Titagarh Rail Systems EBITDA Margin Hits 13.81% in Q2

Titagarh Rail Systems Limited reported a standalone earnings before interest, tax, depreciation and amortisation (EBITDA) margin before exceptional items of 13.81% in Q2 FY27, the highest in its five-quarter series, as EBITDA rose to Rs 107 crore even though revenue from operations of Rs 773 crore remained below Rs 788 crore in Q2 FY26.

How did Titagarh Rail Systems profitability change in Q2 FY27?

Titagarh Rail Systems increased standalone EBITDA by Rs 18 crore year on year to Rs 107 crore in Q2 FY27, while its EBITDA margin before exceptional items rose 2.56 percentage points from 11.25% in Q2 FY26 to 13.81%. Revenue from operations declined by Rs 15 crore from Rs 788 crore, showing that the margin and EBITDA gains occurred despite lower revenue than a year earlier.

The sequential trend was also positive in Q2 FY27. Standalone revenue increased from Rs 735 crore in Q1 FY27 to Rs 773 crore, EBITDA increased from Rs 94 crore to Rs 107 crore, and the EBITDA margin improved from 12.79% to 13.81%. Revenue nevertheless remained below the Rs 859 crore reported in Q4 FY26, the highest-revenue quarter in the five-quarter series.

Did Titagarh Rail Systems earnings improve below EBITDA?

Titagarh Rail Systems reported standalone profit before tax of Rs 82 crore in Q2 FY27, compared with Rs 73 crore in Q2 FY26 and Rs 70 crore in Q1 FY27. The pre-tax margin reached 10.65%, up from 9.22% a year earlier and 9.57% in the preceding quarter.

Standalone profit after tax rose to Rs 63 crore in Q2 FY27 from Rs 47 crore in Q2 FY26 and Rs 52 crore in Q1 FY27. The post-tax margin increased to 8.21%, versus 6.58% a year earlier and 7.07% sequentially. The presentation states that the five-quarter financial figures were restated wherever applicable.

Q2 FY27 was the highest EBITDA quarter in the reported five-quarter sequence, exceeding Rs 104 crore in Q4 FY26. It was not the highest quarter for profit before tax or profit after tax: Q4 FY26 recorded Rs 91 crore and Rs 68 crore respectively, compared with Rs 82 crore and Rs 63 crore in Q2 FY27.

What changed in Titagarh Rail Systems revenue mix and activity?

Titagarh Rail Systems reported Q2 FY27 segment revenue of Rs 472.63 crore from Freight Rail and Rs 300.18 crore from Passenger Rail, for total revenue of Rs 772.81 crore. Passenger Rail represented 38.84% of revenue, compared with 15.50% in Q2 FY26, while Freight Rail's share decreased from 84.50% to 61.16%.

Passenger Rail revenue increased from Rs 122.21 crore in Q2 FY26 and Rs 229.75 crore in Q1 FY27 to Rs 300.18 crore in Q2 FY27. Freight Rail revenue moved in the other direction, falling from Rs 666.11 crore a year earlier and Rs 505.31 crore sequentially to Rs 472.63 crore. The presentation describes Rs 300 crore of PRS revenue as its highest quarterly level, up 146% year on year and 31% quarter on quarter.

The shift in mix coincided with 51 metro cars invoiced in Q2 FY27, up 325% year on year and 70% quarter on quarter. Wagon dispatches were 1,155, below 1,872 in Q2 FY26 and 1,284 in Q1 FY27. The reported figures therefore show a larger Passenger Rail contribution alongside lower wagon dispatches and Freight Rail revenue.

How did Titagarh Rail Systems standalone results compare with consolidated results?

Titagarh Rail Systems reported consolidated revenue from operations of Rs 793 crore in Q2 FY27, Rs 20 crore above standalone revenue of Rs 773 crore. Consolidated EBITDA before exceptional items was Rs 106 crore and the margin was 13.41%, compared with standalone EBITDA of Rs 107 crore and a 13.81% margin.

Consolidated profit before tax was Rs 82 crore in Q2 FY27, matching the standalone amount, while consolidated profit after tax of Rs 63 crore also matched the standalone figure. Consolidated pre-tax and post-tax margins were 10.35% and 7.97%, respectively, compared with standalone margins of 10.65% and 8.21% on the lower standalone revenue base.

What do Titagarh Rail Systems cash flow and investment figures show?

Titagarh Rail Systems generated standalone net cash from operating activities of Rs 125.56 crore in H1 FY27, down from Rs 190.59 crore in H1 FY26. Operating profit before working-capital changes increased to Rs 199.90 crore from Rs 165.85 crore, but working-capital changes became an outflow of Rs 70.20 crore, compared with an inflow of Rs 51.90 crore a year earlier.

Net cash used in investing activities rose to Rs 263.81 crore in H1 FY27 from Rs 137.77 crore in H1 FY26. Capital expenditure on property, plant and equipment and intangible assets was Rs 226.25 crore, near Rs 227.92 crore in the prior-year half, while net borrowings contributed Rs 243.21 crore of financing cash versus Rs 14.56 crore in H1 FY26.

Standalone borrowings totalled Rs 765.80 crore at September 30, 2026, comprising Rs 351.82 crore of non-current borrowings and Rs 413.98 crore of current borrowings. This was above combined borrowings of Rs 521.86 crore at March 31, 2026, while capital work-in-progress rose to Rs 207.01 crore from Rs 69.98 crore over the same dates.

Conclusion

Titagarh Rail Systems combined a five-quarter-high standalone EBITDA margin of 13.81% with EBITDA of Rs 107 crore in Q2 FY27, despite revenue remaining below the prior-year quarter. Higher Passenger Rail revenue of Rs 300.18 crore and its 38.84% revenue share coincided with lower Freight Rail revenue and wagon dispatches, changing the composition of reported activity.

The next quarters will show whether Passenger Rail revenue and the 13.81% standalone EBITDA margin continue as investment and borrowings increase. Titagarh Rail Systems is also positioning for India’s high-speed rail programme, for which the Mumbai-Ahmedabad project’s first section is scheduled to begin operations in August 2027 and detailed project reports for six of seven newly announced corridors have been submitted to the Ministry of Railways.