Good afternoon, everyone. Thanks for joining us today for the Q1 FY27 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 Sahbu, 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 FY27.

I hope you have had the opportunity to review our results presentation and investor communication circulated earlier. FY27 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 railway and mobility sectors. During Q1 FY27, consolidated revenue from operations increased 46% year-on-year to ₹671 crore, while EBITDA grew 9% to ₹65 crore, translating into an EBITDA margin of roughly 10%.

Profit after tax stood at ₹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 ₹264 crore from JSW Rail Logistics and the Central Warehousing Corporation, reflecting continued customer confidence. In addition, we have also secured additional orders worth ₹211 crore from JSW Port Logistics and Orissa Alloy and Steel Private Limited.

The JSW order comprises 7 BSFM rakes covering 329 BSFM wagons, while the Orissa Alloy order constitutes 150 wagons under the LS FTO scheme. These orders reinforce the growing opportunity in private wagon ownership and leasing while strengthening our leadership in the 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 Rail Wheel 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 ₹290 crore.

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 MW of BESS orders for FY27 through strategic MOUs with Chalukya Power and Peak 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.

GEM emerged as the successful bidder for two stand-alone BESS projects in West Bengal, with a combined capacity of 100 and 400 MWh covering the Jeerat and Kharagpur projects. These projects involve approximately ₹400 crore of BESS supply and commissioning and will operate under a 15-year build-own-operate model with West Bengal State Electricity Board.

With these wins, GEM Energy's BESS order book now increased to approximately 500 MW, valued at over ₹500 crore. We are targeting a BESS order book of approximately ₹1,000 crore by FY27, 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.

Hello, good afternoon, sir. I have some couple of questions.

First question is on your order book size. With the current order book at around 4 4.5k crore, could you provide a broad segment-wise breakup between railway wagons, wheel set components, and commercial vehicle bodies and other businesses along with the expected execution profile for FY27 and FY28?

Could you repeat your final question? I could not understand.

Sure, sir. Sir, my question is around your order book, which is around 4 4 4500 crores plus, could you provide us broad segment-wise breakup between your railway wagons, wheel sets, components, commercial vehicle bodies and other businesses along with what is the expected execution profile for FY27 and FY28?

Understood. Thank you.

Yeah. Our railway wagon order book, which includes both railway as well as private order book, stands at approximately ₹3,000 crore.

The other meaningful order books, I will just name. The wheel set business, the order book is about close to ₹700 odd crore.

The commercial vehicle segment, it's about ₹500 crore. As we had mentioned that on the BESS side now, our order book stands at about ₹500 odd crore, 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 wagon side, we expect to execute sizable percentage of the order book in FY27 itself because most of our deliveries are for FY27, 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 FY27 itself, we are looking at about 60% to 70% of the order book being executed in the current financial.

Sir. Sir, just if you have mentioned right now about railway wagon segment, just wanted some clarifications.

Sir, your railway wagon production is around 1,141 units in quarter one FY27 versus if we have seen in last quarter is around 1,347 units. Sir, is my understanding correct that this was because of the sequential decline primarily due to seasonality or execution scheduling or capacity constraints?

Just could you please help me understand what is the expected production run rate for the remaining quarters of FY27?

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 so 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.

Sir. Sir, my one last question from my side, and I'll join back in the queue.

Sir, my last question is around your Odisha greenfield railway facility targeting partial production by the end of FY27 and full commissioning by the end of FY28. What capacity will become operational in each phase, and what would be the expected utilization ramp-up?

What do you expect the project to achieve EBITDA break-even? Just can add on in this question only.

Once your Odisha 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?

Your question covers everything. It's not one question.

Yes, sir.

I'll

not get into details here, but briefly, we have two lines: one is the axle line, and one is the wheel line. In FY27, we expect the axle line to get commissioned.

FY28 is when we have targeted for the wheel line to get commissioned. Once both lines are commissioned, we are looking at a revenue of anything between ₹2,500 to ₹3,000 crore is our revenue target.

Definitely, we are targeting a EBITDA of at least 15 odd percent in this business, if not higher. Again, first priority is definitely going to be the captive consumption.

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 the facility.

Sir. Thank you for your detailed clarification, and good luck for coming quarter.

Yeah. Thank you.

Hi, sir. Thanks for the opportunity.

Three questions from my end. The first thing, if I were to look at, right, now your wagon realizations seems to have gone up this quarter.

Can you throw a little bit of color? Where would that number be?

Directionally, because our stand-alone 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 that 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.

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 stand-alone sales growth vis-a-vis the wagon sales growth,

they're 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 is definitely resulted because the margins are better.

Compared to if you look at the same quarter last year, I think it was about average odds ₹38 lakh. Right now, we are at ₹41.5 lakh.

Understood, sir. Sir, my second question is, if I were to look at the EBITDA level, right, it appears that the subsidiaries have reported an EBITDA loss this quarter.

Can you help us understand? What is happening here?

Because our stand-alone EBITDA is higher than consol EBITDA. Therefore, it appears subsidiaries haven't contributed to EBITDA, actually.

As we have mentioned that when it comes Stone India, we have got the approval now from RDSO for the freight brake systems. 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 the question of ramping up the production. On the Jupiter Electric Mobility, I think which we continue to maintain is that from FY28 onwards, the business is going to turn EBITDA positive for us.

Because as FY27 is for us is building on a core technology and building on order books. You've seen a sizable order books coming in.

From FY27, you will see a big ramp-up on the business. I think the only other JV which is the JWL Dako, which again, I think, in the coming quarters, We have a very strong order book now from Indian Railways.

We'll start executing those order books. I think by the third quarter, all the JVs will start reporting positive EBITDAs as per our estimations.

Only the GEM numbers, positive EBITDA numbers will be in FY28.

Sure, sir. Sir, on the wheel sets side, right, now post that transaction, It's 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's pocket?

If you can brief those mechanisms, how does it work?

The project CapEx remains at ₹2,600 crore. Out of that, Jupiter was supposed to infuse ₹900 crore.

Now out of the ₹900 crore, the new investor brings in approximately ₹300 odd crore. Now Jupiter's infusion now goes down to ₹600 crore.

Understood, sir. Sir, if I may ask one last question.

What is the status of that 1 lakh wagon tender? Is there any update on that?

See, 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 lakh billion tons of loading.

Again, we don't see any challenges on the demand side. We are just waiting for railways to form up their requirements.

Sure, sir. Got it.

Thank you, and all the best.

Yeah. Thank you.

Hello. Am I audible, sir?

Hello. Am I audible?

Yes, sir. My question on the Stone India side, we commenced our production on freight brake system as on July 2026.

That support our order book now. What is the EBITDA percentage after FY27 second half we can estimate from that?

Again

from FY28 27 from FY28 onwards, definitely the EBITDA will be 15% plus on the business.

FY28 and onwards, sir?

FY28, I can give you a So, the as I have told you that the volumes are going to build up gradually. For this year to give me a give you a 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 should be a steady EBITDA of close to 15 odd percent.

Understood, sir. The second question on the percentage of our current freight wagon manufacturing requirement is fulfilled by the Stone India brake system versus external vendor, sir?

We again, as I've told you, before end of this calendar year, 100% of our requirements will be met by Stone India.

Okay. Any current percentage, sir?

They are

As we are ramping up, honestly, I don't have the numbers, but it is not meaningful because and I'm talking about in the next 3 to 6 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 the next quarters.

Hi, sir. Am I audible?

Just a second. Hi, am I audible now?

I just had 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, and that too I had mentioned because we were transiting to new designs of wagon because more order book, if you look at our 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.

We had to when we were this was a quarter when we shifted to new designs. There was a transition which was there.

In the coming quarters, I think that should not be a challenge.

All right, sir. That's helpful.

Thank you.

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?

When we can expect a substantial ramp-up in that 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.

If you want us to give us any exact timelines, again very difficult for us to project any kind of timelines for the same.

Sir. Sir, this in that Odisha plant, I think earlier call you mentioned about civil construction is at advanced stage and partial production is expected by Q4 or Q1 FY28.

How much total CapEx incurred so far, and what's the upcoming CapEx, especially for this plant?

As we have mentioned, see, the CapEx is ongoing. It's very difficult for us to give you precise numbers.

I think by 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.

Sir. Sir, on the passenger system side, the partnership is finalized?

What is the status on that?

We are at a very, very advanced stage, and I think before the end of the year, we will be announcing a partnership.

Sir. Sir, on that Jupiter Electric Mobility side, I think we have that BESS business, around 100 MW 400 MWh BESS project in West Bengal.

It's a basically build-own-operate model. I'm trying to understand how we are funding for this project and what kind of project IRR and ROE we can expect compared to other

Project IRR is quite strong for us. It is 14% plus 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 IRR remains to be strong.

We have not formed up in terms of whether it'll be through internal accruals or we will use debt to finance the project. That is yet to be ascertained.

What is the pipeline that BESS side, sir, in upcoming orders?

As we have mentioned that we're just not focusing again on the utility EPC segment. It 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% to 100% on the C&I segment itself.

This year, we expect complete order books to be about 1,000 odd crore. Next 3 years, we are looking at at least 5,000 odd crore of order books in this business because, again, on the demand side, the demand continues to be very, very strong.

It is both on the C&I as well as on the utility side. We don't see any kind of demand challenges.

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. Sir, in Q1, I think we have seen substantial increase in commercial vehicle bodies and axle, but the wagon got declined.

Could you please share in terms of margin

Again, as I have mentioned that Q1 there was a transition where I mentioned to 2-3 other callers before, there was a transition where we had moved to new designs on the private side. That design development takes a little bit time.

Unfortunately, the entire transition happened in Q1. Q2 onwards, you will see definitely increase in the numbers.

Okay. Got it, sir.

Thank you.

Thank you.

Thanks for taking my question, sir. My only question is, what is the number of pending wagons as of Q1 FY27?

In terms of the value would be

In terms of volume.

Oh, the number of wagons outstanding?

Yes, yes, yes.

It is about close to 7,000 odd wagons.

7,000 wagons. Right, sir.

Sir. Thank you.

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 ₹700 odd crore. My question was on this particular business because the Odisha facility which we are trying to set up seems to have a capacity of around 1 lakh wheel sets if I'm not wrong.

Just wanted to understand how Sorry?

No, no. Please go ahead.

Yeah. 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'm wrong. 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, no.

Thank you for the question. You're exactly right that it is about 100,000 is the total capacity.

See, the opportunity size is definitely very, very big because right now we have one facility which is there in Aurangabad, but there we are constrained because we don't make our own black forged wheels, we need to import it. In terms of a lot of order books also, there is a constraint in terms of supplies.

If you look at the entire landscape, 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.

That itself is anything between a 10 to 20,000 wheel set business annually. That is one of the reasons also we've gotten Lucchini as a partner because they are the biggest supplier globally when it comes to this segment.

This is 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, in a year, on an average, about 20 to 30,000 new wagons are built, which constitutes about 120,000 new wheel sets annually.

Plus, Indian Railway has a fleet of roughly about 3 odd lakh wagons where there is replacement of wheel sets is about in five around seven years, there's a replacement of wheel set which is there, which again translates to roughly about 150 to 2 lakh wheel sets every year. Indian domestic market roughly would be anything between 3 to 4 lakh wheel sets annually.

Then, definitely beyond that is the export market where we have a committed offtake agreement from Tatravagonka, which they buy close to about 20-30,000 wheel sets 20,000 to 30,000 wheels every year. Beyond that also, Lucchini has been given the rights for the entire international marketing.

We don't see any offtake challenges. I think for us, the key concern is to ramp up production and to see that the facility meets all the technical criteria 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 cast wheels and these will be forged.

Are we saying that Indian Railways will also start using the forged wheels? Because I believe 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. Today, even the wheels which we are producing in Aurangabad, which goes into our own wagons, they are all forged wheels.

It's not something new. Indian Railways will continue to use a mix of both cast as well as forged wheels.

On the other hand, as the speeds increase, cast wheels have a limitation that they can only be used up to maximum 100 km/h. In future, as new designs come and as loading capacities increase, 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's more than enough headroom for, I think, our capacities which are there. Secondly, as I've 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's 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've 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, and 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, very ahead of competition.

Great and all the best to you, sir.

Thank you. Thank you very much.

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 avenues for our long-term growth.

With a strong execution pipeline, an 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.