Texmaco Rail Share Price Gains 7%
In a strong vote of confidence from investors, Texmaco Rail & Engineering shares surged 6–9% on June 26, 2025, after announcing the acquisition of an international wagon supply and maintenance order worth approximately Rs 535 crore from Cameroon’s CAMALCO SA. This move highlights the company’s robust global presence and reinforces its position as a key player in the rail‐engineering sector.
Texmaco Rail & Engineering, a flagship of the Adventz Group founded in 1939, manufactures railway wagons, coaches, locomotives, and related infrastructure. Over the years, it has expanded via acquisitions (such as Jindal Rail Infra) and diversified across Indian Railway and export markets.
Deal Snapshot & Financial Breakdown
| Details | Value |
|---|---|
| Total contract value | $62.24 million ≈ Rs 535 crore |
| — Wagon manufacturing | $32.76 million ≈ Rs 282 crore (560 wagons) |
| — 20‑year maintenance contract | $29.48 million ≈ Rs 253 crore |
| Phased delivery | Over 24 months |
| Optional expansion | Up to 1,040 additional wagons in next 5 yrs |
This framework underscores both immediate revenue and long‑term maintenance earnings — a dual‑revenue strategy that signals strong recurring income. The call to action for future expansions adds upside potential.
What Happened: The Cameroon Wagon Order
- Contract value: USD 62.24 million (~₹535 crore) from CAMALCO SA in Cameroon
- Scope: Manufacture and supply of freight wagons intended for export logistics
- Purpose: Reflects expanding operations into Africa and growing export strategy
This international order represents a milestone, diversifying Texmaco’s customer base beyond domestic Indian Railways contracts.
Share Price Reaction
Texmaco Rail shares rallied around 9% intraday, reaching approximately ₹189 on the Bombay Stock Exchange. The sharp rally reflected investor optimism over the firm’s export potential and strengthened international order pipeline.
FY25 Earnings – Relevance to Deal
Texmaco’s Q4 FY25 results—reported earlier this year—already showcased its growth momentum:
- Revenue: ₹1,346 crore (+17.5% YoY)
- EBITDA: ₹98 crore (+14.7%), margin ~7.3%
- Net Profit dipped 12% to ₹40 crore due to increased costs
Financial Snapshot
| Metric | Value |
|---|---|
| Order Value | ₹535 crore (~USD 62.24 million) |
| Share Price Gain | ≈ 9% intraday to ₹189 |
| Total Order Book (May 2025) | ₹7,115 crore |
| Earlier Domestic Order (May 2025) | ₹140.55 crore (FMP wagons) |
| Recent MRVC Order (June 2025) | ₹122.31 crore |
Tweet about Texmaco Rail Share
Strategic & Sectoral Significance
- Global Export Credibility
Winning a major contract from Cameroonian state firm CAMALCO elevates Texmaco’s export profile and eases entry into African rail markets. - Recurring Income from Maintenance
The 20‑year maintenance agreement ensures sustained revenue beyond initial delivery, highlighting Texmaco’s service capabilities. - Upside Through Optional Orders
Potential extension of 1,040 wagons offers significant scale and value upside over 5 years—showing cautious investor optimism. - Synergy with Rail Sector Reforms
Texmaco’s export success aligns with India’s freight corridor ambitions, government order inflows, and railway modernization initiatives. Domestic FMP wagon deals (~₹140 cr) and earlier Ministry contracts signal broad demand.
Conclusion
By securing the Rs 535 crore wagon and maintenance contract from CAMALCO SA, Texmaco Rail not only uplifted its stock but also fortified its strategic presence internationally. The deal complements domestic growth, pledged maintenance-income, and potential future orders—offering a compelling growth narrative for investors.
