This Small Cap Railway Stock with Order Book Size Exceeding Market-Cap Signs MOU with Polish Firm - Stock has Corrected 50 per cent from the 52-week High

A railway engineering company has signed a strategic Memorandum of Understanding (MoU) with Polish technology firm Nevomo to develop next-generation Magrail technology, linear propulsion systems, and AI-powered railway innovations.

Texmaco Rail & Engineering Ltd shares opened on a strong note, gaining nearly 3 per cent to Rs 145.55 after the company announced post-market hours yesterday (Monday, February 24) that it has signed a strategic MoU with Polish technology firm Nevomo. The partnership aims to co-develop next-generation Magrail technology, linear propulsion systems, and AI-powered railway innovations.

Key Objectives of the MoU:

• Technological Innovation and Integration: Texmaco and Nevomo will collaborate on researching and developing Magrail-based solutions. The focus will be on integrating these solutions seamlessly with existing rail infrastructure to enhance efficiency, capacity, and speed.
• Global Expansion: The partnership aims to introduce advanced rail solutions to global markets by leveraging Texmaco's manufacturing expertise and Nevomo's technological advancements.
• R&D Center: A dedicated R&D center will be established in the GCC region to focus on next-generation railway mobility solutions, including AI-driven management, predictive maintenance, and autonomous self-propelled rolling stock.
• Sustainable and Smart Mobility: The collaboration will drive eco-friendly and energy-efficient rail solutions, supporting green transportation initiatives and high-speed rail mobility.
• AI-Driven Diagnostics and Automation: AI-powered tools will be implemented for predictive track monitoring, fault detection, and automated maintenance scheduling, enhancing safety and reducing downtime.
• Autonomous Freight Trains: The development of next-generation autonomous freight trains aims to optimize cargo transportation, reduce operational costs, and increase efficiency in logistics and port connectivity.

Q3FY25’s Financial Performance

• Revenue was reported at Rs 1,326 crore with an EBITDA of Rs 139 crore, reflecting a 10.5 per cent margin.
• PAT stood at Rs 76 crore, with a 5.8 per cent margin.
• For the first nine months of FY '25, revenue reached Rs 3,766 crore, EBITDA at Rs 411 crore (approx. 11 per cent margin), and PAT at Rs 210 crore (5.6 per cent margin).
• Delivered 2,714 freight cars in Q3 FY '25, marking a 54.6 per cent YoY growth compared to 1,756 freight cars in the same period last year.
• Cumulative deliveries for the first nine months of FY '25 stood at 8,015 freight cars, a 70 per cent increase YoY.
• The company’s current order book stands at Rs 7,600 crore, providing strong revenue visibility for the coming years and ensuring sustained growth momentum.

Texmaco Rail & Engineering Limited is a key player in India’s railway and infrastructure sector, operating across freight cars, rail infrastructure, green energy, and electrical infrastructure, While Nevomo is a European technology company specializing in Magrail technology and linear propulsion focused on developing high-speed, high-capacity, and energy-efficient rail systems.

The stock trades at Rs 143, with a market capitalization of over Rs 5,704 crore. So far in 2025, the stock price has corrected more than 28 per cent on a year-to-date basis and is down 51.79 per cent from its 52-week high of Rs 296.60.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice.