Texmaco Rail Q2 profit rises 74% on Rs 76.0126 crore gain

Texmaco Rail & Engineering Limited reported consolidated net profit of Rs 111.0435 crore for the quarter ended 30 September 2026, up 74% from a year earlier, after recognising a Rs 76.0126 crore exceptional gain on dilution of its railcar-leasing joint-venture stake; revenue from operations fell 31% to Rs 867.7499 crore.

Why did Texmaco Rail’s Q2 profit rise 74%?

Texmaco Rail’s consolidated profit rose because the group recorded Rs 76.0126 crore of exceptional income in the quarter ended 30 September 2026. Texmaco Touax Railcar Leasing Private Limited issued equity shares to a new investor, reducing the group’s fully diluted holding from 50% to 34% and creating a deemed-disposal gain under Indian Accounting Standard 28, Investments in Associates and Joint Ventures.

Before exceptional items and tax, consolidated profit was Rs 50.0651 crore in the September 2026 quarter, down from Rs 98.1495 crore a year earlier. This included a Rs 2.5997 crore share of profit from joint ventures and associates, compared with Rs 6.9709 crore in the September 2025 quarter, meaning the reported rise in post-tax profit did not reflect a higher pre-exceptional pre-tax result.

The resulting net profit after tax was Rs 111.0435 crore, against Rs 63.9220 crore in the quarter ended 30 September 2025. Diluted earnings per share, or EPS, increased to Rs 2.74 from Rs 1.61, while profit attributable to owners of the parent was Rs 111.3340 crore and the non-controlling interest recorded a loss of Rs 0.2905 crore.

How did Texmaco Rail’s revenue and segments change?

Texmaco Rail’s consolidated revenue from operations declined to Rs 867.7499 crore in the quarter ended 30 September 2026 from Rs 1,258.0991 crore a year earlier, although it rose from Rs 756.6800 crore in the preceding quarter ended 30 June 2026. Total income, which includes other income, fell to Rs 878.4416 crore from Rs 1,266.1405 crore in the year-earlier quarter.

The Freight Car Division remained the largest revenue contributor at Rs 542.4712 crore, but this was lower than Rs 939.7028 crore a year earlier. Infra-Rail & Green Energy revenue declined to Rs 84.8385 crore from Rs 115.9070 crore, while Infra-Electrical revenue increased to Rs 240.4402 crore from Rs 202.4893 crore.

Freight Car Division profit before interest and tax fell to Rs 37.5571 crore from Rs 87.3897 crore. Infra-Rail & Green Energy reported a Rs 2.9189 crore profit before interest and tax, compared with a Rs 2.9570 crore loss, whereas Infra-Electrical profit before interest and tax declined to Rs 18.4644 crore from Rs 25.2554 crore despite its revenue increase.

What do Texmaco Rail’s half-year results show?

Texmaco Rail reported consolidated net profit of Rs 161.1169 crore for the half year ended 30 September 2026, compared with Rs 93.2574 crore in the corresponding prior-year period. The six-month result included the Rs 76.0126 crore exceptional gain booked in the September quarter, while revenue from operations fell to Rs 1,624.4299 crore from Rs 2,168.6989 crore.

Profit before exceptional items and tax for the six months was Rs 92.5682 crore, lower than Rs 141.8056 crore in the prior-year half. Including exceptional income, profit before tax rose to Rs 168.5808 crore from Rs 141.8056 crore, showing the direct effect of the joint-venture dilution on reported pre-tax earnings.

Diluted EPS for the half year was Rs 3.97, compared with Rs 2.34 a year earlier. At 30 September 2026, consolidated equity share capital was Rs 40.6865 crore, unchanged from 31 March 2026, while consolidated other equity increased to Rs 2,466.2267 crore from Rs 2,333.4485 crore.

What do Texmaco Rail’s cash flow and balance sheet show?

Texmaco Rail recorded negative consolidated cash flow from operating activities of Rs 66.1615 crore for the half year ended 30 September 2026, compared with positive operating cash flow of Rs 212.3181 crore in the corresponding 2025 period. Cash flow before exceptional items was negative Rs 142.1741 crore, and the Rs 76.0126 crore exceptional item reduced the reported operating cash outflow.

Trade and other receivables increased by Rs 242.8262 crore in the six-month cash-flow statement, while inventories increased by Rs 22.2453 crore. Cash generated from operations was negative Rs 136.3939 crore, compared with positive Rs 252.7096 crore a year earlier, before direct taxes paid and the exceptional item.

Consolidated cash and cash equivalents were Rs 71.1080 crore at 30 September 2026, down from Rs 89.8631 crore at 31 March 2026. Net cash from investing activities was Rs 82.2040 crore, while net cash used in financing activities was Rs 35.1502 crore during the six months.

Consolidated total assets rose to Rs 5,193.1310 crore at 30 September 2026 from Rs 5,054.1325 crore at 31 March 2026. Current borrowings increased to Rs 592.4527 crore from Rs 555.2739 crore, non-current borrowings rose to Rs 321.6725 crore from Rs 317.7145 crore, and trade receivables were Rs 1,252.8955 crore compared with Rs 1,247.9264 crore.

What other developments did Texmaco Rail disclose?

Texmaco Rail granted 10,32,780 options to eligible employees during the quarter ended 30 September 2026 under the Texmaco Rail Long Term Incentive Plan 2026. The company recognised a share-based payment expense of Rs 64.32 lakh under Indian Accounting Standard 102, Share-based Payment, with a corresponding credit to the share-based payment reserve under other equity.

As of 30 September 2026, Texmaco Rail had seven subsidiaries, two joint ventures and one associate. Its audit committee and board approved the unaudited results on 5 November 2026, and the statutory auditors issued an unmodified opinion on the limited review.

The board also approved the reappointment of Udyavar Vittal Kamath as an executive director for one year from 1 February 2027, subject to shareholder approval. The board meeting on 5 November 2026 commenced at 11:45 a.m. and concluded at 2:40 p.m.

Conclusion

Texmaco Rail’s September 2026 quarterly profit of Rs 111.0435 crore was shaped by the Rs 76.0126 crore gain arising from the reduction in its fully diluted railcar-leasing joint-venture stake from 50% to 34%. Revenue from operations fell to Rs 867.7499 crore and profit before exceptional items and tax declined to Rs 50.0651 crore, with the Freight Car Division’s revenue falling to Rs 542.4712 crore.

The next disclosed matters to watch are the vesting conditions attached to the 10,32,780 options granted under the 2026 incentive plan and shareholder approval for Udyavar Vittal Kamath’s one-year reappointment from 1 February 2027. Texmaco Rail has also reported Rs 1,624.4299 crore of first-half revenue and negative operating cash flow of Rs 66.1615 crore, providing the baseline for subsequent results.