Titagarh Rail shares slip as analysts trim estimates after Q2 results

Titagarh Rail posted a decline in revenue and profit for FY26, as wheelset availability constraints weighed on wagon production, analysts at Nuvama said

Shares of Titagarh Rail Systems fell over 1 per cent on Wednesday after analysts trimmed future earnings estimates as the company reported a drop in the September quarter (Q2FY26) earnings.  

 

The railway wagon maker's stock fell as much as 1.06 per cent during the day to ₹860.4 per share. The stock pared losses to trade 0.9 per cent lower at ₹861.4 apiece, compared to a 0.26 per cent advance in Nifty 50 as of 10:37 AM. 

 

Shares of the company fell for the second session. The counter has fallen 22 per cent this year, compared to a 9.8 per cent advance in the benchmark Nifty 50. Titagarh Rail has a total market capitalisation of ₹11,589.35 crore. 

 

Titagarh Rail Q2 results 

The company reported a 54.26 per cent decline in consolidated net profit to ₹36.90 crore in Q2FY26, compared with ₹80.69 crore in Q2 FY25. Revenue from operations fell 24.40 per cent Y-o-Y to ₹799.03 crore in the quarter ended 30 September 2025.  

 

Total expenses declined 21.68 per cent to ₹746.08 crore in Q2FY26 over Q2FY25. During the quarter, the cost of raw materials and components consumed was ₹565.41 crore, a 30 per cent drop Y-o-Y, while employee benefits expense rose 29.12 per cent Y-o-Y to ₹25.54 crore.

Analysts on Titagarh Rail earnings

Titagarh Rail Systems posted a decline in revenue and profit after tax for the second quarter of FY26, as wheelset availability constraints weighed on wagon production, analysts at Nuvama Institutional Equities said. 

 

Despite the operational setback, order inflows remained strong, with the company securing a ₹24.8 billion contract for Mumbai Metro Line 5, further strengthening its position in the passenger coach segment, Nuvama said. The order book also expanded sequentially to around ₹15,100 crore, according to Nuvama.

 

Nuvama noted that subdued wagon tendering is likely to drag near-term earnings, prompting the brokerage to cut its FY26 and FY27 EPS estimates by 20 per cent and 18 per cent, respectively. Nevertheless, it remains positive on the company’s long-term outlook and maintains a ‘Buy’ rating with a revised target price of ₹1,088 (earlier ₹1,142).

 

The sharp revenue decline in the quarter was driven by weaker-than-expected execution in the FRS segment, according to Antique Broking. The brokerage said the segment was affected by an inadequate supply of wheelsets from the rail wheel factory, resulting in delays in delivery schedules.

 

Antique Broking noted that the company’s medium- to long-term outlook remains strong, supported by opportunities in the metro, Vande Bharat and freight wagon segments. Given the sharp earnings miss during the quarter, the brokerage has trimmed its FY26 estimates by 22 per cent but maintained its FY27 and FY28 forecasts. Antique Broking retains its 'Buy' rating on the stock with an unchanged target price of ₹1,064.