Titagarh freight segment revenue drops 22% in Q3; Kandoi to lead Naval Systems
Subsequent to the transfer of the SMS business to the subsidiary Titagarh Naval Systems, Director Saket Kandoi tendered his resignation.
Titagarh Rail Systems' freight rail systems segment, which also incorporates bridges and defense products, reported a net loss of ₹666 crore in the third quarter (Q3) ending December 2025. This represents a 22% decrease compared to the ₹853 crore loss reported in the same quarter of the previous year (December 2024).
Profit before tax for the freight rail systems segment stood at ₹74.72 crore, down from ₹101.79 crore a year ago.
For the nine-month period ending December 31, 2025, the freight rail system segment's performance declined by 28%, reporting ₹1944 crore in December 2025 compared to ₹2695 crore in the previous year 2024.
The company registered a decline in its financial results for both the quarter and the nine-month period concluding on December 31, 2025. During the third quarter of the fiscal year 2026 (Q3 FY26), net profit experienced a substantial year-on-year (YoY) contraction of 22.6%, decreasing from ₹62.36 crore to ₹48.24 crore.
Concurrently, revenue from operations fell by 7.8%, settling at ₹832.06 crore compared to ₹902.18 crore in the corresponding quarter of the prior year. Total expenses, however, saw a reduction of 7.1% to ₹770.34 crore.
The downturn was even more pronounced for the cumulative nine-month period ending December 31, 2025, during which the consolidated profit amounted to ₹116.09 crore, representing a considerable 44.8% decrease from ₹210.47 crore reported in the preceding year.
Over the nine-month duration, revenue from operations fell to ₹2,310.39 crore from ₹2,862.18 crore, and total expenses were lower at ₹2,150.38 crore against the ₹2,603.10 crore recorded in the previous year.
In a major corporate move, Titagarh Rail Systems classified its Shipbuilding & Maritime Systems (SMS) business as discontinued operations following its strategic transfer to Titagarh Naval Systems, a wholly-owned subsidiary.
The transfer of the SMS business to Titagarh Naval Systems, a wholly-owned subsidiary, has coincided with a corporate restructuring. As a result of this change, Saket Kandoi has resigned from his position as Director & CEO (Shipbuilding & Maritime Systems), effective February 13, 2026.
Titagarh first entered the maritime sector in 2012 by acquiring Corporated Shipyard. Today, it manages one of Eastern India's most advanced private shipyards, focusing on building high-technology, specialised vessels across four primary areas.
In the Naval & Defense sector, the company constructs catamaran-style diving support crafts (DSC) and fuel barges for the Indian Navy, as well as fast patrol vessels (FPV) for the Indian Coast Guard.
For Research Ships, Titagarh builds ocean-going and coastal research vessels for organisations like the National Institute of Ocean Technology (NIOT) and the Geological Survey of India. Its Commercial & Transport offerings include passenger and cargo ferry vessels, such as the MV Ma Lisha exported to Guyana, and tugboats.
Finally, in Inland Water Transport, the company designs specialized vessels for riverine routes, including those operating on National Waterway-1.
Warrant Proceeds Utilisation
Titagarh Rail Systems confirmed full SEBI compliance regarding the utilisation of warrant proceeds. Of the ₹199.99 crore raised through convertible warrants in November 2025, ₹50.00 crore was utilised during Q3FY26 solely for the reimbursement of capital expenditure.
No funds were utilised for working capital loan repayment or general corporate purposes in the quarter.
