Jupiter Wagons Achieves Financial Closure for ₹25 Billion Wheel Manufacturing Project

Jupiter Wagons Ltd (JWL) has announced it has achieved financial closure for its ambitious ₹25 billion forged rail wheel and axle manufacturing facility in Khurda, Odisha. The funding structure comprises 35% equity and 65% debt, the company revealed during its Q4FY25 earnings conference call.

“We’ve completed financial closure for the Odisha project with favorable terms that will support our long-term growth strategy,” management stated during the call. The company expects to generate returns exceeding 20% from this capital expenditure once the facility is operational.

Project Implementation Progressing

The company has already acquired 40.8 acres of land in Khurda for the project, which will operate under Jupiter Tatravagonka Railwheel Factory (JTRF). This state-of-the-art facility, located approximately 40 km from Bhubaneshwar airport, will have the capacity to produce 100,000 wheelsets annually when it begins operations in FY28.

JWL disclosed that nearly 40% of the production is aimed at exports, particularly to Tatravagonka A.S. and other European firms. The plant will be equipped with advanced technology to manufacture components for high-speed, high-load trains.

Supply Constraints Impacting Current Operations

During the call, management highlighted ongoing wheelset supply constraints from Indian Railways that have impacted wagon volumes in Q4FY25 and Q1FY26. The new facility is strategically important as it will reduce the company’s dependency on external suppliers for critical components.

“Wheelset supply concern from IR impacted the volume in Q4 and in Q1FY26 TD. The management expects the supply to normalise from Jun’25 onwards,” noted Systematix Research in its report.

Financial Performance Under Pressure

Jupiter Wagons reported underwhelming Q4FY25 results, with consolidated revenue declining 6.4% year-over-year to ₹10.5 billion, falling short of analyst expectations. Despite revenue pressure, EBITDA margin improved by 141 basis points year-over-year to 14.6%, resulting in EBITDA of ₹1.5 billion, up 3.6% YoY.

The company maintained its order book at ₹63 billion and is targeting production of 10,000 wagons for FY26, compared to 8,718 in FY25. Revenue from wheel sets stood at approximately ₹3 billion in FY25, and management expects this to double in FY26.

Analyst Reaction

Following the financial closure announcement and quarterly results, analysts have updated their outlook. Systematix Research maintained a “Buy” rating but reduced its target price to ₹517 from ₹607.

“We forecast a revenue/EBITDA/PAT CAGR of 19%/21%/20%, respectively during FY25-FY27E. On the back of lower estimates, we cut our TP to ₹517 from ₹607,” stated the Systematix report.

Antique Stock Broking took a more cautious stance, maintaining a “Hold” rating and lowering its target price to ₹431 from ₹468. They trimmed their FY26/FY27E EPS estimates by 7%/8%, citing “weak wagon segment ordering activity and lower guidance of wagon volume sales.”

Jupiter Wagons continues to focus on its long-term strategy of vertical integration and expansion into high-value components. Management expects revenue to reach ₹80-100 billion by FY28, with the new wheel manufacturing facility contributing approximately ₹30 billion toward this target once fully operational.

 

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