Kolkata-based Texmaco Rail & Engineering Ltd., a key player in the Adventz Group, witnessed a significant rally in its shares, climbing 14% in Wednesday's trading. The surge followed the announcement of the company securing its largest international rolling stock order to date, valued at an estimated Rs 4,045 crore.
The landmark contract, awarded by a South African Train Operating Company (TOC), involves the supply of 2,235 freight wagons across multiple variants and 30 diesel locomotives. This strategic opportunity also encompasses a proposed 15-year maintenance partnership, creating a substantial long-term business prospect for Texmaco Rail in the region.
Major International Order Secured
According to a filing with BSE and NSE, Texmaco Rail received a Letter of Award (LOA) for this significant project. The development saw Texmaco Rail stock hit a high of Rs 119.80 on the National Stock Exchange (NSE), cutting its year-to-date losses to 13.78 per cent. Over the past month, the shares have already gained 22.50 per cent, reflecting growing investor confidence.
The company stated that this new project aligns with South Africa’s ongoing rail sector reforms and the emerging Open Access freight rail framework. These reforms are expected to drive considerable investments in freight mobility, rolling stock modernization, mining logistics, and railway infrastructure, creating a fertile ground for Texmaco's expansion.
MD Highlights Strategic Importance
Sudipta Mukherjee, Managing Director of Texmaco Rail, emphasized the strategic importance of the South African freight rail market, citing its strong long-term potential. Mukherjee stated that this new opportunity marks an important milestone in the company's international journey and underscores the increasing global acceptance of Indian rail engineering, manufacturing capabilities, and integrated mobility solutions.
Mukherjee also noted that the company would pursue this opportunity with a balanced and prudent approach, carefully considering evolving geopolitical conditions, supply chain dynamics, commodity volatility, currency movements, and broader global economic developments associated with long-duration international projects.
Texmaco Rail, which operates seven manufacturing facilities across India, specializes in rolling stock, hydro-mechanical equipment, and various rail infrastructure solutions. The company expects this development to strengthen its presence across the African rail ecosystem and open future avenues in wagon supply, locomotive modernization, refurbishment, maintenance services, and rail infrastructure projects throughout the region. Long-term plans also include potential phased localization and strategic partnerships in Southern Africa.