Ladies and gentlemen, good day and welcome to Q1 FY 2027 earnings conference call of Jupiter Wagons Limited. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on a touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Prathmesh Kamath from Systematix Group. Thank you, and over to you, sir.
Good afternoon, everyone. Thanks for joining us today for the Q1 FY 2027 earnings call of Jupiter Wagons Limited. On behalf of Systematix, I would like to thank the management for giving us the opportunity to host this call. Today we have with us Mr. Vivek Lohia, Managing Director, Mr. Vinod Agarwal, Chief Financial Officer, and Mr. Puneet Sahu, Vice President. Now I would like to hand over the call to the management for their opening remarks, and then we can open for Q&A. Thank you, and over to you, Vivek, sir.
Yeah. Thank you very much. Good afternoon, all ladies and gentlemen. Thank you for joining us today to discuss our performance for the first quarter of FY 2027. I hope you have had the opportunity to review our results presentation and investor communication circulated earlier. FY 2027 has begun on a strong note for Jupiter Wagons, marked by continued business momentum and meaningful progress across our strategic priorities. Our focus on portfolio diversification and investments in technology capacity and manufacturing capabilities is enabling us to strengthen our competitive position and capture the significant opportunities emerging across Indian Railways and mobility sectors. During Q1 FY 2027, consolidated revenue from operations increased 46% year-on-year to INR 671 crore, while EBITDA grew 9% to INR 65 crore, translating into an EBITDA margin of roughly 10%. Profit after tax stood at INR 26 crore with PAT margin at 4%.
As volumes increases and operating leverage improves, we remain confident of delivering stronger profitability in the quarters ahead. We have secured fresh orders worth INR 264 crore from JSW Rail Logistics and the Central Warehousing Corporation, reflecting continued customer confidence. In addition, we have also secured additional orders worth INR 211 crore from JSW Port Logistics and Orissa Alloy Steel Private Limited. The JSW order comprises seven BOSM rakes covering 329 BOSM wagons, while the Orissa Alloy order constitutes 150 wagons under the LSFTO scheme. These orders reinforce the growing opportunity in private wagon ownership and leasing while strengthening our leadership in this segment. A key strategic milestone during the quarter was the strengthening of our Rail Wheel platform.
We completed the acquisition of the remaining 1.94% stake in Jupiter Tatravagonka Railwheel Factory, increasing our ownership to 100% and giving us complete strategic and operational control as we prepare for the next phase of growth. Building on this foundation, we entered into a landmark strategic partnership with Lucchini RS of Italy and SIMEST. Under the partnership, Lucchini RS and SIMEST, an Italian government financial institute, shall acquire a combined 25% stake in JTRWF with an investment of approximately INR 290 crores. Beyond the capital infusion, this partnership brings world-class rail wheel technology, engineering expertise, and global market access. Together, we are creating India's first fully integrated private sector rail wheel manufacturing platform, centering domestic manufacturing capabilities while establishing a strong base for exports and enhancing our global competitiveness. Beyond our traditional railway operations, we continue to build Jupiter Electric Mobility as an important future growth platform.
During the quarter, we have secured 110 megawatts of BESS orders for FY 2027 through strategic MOUs with Chalukya Power and PIC Renew across utility scale and commercial and industrial applications. In parallel, we expanded our clean energy portfolio with modular containerized BESS solutions in 10-foot and 20-foot formats, addressing applications including renewable energy integration, diesel generator replacement, and mobile energy storage. Momentum has accelerated further after the quarter. JEM emerged as the successful bidder for two standalone BESS projects in West Bengal with a combined capacity of 100 and 400 megawatts covering the Zirat and Kharagpur projects. These projects involve approximately INR 400 crores of BESS supply and commissioning and will operate under a 15-year build own operate model with West Bengal State Electricity Distribution Company Limited. With these wins, JEM Energy's BESS order book now increased to approximately 500 megawatts, valued at over INR 500 crores.
We are targeting a BESS order book of approximately INR 1,000 crores by FY 2027, reflecting our confidence in the structural opportunity presented by India's rapidly expanding energy storage platform. We see energy storage as a natural extension of our mobility and engineering capabilities and an important opportunity to participate in India's transition towards a renewable-led power system. Our objective is to build a scalable, technology-driven BESS business serving both utility scale and commercial and industrial applications. Another important milestone was achieved by Stone India, which received RDSO approval for its freight brake systems during the quarter. Commercial production commenced from July 2026, enabling the company to begin supplying freight brakes to the railway sector. This approval expands our railway safety product portfolio and provides another avenue to participate in the growing demand for indigenous value-added railway components. Our priorities remain clear.
We will continue to expand our manufacturing footprint, strengthen backward integration, leverage technology partnerships, enhance our product portfolio, and improve execution capabilities. At the same time, we remain focused on operational efficiency, capital discipline, and improving profitability as we scale. Thank you for your continued trust and support. I now request the moderator to open the floor for questions.
Thank you very much, sir. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Rehan Syed from Trinetra Asset Managers. Please go ahead.
Yeah, hello, good afternoon. I have some couple of questions. First question is on your order book size. With the current order book at around INR 4,500 crore, could you provide a broad segment-wise breakup between railway wagons, wheel set components or either commercial vehicle bodies and other business along with the expected execution profile for FY 2027 and FY 2028?
Could you repeat your final question? I could not understand.
Yeah, sure, sir. My question is around your order book, which is around INR 4,450 crore+ . Could you provide a broad segment-wise breakup between your railway wagons, wheel set components, commercial vehicle bodies and other businesses along with what is the expected execution profile for FY 2027 and FY 2028?
Understood. Thank you. Our railway wagon order book, which includes both railway as well as private order book, stands at approximately INR 3,000 crores. Other meaningful order books, I will just name the wheel set business. The order book is about close to INR 700 odd crores. The commercial vehicle segment, it is about INR 500 crores. As we had mentioned that on the BESS side now our order book stands at about INR 500 odd crores, which includes the last order which came in the current quarter from the State Electricity Board. This is roughly the constitution of our order. On the railways, on the wagon side, we expect to execute a sizable percentage of the order book in FY 2027 itself, because most of our deliveries are for FY 2027, and we will continue to build on further order books there.
If you look at the overall order book, I think most of that order book currently which we have should be executed in FY 2027 itself. We are looking at about 60%-70% of the order book being executed in the current financial year.
Okay, sir. Sir, you have mentioned right now about railway wagon segment. Just wanted some clarification. Sir, your railway wagon production is around 1,141 units in quarter one FY 2027 versus if we have seen in last quarter, it is around 1,347 units. Sir, just if my understanding correct, this was because of the sequential decline primarily due to seasonality or execution scheduling or capacity constraints. Could you please help me understand what is the expected production trend rate for the remaining quarters of FY 2027?
This was mainly because currently our focus is mainly on a lot of private sector order book execution. In the first quarter there was a transition because there are a lot of new wagons which we started producing. When you are producing a new design of wagon, there is a prototype approval, and that has its own timeframe attached to it. That is the reason you see a dip. Going forward, I think in the next three quarters, you will see the executions improving compared to last year.
Okay, sir. I will ask one last question from my side, and I will join back in the queue. My last question is around your Orissa greenfield railway facility. It is targeting partial production by the end of FY 2027 and full commissioning by the end of FY 2028. What capacity will become operational in each phase and what would be the expected utilization ramp up and what do you expect the project to achieve EBITDA breakeven? Just add on in this question only, once your Orissa railway facility is fully operational, what proportion of production do you see being absorbed internally versus sold to third party domestic customers and exports? Also, how does the expected margin profile compare with the existing wheel and axle business?
My God, your question covers everything. It is not one question, it covers
Yeah.
I will briefly, I will not get into details here, but briefly, we have two lines, one is the axle line and one is the wheel line. In FY 2027, we expect the axle line to get commissioned, and FY 2028 is when we have targeted for the wheel line to get commissioned. Once both lines are commissioned, we are looking at revenue of anything between INR 2,500-INR 3,000 crores, is our revenue target. Definitely we are targeting EBITDA of at least 50% odd in this business, if not higher. Again, first priority is definitely going to be the captive consumption and by then we expect the wagon order books also to become very strong.
Definitely, I think as we have always retained that about 50% of the capacity would be for our own internal use and the domestic requirements, and 50% of the capacity is earmarked for the export business. Overall capacity is around 100,000 wheel sets, is the rated capacity of this facility.
Okay, sir. Thank you for your detailed clarification and good luck for your coming quarter.
Yeah, thank you.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants in the question queue, please limit yourself to two questions only. Should you have a follow-up question, please rejoin the queue. Next question is from the line of Koundinya Nimmagadda from Jefferies. Please go ahead.
Hi, sir. Thanks for the opportunity. Three questions from my end. The first thing, if I were to look at it right now, your wagon realization seems to have gone up this quarter. Can you throw a little bit of color where would that number be directionally? Because our standalone sales are higher than the wagon sales. Just trying to understand that little breakup, if you can provide some color on that.
As I mentioned to the last caller, the first quarter was a slight transition period for us because there were a lot of new designs which we had started producing. There was a transition period in terms of the prototypes which we had to make. But from second quarter onwards, definitely you will see a spike in the wagon numbers.
Sir, my question is a little different actually. I was trying to understand if the wagon realizations have gone up materially because standalone sales growth vis-a-vis the wagon sales growth—
The realization of the What was it last year? Okay. The wagon realization continues to remain the same. I don't think there is much change. Yes, but what has happened is that the non-railway side of the business has gone up. That has definitely resulted because the non-railway, the margins are better. Compared to if you look at the same quarter last year, I think it was about average was INR 38 lakh, and right now we are at INR 41.5 lakh.
Understood, sir. Sir, my second question is, if I were to look at the EBITDA level, right? It appears that our subsidiaries have reported an EBITDA loss this quarter. Can you help us understand what is happening here?
Which subsidies?
Because the standalone EBITDA is higher than consolidated EBITDA, therefore it appears subsidies haven't contributed to EBITDA actually.
As we have mentioned that when it comes to Stone India, we have got the approval now from RDSO for the freight brake system. I think from third quarter onwards, Stone India will become profitable. Maybe in the second quarter, you may see slight borderline negative numbers, but from third quarter, Stone India will turn positive, because now it's a question of ramping up the production. On the Jupiter Electric Mobility, I think, which we have continued to maintain is that from FY 2028 onwards, the business is going to turn EBITDA positive for us. Because FY 2027 for us is building on our core technology and building on order books, you've seen a sizable order books coming in. From FY 2027, you will see a big ramp-up on the business.
I think the only other JV, which is the JWL Dako-CZ India Limited, which again, I think in the coming quarters, we will start executing. We have a very strong order book now from Indian Railways. We will start executing those order books. I think before the end, by the third quarter, all the JVs will start reporting positive EBITDAs as per our estimations. Only the JEM positive EBITDA numbers will be in FY 2028.
Sure, sir. Sir, on the wheel set side right now, post the transaction, it is a little confusing for me. If you can help us understand, one, what is the total CapEx now? Out of that, how much is that will go out of Jupiter Wagons' pocket and if you can brief those mechanisms, how does it work?
The total project CapEx remains at INR 2,600 crores.
Okay.
Out of that, Jupiter Wagons was supposed to infuse INR 900 crores. Now, out of the INR 900 crores, the new investor brings in approximately INR 300 odd crores. So now Jupiter Wagons' infusion now goes down to INR 600 crores.
Understood, sir. Sir, if I may ask one last question. What is the status of that 1 lakh wheel tender, wagon tender? Is there any update on that?
Unfortunately, right now, I cannot give you any. The railway freight demand continues to grow and that continues to remain strong. The railway continues to maintain their target of loading of 3.5 billion tons of loading. Again, we do not see any challenges on the demand side. We are just waiting for railways to firm up their requirements.
Sure, sir. Got it. Thank you and all the best.
Yeah, thanks.
Thank you. Before we move to the next question, a reminder to the participants, to ask a question you may press star and one. Next question is from the line of CA Garvit Goyal from Serene Alpha. Please go ahead.
Hello, am I audible, sir?
Your voice is a bit low.
Hello, am I audible?
Yes, please go ahead.
Yes, sir. My question on Stone India side, like we commenced our production on freight brake system as on July 2026. That support our order book now. What is the EBITDA percentage after FY 2027 second half, we can estimate from that? That was my—
From FY 2028 onwards, definitely the EBITDA will be 15%+ on the business.
FY 2028 and onwards, sir?
FY 2028, as I have told you that the volumes are going to build up gradually. For this year to give you color on the EBITDA numbers would be a little challenging. We expect that by end of this calendar year, we will reach our capacities which we are estimating. Once we reach the capacities which we are targeting and estimating, it should be a steady EBITDA of close to 15 odd percent.
Okay. Good to hear, sir. The second question on percentage of our current freight wagon manufacturing requirement is fulfilled by the Stone India brake system versus external vendor, sir.
So again, as I have told you, before end of this calendar year, 100% of our requirements will be met by Stone India.
Okay. Any current percentage, sir?
As we are ramping up, honestly, I do not have the numbers, but it is not meaningful. Because I am talking about in the next three to six months itself, the ramp-up will happen, that 100% of our requirements are fulfilled by the subsidiary.
Okay. Thank you, sir. All the best for this.
Thank you. Next question is from the line of [Daksh Prasad] from Desvelado Research. Please go ahead.
Hi, sir. Am I audible?
Your voice is very low, Daksh.
Just a second. Hi, am I audible now?
Yes, please proceed.
I just have one question, sir. Our consolidated revenue declined sequentially this quarter. Was this primarily due to the seasonality or were there any execution constraints?
Compared to last quarter this year or compared to the last quarter?
The last quarter, sir.
There is a marginal decline in revenue. That, too, I had mentioned, because we were transiting to new designs of wagon, because our order book, if you look at order book, it is primarily on account of private wagons. If you look at today, our order book, I think around close to 80% of our order book is all private wagons. This was a quarter when we shifted to new designs. There was a transition which was there, but in the coming quarters, I think that should not be a challenge.
All right, sir. That is okay. Thank you.
Thank you. Next question is from the line of Bala subramanian from Arihant Capital . Please go ahead.
Good afternoon, sir. Thank you so much for the opportunities. Sir, actually, Indian Railways, they reduced in terms of wagon production target. What is your thought process on that, and when we can expect a substantial ramp-up in the freight wagon side?
Indian Railways has not reduced their wagon targets. Whatever the order books which we have from Indian Railways, there is no reduction in terms of the requirements which they have given us. That continues to remain the same. The only challenge remains is on the new order book from Indian Railways, which we don't see any slowdown in the growth momentum and in terms of any kind of target reduction by Indian Railways, because they continue to maintain their loading projections. We expect new order books to come soon. But if you want us to give us any exact timelines, again, very difficult for us to project any kind of timelines for the same.
Okay, sir. In that Orissa plant, I think earlier call you mentioned about civil construction is at advanced stage and partial production is expected by Q4 or Q1 FY 2028. How much total CapEx incurred so far and what's that upcoming CapEx, especially for this plant?
As we have mentioned, the CapEx is ongoing, so it's very difficult for us to give you precise numbers. But I think majority of the CapEx will be done by quarter one of next year, is when we expect majority of the CapEx to done. In terms of equity from Jupiter's side, whatever equity infusion was needed to be done is already done. Now we have a new partner which has come into the project, Lucchini and the Italian government. We expect their equity infusion to happen very shortly. I think before middle of next month. That is the balance equity infusion which is needed for the project.
Okay, sir. Sir, in the passenger system side, the partnership is finalized. What is the status on that?
We are at a very advanced stage, and I think before the end of the year, we will be announcing a partnership.
Okay, sir. Sir, in that Jupiter Electric Mobility side, I think we have that BESS business, around 100 megawatt, 400 megawatt hour BESS project in West Bengal. It is a basically build, own, operate model. I am trying to understand how we are funding for this project and what kind of project IRR and ROE we can expect compared to the—
Project IRR is quite strong for us. 15%+ would be our project IRR. One of the key reasons is that, if you look at, as a producer, we are very integrated. From our own container manufacturing all the way up, we are quite integrated. We are producing our own BMS, our own EMS. We are not dependent on outside technology. The IR remains to be strong. We have not formed up in terms of whether it will be through internal accruals or we will use debt to finance the project. That is yet to be ascertained.
What is the pipeline that sir, in upcoming orders?
As we have mentioned that we are just now focusing again on the utility segment, which is a mix of C&I as well as utility. On the C&I segment itself, we continue to grow very strongly. If you look at month-on-month, our growth is close to 80%- 100% on the C&I segment itself. This year, we expect complete order books to be about INR 1,000 odd crores. Next three years, we are looking at at least INR 5,000 odd crores of order books in this business. Because again, on the demand side, demand continues to be very strong. It is both on the C&I as well as on the utility side. We do not see any kind of demand challenges. So we are right now focusing more on the execution and building our capabilities. I think that is our key focus.
Because demand side, I think there is more than enough demand in this sector.
Yes, sir. But in Q1, I think we have seen a substantial increase in commercial vehicle bodies and axle, but the wagon got declined. Could you please share in terms of margin this time?
Again, as I mentioned, Q1, there was a transition where I mentioned to two, three other callers before.
Yes.
There was a transition where we had moved to new designs on the private side. So that design development takes a little bit time. Unfortunately, the entire transition happened in Q1. So Q2 onwards, you will see a definitely increase in the numbers.
Okay. Got it, sir. Thank you.
Thank you.
Thank you. Next question is from the line of Sandeep Mukherjee from SKP Securities. Please go ahead.
Thanks for taking my question, sir. Sir, my only question is, what is the number of pending wagons as of Q1 FY 2027?
In terms of the value would be?
In terms of volume.
Oh, the number of wagons outstanding.
Yes.
It is about close to 7,000 odd wagons.
7,000. That's right, sir. Okay, sir. Thank you.
Thank you. Participants, to ask a question, you may press star and one. Ladies and gentlemen, to ask a question, you may press star and one on your touchtone telephone. Next question is from the line of Navin Sahadeo from ICICI Securities. Please go ahead.
Yeah. Good afternoon, sir, and thank you for the opportunity. I hope I'm audible.
Yes, Navin, you're audible.
Yeah. Thank you for the opportunity. Sir, as you rightly mentioned, we all are waiting for the railway wagon orders to come from the railways. But it's quite impressive to see the wheel set business order book also at about INR 700 odd crore. My question was on this particular business, because the Orissa facility which we are trying to set up likely or seems to have a capacity of around 1 lakh wheel sets, if I am not wrong. Just wanted to understand how—
Oh, yeah.
Sorry?
Yeah, no, please go ahead.
Yeah. So my question was that, first of all, couple of questions here, when do you see the commercial production for this particular forged wheel set to start? Also in terms of the opportunity, both in India as well as export. I believe bulk of it initially to begin with, I think 50% export was mentioned. Correct me if I am wrong, but if you could just explain this segment a little more as to what is the opportunity we can see, what is the commercial production ramp up, just to understand or get a better perspective on this entire wheel set business. Thank you.
Okay. No, thank you for the question. Yeah, you are exactly right that it is about 100,000 is the total capacity. See, the opportunity size is definitely very big, because right now we have one facility which is there in Aurangabad, but there we are constrained because we do not make our own black forge wheels, we need to import it. So in terms of a lot of order books also, there is a constraint in terms of supplies. But if you look at the entire landscape, one, if you start looking at the landscape for the passenger segment in India, today, all the trains which are made in the country, be it the Metro, the Vande Bharat, all the wheel sets which go into them, they are all imported. Today, India does not produce any wheel set.
So that itself is anything between a 10,000 - 20,000 wheel set business annually. That is one of the reasons also we have gotten Lucchini RS as a partner because they are the biggest supplier globally when it comes to this segment. This is a high margin segment, and it requires a lot of homologated technology, which is needed. Then if you look at the general IR segment, which primarily constitutes of railway wagons. So in a year, on an average, about 20,000- 30,000 new wagons are built, which constitutes about 120,000 new wheel sets annually. Plus, Indian Railways has a fleet of roughly about 3 odd lakh wagons. Where there is a replacement of wheel sets is around seven years, there is a replacement of wheel set which is there. Which again translates to roughly about 150,000 - 200,000 wheel sets every year.
Indian domestic market roughly would be anything between 3-4 lakh wheel sets annually. Then definitely beyond that is the export market, where we have a committed off take agreement from Tatravagónka, which they buy close to about 20,000 - 30,000 wheels every year. Beyond that also, Lucchini has been given the rights for the entire international marketing. We do not see any off take challenges. I think for us, the key concern is to ramp up production and to see that the facility meets all the technical criterias for us to get homologated.
Great. Thank you so much for the elaborate reply. Just one clarification. The wheels that are used by the Indian Railways wagons, they are mostly the casted wheels, and these will be forged. Are we saying that Indian Railways will also start using the forged wheels? Probably passenger rail segment uses forged wheels, but Indian wagons use the cast wheels. I hope—
In Indian Railways, currently also we are using both, mix of cast as well as forged wheels.
Okay.
Today, even the wheels which we are producing in Aurangabad, which goes into our own wagons, they are all forged wheels. It is not something new. Indian Railways will continue to use a mix of both cast as well as forged wheel. On the other hand, as the speeds increase, cast wheels have a limitation that they can only be used up to maximum 100 km/ hour.
Okay.
So in future, as new designs come and as loading capacities increase,
Right.
Then the transition will be more towards forged wheels rather than cast wheels.
Understood. My last question, sir, on this. Because there is some other competitor also who is setting up a capacity, which is again pretty sizable, almost about, I think, 228,000 or so. In your sense, is it likely to intensify competition in this segment domestically? Exports, of course, we may have an upper hand because of the tie-ups that we have. But domestically, do you see the competition coming up, or you think there is enough and more headroom for everything to get absorbed?
See, first of all, there is more than enough headroom for, I think, our capacities which are there. Secondly, as I have told you, domestically also, we are looking at more on the passenger segment and our own captive requirements. On the passenger side of the business, again, there is a lot of certifications and technology which is involved, which is, for any domestic new producer without any kind of international accreditations, to meet those standards is a long journey. That is one of the primary reasons that we have gotten Lucchini as a partner, because not only it helps us accelerate our technical capabilities, but it also provides us all the designs which are currently used for semi high speed and high speed. Through the availability of the design, again, the homologation certifications. That is how we are looking at the business.
Beyond that, I cannot comment on what competition is doing.
No, fair point. Great, and really appreciate the fact that while we all wait wagon orders from Indian Railways, you are well into the game to really diversify your business very ahead of competition. So, great, and all the best to you, sir.
Thank you. Thank you very much.
Thank you. Participants, if you wish to join the question queue, you may press star and one. As there are no further questions from the participants, I now hand the conference over to the management for the closing comments.
Yeah. Thank you. Thank you for your insightful questions and continued engagement. Looking ahead, we remain confident about the structural opportunities available to Jupiter Wagons. India's continued investment in railway infrastructure, freight modernization, private sector ownership of rolling stock, and domestic manufacturing are creating a favorable environment for our core business. At the same time, our investments in rail wheels, braking system, electric mobility, and energy storage are broadening our addressable market and creating additional revenues for our long-term growth. With a strong execution pipeline and expanding product portfolio and multiple growth platforms, we believe Jupiter Wagons is well positioned to participate in India's evolving mobility and infrastructure opportunity. Thank you once again for your continued support. We look forward to interacting with you again next quarter.
Thank you, sir. On behalf of Systematix Institutional Equities, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.