TEXRAIL
Micro CapTexmaco Rail & Engineering Limited
Industrials
Texmaco Rail & Engineering Limited is a leading provider of rail and infrastructure solutions, offering manufacturing, engineering, rail systems, and technology-driven services. The company is expanding capabilities and diversifying into new growth areas.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 50/100Rev -13% YoY · PAT +49% YoY · margin expansion · +12% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,167 Cr | -13.3% | +12.0% |
| EBITDA | ₹106 Cr | +8.2% | +19.1% |
| Operating margin | 9.0% | +200 bps | +0 bps |
| PAT | ₹58 Cr | +48.7% | +38.1% |
| PAT margin | 5.0% | +207 bps | +94 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4 FY26 revenue declined 13.3% YoY to INR1,167 crores, with full-year revenue down 14% YoY to INR4,377 crores, impacted by challenging market conditions and supply chain issues. Despite revenue drop, Q4 EBITDA improved 1.2% YoY to INR116 crores (10% margin) and PAT increased 206 bps YoY to INR58 crores (5% margin).
The company's core rail business faced significant headwinds in FY26, leading to revenue decline. Management's 'Texmaco 2.0' vision for diversification into defense, digital, and passenger mobility is strategic but nascent. The large South African order is a positive, but its execution and margin profile need close monitoring, especially given the qualified audit report and contingency provision.
Wagon Order Book by Customer Type
Latest issuer-disclosed distribution across 2 reported categories.
Infra (Electrification) Business
Grew 66% to INR610 crores revenue with 10.8% EBIT margin, showing phenomenal growth for days to come.
Synergistic Diversification
Focus on passenger mobility, railway safety network, propulsion, power electronics, and signaling systems like Kavach and electronic interlocking.
Breakout Diversification - Defense
Chosen defense as part of breakout diversification, with INR200 crores capex approved for the business.
Breakout Diversification - Digital Business
Launched Invariz.ai platform powered by ServiceNow, integrating AI to provide services globally, starting with rail solutions and CRM.
Defense Business Capex
The Board has approved INR200 crores capex for the defense business.
Overall Capex Plan
The company envisages a total capex of INR1,500 crores till 2030 for new business segments.
Indian Railway Demand
Indian Railway order portfolio is poised to come, with expectations of 1.5 lakh to 2 lakh wagons in the near term.
Private Sector Investment
Government is encouraging private companies to invest in the rail system, with traction from cement, steel, and automobile sectors.
Railway Modernization
There is huge global traction for the modernization of railway networks, signaling safety systems, propulsion technologies, metro, and urban mobility.
Challenging Market Conditions
Challenging marketing conditions and global supply chain disruptions hampered performance.
Wheel Set Availability
Supply chain issues with a special emphasis on the availability of wheel sets hampered performance in Q1 FY26.
US Tariffs
Imposition of U.S. tariffs destabilized strong business with the U.S., adversely affecting volume.
Geopolitical Tension
Ongoing geopolitical tension and trade uncertainties led to large contracts not meeting expected outcomes.
Contingency Provision
Created a provision for contingencies of INR700 crores from free reserves as a risk mitigation measure against unforeseen circumstances.
Auditor Qualification
Statutory auditors qualified their report due to the contingency provision being adjusted against free reserves instead of the P&L account.
Project Claims
Huge amounts of claims for our projects are pending, which takes time to realize.
Cyclicality of Core Business
Overdependence on the cyclical wagon industry is a concern, driving diversification efforts.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY is crucial for assessing overall revenue and profitability trends in a cyclical, project-based business. QoQ is relevant for evaluating sequential operational efficiency improvements, such as the reported decrease in direct expenses.
Order Inflow
Secured a South African order of INR4,000+ crores for 2,200 wagons, 30 diesel locomotives, and 15-year maintenance.
Order Book
Wagon order book is around 70% from private customers.
Execution
Delivered 2,196 freight cars in Q4 FY26 and 8,372 for the full year, which was lower than last year's record.
Margin
Q4 FY26 EBITDA margin was 10% and PAT margin was 5%. Full year FY26 EBITDA margin was 10.2% and PAT margin was 4.4%.
Vision 2030
Aims to grow top line at least 2x and achieve mid-teen EBITDA percentages and above, with a 'Texmaco 2.0' transformation journey.
Strategic Diversification
Reducing dependence on the cyclical wagon industry by moving into EPC projects, railway-related adjacencies, defense, and digital business.
Financial Stability
Focused on maintaining a strong balance sheet, driving cost optimization, and reducing leverage to support growth aspirations.
Global Ambition
Proud to be an Indian company coming up as a global solution provider with technology backup.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Wagon Order Inflow from Indian Railways | No bids called out yet, but management expects 1.5-2 lakh wagons in near term. | Announcement of large wagon tenders and their timing, which could significantly boost the order book. |
| South African Order Execution | INR4,000+ crores order received, with delivery expected by FY28 end. | Revenue booking trajectory, details on locomotive production, and clarity on raw material cost pass-through mechanisms. |
| Diversification Progress (Defense & Digital) | INR200 crores capex approved for defense; Invariz.ai platform launched. | First commercial orders in defense, progress on technology tie-ups, and market traction for Invariz.ai services. |
| Contingency Provision Resolution | INR700 crores provision from free reserves, leading to a qualified audit report. | Management's ability to realize significant pending claims and potential savings from the provision, and auditor's stance in future reports. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
45NeutralSMA20 -8.0% / mo
Technical chart
TEXRAILweekly · 5Y-51.9%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 46. Wait for confirmation.
- SMA20 falling (~8.7% over last month) — short-term momentum negative.
- RSI(14) at 46 — rising, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 42% off 52W high · 35% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 3.1%.
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 51.2%.
Main drags
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 14/30; verify the latest quarterly trend.
- Balance sheet is weaker at 8/15; verify the latest quarterly trend.
Execution business valuation: EV/EBITDA plus order and working-capital risk
Capital-intensive execution stories need cash-flow and balance-sheet checks alongside valuation.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 61st percentile of the scored universe and 58th percentile within Industrials. Main check: results consistency is weak at 49/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: 2 recent quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Industrials: 58th pctile, median 68 · Micro: 44th pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 3%.
- ▸5 years of positive FCF.
- ▸OPM spread across recent quarters is 3%.
Trust risks
- ▸2 recent quarters had PAT decline worse than 25% YoY.
- ▸ROE is low at 7.6%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 21.20
- P/B
- 1.76
- EV/EBITDA
- 11.64
- Market Cap
- 4192.00Cr
Profitability
- ROE
- 7.63%
- ROCE
- 11.40%
- ROA
- 3.84%
- Dividend Y
- 0.73%
Growth (CAGR)
- Revenue 5Y
- 21.00%
- EPS 5Y
- 69.00%
- Revenue 3Y
- 25.00%
- EPS 3Y
- 97.00%
Balance Sheet
- Debt/Equity
- 0.38
- Interest Coverage
- 3.17×
- Altman Z
- 2.87
- Book Value
- 58.40
Cash Flow
- FCF Yield
- 3.15%
- FCF Positive Y
- 5/5
- OCF
- 363.00 Cr
- EPS TTM
- 4.80
Shareholding
- Promoter Hold
- 48.34%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 23%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.