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 reported a 22% decline in its consolidated revenue for its freight rail systems segment to ₹666 crore for the third quarter (Q3) ending 31 December 2025 as compared to the ₹853 crore in the corresponding period of the previous year (Q3 ending 31 December 2024).
Profit before tax for the freight rail systems segment stood at ₹74.72 crore, versus ₹101.79 crore a year ago.
For the nine-month period ending December 31, 2025, the consolidated revenue of freight rail segment's performance declined by 28%, reporting ₹1944 crore in December 2025 compared to ₹2695 crore in the previous year 2024.
The company’s year-on-year (YoY) overall consolidated net profit (includes bridges and defense products) declined by 22.6% at ₹48.24 crore fot the Q3 FY26 as compared to ₹62.36 crore for the same period Q3 FY25.
Concurrently, revenue from operations fell by 7.8%, at ₹832.06 crore compared to ₹902.18 crore in the corresponding quarter of the prior year. Total expenses, down by 7.1% to ₹770.34 crore from the previous year ₹829.66 crore.
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, 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.
