- Shares of Titagarh Rail Systems rose after Nuvama raised its target price to Rs 1,089
- Nuvama maintained a Buy rating, citing strong order pipeline and improved project execution
- Q4FY26 revenue fell 14% YoY to Rs 8.6 billion; adjusted profit dropped 53% to Rs 608 million
Shares of Titagarh Rail Systems gained in trade after brokerage Nuvama reiterated its ‘Buy' rating on the railway equipment maker and raised its target price to Rs 1,089 from Rs 1,061, implying an upside of nearly 30% from current levels. The brokerage remains constructive on the company's long-term prospects despite a weak March-quarter performance, citing improving execution in passenger rail projects and a strong order pipeline.
Titagarh Rail shares surged as much as 4.81% to a high of Rs 840 apiece. The stock has 12 analysts tracking it, with 11 buy calls, and only one sell call. According to Nuvama, the timing and scale of fresh wagon orders from Indian Railways could act as the next major trigger for the stock.
Titagarh Rail reported a 14% year-on-year decline in Q4FY26 revenue and a 53% drop in adjusted profit as a shrinking wagon order book weighed on freight business execution. Revenue came in at Rs 8.6 billion, while adjusted profit fell to Rs 608 million.
However, Nuvama said “green shoots” are emerging in the business. Passenger segment revenue nearly doubled year-on-year, while coach deliveries continued to ramp up. The company delivered 24 passenger coaches during the quarter compared with just six in the year-ago period.
The brokerage highlighted that Titagarh's order book remains healthy at around Rs 142 billion. Of this, about Rs 106 billion relates to passenger coach projects, including metro rail and Vande Bharat programmes, while Rs 31 billion is tied to freight wagons.
Nuvama acknowledged near-term challenges in the wagon segment, which prompted it to cut FY27 and FY28 earnings estimates by 14% and 3%, respectively. The company currently has wagon orders sufficient until roughly the third quarter of FY27, making fresh tenders from Indian Railways a key monitorable.
Production has begun on Vande Bharat trainsets, with the prototype expected by Q3FY27 or Q4FY27. Deliveries for Mumbai Metro coaches are also expected to commence later this fiscal year, while the company's wheelset joint venture with Ramkrishna Forgings is scheduled to begin production from June 2026.
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