Prime Highlights:
- Texmaco Rail secured two major orders: ₹219.18 crore from Mumbai Railway Vikas Corporation (MRVC) for signalling systems, and ₹27.67 crore from South Western Railway for maintenance of overhead equipment and power systems.
- Following the announcements, the company’s shares surged nearly 10% before closing with an 8% gain, reflecting strong investor confidence.
Key Facts:
- The MRVC project under the Mumbai Urban Transport Project (MUTPIIIA) will be completed in 36 months and strengthen Texmaco Rail’s role in urban railway infrastructure.
- The South Western Railway contract covers 1,046 track kilometers in Mysore Division over two years, highlighting the company’s continued involvement in India’s railway modernization.
Background:
Shares of Texmaco Rail & Engineering Ltd witnessed a strong rally in early trade on Tuesday, rising nearly 9% after the company announced it had secured multiple railway contracts from key Indian railway bodies.
According to filings released on February 16, the company bagged a major order worth ₹219.18 crore from Mumbai Railway Vikas Corporation Ltd (MRVC). The contract includes designing, supplying, installing, testing, and commissioning signalling systems for a new line under the Mumbai Urban Transport Project (MUTP‑IIIA). MRVC manages and expands Mumbai’s busy suburban railway network.
The project is expected to be completed within 36 months from the start, further boosting Texmaco Rail’s work in major urban rail projects.
In a separate development, the company also secured another order from South Western Railway. The ₹27.67 crore contract (including GST) is for yearly maintenance and repairs of overhead equipment and power systems in the Mysore Division. The work will cover 1,046 track kilometers of electrified railway lines and will be carried out over two years.
After the announcements, Texmaco Rail’s shares went up sharply, reaching nearly 10% before closing with an 8% gain. This shows that investors are confident in the company’s new orders and its role in upgrading India’s railways.
The company reported a net profit of ₹42.8 crore in the third quarter, down from ₹76.7 crore in the same period last year.
Even with the drop in profit, the new contracts show that Texmaco Rail is keeping a strong business momentum and remains an important player in India’s rail network.
