Texmaco Rail & Engineering Limited (TEXRAIL) AI Stock Analysis

• Market Cap: ₹37.90B
• Dividend Yield: 0.56%
• Average Volume (3M): 80.18K
• Price to Earnings (P/E): 32.1
• Beta (1Y): 1.99
• 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: ₹99.00 ▼(-27.47% 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

Diverse revenue streams

Texmaco earns from manufacturing rolling stock, executing rail infrastructure contracts and providing after‑sales/spares. This mix spreads cyclical risk across product sales and project work, enabling more stable cash inflows and demand exposure across public and private rail customers.

Improving margins

Reported gross margins around 16% and rising net margin to 4.88% reflect stronger pricing and operational control. Sustained margins and improving EBITDA/EBIT trends indicate the company can convert revenue into profits more efficiently, supporting reinvestment and competitive positioning over cycles.

Solid equity position

A high equity ratio (~58%) denotes a conservatively structured balance sheet, providing resilience against project delays and bid-friendly financing capacity. This equity buffer supports bidding on large contracts and absorbing working‑capital swings without immediate solvency pressure.

Negative Factors

Weak free cash flow

Significant negative free cash flow and operating cash conversion issues signal persistent working‑capital drain from large contracts. Reliance on financing inflows to cover cash needs can strain liquidity, limit organic capex and dividends, and raise refinancing risk during tougher cycles.

Rising leverage

An increasing debt-to-equity ratio, while moderate, reduces financial flexibility versus prior years. Higher leverage raises interest obligations and can constrain bid pricing or incremental investment, making the firm more sensitive to margin compression or project execution setbacks.

Input-cost & working-capital exposure

The business is exposed to steel and other input-price volatility plus long contract execution and receivable cycles. These structural exposures can erode margins and elevate cash requirements when commodity prices rise or payments lag, pressuring profitability over multi-month horizons.

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

TEXRAIL primarily makes money by executing customer orders and contracts across its rail manufacturing and rail infrastructure activities. Key revenue streams typically include: (1) Rolling stock/rail products sales: revenue recognized from manufacturing and supplying railway wagons and other rolling-stock-related products and components to customers (commonly including Indian Railways, public-sector entities, and private freight/logistics operators), with earnings driven by order volumes, product mix, and contracted pricing. (2) Project/contract revenue from rail infrastructure and systems: revenue earned from engineering, procurement, construction, installation, and related services for rail/metro/railway infrastructure and electrical/systems works, generally recognized based on contract terms and project execution progress. (3) After-sales/service and spares (if applicable): income from maintenance support, refurbishment, and supply of spares tied to delivered products/projects; specific contribution details are null. The company’s earnings are influenced by factors such as its order book and tender wins, capacity utilization, raw material and input-cost movements (e.g., steel), execution timelines, working-capital cycles typical of large contracts, and customer budget cycles in the rail sector. Specific major partnerships, customer concentration figures, and segment-wise revenue splits are null.

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	48.41B	51.07B	35.03B	22.43B	16.22B	16.89B
Gross Profit	8.66B	8.22B	3.62B	4.44B	4.48B	4.19B
EBITDA	4.61B	4.67B	3.08B	1.71B	1.62B	1.43B
Net Income	2.11B	2.49B	1.13B	260.26M	205.00M	141.58M
Balance Sheet
Total Assets	49.23B	48.37B	41.85B	33.85B	26.64B	26.42B
Cash, Cash Equivalents and Short-Term Investments	3.02B	2.93B	3.27B	309.58M	563.62M	581.98M
Total Debt	9.06B	9.48B	6.31B	9.84B	7.10B	7.79B
Total Liabilities	20.21B	20.07B	16.55B	19.95B	13.36B	15.03B
Stockholders Equity	28.64B	27.97B	25.33B	13.92B	13.31B	11.41B
Cash Flow
Free Cash Flow	1.37B	-5.79B	136.55M	-1.56B	114.11M	320.16M
Operating Cash Flow	2.12B	-465.78M	957.81M	-1.03B	271.70M	403.14M
Investing Cash Flow	-762.71M	-955.72M	-6.33B	-760.67M	203.55M	-230.12M
Financing Cash Flow	-1.32B	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: Neutral
• STOCH: Neutral

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 100.80, above the 50-day MA of 114.18, and below the 200-day MA of 136.97, indicating a bearish trend. The MACD of -6.83 indicates Positive momentum. The RSI at 33.70 is Neutral, neither overbought nor oversold. The STOCH value of 20.93 is Neutral, 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
KEC	66 Neutral	₹149.48B	38.53	―	0.74%	12.21%	56.50%
IRCON	65 Neutral	₹121.98B	41.51	―	1.56%	-13.85%	-34.81%
RITES	64 Neutral	₹94.80B	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	₹37.90B	32.08	―	0.56%	13.15%	6.26%
BEML	62 Neutral	₹129.95B	-173.04	―	0.29%	-1.31%	3.61%
TITAGARH	60 Neutral	₹87.40B	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.