Railway stock surges 11% after bagging 2 railway orders for BOXNHL and BCNHL wagons

Synopsis: A railway company’s subsidiary bagged 2 high-capacity draft gears orders from South East Central Railway of Indian railways leading to increase in revenue and order visibility. 

A small cap railway stock engaged in the manufacturing, procurement, and sale of Recron-based products, railway seats and berths was in the focus as the company bagged two back to back orders for high-capacity draft gears from the Indian Railways.

With a market cap of Rs 1,048 Cr Oriental Rail Infrastructure Ltd saw its stock hit an intraday high of Rs 163.90  which is 11 percent higher than the previous close of Rs 147.60. 

What’s the News?

On Tuesday, Oriental Rail Infrastructure Limited announced that its wholly owned subsidiary, Oriental Foundry Private Limited (OFPL), has secured two separate orders from South East Central Railway, Indian Railways. In the first order, OFPL received a contract worth Rs 9.26 crore for the manufacture and supply of 2,460 upgraded high-capacity draft gears for BOXNHL and BCNHL wagons. 

In a second order, the company secured an additional Rs 6.17 crore contract for supplying 1,640 upgraded high-capacity draft gears for the same wagon category. Both orders were awarded through an Indian Railways e-tender, are domestic in nature and are scheduled for execution by October 31, 2026.

Previously the company got an order for 1230 Knuckles for freight stock wagons from North Western Railways which was valued at Rs 1.1 Crore, and as of November the company has Rs 2101 Cr worth of orders in hand.

Business & Financial Overview

Oriental Rail Infrastructure Ltd, incorporated in 1991 and is headquartered in Thane. The company is engaged in the manufacturing, procurement, and sale of Recron-based products, railway seats and berths, and Compreg boards, along with the trading of timber wood and allied wood products. With a diversified product portfolio aligned to Indian Railways’ requirements, Oriental Rail Infrastructure plays a key role in supporting rail coach interiors and infrastructure development across the country.

In the latest quarter Oriental Rail saw a YoY revenue fall by 28 percent, going from Rs 186 Cr in Q2FY25 to Rs 133 Cr in Q2FY26, while the QoQ had a growth of 12 percent from Rs 118 Cr in Q1FY26.

The YoY Net Profits growth is at 2 percent, going from Rs 10 Cr in Q2FY25 to Rs 11 Cr in Q2FY26, while the QoQ growth stood at 83 percent from Rs 6 Cr in Q1FY26. The company has its 3 year sales CAGR at 52 percent. Another point to highlight is that the company has been reducing its debt since the past 2 years

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