Titagarh Rail Systems Secures Indian Railways Vendor Approval for 3-Phase Traction Motors

Kolkata-based Titagarh Rail Systems Ltd announced on August 19, 2026, that it has been granted Approved Vendor status by Indian Railways for supplying 3-phase asynchronous traction motors of the model 6FRA-6068, used in 3-phase locomotives. This approval includes an authorized manufacturing capacity of up to 1,200 motors annually.

Vendor Approval and Manufacturing Capacity

Effective from August 19, 2026, this approval enables Titagarh Rail Systems to participate in procurement tenders with Indian Railways for these specific traction motors, subject to tender terms and supply requirements.

The company expects this approval to enhance its position in the locomotive equipment sector and unlock further procurement opportunities.

Titagarh Rail Systems stated that the financial impact of this development cannot be determined at this time, as it depends on the volume of orders received and the fulfillment schedules.

Business Outlook and Order Backlog

Earlier in August, Vice Chairman and Managing Director Umesh Chowdhary indicated that the passenger rail segment is expected to dominate the company’s revenue in the future, contributing approximately 60-70% as involvement expands in projects such as Vande Bharat and metro rail initiatives.

This shift is reflected in the company’s current order backlog totaling around 7,000 crore, with approximately 7,000 crore attributed to passenger rail orders. Titagarh Rail Systems presently has over 1,700 passenger coaches on order.

The company achieved a record dispatch of 30 passenger cars in the recent quarter and aims for a production rate of 45-50 cars per quarter in the near term.

Financial Performance

In the quarter ending June 2026, Titagarh Rail Systems recorded revenue growth of 12.6%, reaching 765.1 crore compared to 679.33 crore in the previous year.

EBITDA increased by 26.3% to 94.9 crore from 75.13 crore, while the EBITDA margin improved by 134 basis points to 12.40% from 11.06% year-over-year.

Passenger rail revenue accounted for over 30% of the segment’s total revenue during the latest quarter, marking the highest level recorded for this segment to date.

Chowdhary noted that execution in passenger rail is expected to rise as the company progresses with its existing order book.

Stock Market Update

On the stock market, shares of Titagarh Rail Systems Ltd closed at 829.65 on the BSE, down by 11.45 or 1.36%.

Key Takeaways

  • Titagarh Rail Systems obtained Approved Vendor status from Indian Railways for 3-phase asynchronous traction motors with an annual capacity of 1,200 units.
  • The approval allows participation in Indian Railways procurement tenders, boosting growth potential in locomotive equipment.
  • Passenger rail segment expected to contribute 60-70% of revenue, supported by significant order backlog of 7,000 crore.
  • Recent financial results show strong revenue and EBITDA growth with improved margins.
  • Passenger rail revenue reached an all-time high within the company’s segment revenue mix.
  • Shares closed lower by 1.36% on the BSE at 829.65.