Interview with Prithish Chowdhary, Dy. Managing Director, Titagarh Rail Systems Limited

With our diversified product portfolio, robust manufacturing expertise, and strategic growth initiatives, we are poised to seize emerging opportunities, driving sustained growth and long-term value for our stakeholders, expresses Prithish Chowdhary, Dy. Managing Director, Titagarh Rail Systems Limited.

How did the company perform in Q3FY25, and what are its growth targets for revenue and profitability in the coming years? Additionally, what is the current status of its order book?

In Q3FY25, Titagarh Rail Systems Limited (TRSL) recorded a revenue of Rs 902.18 crore, demonstrating resilient performance despite supply chain challenges. The Passenger Rolling Stock (PRS) segment met expectations, driven by the successful prototype delivery for the Bengaluru Metro and upcoming deliveries for the Ahmedabad and Surat Metro. The Freight Rolling Stock (FRS) segment faced operational disruptions due to a shortfall in wheelset supply. To address supply challenges and reduce dependence on imports, we at TRSL have partnered with Ramkrishna Forgings for domestic wheel production, expected to commence by February or March 2026, ensuring stable FRS production.

Looking ahead, we are also focused on expanding our PRS manufacturing capacity, aiming to increase production from 300 to 850 coaches per year by FY27, with a long-term goal of 1,200 coaches annually to meet the growing demand for metro and high-speed rail solutions. The order book remains robust, supported by a steady inflow of orders from Indian Railways and private sector clients.

Could you provide insights into the company's manufacturing facilities, production capacity, and any planned capital expenditures in the near future?

We operate multiple manufacturing facilities across different locations, each specialising in distinct product categories. In Kolkata, PRS production is handled at the Uttarpara facility, while FRS is manufactured at Titagarh Unit 1 and Unit 2. Additionally, the Bharatpur facility is equipped with technology to manufacture wagons, locomotive shells, and defence equipment.

Production capacity is currently set at 300 PRS coaches per year, with a planned ramp-up to 850 annually. FRS production is stabilising at 12,000 wagons per year. To support these operations and future expansion, we are investing a total capital expenditure of Rs 1000 crore, a substantial portion of which has already been incurred. This investment will help us enhance manufacturing efficiency and strengthen our competitive position in both domestic and international markets.

Can you elaborate on the company's product portfolio and the revenue contribution of each segment?

We operate across three key segments — Passenger Rolling Stock (PRS), Freight Rolling Stock (FRS), and Shipbuilding & Defence Equipment.

In PRS, we manufacture semi-high-speed trains, EMUs, train sets (single & double-decker), urban metro rail vehicles, propulsion systems, traction motors, and train control systems. With rising demand for metro and high-speed rail projects, PRS is expected to drive significant revenue growth in the coming years.

In FRS, we produce a wide range of wagons such as flat, hopper, tank, box, automobile-carrying, special-purpose wagons, and critical components like wheelsets, cast bogies, and couplers. Currently, FRS contributes around 94 per cent of our total revenue, driven by strong wagon manufacturing orders.

Our shipbuilding and defence equipment division focuses on naval vessels, tugs, research vessels, passenger ships, shelters, and specialised wagons. Though at an early growth stage, this segment holds promising potential for future expansion, further diversifying our revenue mix.

Moving forward, we expect PRS to scale up significantly, contributing alongside FRS, while shipbuilding emerges as a key growth driver in the long term.

What are the company's top three strategic priorities?

As India progresses towards its Viksit Bharat vision, Titagarh Rail Systems is honoured to play a role in transforming the nation's mobility infrastructure. Our key priority is enhancing domestic manufacturing to boost self-reliance in railway infrastructure.  As a leader in Passenger and Freight Rolling Stock (PRS & FRS), we are ramping up metro, Vande Bharat, and freight wagon production. Initiatives like Make in India and Atmanirbhar Bharat drive our localisation efforts, including a forged wheel plant with Ramkrishna Forgings and in-house propulsion system development to reduce import dependency. Collaborations like ABB for metro propulsion further strengthen our role in high-speed and urban transit.

Another focus area for Titagarh Rail Systems is evolving beyond rolling stock, transitioning from a leading manufacturer of freight and passenger rolling stock to a diversified infrastructure building and engineering powerhouse. We are expanding beyond rolling stock with our two new business verticals - Shipbuilding and Railway Safety & Signalling. We have delivered vessels for the Indian Navy, Coast Guard, and research institutions and plan to establish new shipyards for large-scale defence and commercial shipbuilding.

Finally, railway modernisation and metro expansion remain central to our strategy. With India's metro network doubling by 2030, we are rapidly scaling metro coach production and pioneering new technologies in the sector, such as driverless trainsets. Our involvement in Vande Bharat sleeper trains with BHEL highlights our foray into high-speed rail, positioning us as a leader in next-generation, sustainable rail mobility.

The recent Budget prioritised consumption-driven growth but fell short of investor expectations regarding railway sector announcements. What is your take on this, and what would be your message to railway investors?

While the Budget may not have delivered major announcements for the railway sector, it reaffirmed the government's commitment to infrastructure development. The focus on capital investment in transportation and logistics indirectly benefits the railway sector, which remains a key pillar of national infrastructure growth. We at TRSL view this as an opportunity to align ourselves with long-term growth areas in railway modernisation, including higher investments in rolling stock, freight corridor expansion, and urban mobility solutions.

For investors, while short-term fluctuations may occur, the railway sector remains a strong long-term bet, driven by increasing demand for both passenger and freight transport. With our diversified product portfolio, robust manufacturing expertise, and strategic growth initiatives, we are poised to seize emerging opportunities, driving sustained growth and long-term value for our stakeholders.

How do you assess the long-term growth potential of India's railway sector, and how is the company positioning itself to capitalise on emerging opportunities?

India's railway sector is undergoing a historic transformation, driven by large-scale investments in modernisation, metro expansion, high-speed rail, and freight corridor development under the National Rail Plan 2030. With a strong push for self-reliance under 'Make in India' and 'Atmanirbhar Bharat', the sector is set for sustained growth. The increasing demand for passenger coaches, metro trains, and freight capacity enhancements presents significant opportunities for manufacturers like us. Additionally, infrastructure upgrades, station modernisation, and advanced safety initiatives—including the implementation of the Kavach Automatic Train Protection (ATP) system—are paving the way for a more efficient, secure, and future-ready railway network.

As a leading rolling stock manufacturer, TRSL is well-positioned to capitalise on these opportunities through cutting-edge technology, expanded manufacturing capacity, and deeper integration into India's evolving rail ecosystem. With a strong order pipeline across freight, metro, and high-speed rail, we remain focused on driving innovation, efficiency, and long-term growth, ensuring our contribution to India's rail transformation remains significant.

Furthermore, our entry into propulsion systems and forged wheels enhance our competitive edge, while diversification into signalling and safety opens new avenues for growth. With a strong focus on operational efficiency and innovation, it is poised to play a pivotal role in shaping the future of India's railway industry.