Texmaco Rail & Engineering Limited (TEXRAIL) AI Stock Analysis

• Market Cap: ₹39.04B
• Dividend Yield: 0.56%
• Average Volume (3M): 80.18K
• Price to Earnings (P/E): 32.1
• Beta (1Y): 2.09
• Revenue Growth: 13.15%
• EPS Growth: 6.26%
• Country: IN
• Employees: 1,969
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 1.10
• Shares Outstanding: 406,864,560
• 10 Day Avg. Volume: 79,124
• 30 Day Avg. Volume: 80,177
• PEG Ratio: 0.25
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 1.08
• P/FCF Ratio: -9.54
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 5.6
• Revenue Forecast (FY): ₹45.68B

• Rating: 63 Neutral
• Price Target: ₹106.00 ▼(-22.34% Downside)
• Action: Reiterated Date: 12/10/25
• Date: Action: Reiterated 12/10/25

The overall stock score of 63 reflects strong financial performance with robust revenue growth and improved profitability, offset by significant cash flow challenges. Technical analysis indicates a bearish trend with a lack of strong momentum. Valuation metrics suggest the stock is fairly valued, but with a low dividend yield.

Positive Factors

Revenue and margin improvement

A strong reported 45.75% revenue jump and rising net margins reflect improved contract wins, pricing or execution. Sustained higher revenue and margin expansion strengthen long-term cash generation potential, support reinvestment in capacity, and improve competitive positioning in rail manufacturing.

Favourable balance-sheet equity position

A high equity ratio and improving ROE indicate financial stability and better asset utilization. This capital structure provides flexibility to fund capex or absorb shocks in a cyclical industry, reducing default risk and enabling strategic investments without excessive refinancing pressure.

Diversified rail-focused business model

Multiple revenue streams across manufacturing, EPC-style infrastructure work and service/spares create structural resilience. Diversification across product sales, long-term projects and services smooths revenue volatility, increases cross-sell potential, and aligns with sustained government and private rail investment trends.

Negative Factors

Weak cash generation

Material negative free cash flow and an operating cash flow shortfall versus reported earnings signal strained liquidity. Over months this reduces ability to self-fund contracts, raises reliance on external financing, and increases execution risk on working-capital intensive, long-duration projects.

Rising leverage

An uptick in leverage reduces financial flexibility and raises interest burden sensitivity. Combined with weak cash conversion, higher debt levels could constrain bidding capacity for large contracts or require higher-cost financing, weakening long-term operational resilience in cyclical infrastructure cycles.

Inconsistent growth and earnings signals

Contrasting metrics—strong reported year-on-year revenue in one report vs. negative multi-period fundamentals—suggest volatility in orders, possible base effects or uneven margin quality. This undermines predictability of future earnings and complicates capacity planning and capital allocation over the medium term.

Texmaco Rail & Engineering Limited Business Overview & Revenue Model

Company Description

Texmaco Rail & Engineering Limited operates as an engineering and infrastructure company in India. It operates through three segments: Heavy Engineering, Steel Foundry, and Rail EPC. The company offers payload stainless/high tensile steel freight, commodity-specific, special purpose freight, bottom discharge coal hopper, container flat, tank, defense equipment, and auto car wagons; and coach bogies, loco-shells, loco bogies, loco components, EMU coaches, underframes, and parcel and brake vans. Its steel foundries produce bogies, couplers, draft gears, draw bars, CMS crossings, high axle load bogie and shroud castings, center plates, floating yokes, and AAR yokes and followers, as well as industrial castings for defence, earth moving equipment, and hydro power projects. The company also provides various gates; bifurcation, trifurcation, transition, expansion joints, manifolds, reducers, dismantling joints, fixed and rocker, and supports and specials; stoplogs/bulkhead gates, hydraulics, rope drums, hoists, screw hoists, travelling hoists, etc.; knife edge gate value/filling-in valves; trashracks/screens; trash rack cleaning machines; goliath/EOT cranes/lifting beams; and refurbishment/replacement and overhauling of HM equipment of old hydro projects/barrages. It offers automation dam and barrage, and other equipment; design, supply, installation, and commissioning services for railway tracks, buildings, platforms and foot over bridges, railway signaling and telecom structures, bridges and culverts, and automatic fare collection systems; and railway overhead and other electrification services, as well as installs other power supplies. The company also provides industrial structures, steel/concrete flyovers, concrete and steel bridges, and ship hull blocks, as well as fabricates and erects steel bridges in railways and roadways, and bailey bridges. It also exports its products. The company was incorporated in 1998 and is based in Kolkata, India.

How the Company Makes Money

Texmaco Rail & Engineering Limited generates revenue through the manufacture and sale of a range of rail products and services. The company's primary revenue streams include the sale of freight cars and wagons, steel castings, and hydro-mechanical equipment. Additionally, Texmaco Rail undertakes large-scale infrastructure projects, providing end-to-end engineering solutions which contribute significantly to its revenue. The company often partners with government bodies and private firms to execute these projects, leveraging its expertise in the rail engineering sector. Furthermore, Texmaco Rail benefits from long-term contracts and government tenders, which provide a steady source of income.

Texmaco Rail & Engineering Limited Financial Statement Overview

Summary

Texmaco Rail & Engineering Limited shows strong revenue growth and improved profitability margins. However, cash flow challenges pose a risk, requiring attention to liquidity management. The balance sheet remains stable with prudent equity management, although rising leverage warrants careful monitoring.

Income Statement

Texmaco Rail & Engineering Limited has demonstrated strong revenue growth with a significant increase of 45.75% in 2025 compared to 2024. The gross profit margin has remained stable, averaging around 16% over the years, indicating efficient cost management. Net profit margin improved significantly to 4.88% in 2025 from 3.23% in 2024, reflecting enhanced profitability. The EBIT and EBITDA margins have also shown positive trends, underscoring operational efficiency improvements.

Balance Sheet

The balance sheet shows a favorable equity position, with an equity ratio of 57.82% in 2025, indicating financial stability. The debt-to-equity ratio has increased from 0.25 in 2024 to 0.34 in 2025, suggesting a moderate rise in leverage. However, return on equity improved from 4.47% in 2024 to 8.91% in 2025, highlighting better asset utilization and profitability.

Cash Flow

The cash flow statements reveal challenges in generating free cash flow, with a significant decline to -5791 million in 2025. The operating cash flow to net income ratio turned negative, indicating cash flow management issues. The free cash flow to net income ratio is unfavorable, suggesting potential liquidity concerns. However, financing activities have provided some relief through increased cash inflows.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	49.29B	51.07B	35.03B	22.43B	16.22B	16.89B
Gross Profit	7.80B	8.22B	3.62B	4.44B	4.48B	4.19B
EBITDA	4.70B	4.67B	3.08B	1.71B	1.62B	1.43B
Net Income	2.19B	2.49B	1.13B	260.26M	205.00M	141.58M
Balance Sheet
Total Assets	0.00	48.37B	41.85B	33.85B	26.64B	26.42B
Cash, Cash Equivalents and Short-Term Investments	2.93B	2.93B	3.27B	309.58M	563.62M	581.98M
Total Debt	0.00	9.48B	6.31B	9.84B	7.10B	7.79B
Total Liabilities	-28.30B	20.07B	16.55B	19.95B	13.36B	15.03B
Stockholders Equity	28.30B	27.97B	25.33B	13.92B	13.31B	11.41B
Cash Flow
Free Cash Flow	0.00	-5.79B	136.55M	-1.56B	114.11M	320.16M
Operating Cash Flow	0.00	-465.78M	957.81M	-1.03B	271.70M	403.14M
Investing Cash Flow	0.00	-955.72M	-6.33B	-760.67M	203.55M	-230.12M
Financing Cash Flow	0.00	1.72B	5.33B	1.51B	-119.52M	-131.31M

Texmaco Rail & Engineering Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 136.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TEXRAIL, the sentiment is Negative. The current price of 136.5 is above the 20-day moving average (MA) of 110.97, above the 50-day MA of 121.66, and below the 200-day MA of 139.80, indicating a bearish trend. The MACD of -6.44 indicates Positive momentum. The RSI at 23.90 is Positive, neither overbought nor oversold. The STOCH value of 10.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TEXRAIL.

Texmaco Rail & Engineering Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IRCON	65 Neutral	₹122.88B	41.51	―	1.56%	-13.85%	-34.81%
RITES	64 Neutral	₹97.90B	28.60	―	3.24%	-5.23%	3.21%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TEXRAIL	63 Neutral	₹39.04B	32.08	―	0.56%	13.15%	6.26%
BEML	62 Neutral	₹137.30B	-173.04	―	0.29%	-1.31%	3.61%
KEC	60 Neutral	₹144.67B	38.53	―	0.74%	12.21%	56.50%
TITAGARH	60 Neutral	₹86.48B	62.52	―	0.12%	-14.65%	-36.95%

Texmaco Rail & Engineering Limited Corporate Events

Texmaco Rail Wins Rs. 2.13 Crore TRD Order for NMDC Nagarnar Steel Plant

Texmaco Rail & Engineering Limited has received a domestic order worth Rs. 2.13 crore from ECOR to execute traction, or TRD, works at NMDC’s Nagarnar steel plant, including the NSL SSP facility. The contract, to be completed within 11 months from the Letter of Acceptance, reinforces Texmaco’s role in technical rail-related infrastructure projects, adding to its execution pipeline but remaining modest in size relative to large industry-scale contracts.

The order is not a related-party transaction and carries no promoter or group-company interest in the awarding entity, indicating an arm’s-length, market-based engagement. For stakeholders, the award signals continued order inflows from core industrial and rail-linked clients, supporting operational visibility without materially altering the company’s overall risk profile or capital structure.

Texmaco Rail Holds Margins Amid Headwinds, Deepens Rail Orders in Q3 FY26

Texmaco Rail & Engineering reported unaudited consolidated revenue of ₹1,042 crore for Q3 FY26, with EBITDA of ₹102 crore at a 9.6% margin and profit after tax of ₹42 crore. Management said revenues were dampened by temporary supply-side constraints and export headwinds, but highlighted that operational discipline and cost controls helped preserve margins.

For the nine months ended December 31, 2025, revenue from operations reached ₹3,210 crore, with EBITDA of ₹313 crore and a 9.7% margin, and profit after tax of ₹136 crore, reflecting both resilience and the cumulative impact of sectoral challenges. During the quarter, Texmaco deepened its engagement with Indian Railways, secured multiple orders across rail electrification, freight mobility and metro infrastructure, and advanced plans to expand into future-ready segments such as wheelsets, metro and EMU products, and signalling and propulsion solutions.

Texmaco Rail files investor presentation on Q3 and nine-month FY2025 results

Texmaco Rail & Engineering Limited has submitted an investor earnings presentation covering its unaudited financial results for the quarter and nine months ended 31 December 2025 to the National Stock Exchange of India and BSE. The presentation, also made available on the company’s website, is disclosed under securities listing regulations, underscoring Texmaco Rail’s ongoing compliance and transparency in financial reporting for its stakeholders.

The filing signals continued engagement with investors by providing structured insight into recent financial performance and operational trends, though detailed figures are contained in the separate presentation. By circulating this update across exchanges and online, Texmaco Rail aims to keep shareholders and market participants informed, supporting informed decision-making and reinforcing its governance practices in the rail and engineering space.

Texmaco Rail Posts Analyst Call Audio, Affirms Compliance on Disclosures

Texmaco Rail & Engineering Limited has notified the stock exchanges that it has uploaded the audio recording of its analyst and investor conference call discussing financial results held on February 9, 2026, at 5:30 p.m. IST. The company stated that the recording is available through its investor relations corporate announcements page on its website and confirmed that no unpublished price-sensitive information was shared during the call, underscoring its compliance with disclosure regulations and transparency for stakeholders.

Texmaco Rail’s Panihati Engineering Udyog to Cease as Wholly Owned Subsidiary After New Share Issue

Texmaco Rail & Engineering Limited has announced that its wholly owned subsidiary, Panihati Engineering Udyog Private Limited, will cease to be a subsidiary following a fresh equity issue to new investors from the promoter group. The Board has approved the issuance of 31,500 new equity shares of Rs 10 each in Panihati Engineering Udyog, amounting to Rs 3.15 lakh, which will dilute Texmaco’s ownership once these shares are acquired and is expected to complete within a month; given that Panihati contributed no income and a negligible net worth of Rs 0.01 crore in the last financial year, the move suggests a minor financial impact but signals a rationalisation of Texmaco’s corporate structure and capital allocation across group entities.