Titagarh Rail Systems Ltd

- Titagarh Rail Systems plans to spin off the shipbuilding business into a separate entity called Titagarh Naval Systems. - Initial capital infusion of about Rs. 50 crores will be made into Titagarh Naval Systems. - The new shipbuilding entity will raise its own capital and debt to build capabilities and capacity, targeting production of 15-18 specialized vessels per year. - For propulsion systems, the company aims to develop its own propulsion for Metro coaches within 2-3 years through technology partnerships and backward integration. - The company is undertaking backward integration for coach manufacturing components to reduce supply chain risks, aiming for almost 100% in-house capability by March this year. - A committee has been formed to evaluate defense and bridge business opportunities, which currently has a small order book but significant potential, suggesting possible future investments.

- Freight wagon production capacity normalized to 800-850 wagons per month, anticipating steady execution till new tenders by Q1 next financial year. - Passenger coaches ramp-up planned with 100-120 Metro coaches production in current financial year, doubling in the next year. - Vande Bharat train production increasing from 32 to 192 units by FY '28. - Mumbai Metro Lines 5 and 6 deliveries starting Q3/Q4 FY '27, completing within 18-24 months. - Shipbuilding business targeting 15-18 specialized vessels annually, with each vessel valued between Rs. 100-250 crores; aiming for 15%-17% EBITDA margins. - Overall passenger rail segment margins expected to be 11%-12% with higher margins from propulsion (15%-20%) and services (20%-25%). - Strategic plan highlights transition from freight focus to high-value passenger and commodity manufacturing, supported by joint ventures and capacity expansions.

- Passenger segment: Expected EBITDA margins to improve from 8-9% initially to 11-12% by Q4 FY '26, with further uplift to 15-20% on propulsion and 20-25% on services (Page 11). - Freight wagons: Capacity normalization post wheelset supply issue; stable run-rate of 800-850 wagons/month sustained (Page 2, 4). - Shipbuilding: Targeting 15-18 vessels per year with each vessel valued Rs. 100-250 crores; EBITDA margins expected between 15-17% (Pages 7, 12). - Strategic shift: Moving from predominantly freight to high-value passenger and metro coaches, supported by orders till FY '31 for Vande Bharat and FY '28 for Metro (Pages 14, 7). - Joint ventures and backward integration to improve margins and supply chain robustness (Pages 11, 13). - Overall optimistic outlook with increased market share, new license pursuit in wagon maintenance, and tapping defense/bridge segment opportunities (Page 14).

- Freight wagon order book: Approximately 9,000 wagons, providing visibility for the next 4 quarters (Page 6). - Passenger segment order book includes: - Mumbai Metro Lines 5 and 6 orders, with deliveries starting by Q3/Q4 FY '27 and completing over 18-24 months (Page 13). - Multiple orders across Vande Bharat and 5 metro rail projects, building the pipeline up to FY '28 with execution ramp-up ongoing (Page 3). - Shipbuilding segment: Order book around Rs. 500 crore, with a healthy pipeline of enquiries (Page 8). - The overall order book across different businesses close to Rs. 28,000 - Rs. 29,000 crores (Page 12). - New tenders in the railway wagon segment expected to come out by Q1 of next financial year (Page 4). - Backlog and confirmed orders ensure production ramp-up plans in both freight and passenger segments.

- Titagarh Rail Systems plans to spin off its shipbuilding business into a separate entity called Titagarh Naval Systems. - The parent company will induce about Rs. 50 crores of capital into this new company. - Titagarh Naval Systems will then raise its own capital and debt independently to build capability and capacity. - No specific details were provided regarding any immediate or upcoming debt or equity fundraisings for the parent company itself. - The company mentioned having sufficient unutilized working capital limits for managing operations and ramp-ups. - Overall, fundraising for the shipbuilding vertical will be separate, with no indication of planned equity or debt raising for the main business in the call transcript.