Texmaco and RVNL JV: How Could This Partnership Transform India’s Rail Sector?

Synopsis: A small-cap rail engineering company has formed a 49% joint venture with a government rail PSU to develop next-generation rolling stock, execute large EPC projects, boost exports, and strengthen India’s global rail competitiveness.

A small-cap company that is involved in the business of manufacturing Rolling stock, hydro-mechanical equipment, steel castings & construction of Rail EPC, bridges, and other steel structures has come into focus after entering a new joint venture with RVNL.

With the market capitalization of Rs. 4,520.67 crore, the shares of Texmaco Rail & Engineering Limited were trading at Rs. 111.11, down by 0.88 percent from its previous day’s close price of Rs. 112.10 per equity share. 

News

Texmaco Rail & Engineering Ltd. has formalised a strategic joint venture with Rail Vikas Nigam Limited (RVNL) by signing a Joint Venture Shareholders’ Agreement in New Delhi on February 19, 2026. Under the agreement, Texmaco will hold a 49 percent stake, while RVNL will retain majority ownership, structuring the partnership as a public–private collaboration. The JV establishes a unified institutional platform aimed at building next-generation rolling stock capabilities, including freight wagons, locomotives, passenger coaches, and metro systems.

The collaboration will also focus on lifecycle maintenance, asset management solutions, and large-scale EPC and turnkey rail infrastructure projects across India and overseas markets. By combining Texmaco’s manufacturing scale and export reach with RVNL’s strong execution track record in complex rail EPC projects, the companies aim to deliver integrated, technology-driven, and globally compliant rail solutions.

Why Has Texmaco Entered the Joint Venture?

The primary objective behind the JV is to accelerate India’s rail manufacturing capabilities and strengthen its position as a global infrastructure solutions provider. By aligning manufacturing excellence with execution expertise, Texmaco seeks to create a globally competitive rail platform capable of addressing both domestic priorities and international opportunities across Asia, Africa, and the Middle East.

The partnership is also strategically aligned with the Government of India’s Aatmanirbhar Bharat vision, promoting technology indigenisation, supply chain localisation, and export-ready platforms compliant with global safety and performance standards. The JV is expected to unlock scale benefits, enhance innovation, improve cost competitiveness, and enable participation in larger integrated rail manufacturing and infrastructure contracts globally.

Additionally, the initiative is designed to catalyse industrial growth by supporting MSMEs, generating skilled employment across manufacturing corridors, and embedding sustainability practices such as renewable energy integration and circular production systems.

Management Commentary

Saroj Kumar Poddar, Chairman of Texmaco Rail & Engineering, described the alliance as a powerful institutional platform that combines industrial manufacturing strength with EPC execution capability, aligned with India’s self-reliance agenda.

Indrajit Mookerjee, Vice Chairman & Executive Director, termed the partnership a transformational step toward building globally competitive rail capabilities from India, enabling the company to deliver integrated rail solutions for both national and international markets.

Sudipta Mukherjee, Managing Director, highlighted the JV as a unique public–private partnership aimed at shaping the future of rail mobility through next-generation systems, accelerating innovation, strengthening export competitiveness, and reinforcing India’s global rail presence.

Saleem Ahmad, Chairman & Managing Director, emphasized that the JV is not merely a corporate collaboration but a strategic platform for national infrastructure advancement, expected to unlock long-term value through scale, technology adoption, and global project participation.

Financials

Texmaco Rail & Engineering Limited (TEXMACO) is a listed company and a key player in the railway and infrastructure sector, operating across Freight Cars, Rail Infra & Green Energy, and Infra–Electrical segments. The company specialises in rolling stock, rail infrastructure, bridges, and steel structures, supplying freight cars to Indian Railways, private clients, and export markets.

A return on equity (ROE) of about 6.39 percent, a return on capital employed (ROCE) of about 11.2 percent and debt to equity ratio at 0.29 demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 27.1x lower as compared to its industry P/E 27.9x.  

In Q3FY26, the company reported revenue of Rs. 1,041 crore, reflecting a 4.1 percent YoY decline compared to Rs. 1,086 crore in Q3FY25 and a sharper 17.2 percent QoQ drop from Rs. 1,257 crore in Q2FY26, indicating sequential slowdown in topline momentum. 

EBITDA remained flat YoY at Rs. 91 crore versus Rs. 91 crore last year, but declined 27.2 percent QoQ from Rs. 125 crore, highlighting pressure on operating performance during the quarter. Profit after tax stood at Rs. 39 crore, down 17.0 percent YoY from Rs. 47 crore and 37.1 percent QoQ from Rs. 62 crore, suggesting margin compression and weaker earnings conversion amid lower revenues on a sequential basis.

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