Consolidated Revenue: Stood at ₹172.5 crores, growing 29% year-on-year.
EBITDA: Increased by 29% to ₹27.9 crores, with an EBITDA margin of 16.2%.
PAT: Grew by 44% to ₹15.3 crores.
The company witnessed healthy sequential growth across revenue and profitability.
Key Financial Performance (H1 FY27)
Consolidated Revenue: Stood at ₹310.1 crores, growing 23% year-on-year.
EBITDA: Increased by 35% to ₹48.8 crores.
PAT: Grew by 58% to ₹26.1 crores.
Profitability grew faster than revenue, supported by a favorable product mix, backward integration, improved operating leverage, and better cost absorption.
Cash Flow: During H1 FY27 stood at approximately ₹42 crores, improving year-on-year.
Cash & Cash Equivalents: Stood at ₹115 crores as of the reporting period.
Long-term Debt: Reduced further to ₹16 crores.
Short-term Borrowings: Increased during the period primarily to support higher working capital requirements associated with increased production volumes and raw material procurement.
Operational Highlights
Wholly-owned Subsidiary (OFPL) Performance: Recorded 41% year-on-year revenue growth in H1 FY27 to ₹250 crores.
Wagon Production: Manufactured 390 wagons in Q2 FY27 compared with 300 wagons in Q1 FY27, representing sequential growth of 30%.
Order Book: Consolidated order book stood at approximately ₹1,571 crores as of October 21, 2026, representing 2.74x FY26 revenue. This provides strong revenue visibility.
Seat and Berth Business: Secured multiple orders during the quarter and first half. Given the longer-duration nature of these contracts, higher revenue recognition is expected in H2 compared to H1.
Strategic Initiatives and Growth Opportunities
Smart Wagon Technologies: Through a partnership with HUM International, the company has participated in an RDSO development tender for approximately 300 to 400 smart wagons. Financial bids are expected to open shortly, with orders to be decided soon.
Next-Generation Wagon: OFPL has a technology development agreement with Uniwagon Design and Engineering Center (Russia-based) for developing a 25-ton axle load bogie and solid-bottom gondola car. This includes technical documentation, testing support, and prototype manufacturing support. Design submission to RDSO is expected before December 2026, with prototype clearance and field trials expected in 6-9 months, leading to regular supply orders from FY28.
Coach Refurbishment Segment: Entered into a joint venture agreement for interior products like FRP panels under the name ABOR Projects LLP. The company has actively participated in refurbishment and turnkey project tenders.
Has bid for tenders worth approximately ₹150 crores+.
Upcoming tenders pipeline of another ₹200 crores.
Expects total tender quoted position of ~₹400 crores by December 2026.
Targets a 30% strike rate, expecting orders of ~₹130 crores and an order book of ~₹200 crores in the next financial year for this segment.
The interior business of the parent company is expected to contribute more than 80% of turnover in FY27.
Export Market & Component Manufacturing: The company is in advanced stages of technology discussions and tie-ups for two major wagon components and is considering wagon exports seriously. Discussions are ongoing with a public sector entity for reach to foreign prospective buyers.
Vande Bharat Trains: The company has an order for Vande Bharat chair car seats, with deliveries expected to be completed by June 2027. The company aims to provide total turnkey furnishing solutions for Vande Bharat trains and be ready to execute orders by January 2028.
Management Guidance and Outlook
H2 FY27 Outlook: Expects stronger execution across both freight wagon and railway interior businesses, supported by improving production, scheduled deliveries, and better supply chain management. Targets H2 revenue to be at least 25-30% higher than H1.
Production Targets: Targets achieving a production run rate of 600 wagons per quarter from Q3 FY27 onwards.
Capacity Utilization: Focus on optimizing existing facility utilization until March 2027. Augmentation of capacity is planned from April 2027.
Margin Outlook: EBITDA margins are expected to improve due to better utilization, larger purchase volumes, and sustained supplier relations. An efficiency increase of 7-10% on the previous EBITDA margins is anticipated.
Industry Demand: Management estimates the Indian railway system requires a minimum induction of 30,000-35,000+ wagons annually (18,000-20,000 for replacement and 12,000-15,000 for growth). The industry capacity is estimated at 30,000-35,000 wagons.
Working Capital and Capex
Working Capital: Inventory levels increased to ensure growth is not affected by volatile supply chains (e.g., steel). Management expects inventory to be under control and in a better position by March 2027 with increased output.
Raw Material Price Volatility: Covered under the price variation formula applicable on wagon tenders, minimizing significant impact on EBITDA.
Capex: Plans for capacity expansion are finalized, with implementation work for augmentation expected to begin by April 2027. A new facility is being considered for modern design wagons.
Other Business Updates
Wagon Leasing Business: Entry into the wagon leasing business is planned from April 2027 onwards. The average leasing tenure for wagons is about 10 years.
Spring Manufacturing: The company has its own spring manufacturing facilities operational for the last year, primarily for internal consumption.
Participants in the Call
Management Present: Mr. Saleh Mithiborwala (Chairman & Managing Director), Mr. Tahaa Mithiborwala (Whole-Time Director), Mr. Najmuddin Mithiborwala (Chief Strategy and Investor Relations Officer).
Moderator: Mr. Akhilesh Gandhi from Stellar Investor Relations.
