Titagarh Rail shares in focus after Bengal land deal to boost Vande Bharat coach output

Synopsis

Titagarh Rail Systems is set to expand its Uttarpara facility after acquiring 40 acres from the West Bengal government for ₹126 crore. This expansion will boost Vande Bharat coach and metro car production, increasing capacity to 850 cars annually by FY28. A test track will also be established for performance validation.

Titagarh Rail Systems shares will be in focus on Monday after the company acquired around 40 acres of land on lease from the West Bengal government for Rs 126 crore. The acquisition is aimed at expanding production of Vande Bharat coaches and metro cars at its Uttarpara facility in Hooghly district, an official said.

The newly acquired land, located across mouzas Kotrung and Bhadrakali, is adjacent to Titagarh’s existing 34-acre plant at Uttarpara, making it a key addition to its expansion strategy. The 99-year lease agreement was signed with the state government on July 12, 2025, for a consideration of Rs 126.63 crore.

In a regulatory filing on Saturday, the company said, “The additional land will enable us to establish extra production infrastructure and dedicated areas for forming, testing, and commissioning of metro coaches and Vande Bharat trains.”

The company also plans to set up a test track to ensure comprehensive performance and safety validation before delivery.

The expansion is expected to help Titagarh scale up its production capacity from 300 to approximately 850 cars annually by FY28.

Separately, the company will raise Rs 200 crore through a preferential issue of warrants to members of the promoter group.

As of March 31, 2025, Titagarh’s consolidated order book stood at Rs 11,200 crore, with 62% comprising passenger rolling stock and 38% freight. Its joint ventures hold additional orders worth Rs 13,326 crore, including wheelsets with Ramkrishna Forgings and Vande Bharat coaches with BHEL.

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