Summary
Jupiter Wagons Limited - Q3 FY 2026 Earnings Call Summary Friday, February 13, 2026 4:00 PM IST
Event Participants
Executives 2 Vinod Kumar Agarwal (CFO), Vivek Lohia (MD)
Analysts 4 Balasubramanian A. (Arihant Capital), Parvez Qazi (Nuvama Group), Rajesh Bhandari (Nakoda Engineers), Sahil Patani (Strokes Capital)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Total Income (Consolidated) | ₹890 crore | +13% QoQ; sequential improvement following early-year supply side constraints. |
| EBITDA | ₹116 crore | +12% QoQ; driven by disciplined execution and diversified business model. |
| EBITDA Margin | 13% | -100 bps YoY; sustained healthy levels despite supply chain disruptions. |
| Profit After Tax (PAT) | ₹62 crore | +38% QoQ; rebound after acute wheelset shortages in previous quarters. |
| PAT Margin | 7% | Expansion from previous quarter due to higher throughput. |
| Order Book (Consolidated) | ₹5,041 crore | Robust visibility across wagons, wheelsets, braking systems, and containers. |
| Wagon Order Backlog | ~8,000 units | ~70% of current backlog is for private sector clients. |
Geographic & Segment Commentary
- Wagon Business: Private demand remains robust across steel, cement, container, and auto sectors. Management notes a shift in the mix, with the private sector now comprising 70% of the order book.
- Wheelsets & Components: Gaining momentum with orders for LHB coaches, metro systems, and Vande Bharat. The Aurangabad facility is currently operating at nearly 100% capacity.
- Jupiter Electric Mobility (JEM): Growing 20-30% MoM, targeting a ₹200 crore revenue run rate by FY27. Growth is primarily led by the battery energy storage system (BESS) business.
- Commercial Vehicles & Containers: Recorded healthy growth supported by PLI schemes and increased budgetary allocations. Management anticipates significant export opportunities due to global supply chain shifts away from China.
Company-Specific & Strategic Commentary
- Odisha Greenfield Project: Fully integrated wheelset manufacturing facility progressing at pace with production expected to commence by the end of 2026. Once operational, it has a revenue potential of ₹2,000–2,500 crore annually.
- Passenger Rolling Stock Entry: Management confirmed a foray into the passenger rolling stock segment as an OEM in 2026 through a partnership with a leading European player.
- Vertical Integration: Commissioned a cell-to-battery manufacturing line in Indore to enhance battery capacities for railway and industrial applications.
- Global Expansion: Actively preparing for EU CBAM (Carbon Border Adjustment Mechanism) compliance to facilitate exports of high-value components like brake discs and wheelsets.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Run Rate (EV) | ₹200 crore (FY27) | Expected to hit ₹20 crore/month by Q1 FY27, led by battery storage and new truck variants. |
| Revenue Target | ₹8,000–10,000 crore (FY28) | Confidence bolstered by wheelset capacity, container PLI, and new passenger rolling stock. |
| Wagon Production | 1,000 units/month | Capacity exists but is currently constrained by industry-wide wheelset shortages. |
| FY 2026-27 Performance | Muted/Flat | Continued supply disruption expected until the Odisha wheelset plant begins production. |
Risks & Constraints
| Risk | Context |
|---|---|
| Supply Chain (Wheelsets) | While shortages have eased since Q1/Q2, optimum supply levels have not returned. Management expects this to persist as a bottleneck for wagon production through much of FY27. |
| Regulatory/Trade Barriers | The EU’s CBAM (Carbon Border Adjustment) requires strict carbon footprint declarations. Failure to comply or meet carbon limits could result in prohibitive tariffs on exports. |
| Timing of Govt. Tenders | Procurement for 32,000 wagons by Indian Railways is indicated in the budget, but execution timing remains unpredictable, leading to potential revenue volatility. |
Q&A Highlights
Wheelset Self-Sufficiency & Approvals
- Question: Will special approvals be needed to supply wheelsets manufactured in Odisha to Indian Railways? (Balasubramanian A.)
- Answer: The facility is designed to Indian Railways standards and the product falls under the “Make in India” policy. Domestic production will be usable for captive wagon manufacturing and direct supply to Railways (Vivek Lohia).
Export Market & Partners
- Question: Who is the primary target for wheelset exports? (Balasubramanian A.)
- Answer: JV partner Tatravagonka buys approximately 50,000 wheelsets annually and will be the largest captive buyer (Vivek Lohia).
Growth Trajectory
- Question: How do you view FY27 given the wheelset disruption? (Sahil Patani)
- Answer: FY27 is likely to remain muted due to continued supply constraints. However, FY28 will be a “best year” as internal wheelset capacity comes online and the passenger coach business scales (Vivek Lohia).
Wagon Leasing vs. Maintenance
- Question: Does the rise of private wagon leasing impact Jupiter’s business? (Rajesh Bhandari)
- Answer: No, Jupiter is already qualified for a leasing license but prefers focusing on maintenance. Privatization of maintenance by Indian Railways represents a higher-value opportunity (Vivek Lohia).
Key Takeaway
Jupiter Wagons delivered a sequential recovery in Q3 FY26, with revenue reaching ₹890 crore and PAT growing 38% QoQ to ₹62 crore, signaling a rebound from previous supply chain shocks. While the company maintains a robust ₹5,041 crore order book, management cautioned that FY27 growth may remain muted until the greenfield Odisha wheelset plant commences production in late 2026. Strategically, the firm is diversifying rapidly, with the EV battery segment targeting a ₹200 crore run rate and a major entry into passenger rolling stock as an OEM slated for 2026. Although industry-wide wheelset shortages persist as a near-term constraint, the company is positioning itself for a significant leap in FY28, targeting ₹8,000–10,000 crore in revenue through vertical integration and expansion into high-value global export markets. Completion of the Odisha facility remains the critical catalyst for achieving full production capacity of 1,000 wagons per month.
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