India's Metro Boom: A Boon for Rail Manufacturers?

India's expanding metro network is generating substantial opportunities for domestic railway rolling stock manufacturers. A key development is the Rs 923.62 crore Hyderabad Metro tender, floated by DMRC for 60 coaches, with bids due by January 13, 2027. Two prominent Indian-listed companies, BEML and Titagarh Rail Systems, are poised to benefit.

BEML has manufactured over 2,100 metro coaches, including advanced GoA4 driverless trains. As of August 2026, Rail & Metro comprised 65% of its order book, though only 24% of FY26 revenue. The company secured a Rs 5,400 crore contract for high-speed rolling stock and Rs 180.6 crore for Vande Bharat Sleeper trainsets.

Titagarh Rail Systems has seen its Passenger Rail Systems revenue double in FY26, with coach deliveries rising significantly. The company holds major contracts for Mumbai Metro (132 coaches) and Pune Metro extension (12 trainsets), with Bengaluru and Gujarat Metro deliveries expected during FY27.

BEML plans to expand its rail coach manufacturing capacity near Bhopal, aiming for 350-400 units annually. Titagarh is also scaling up its Uttarpara facility to over 850 units by 2029-30, including a new aluminium coach line. Both companies are pursuing international opportunities.

While BEML's FY26 net profit declined due to provisions, Titagarh's FY26 net profit increased, largely due to lower exceptional charges. Valuations for both remain demanding, emphasizing the need for timely execution, margin improvement, and efficient capital management. The Hyderabad tender represents a future prospect, with sustained profitability and successful order conversion being critical for both manufacturers.