Titagarh, Jupiter Wagons Shares Surge Up to 8.5% Amid Rumors of a Massive Rs 40,000-Crore Railways Wagon Tender

Indian Railways Prepares to Roll Out Mega Tender for Freight Wagons

Shares of Indian railway equipment manufacturers Titagarh Rail Systems, Jupiter Wagons, and Texmaco Rail rose significantly on May 25, with Titagarh Rail shares trading 8.6% higher at Rs 823 apiece by 11:25 am. This surge comes as a report suggests that Indian Railways is poised to issue a massive tender worth Rs 40,000 crore to procure 1 lakh freight wagons over the next three to four years.

The proposed tender, expected to be slightly larger than the previous large wagon procurement exercise undertaken in 2022, could involve an annual procurement of 35,000-40,000 wagons. The first set of wagon orders are likely to be issued in the second quarter (July-September) of the ongoing fiscal year, according to two sources cited by Mint.

Indian Railways' plans to issue a mega tender have been welcomed by industry experts, who believe that it will allow the domestic wagon industry to function at capacity and maintain operations of their production lines. The industry is currently completing orders under the previous Indian Railways wagon tender, and fresh orders with longer visibility will enable manufacturers to operate at optimal levels.

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Texmaco Rail & Engineering Ltd, a leading manufacturer of freight wagons, coaches, and locomotives, is well-positioned to benefit from the proposed tender. The company has the capacity to produce over 15,000 wagons annually and has supplied a third (approximately 11,000 wagons) of annual wagon procurement by the Railways under its earlier tender. Indian Railways is currently in talks with manufacturers to assess their ability to supply wagons, after which it will float a tender, likely in phases.

Note: The market performance figures are accurate as of May 25 and may have changed since then.