful. My second question then was on the prototype approval. You mentioned bulk of Gujarat will get delivered this year or early next year. Is it safe to assume that the prototypes for both Ahmedabad and Surat have already been approved and hence the confidence, or it is likely anytime soon in coming weeks or days?

Speaker #5: So you mentioned the bulk of Gujarat will get, like, you know, delivered this year or early, early next year. So, is it safe to assume that the prototypes for both Ahmedabad and Surat have already been approved and hence the confidence, or is it likely anytime soon, in the coming weeks or days?

Speaker #5: We have already delivered two trains of Ahmedabad, and, you know, in metro systems, the prototype approval happens in many stages. First is the design approval, then the prototype approval, then the RDSO testing and oscillation, and all of that.

Umesh Chowdhary: We have already delivered 2 trains of Ahmedabad, and in metro system, the prototype approval happens in many stages. First is the design approval, then the prototype approval, then the Research Designs and Standards Organisation testing and oscillation and all of that. So we are in the third stage of that. But these are matters of fine-tuning. Once the train is manufactured and tested and delivered, then the other approvals are consequential.

Speaker #5: So, we are in the third stage of that. But these are matters of fine-tuning. Once the train is manufactured, tested, and delivered, then, you know, the other approvals are consequential.

Speaker #5: Understood. And just one more question also, if I can then slip in. This is regarding the Vande Bharat again, and the consortium or the tie-up we have with BHEL.

Naveen Sahdev: Understood. Just one more question also, if I can just slip in. This is regarding the Vande Bharat again and the consortium or the tie-up we have with Bharat Heavy Electricals Limited. Once we start delivering on these Vande Bharat trains, how would the accounting be? Will it be like a proportionate revenue or is it a JV where it will directly get added below the PBT as share of profit from JV? This is for both the train supply as well as the AMC is my question. Thank you.

Navin Sahadeo: Understood. Just one more question also, if I can just slip in. This is regarding the Vande Bharat again and the consortium or the tie-up we have with Bharat Heavy Electricals Limited. Once we start delivering on these Vande Bharat trains, how would the accounting be? Will it be like a proportionate revenue or is it a JV where it will directly get added below the PBT as share of profit from JV? This is for both the train supply as well as the AMC is my question. Thank you.

Speaker #5: So once we start delivering on these Vande Bharat trains, how would the accounting be? Will it be like a proportionate revenue, or is it a JV where it will directly get added below the PBT as share of profit from JV?

Speaker #5: This is for both the train supply as well as the AMC, is my question. Thank you. So, what will be separate? The AMC JV is—the share of profit is from the JV, and the supply is directly the top line and the bottom line because it is proportionate as a consortium.

Umesh Chowdhary: Both will be separate. The AMC JV is the share of profit of the JV.

Prithish Chowdhary: The supply is directly in the top line and the bottom line because it is proportionate as a consortium. That is not a JV, it is a consortium. The short answer to that is for the supply portion, it will be added to the top line and then consequently follow to the bottom line. As far as the AMC is concerned, it will be a part of the JV, so it will be a JV accounting.

Umesh Chowdhary: The supply is directly in the top line and the bottom line because it is proportionate as a consortium. That is not a JV, it is a consortium. The short answer to that is for the supply portion, it will be added to the top line and then consequently follow to the bottom line. As far as the AMC is concerned, it will be a part of the JV, so it will be a JV accounting.

Speaker #5: That's not a JV, it's a consortium. So, the short answer to that is: for the supply portion, it will be added to the top line and then, consequently, follow to the bottom line.

Speaker #5: And as far as the joint AMC is concerned, it will be a part of the JV. So it will be JV accounting.

Speaker #5: Thank you. Thank you so much for the clarification, and pardon me if any of these questions were a little naive or unrelated, as I am new to the sector.

Naveen Sahdev: Thank you. Thank you so much for the clarification, and pardon if any of these questions were a little naive. I am relatively new to the sector. Thank you.

Navin Sahadeo: Thank you. Thank you so much for the clarification, and pardon if any of these questions were a little naive. I am relatively new to the sector. Thank you.

Speaker #5: Thank you. All of them are very relevant. Thank you.

Prithish Chowdhary: All of them are very relevant. Thank you.

Umesh Chowdhary: All of them are very relevant. Thank you.

Speaker #2: Thank you, Aima. Participants, do you mind if I start in order to answer the question? Ladies and gentlemen, you may press 'star' and 'one' to answer the question. Next question is from the line of Amit Singh from 361 Capital.

Operator 2: Thank you very much. Participants, you may press star and 1 to ask a question. Ladies and gentlemen, you may press star and 1 to ask a question. Next question is from the line of Amitod Singh from 361 Capital. Please go ahead.

Operator: Thank you very much. Participants, you may press star and 1 to ask a question. Ladies and gentlemen, you may press star and 1 to ask a question. Next question is from the line of Amitod Singh from 361 Capital. Please go ahead.

Speaker #2: Please go ahead.

Speaker #3: Yes, thanks Amit for taking my question. I just wanted to have a bookkeeping question: out of the 491 passenger metro cars that we have in our order book...

Amitod Singh: Yes. Thank you so much, sir, for taking my question. I just wanted to have a bookkeeping question. Out of the 491 passenger metro cars that we have in our order book, can you give us a split of how much is for Namma Metro and Delhi Metro and so on? Is that okay?

Amitoj Singh: Yes. Thank you so much, sir, for taking my question. I just wanted to have a bookkeeping question. Out of the 491 passenger metro cars that we have in our order book, can you give us a split of how much is for Namma Metro and Delhi Metro and so on? Is that okay?

Speaker #3: Can you give us a split of how much is for Bangalore or Metro, Ahmedabad Metro, and so on? Is that possible?

Speaker #5: No, so normally we don't give out the exact split of the orders, so that's not something I'd be able to divulge at the moment.

Prithish Chowdhary: No, so normally we don't give out the exact split of the orders. That's not something I'd be able to divulge at the moment. That's usually due to competitive reasons we don't give out the exact split.

Speaker #5: That's usually due to competitive reasons. We don't give out the exact split.

Speaker #3: Got it. You got it. So, on the Gujarat metro—Ahmedabad and Surat metro are going hand in hand, and the execution for that.

Amitod Singh: Got it. Sir, on the Gujarat Metro, Ahmedabad and Surat Metro are going hand in hand, the execution for that. We should assume that they'll be executed both at the simultaneous time scale or that-

Amitoj Singh: Got it. Sir, on the Gujarat Metro, Ahmedabad and Surat Metro are going hand in hand, the execution for that. We should assume that they'll be executed both at the simultaneous time scale or that-

Speaker #3: So we should agree and assume that both will be executed simultaneously at the given times.

Prithish Chowdhary: Yes, they are being executed in parallel, sir.

Speaker #5: Yes. There are being executed in parallel, sir.

Speaker #3: Okay, that's that. Thank you so much. Thank you.

Amitod Singh: Okay. That is it, sir. Thank you so much. Thank you.

Amitoj Singh: Okay. That is it, sir. Thank you so much. Thank you.

Speaker #5: Thank you.

Prithish Chowdhary: Thank you.

Speaker #2: Thank you. Participants, you may press start in one. To answer the question, the next question is from the line of Utsav Shah from Value Investment. Please go ahead.

Operator 2: Thank you. Participants, you may press star and one to ask a question. Next question is from the line of Utsav Shah from Value Investment. Please go ahead.

Operator: Thank you. Participants, you may press star and one to ask a question. Next question is from the line of Utsav Shah from Value Investment. Please go ahead.

Speaker #5: Hi, sir. Good evening. Am I audible? Yes. Yes, sir. You're audible.

Utsav Shah: Hi, sir. Good evening. Am I audible?

Prithish Chowdhary: Yes. Yes, sir, you are audible.

Operator 2: Yes, sir, go ahead.

Operator: Yes, sir, go ahead.

Speaker #2: Yes, sir. Go ahead.

Utsav Shah: I just had one question regarding the wheel set JV that we had with Ramkrishna Forgings. Are we on track as per the timeline initially given regarding the phase 2 start from April 2027? Am I right? Am I correct?

Speaker #5: Yeah. So just I had I just had one question regarding the wheelset, JV that we had with Ramakrishna. are we on track, as per the timeline initially given, regarding the phase two, phase two start, from April 27?

Speaker #5: Am I right? Am I correct? So, in fact, the hot trials are currently ongoing in the 49, in the factory in Chennai, sir.

Prithish Chowdhary: So, in fact, the hot trials are currently ongoing in the forging line in the factory in Chennai, sir. Starting this month, starting August, we start the sample production. I would say the JV is progressing on track, very much on track.

Speaker #5: And, starting this month, so starting August, the samples we start the sample production. So, I would say the, the JV is progressing on track.

Speaker #5: Very much on track. Okay, sir. Okay. And any guidance as to when the wagons order is out? Because I think that's what most of our finalists are tracking right now.

Utsav Shah: Okay, sir. Okay. Any guidance on as to when the wagon's order is out? Because I think that is what most of us analysts are tracking right now. Any news, anything regarding that, any tentative idea as to when latest it might come?

Speaker #5: So, any news, anything regarding that? Any tentative idea as to when it, at the latest, might come? So, we are also hopeful for the tender to come out, sir.

Prithish Chowdhary: So we are also hopeful for the tender to come out, sir. Whatever we know is also from based off of media reports which is the case anyway. There is a target, a clear target of 3 billion tons of freight loading, which remains unchanged. As was mentioned earlier in the call that in order to meet that target, it is only logical that procurement of wagons will have to be done. It is only a question of time before the railways comes out with the tender. As far as the timeline, we are also hopeful.

Speaker #5: So whatever we know is also from based off of media reports, which indicate anyway. So so there is a target that we target of 3 billion tons of freight loading, which remains unchanged.

Speaker #5: And, as was mentioned earlier in the call, in order to meet that target, it is only logical that procurement of wagons will have to be done.

Speaker #5: So, it's only a question of time before the Railways comes out with the tender. And as far as the timeline, we are also hopeful.

Speaker #5: Okay, sir. Sure. Thank you. Thank you.

Utsav Shah: Okay, sir. Sure. Thank you.

Prithish Chowdhary: Thank you.

Speaker #2: Thank you. Participants, you may press start in one. To answer your question, the next question is from Lana Sandeep Mukherjee from SKP Securities. Please go ahead.

Operator 2: Thank you. Participants, you may press star and one to ask a question. Next question is from the line of Sandeep Mukherjee from SKP Securities. Please go ahead.

Operator: Thank you. Participants, you may press star and one to ask a question. Next question is from the line of Sandeep Mukherjee from SKP Securities. Please go ahead.

Speaker #5: Thank you for taking my question. My only question is: how many Bangalore coaches for public trains were delivered in Q1 as of April 27? And how many traction motors were dispatched in Q1 up to April 27?

Sandeep Mukherjee: Sir, thanks for taking this question. My only question is that how many Namma Metro coaches are delivered in Q1 FY27, and how many traction motors are dispatched in Q1 FY27?

Speaker #5: And so, as far as the Bangalore Metro dispatches, sir, that is again not a number that, we can divulge due to competitive reasons. as far as the traction motor dispatches, are concerned, there were there were two there were, 72 traction motors, and so during this quarter, we have dispatched approximately 263 traction motors.

Prithish Chowdhary: As far as the Namma Metro dispatches, sir, that is again, not a number that we can divulge due to competitive reasons. As far as the traction motor dispatches are concerned, there were 72 traction motors, and during this quarter, we have dispatched approximately 263 traction motors.

Speaker #5: Okay. Okay. That fits it. Thank you.

Sandeep Mukherjee: Okay. That's it, sir. Thank you.

Speaker #2: Thank you. Participants, you may press Start in one. To answer the question, the next question is from the line of Amay Sarda from Purnata Investment Advisors.

Operator 2: Thank you. Participants, you may press star and 1 to ask a question. Next question is from the line of Amey Sarada from Purnartha Investment Advisers. Please go ahead.

Operator: Thank you. Participants, you may press star and 1 to ask a question. Next question is from the line of Amey Sarada from Purnartha Investment Advisers. Please go ahead.

Speaker #2: Please go ahead.

Amey Sarada: Hello. Hi there. Thank you so much for the opportunity. Just one question, we have booked for INR 270 crores from the shipbuilding segment. In how much time can we execute this order book?

Amay Sharda: Hello. Hi there. Thank you so much for the opportunity. Just one question, we have booked for INR 270 crores from the shipbuilding segment. In how much time can we execute this order book?

Speaker #5: Hello. Hi, sir. Thank you so much for the opportunity. I just have a question. So we have booked for 870 carous in the shipbuilding segment.

Speaker #5: So, in how much time can we execute this order book? So this shipbuilding order that we have received, from is a there's a tenure of delivery.

Prithish Chowdhary: The shipbuilding order that we have received from Mr. Rashid, there's a tenure of delivery. The first ship has to be delivered over 30 months, and then

Speaker #5: So, the first ship has to be delivered over 30 months, and then it will be delivered over a period of two years, sir.

Prithish Chowdhary: It will be delivered over a period of 2 years, sir. But as mentioned earlier, this will be executed in the wholly owned subsidiary, the new entity, which is Titagarh Rail Systems Limited.

Umesh Chowdhary: It will be delivered over a period of 2 years, sir. But as mentioned earlier, this will be executed in the wholly owned subsidiary, the new entity, which is Titagarh Rail Systems Limited.

Speaker #5: but as mentioned earlier, this will be executed in the, holy on subsidies in the new entity, which is Naval Systems Limited. Okay. Okay. So this will not be executed this year for sure.

Amey Sarada: Okay. This will not be executed this year for sure.

Amay Sharda: Okay. This will not be executed this year for sure.

Speaker #5: No, sir. Over the next 30 months, sir. Not this year. Okay. Okay. Okay. Thank you so much. That's it.

Prithish Chowdhary: No, sir. Over 30 months, sir. Not this year.

Amey Sarada: Okay. Thank you so much, sir. That is it.

Amay Sharda: Okay. Thank you so much, sir. That is it.

Speaker #2: Thank you. Ladies and gentlemen, you may press 'star one' to ask a question. The next question is from the line of Amit Gupta from ICICI Securities.

Operator 2: Thank you. Ladies and gentlemen, you may press star and 1 to ask the question. Next question is from the line of Amit Gupta from ICICI Securities. Please go ahead.

Operator: Thank you. Ladies and gentlemen, you may press star and 1 to ask the question. Next question is from the line of Amit Gupta from ICICI Securities. Please go ahead.

Speaker #2: Please go ahead.

Speaker #5: Good evening, sir. Yes, sir. Good evening. Sir, I have a question on Wheels JV with RK Forges. I just wanted to understand, what is the profitability trajectory that we are expecting from this JV?

Amit Gupta [Fund Manager: Good evening.

Amit Gupta: Good evening.

Prithish Chowdhary: Yes, sir. Good evening.

Amit Gupta [Fund Manager: Sir, I have a question on Wheels JV with Ramkrishna Forgings. I just wanted to understand what is the profitability trajectory that we are expecting this JV. What could be your finish and then going ahead, what could be the steady state margins?

Amit Gupta: Sir, I have a question on Wheels JV with Ramkrishna Forgings. I just wanted to understand what is the profitability trajectory that we are expecting this JV. What could be your finish and then going ahead, what could be the steady state margins?

Speaker #5: At what city will be taken, and then going at what could be the steady state margins? So, as far as the margins are concerned, we would expect to maintain margins in line with the standard forging business.

Prithish Chowdhary: As far as the margins are concerned, we would expect to maintain margins in line with our standard forging business. If you look at the margins of any forging company like Ramkrishna Forgings, for example, you would expect the margins to remain in line with that. As far as our selling price is concerned and our margins are concerned, our selling price to the Indian Railways is in public domain as far as the per kilogram of wheel is concerned. That is already public information.

Speaker #5: So if you look at the margins of any forging company like RKS, for example, we would expect the margins to remain in line with that.

Speaker #5: As far as our selling price is concerned and our margins are concerned, our selling price to the Indian Railways is in the public domain, as far as the per kilogram of wheel is concerned.

Speaker #5: So, that's already public information? Okay. Yeah, that was my question. Thank you, sir.

Amit Gupta [Fund Manager: Okay. Yeah, that was my question. Thank you, sir.

Amit Gupta: Okay. Yeah, that was my question. Thank you, sir.

Speaker #2: Thank you. Participants, you may press start in one. To answer question, next follow-up question is from the line of Rajesh Bhandari from the Kora Engineers.

Operator 2: Thank you. Participants, you may press star and 1 to ask the question. Next follow-up question is from the line of Rajesh Bhandari from Nakoda Engineers. Please go ahead.

Operator: Thank you. Participants, you may press star and 1 to ask the question. Next follow-up question is from the line of Rajesh Bhandari from Nakoda Engineers. Please go ahead.

Speaker #2: Please go ahead.

Speaker #3: Sir, thanks for giving me chance again. Sir, you have wheel car regular production कब से चालू होने वाला है, sir?

Rajesh Bhandari: Sir, thanks for giving me chance again. Sir, regular production, sir?

Speaker #5: Sir, ये trial production is standing में या इस quarter में अभी इस Q2 of this financial year में अपना चालू हो जाएगा। उसके बाद एक approval process होता है। इस साल के अंदर हम, जो invoicing है, wheels का वो चालू कर देंगे।

Prithish Chowdhary: trial production Q2 of this financial year approval process invoicing

Umesh Chowdhary: trial production Q2 of this financial year approval process invoicing

Speaker #3: And कितना time में complete होगा, sir? Because the order is a huge one.

Rajesh Bhandari: And time complete sir, because the order is a huge one.

Speaker #5: ये तो 20 साल का supply है, sir. ये तो 20 साल चलेगा, sir.

Prithish Chowdhary: supply sir

Umesh Chowdhary: supply sir

Speaker #3: Okay. Okay. So approximately one, मतलब 500 crores per year.

Rajesh Bhandari: Okay. So approximately INR 500 crores per year.

Speaker #5: 80,000 चक्के जो हैं, वो हमको सालाना उधर देने हैं। और जो capacity बन रही है, वो 2,20,000 या 2,28,000 की बन रही है। इसमें 40% आज capacity will be underwritten by the railways for the next 20 years.

Prithish Chowdhary: capacity 220,000 28,000 which 40% of capacity will be underwritten by the railways for the next 20 years. Balance will be sold either to TRSL or to other customers.

Umesh Chowdhary: capacity 220,000 28,000 which 40% of capacity will be underwritten by the railways for the next 20 years. Balance will be sold either to TRSL or to other customers.

Speaker #5: The balance will be sold either to TRSL or to other customers.

Speaker #3: Okay, so what turnover can we expect, sir, from next year?

Rajesh Bhandari: Okay. So what turnover can we expect, sir, from next year? From the wheel.

Speaker #5: So at peak capacity, at peak capacity utilization, एक चक्का जो होता है, वो लगभग 1 लाख रुपये का होता है।

Prithish Chowdhary: At peak capacity utilization ballpark calculation.

Umesh Chowdhary: At peak capacity utilization ballpark calculation.

Speaker #3: 1 लाख.

Speaker #5: 2,28,000—1 लाख, एक चक्का जो होता है, लगभग। ये ballpark बता रहा हूँ, माने.

Speaker #3: हाँ, Sir. हाँ, Sir. हाँ, समझा. हाँ.

Speaker #5: तो ballpark अगर आपने, जैसे अगर thumb rule calculation करें, तो एक चक्का 1 लाख पकड़ लीजिए, तो 2,28,000 चक्के की capacity, अपनी full capacity, आपका completion of phase two होगी।

Speaker #3: जी, जी. ठीक है, sir.

Speaker #5: Thank you, sir.

Prithish Chowdhary: Thank you, sir.

Umesh Chowdhary: Thank you, sir.

Speaker #3: Thank you.

Rajesh Bhandari: Thank you.

Speaker #2: Thank you. Participants, you may press start in one moment. To answer the next question, the follow-up is from the line of Amit Singh from 361 Capital.

Operator 2: Thank you. Participants, you may press star and one to ask the question. Next follow-up question is from the line of Amitod Singh from 361 Capital. Please go ahead.

Operator: Thank you. Participants, you may press star and one to ask the question. Next follow-up question is from the line of Amitod Singh from 361 Capital. Please go ahead.

Speaker #2: Please go ahead.

Speaker #3: Thank you so much, sir. But my question was answered. Thank you.

Amitod Singh: Thank you so much, but my question was answered. Thank you.

Amitoj Singh: Thank you so much, but my question was answered. Thank you.

Speaker #2: Thank you. Ladies and gentlemen, you may press 'star one' to ask a question. The next follow-up question is from the line of Naveen Sadhu from ICICI Securities.

Operator 2: Thank you. Ladies and gentlemen, you may press star and one to ask the question. Next follow-up question is from line of Naveen Sahdev from ICICI Securities. Please go ahead.

Operator: Thank you. Ladies and gentlemen, you may press star and one to ask the question. Next follow-up question is from line of Naveen Sahdev from ICICI Securities. Please go ahead.

Speaker #2: Please go ahead.

Speaker #5: Yeah. So, thank you for the—thank you for the repeat opportunity. Two questions. One is about the visibility of metro orders beyond FY28. So, I'm completely convinced FY27 is looking great, much better than FY26.

Naveen Sahdev: Yeah. Thank you for the repeat opportunity. Two questions. One is about the visibility of Metro orders beyond FY28. I am completely convinced FY27 is looking great, much better than 2026, and I am assuming 2028 will also be much better, as highlighted earlier. What about the visibility for FY29 onwards? Do you see a steady increase in the year-on-year orders for these Metro cars, or it could be expected to be lumpy in nature?

Navin Sahadeo: Yeah. Thank you for the repeat opportunity. Two questions. One is about the visibility of Metro orders beyond FY28. I am completely convinced FY27 is looking great, much better than 2026, and I am assuming 2028 will also be much better, as highlighted earlier. What about the visibility for FY29 onwards? Do you see a steady increase in the year-on-year orders for these Metro cars, or it could be expected to be lumpy in nature?

Speaker #5: And I'm assuming FY28 will also be much better, as highlighted earlier. But what about the visibility for FY29 onwards? Do you see a steady state or a steady increase in the year-on-year orders for these metro cars, or could it be expected to be lumpy in nature?

Speaker #5: Sir, I think the answer to this is, in fact, even if you look at our presentation, we have highlighted a few opportunities region-wise across the country—in Western India, Southern India, and Central and North India.

Prithish Chowdhary: Sir, I think the answer to this is, in fact, even if you look at our presentation, we have highlighted a few opportunities region-wide across the country in Western India, Southern India, and Central and North India, which are tenders rather to be floated in the immediate future or in the very near future. If you look at the larger plans of the government of India, the National Rail Plan as well as the general plans of the government, there is a very clear mandate to increase the Metro network from 25 cities to 50 cities, which is a doubling of the existing Metro network. Cities where Metros already exist are constantly going in for expansions of their Metro networks. This is evident in cities like Mumbai, like Delhi, Chennai.

Umesh Chowdhary: Sir, I think the answer to this is, in fact, even if you look at our presentation, we have highlighted a few opportunities region-wide across the country in Western India, Southern India, and Central and North India, which are tenders rather to be floated in the immediate future or in the very near future. If you look at the larger plans of the government of India, the National Rail Plan as well as the general plans of the government, there is a very clear mandate to increase the Metro network from 25 cities to 50 cities, which is a doubling of the existing Metro network. Cities where Metros already exist are constantly going in for expansions of their Metro networks. This is evident in cities like Mumbai, like Delhi, Chennai.

Speaker #5: Which are opportunities which are tenders rather, you know, to be floated in the immediate future or in the very near future. And if you look at the more, if you look at the larger plans of the government of India, the National Rail Plan as well as the general plans of the government, there is a very clear mandate to increase the metro network from 25 cities to 50 cities, which is a doubling of the existing metro network.

Speaker #5: And cities where where metro is already exist are constantly going in for expansions of their metro networks. You know, this is evident in cities like Mumbai, like Delhi, Chennai, all these cities are already have metro networks running, and they are constantly looking at expanding and upgrading the same.

Prithish Chowdhary: All these cities already have Metro networks running and they are constantly looking at expanding and upgrading the same.

Umesh Chowdhary: All these cities already have Metro networks running and they are constantly looking at expanding and upgrading the same.

Speaker #5: So, as a company, we are very confident in a very buoyant passenger rail market, or an urban mass transit market, for India in the upcoming years.

Umesh Chowdhary: As a company, we are very confident on a very buoyant passenger rail market or an urban mass transit market for India for the upcoming years. To add to that, if you also look at the National Rail Plan for the passenger movement and the various announcements and targets of the government for passenger loading, it is very clear that the whole of the passenger rail segment, the coach segment, whether that is main line coaches, railway coaches, or Metro coaches, that market will remain buoyant in the country for the years to come.

Speaker #5: in add to that, sir, if you also look at the, National Rail Plan for the passenger movement and the various announcements and, targets of the government for passenger loading, it is very clear that the the whole of the passenger rail segment, the coach segment, whether that's mainline coaches, EMU coaches, or metro coaches, that market that market will remain buoyant in the country, for the years to come.

Speaker #2: Thank you very much. Ladies and gentlemen, we will take that as the last question. And I'll hand the conference over to Mr. Umesh Chaudhary, Vice Chairman and Managing Director, for closing comments.

Operator 2: Thank you very much. Ladies and gentlemen, we will take that as a last question. I now hand the conference over to Mr. Umesh Chowdhary, Vice Chairman and Managing Director, for closing comments.

Operator: Thank you very much. Ladies and gentlemen, we will take that as a last question. I now hand the conference over to Mr. Umesh Chowdhary, Vice Chairman and Managing Director, for closing comments.

Speaker #5: So thank you very much to all the participants for their valuable, valuable questions and insights. We have also made a note of all the questions that were asked, and we'll try to address them the best we can.

Umesh Chowdhary: Thank you very much to all the participants for their valuable questions and insights. We have also made a note of all the questions that were asked, and we will try to address them the best we can. I would just like to add on here is that we have been investing and working very hard on developing the passenger rail system business which, in terms of the order book, had developed and had become the majority share of the business overall of TRSL on a standalone basis. This time, although at a low base of the freight, the freight passenger has contributed to more than 30% of the overall revenue. We are very hopeful and very confident of growing this further and at full capacity of freight.

Speaker #5: I would just like to add on here that we have been investing and working very hard on developing the passenger rail system business.

Speaker #5: Which, in terms of the order book, had developed and had become the majority share of the business overall, for TRSL on a standalone basis.

Speaker #5: And, this time, although at a low base of the freight, the freight passenger has contributed to more than 30% of the overall revenue. We are very hopeful and very confident of, growing this, further.

Speaker #5: And at full capacity of, freight, as in when the new orders come, we are still very, confident that passenger would still become the dominant part of the company.

Umesh Chowdhary: As and when the new orders come, we are still very confident that passenger would still become the dominant part of the company. So it is only a matter of time, as I mentioned, in terms of the wagon order from a current level of 1.5 billion tons to move 3 billion tons, which is an absolute must for the Indian economy. The wagon order should come, but the heartening part is that in spite of the full capacity utilization of wagons, which will happen in the years to come, we still believe that passengers could still overtake the freight business and be the dominant part of the business.

Speaker #5: So it's only a matter of time, as I mentioned, in terms of the, wagon order from a current level of one and a half billion tons to move three billion tons, which is a an absolute must for the Indian economy.

Speaker #5: The wagon order should come. But the heartening part is that, in spite of this, in spite of the full capacity utilization of wagons—which will happen in the years to come—we still believe that passenger could still overtake the freight business and be the dominant part of the business.

Speaker #2: Thank you very much, members of the management. On behalf of Titagarh Rail Systems Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.

Operator 2: Thank you very much, members of the management. On behalf of Titagarh Rail Systems Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines. Thank you.

Operator: Thank you very much, members of the management. On behalf of Titagarh Rail Systems Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines. Thank you.

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Q1 2027 Titagarh Rail Systems Ltd Earnings Call

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