Texmaco Rail sees unprecedented growth with record Q2 FY25 financials and Jindal Rail acquisition

Texmaco Rail & Engineering Limited has marked a monumental year of expansion and profit with a new acquisition and record-breaking Q2 financial performance, cementing its position as a freight industry giant. The company’s recent financial results underscore a dynamic transformation, boasting a remarkable 67.2% year-over-year increase in revenue to ₹1,346 crore for Q2 FY25. This surge was catalyzed by its acquisition of Jindal Rail Infrastructure Limited (JRIL), which has since been rebranded as Texmaco West Rail Limited.

The ₹614 crore acquisition strategically positions Texmaco Rail as a market leader in the freight car industry, with the transaction reflecting a valuation of 8.1 times JRIL’s EBITDA. This addition boosted Texmaco Rail’s operational capabilities, translating into a record sales volume of 2,927 wagons per quarter—a volume instrumental to achieving revenue from operations totaling ₹2,434 crore for H1 FY25, marking an impressive 66.5% increase from the previous year.

Strategic Acquisition Reshapes Freight Industry

Kolkata-based Texmaco Rail’s acquisition of JRIL reflects its aggressive pursuit of growth in India’s rolling stock sector. The acquisition, completed in September 2024, has enhanced Texmaco’s production scale and extended its market reach. Indrajit Mookerjee, Executive Director and Vice Chairman, emphasized the acquisition’s impact, describing it as transformative for Texmaco’s market positioning. Mookerjee underscored that this deal represents India’s largest in the rolling stock industry to date, elevating Texmaco’s presence both domestically and internationally.

Financial Performance Reflects Strategic Growth

Texmaco’s financial performance in Q2 FY25 not only demonstrates significant revenue growth but also shows improved profitability metrics. Earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 82.2% year-over-year to ₹149 crore, with an 11.0% margin. The profit after tax (PAT) saw an astonishing increase of 201.2%, amounting to ₹74 crore in Q2 FY25, reinforcing Texmaco’s capacity for sustained financial growth. The half-year performance was equally robust, with an H1 EBITDA margin of 11.2% and PAT of ₹133 crore, representing a PAT margin of 5.5%.

Operational Efficiency and Record Production Levels

Sudipta Mukherjee, Managing Director, highlighted that the integration of Texmaco West Rail has led to the company’s highest-ever freight car sales, totaling 5,301 units. Texmaco’s foundries, integral to its supply chain, reported increased output with 11,156 metric tonnes of railway components produced in Q2 FY25, bolstering the company’s position as a leader in critical railway component manufacturing. This growth is strategically aligned with India’s National Rail Plan Vision 2030, which anticipates a sharp increase in rail freight volumes, a trend Texmaco Rail is well-prepared to capitalize on.

Looking Ahead: National and International Prospects

As Indian Railways continues its expansion to meet a freight loading target of 3,000 million tonnes, Texmaco’s growth trajectory appears promising. Mukherjee conveyed the company’s commitment to leveraging both government-driven and private-sector demand. Texmaco’s recent designation as a “Three Star Export House” by India’s Foreign Trade Policy underscores its strengthened role in the global freight market, paving the way for sustained export growth.

Texmaco’s management remains optimistic about the synergies created by the JRIL acquisition. The company’s extensive manufacturing capabilities, including foundries in Belgharia and Raipur, combined with an enhanced focus on private-sector contracts, position it strategically for future opportunities.