India’s largest wagon-maker, Texmaco Rail & Engineering, which is planning to demerge the business of Kalindee Rail as its wholly-owned subsidiary soon, is looking to turnaround the business and make it profitable within the next two financial years.

The Adventz Group company has applied to the National Company Law Tribunal (NCLT) for approval of the proposed demerger of the Kalindee Rail’s business, which has been renamed as Texmaco Rail Infra Systems and Solutions. The Saroj Poddar-led group had acquired Kalindee Rail Nirman in 2013 with majority shareholding stakes.

The wagon major is eyeing to double its consolidated revenue to around ₹10,000 crore within the next three years without compromising on its profitability.

“Even if we have to compromise something on the topline, our commitment to the bottomline will remain consistent,” Texmaco Rail & Engineering MD, Sudipta Mukherjee, told businessline.

The company’s consolidated revenue stood at ₹5164.24 crore and net profit was ₹225.51 crore for the last financial year. Its EBITDA was ₹525 crore with a year-on-year increase of 57.6 per cent and margin of 10.3 per cent for FY25.

“When we would be doubling the consolidated revenue, the company would like to have an EBITDA margin of around 14 per cent to 17 per cent,” said Mukherjee.

“The existing core business, the fresh rolling stock and component business will grow equally, while we look for the introduction of new products and reach new regions. So, these are the three fundamentals we have decided for the way forward — reaching people, reaching new portfolios or customers, and reaching newer regions,” said the MD on the main growth drivers for doubling the revenue.

The company’s export is expected to contribute around 30 per cent of its revenue in the next three years from the current 8-10 per cent, said Mukherjee. It is currently exporting its large categories of products to as many as 16 countries.

“We are looking at South American markets, African markets and Middle East markets. So, in a nutshell, to all business verticals, we feel there is a significant opportunity for us to go in with the capability and the certifications we have,” Mukherjee pointed out.

MRVC contract

The company has recently been awarded a contract by Mumbai Railway Vikas Corporation (MRVC) for the design, supply, construction, installation, testing, and commissioning of critical traction infrastructure between Kalyan and Badlapur. It said this project would play a crucial role in India’s railway electrification initiative, advancing the progress towards sustainable and efficient urban mobility.

For the company, the acquisition of Jindal Rail & Infrastructure (JRIL) in July last year has strengthened its manufacturing footprint, enhanced freight trade car portfolio, and unlocked a few operational synergies. “It has a huge land bank (in Vadodara) ready to be converted to support our future expansion plans,” said Mukherjee.

“We want to demerge the business of Kalindee Rail as a wholly-owned subsidiary of Texmaco Rail & Engineering. Currently, it’s loss-making. We do not want to shrug responsibility. We just want a focus management, and we want to really unleash the potential of the business which we can do around it,” he added.

Published on June 11, 2025