Titagarh Rail Systems Limited (TRSL) is making a strategic move beyond rail by stepping into the shipbuilding industry. The company’s Board has approved the formation of a wholly owned subsidiary, Titagarh Naval Systems Private Limited (TNSPL), by acquiring its entire share capital for Rs 10,000.
Alongside this, TRSL will transfer its existing Shipbuilding and Maritime Systems (SMS) business to TNSPL as a going concern. The goal is to let TRSL sharpen its focus on the core rail systems business, while TNSPL develops the naval systems arm independently and attracts potential strategic investors.
Details of the New Subsidiary
TNSPL was incorporated on December 2, 2024, with an authorised share capital of Rs 5,00,000 and paid-up capital of Rs 10,000. As of now, it has no turnover. The transfer of the SMS business will be finalised through a Business Transfer Agreement and is expected to be completed by August 11, 2025. The move does not require any government or regulatory approvals and is not a related-party transaction.
TNSPL’s scope will cover the manufacturing, marketing, and selling of naval systems, including shipbuilding and related components.
Big Win in the Mumbai Metro Project
Earlier this year, TRSL secured a Rs 1,598.55 crore contract from NCC Limited for Mumbai Metro’s Line 6 project. As a specialised subcontractor, TRSL will design, manufacture, supply, install, integrate, test, and commission 18 trains (108 metro coaches) over a 104-week Design-Build period. The deal also includes two years of defect liability maintenance followed by five years of comprehensive maintenance.
About Titagarh Rail Systems
TRSL is one of India’s leading mobility solutions providers, with advanced manufacturing units in both India and Italy. The company produces a wide range of rolling stock, from semi-high-speed trains and metro coaches to passenger coaches, freight wagons, and propulsion systems.
With a market cap of over Rs 12,000 crore, TRSL is actively contributing to India’s ambition of becoming a global manufacturing hub for transportation.
Financials and Market Performance
In Q1FY26, TRSL reported net sales of Rs 679 crore, down 25% from Q1FY25, and a net profit of Rs 31 crore, down 54%. For FY25, the company posted net sales of Rs 3,867.75 crore and a net profit of Rs 276.39 crore.
The order book stands at Rs 26,000 crore as of June 30, 2025. Investors have seen spectacular returns, the stock has surged 500% in three years and a massive 1,860% in five years.
