Indian Railways' freight wagon policy to boost private orders, says Jupiter Wagons

Jupiter Wagons expects a strong order pipeline over the coming quarters, supported by upcoming Indian Railways wagon tenders, rising private-sector demand and a new policy allowing industries to design customised freight wagons, according to Managing Director Vivek Lohia.

The Kolkata-based rail wagon manufacturer also expects additional orders from JSW (South) Rail Logistics Private Limited after securing a Maruti Suzuki, while new manufacturing facilities and export partnerships are expected to support growth over the next two to three years. Lohia said the timing of Indian Railways' next wagon tender will be a key factor for the company's order book for the fiscal year 2026-27 (FY27).

Lohia said the company's latest order from JSW Rail strengthens its growing private-sector business.

"More than 50% of our order book is on the private side."

He said the JSW order will be executed during the current financial year and added that the steel producer's expansion plans could lead to additional orders.

Lohia welcomed Indian Railways' decision to allow industries to develop customised freight wagon designs, calling it a long-awaited reform that will encourage greater private-sector participation in rail freight.

"This is going to be a transformative move for the sector."

He said private procurement of freight wagons has increased sharply over the past three to four years, with nearly one lakh wagons purchased by private players. Jupiter Wagons has already developed a specialised automobile carrier wagon with GTX, which helped secure a sizeable order from Maruti Suzuki, and is working on three to four additional wagon designs.

The company is also expanding into passenger coaches and metro rail through a partnership with a global rolling stock manufacturer. Lohia said bidding for projects is expected to begin before the end of the year, while the partnership could also open export opportunities in the global coach manufacturing market.

Jupiter Wagons currently has a market capitalisation of ₹11,406.52 crore. The company's shares have declined more than 30% over the past year.

Lohia said the company expects a major wagon tender before the end of the next quarter after the last large tender was floated in 2022 with regard to Indian Railways' procurement plans. He said multi-year tenders would provide better visibility for manufacturers and support production planning.

"We expect a big order book, and Jupiter being one of the leading players, definitely we are going to get one of the biggest shares."

Lohia said the company currently has a private-sector order book of around ₹3,000 crore and expects margins to remain in line with current levels. He added that margins could improve further once fresh railway orders are received, as higher production volumes would lead to better utilisation of manufacturing infrastructure.

Lohia said Jupiter Wagons is building an integrated rail manufacturing business. Its wheel and axle facility in Odisha is expected to become operational next year, while an agreement with European company Tatravagónka will utilise around half of the plant's capacity. He said these initiatives, together with new wagon designs and export opportunities, are expected to strengthen the company's business over the next two to three years.

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