Texmaco Rail and RVNL to Form New JV: Texmaco Rail & Engineering Ltd has entered into a joint venture (JV) agreement with Rail Vikas Nigam Ltd (RVNL) to set up a new company aimed at strengthening railway manufacturing and infrastructure projects.
The JV will receive an initial investment of ₹4.90 crore from Texmaco Rail, funded through cash contributions.
Key Highlights of the JV
- Ownership Structure: RVNL – 51% | Texmaco Rail – 49%
- Investment: ₹4.90 crore from Texmaco Rail (initial phase)
- Focus Areas:
- Manufacturing & maintenance of freight and passenger rolling stock (locomotives, wagons, coaches, trainsets, metro coaches, specialized equipment)
- EPC projects in the rail infrastructure sector
- Railway workshops & depots management
- Participation in domestic & international tenders
Strategic Importance
The JV brings together Texmaco Rail’s manufacturing expertise with RVNL’s strong project execution capabilities. This partnership is expected to:
- Strengthen presence in both domestic and global markets
- Support the Government’s Make in India and Railway Modernisation vision
- Create new growth opportunities in the railway equipment and infrastructure sector
Stock Market Reaction
On Tuesday:
- Texmaco Rail shares closed at ₹138.40 on BSE, down 2.88%
- RVNL shares closed at ₹312.80, down 2.74%
Q1 Results Snapshot
Texmaco Rail & Engineering
- Net Profit: ₹29 crore (down 50.5% YoY)
- Revenue: ₹911 crore vs ₹1,088 crore last year (down 16.3%)
- Reason: Shortage of wagon wheelsets from Railways, which pressured margins
- Outlook: Supply constraints are easing, revenues expected to recover (per Executive Director & Vice-Chairman Indrajit Mookerjee)
Rail Vikas Nigam Ltd (RVNL)
- Revenue: ₹3,908 crore (down 4.1% YoY)
- EBITDA: ₹52 crore (down 71% YoY)
- EBITDA Margin: Fell to 1.4% from 4.5%
- Net Profit: ₹134 crore vs ₹224 crore last year (down 40%)
Conclusion
The Texmaco Rail–RVNL JV marks a major step toward strengthening India’s railway manufacturing ecosystem. Despite weak Q1 earnings for both companies, the new partnership is expected to unlock growth opportunities in line with India’s railway modernisation drive.
⚠️ Disclaimer: The views and recommendations expressed are those of individual analysts. They do not represent the views of ICCAN. Investors are advised to consult certified experts before making investment decisions.
