Jupiter Wagons Navigates Supply Headwinds, Eyes Future Growth in Q2 & H1 FY26

Jupiter Wagons Limited, a key player in India's railway and mobility sectors, has reported a resilient performance for the second quarter and first half of fiscal year 2026. The company successfully navigated initial supply chain disruptions, particularly concerning wheelsets, to achieve a strong sequential recovery. This period highlights Jupiter Wagons' strategic focus on diversification into electric mobility and energy storage, alongside robust growth in its core segments.

For Q2 FY26, Jupiter Wagons reported consolidated revenue from operations of INR 786 crore, marking a significant 71% quarter-on-quarter growth. This strong rebound was primarily driven by the normalization of wheelset supplies, which had previously affected Q1 and extended into July. Consolidated EBITDA for the quarter stood at INR 104 crore, up 73% QoQ, with an EBITDA margin of 13.2%. Profit After Tax (PAT) reached INR 45 crore, reflecting a PAT margin of 5.8%. For the first half of FY26, consolidated revenue was INR 1,245 crore, with EBITDA at INR 163 crore and PAT at INR 76 crore. This performance underscores the company's renewed operational strength and disciplined execution.

Strategic Diversification and New Growth Avenues

Jupiter Wagons is actively pursuing strategic diversification, with significant advancements in its Jupiter Electric Mobility (JEM) division. JEM launched modular containerised Battery Energy Storage Systems (BESS) in 10 ft and 20 ft configurations, offering capacities from 241 kWh to 3 MWh. These systems are designed for diverse applications, including diesel generator replacement and solar energy storage. The company has already supplied its first 10 ft BESS unit to Greenlit and is preparing its first 20 ft unit for export to Africa, with liquid-cooled grid-scale BESS also in the pipeline. Management expects BESS volumes to improve significantly in the next 6-8 months, with the business becoming EBITDA positive by FY27.

In the electric light commercial vehicle (eLCV) segment, JEM expanded its national presence by opening six new dealerships across major Indian cities: Hyderabad, Delhi, Ghaziabad, Pune, Ahmedabad, and Trivandrum. The company also introduced the JEM TEZ, a 1.05-ton eLCV with a certified range exceeding 300 kilometers, tailored for urban logistics. JEM's Electric Mobility revenues are targeted to reach close to INR 100 crore in FY26 and are projected to double in FY27, with the eLCV business expected to break even and turn EBITDA positive by FY27.

Strengthening Core Rail Manufacturing and 'Make in India' Initiative

The company's core rail manufacturing business, particularly through Jupiter Tatravagonka Railwheel Factory, continues to reinforce its leadership. Significant orders secured include an INR 113 crore contract from the Ministry of Railways for 9,000 LHB Axles and a Letter of Intent worth INR 215 crore for 5,376 wheelsets for the Vande Bharat high-speed train project. These orders highlight Jupiter Wagons' crucial role in India's rail modernization and domestic manufacturing efforts.

A cornerstone of the company's long-term strategy is the ongoing development of a state-of-the-art forged axle and wheel facility in Odisha. This project, involving a proposed investment of INR 2,500 crore, aims to produce 100,000 forged wheelsets annually by 2027. The axle line is expected to be operational in Calendar Year 2026, with the wheel line fully commissioned in Calendar Year 2027. This initiative is a major step towards self-reliance and advancing the 'Make in India' vision, addressing the critical supply of wheelsets.

Outlook and Management Commentary

Jupiter Wagons holds a robust order book of INR 5,538 crore as of September 30, 2025, providing strong revenue visibility for the coming quarters. While the company faced challenges in Q1 and early Q2, leading to a revision of its earlier FY26 revenue guidance of INR 5,000 crore, management remains confident in regaining momentum and optimizing capacity. The focus remains on disciplined growth, continuous innovation, and consistent value delivery to stakeholders.

The company also reported progress on its joint ventures and subsidiaries. Stone India is expected to be commissioned by the last quarter of FY26 and become PAT positive by FY27. Similarly, the Dako JV, which currently has a negative contribution, is anticipated to turn positive next year. The appointment of Mr. Vinod Kumar Agarwal as the new Chief Financial Officer is expected to further strengthen the leadership team as the company enters its next phase of growth.

Jupiter Wagons' strategic moves into new energy and electric mobility, coupled with its strengthened core rail business and significant capacity expansion projects, position it for sustained growth. The company's commitment to 'Make in India' and addressing critical supply chain needs underscores its long-term vision and potential for value creation.