Railway stock jumps after it plans to invest ₹2,500 Cr to build rail wheel and axle plant in Odisha

The shares of the wagon manufacturer gained up to 2 percent after the company’s subsidiary plans to invest Rs 2,500 crore in phases over the next few years to develop this state-of-the-art facility. 

Price Movement 

With a market capitalization of Rs 15,623.65 crore, the shares of Jupiter Wagons Ltd were trading at Rs 368.25 per share, decreasing around 2.23 percent as compared to the previous closing price of Rs 376.45 apiece. 

Matter Explanation 

According to the company filing, Jupiter Tatravagonka Railwheel Factory Pvt. Ltd. (JTRF), a subsidiary of Jupiter Wagons Limited, plans to invest Rs 2,500 crore in phases to develop a railwheel & axle forging plant in Odisha, over the next few years. The plant is expected to produce 100,000 forged wheelsets annually and will cater to both domestic and international markets, with nearly 50 percent of production earmarked for exports, primarily to Tatravagonka A.S., a leading Slovakian rail infrastructure company, and other European firms. 

Additionally, the project is being executed under the “Invest Odisha” initiative, aligned with Invest India. Land has been acquired from the IDCO land bank with MOEF clearance and a clear title. Located 30 km from the airport, Khordha Industrial Zone is tailored for top-tier MNCs. 

Financial Performance 

In Q3 FY25, the company reported Rs 1,029 crore in revenue, marking a 15 percent YoY rise. EBITDA grew 19.5 percent to Rs 148 crore, with margins improving to 14.4 percent. PAT rose 18.4 percent to Rs 97 crore, achieving a 9.2 percent PAT margin. EPS for the quarter stood at Rs 2.29. 

Strategic Initiatives and Operational Highlights 

The company successfully commercialized the Jupiter Tatravagonka Railwheel Factory, aiming to double revenue over the previous year. It delivered 13,000 brake discs and exported 10,000 axle boxes to Indian Railways, along with 230 brake systems for passenger coaches. The Rs 6,320 crore order book ensures strong revenue visibility. 

Also read: Market leader FMCG stock jumps after ₹900 Cr investment in new manufacturing facility in Odisha

Electric Mobility Expansion 

The company boosted its stake in Jupiter Electric Mobility from 60 percent to 75 percent and acquired Log9 Technology to strengthen its position in electric trucks and railways. It launched Battery-as-a-Service for TEZ and the JEM Udaan program with Porter, securing 500+ TEZ vehicle orders to accelerate EV adoption.

Revenue and Growth Projections 

The company projects Rs 5,000 crore revenue for FY26, targeting 10–15% growth in the wagon business. Jupiter Tatravagonka is expected to contribute Rs 225 crore in nine months and close FY25 near Rs 300 crore. By FY28, revenue is anticipated to reach Rs 8,000–10,000 crore, driven by non-wagon segments. 

Margin Guidance 

The management anticipates improved EBITDA margins as operations scale and new facilities are integrated. The electric mobility segment is expected to turn margin-positive, with better clarity emerging after initial product deliveries. Overall, enhanced scale and operational efficiencies are expected to support margin expansion in the coming quarters. 

Company profile 

Jupiter Wagons Limited is a railway engineering business that provides freight wagons and passenger coaches for the Indian Railways. The company manufactures railway wagons, wagon components, castings, and metal fabrication, including load bodies for commercial vehicles and rail freight wagons. 

Written by Abhishek Singh

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