Oriental Rail Infrastructure Ltd Management Discussions

Oriental Rail Infrastructure Limited

• FY 2025-26

Global Economic Landscape

FY2025-26 marked a period of continued adjustment for the global economy as nations navigated geopolitical uncertainties, evolving trade dynamics, and shifting monetary policies. Despite these challenges, the global economy demonstrated resilience, supported by moderating inflation, easing financial conditions, and sustained investments in infrastructure, manufacturing, and technology.

Governments and businesses across the world continued to strengthen supply chain resilience, diversify manufacturing bases, and invest in transportation and logistics infrastructure to enhance long-term competitiveness. These structural investments are reshaping global trade and reinforcing the importance of efficient, reliable, and sustainable transportation networks.

According to the International Monetary Fund (IMF), global economic growth is projected at 3.1% in 2026, with growth expected to remain broadly stable over the medium term despite geopolitical risks and trade uncertainties.

Global GDP Growth (%)

Economy	2025	2026F	2027F
World	3.4%	3.1%	3.2%
Advanced Economies	1.9%	1.8%	1.7%
Emerging Markets & Developing Economies	4.4%	3.9%	4.2%
Emerging & Developing Asia	5.5%	4.9%	4.8%

Source: International Monetary Fund (IMF), World Economic Outlook, April 2026.

https://www.imf.org/en/publications/weo/issues/2026/04/14/world-economic-outlook-april- 2026Rs.utm source=chatgpt.com

Outlook

While geopolitical developments, trade fragmentation, and commodity price volatility continue to present nearterm risks, the medium-term outlook remains supported by easing inflation, improving financial conditions, and sustained investments in infrastructure and industrial development. These trends continue to strengthen global supply chains and reinforce the strategic importance of efficient transportation and logistics networks, providing a favourable backdrop for long-term industrial growth.

Key Economic Landscape

India continued to reinforce its position as one of the worlds fastest-growing major economies during FY2025- 26, supported by resilient domestic demand, sustained public investment, improving manufacturing competitiveness, and continued structural reforms. According to the Economic Survey 2025-26, the Indian economy is estimated to have grown by 7.4%, reflecting the strength of its domestic fundamentals despite an evolving global environment.

A defining feature of Indias current growth cycle has been its investment-led development strategy. Continued emphasis on infrastructure creation, industrial expansion, and manufacturing competitiveness has strengthened the countrys productive capacity while encouraging greater private sector participation. These investments are generating multiplier effects across engineering, transportation, logistics, construction, and allied industries, laying a strong foundation for sustainable long-term growth.

Indias favourable demographics, expanding industrial base, policy continuity, and growing integration into global supply chains continue to enhance its attractiveness as a global manufacturing and investment destination. These structural strengths are expected to support long-term economic growth while creating significant opportunities across infrastructure-intensive sectors.

Key Economic Indicators

Indicator	FY25	FY26 (RE)	FY27 (BE)/Outlook
Real GDP Growth (%)	6.5%	7.4%	6.8% - 7.2%
Government Capital Expenditure (Rs. Lakh Crore)	10.18	10.95	12.20

Sources: Economic Survey 2025-26; Union Budget 2026-27. https://www.indiabudget.gov.in/economicsurvey/Rs.utm source=chatgpt.com Outlook

Indias medium-term outlook remains favourable, supported by robust domestic demand, sustained public capital expenditure, manufacturing expansion, and continued policy reforms. The Governments continued focus on infrastructure development and industrial competitiveness is expected to strengthen economic productivity, attract private investments, and improve logistics efficiency.

As India accelerates its infrastructure-led development journey, transportation networks are expected to play an increasingly important role in supporting industrial growth, freight movement, and economic integration, setting the stage for the continued transformation of the railway sector.

Indian Railway Industry

Driving Passenger Mobility and Freight Transformation

Industry Overview

Indian Railways is one of the worlds largest integrated railway networks and continues to play a pivotal role in Indias economic development. As the backbone of the countrys transportation infrastructure, it facilitates the movement of millions of passengers and over a billion tonnes of freight annually, supporting industrial growth, regional connectivity, and economic integration.

Recognising the strategic importance of rail transport, the Government of India has continued to prioritise investments in network expansion, capacity augmentation, electrification, station redevelopment, dedicated freight corridors, rolling stock modernisation, and digital transformation. These initiatives are aimed at enhancing operational efficiency, improving logistics competitiveness, increasing freight modal share, and delivering a safer and more efficient passenger experience.

As India advances towards becoming a manufacturing and logistics hub, Indian Railways is evolving beyond conventional transportation into an integrated mobility ecosystem that supports economic growth, supply chain resilience, and sustainable development.

Passenger Rail Modernisation

Passenger mobility continues to remain a key focus area for Indian Railways, supported by investments in modern rolling stock, station redevelopment, passenger amenities, and digital services. The continued expansion of Vande Bharat trains, introduction of next-generation coaches, and modernisation of railway stations are improving passenger comfort, operational efficiency, and travel experience across the network.

These initiatives are expected to drive sustained demand for technologically advanced passenger coaches and interior systems, creating long-term opportunities for manufacturers of seats, berths, modular interiors, and safety-focused railway solutions.

Freight Rail Transformation

Freight transportation is emerging as one of the strongest structural growth drivers for the Indian railway sector. As manufacturing activity expands and logistics efficiency becomes increasingly important, Indian Railways is strengthening its freight network through capacity augmentation, Dedicated Freight Corridors, multimodal connectivity, and digital freight management systems.

Government initiatives such as PM Gati Shakti, the National Logistics Policy, and continued investments in freight infrastructure are expected to improve network efficiency, reduce logistics costs, and increase rails share in freight transportation. These developments are driving demand for higher-capacity wagons, specialised rolling stock, and technologically advanced freight solutions capable of supporting the evolving requirements of industries including steel, cement, automobiles, mining, and container logistics.

The Evolving Wagon Ecosystem

The Indian wagon industry is witnessing a structural transformation driven by rising freight demand, fleet modernisation, and increasing private sector participation. With growing emphasis on improving freight efficiency and reducing logistics costs, Indian Railways continues to invest in expanding and modernising its wagon fleet while encouraging greater participation from private wagon manufacturers.

Alongside conventional wagon manufacturing, the industry is gradually moving towards higher-capacity wagons, lightweight designs, intelligent monitoring systems, predictive maintenance technologies, and specialised freight solutions. Emerging business models such as wagon leasing are also gaining traction, providing industrial users with greater operational flexibility while improving asset utilisation.

These trends are expanding opportunities across the railway value chain and are expected to shape the future of freight mobility in India.

Industry Outlook

Indias railway sector is entering a new phase of growth, supported by sustained capital investments, policy reforms, freight corridor development, passenger rail modernisation, and increasing technology adoption. As the country strengthens its manufacturing capabilities and develops an integrated multimodal logistics ecosystem, railways are expected to play an increasingly important role in improving logistics efficiency and supporting long-term economic growth.

While passenger rail modernisation continues to create opportunities across coach manufacturing and interior systems, the long-term growth trajectory of the sector is expected to be increasingly driven by freight transportation, wagon modernisation, digital technologies, and asset-light business models such as wagon leasing. These structural trends are expected to create significant opportunities across the broader railway mobility ecosystem over the coming decade.

Emerging Trends Shaping the Railway Ecosystem

Executive Insight

The Indian railway ecosystem is evolving beyond conventional rolling stock manufacturing towards intelligent, technology-enabled, and service-oriented mobility solutions. As freight volumes continue to rise and logistics efficiency becomes a national priority, the industry is witnessing increasing investments in advanced wagon technologies, digitalisation, predictive maintenance, sustainability, and asset-light operating models. These

structural trends are expected to redefine the future of rail freight and create new opportunities across the railway value chain.

Digitalisation & Smart Rail

Digital technologies are transforming railway operations by improving safety, operational efficiency, asset utilisation, and maintenance planning. Increasing adoption of IoT-enabled monitoring systems, predictive maintenance, real-time fleet tracking, and data analytics is enabling railway operators to optimise wagon availability, reduce downtime, and enhance lifecycle performance.

As freight operations become increasingly data-driven, intelligent railway solutions are expected to become an integral part of future rolling stock.

Evolution of Freight Wagons

The freight wagon industry is undergoing rapid transformation driven by increasing freight demand, higher axle loads, specialised cargo requirements, and the need for greater operational efficiency. The focus is gradually shifting from conventional wagon manufacturing towards technologically advanced, higher-capacity, and application-specific wagon solutions capable of supporting the evolving requirements of industries such as steel, cement, automobiles, mining, ports, and container logistics.

Fleet modernisation is expected to remain a key growth driver over the coming decade.

Emergence of Wagon Leasing

The Indian rail freight ecosystem is gradually witnessing the emergence of wagon leasing as an efficient asset ownership model. Leasing enables industrial users and logistics operators to access specialised wagon fleets without significant upfront capital investment, while improving fleet availability, operational flexibility, and asset utilisation.

As private freight participation increases and logistics requirements become more specialised, wagon leasing is expected to become an important complementary business model within the railway ecosystem.

Sustainability & Lightweight Engineering

Sustainability continues to influence product development across the railway industry. Increasing emphasis on energy efficiency, lower lifecycle costs, lightweight materials, and environmentally sustainable manufacturing practices is driving innovation in rolling stock design and engineering.

Future wagon platforms are expected to incorporate advanced materials, intelligent monitoring systems, and improved operational efficiency to meet evolving customer and regulatory requirements.

Industry Outlook

The next phase of growth within the railway industry is expected to be driven not only by infrastructure expansion but also by technological innovation, freight efficiency, digitalisation, and new asset ownership models. Companies capable of combining engineering expertise with advanced technologies and integrated mobility solutions are expected to be well positioned to benefit from these structural shifts.

Oriental Rail Infrastructure

Positioned for the Next Phase of Rail Mobility

Oriental Rail Infrastructure has progressively evolved from being a leading manufacturer of passenger mobility products into a diversified rail mobility company with capabilities spanning passenger mobility, freight mobility, and emerging rail technologies. Supported by decades of manufacturing expertise, strong customer relationships, and a growing product portfolio, the Company continues to strengthen its presence across the railway value chain while positioning itself for future growth opportunities.

The Companys strategy is centred on creating a balanced business model by combining its established leadership in passenger mobility with high-growth opportunities in freight wagons, advanced wagon technologies, and rail asset solutions. This diversified approach is expected to enhance long-term growth visibility while reducing dependence on any single product category.

Passenger Mobility

Passenger mobility continues to remain the foundation of the Companys business. Oriental Rail Infrastructure is one of Indias leading manufacturers of railway seats, berths, coach interiors, and related passenger mobility solutions supplied to Indian Railways and leading coach manufacturers.

The continued modernisation of passenger coaches, expansion of premium train services, and focus on improving passenger comfort are expected to support sustained demand for technologically advanced seating systems and interior solutions.

Freight Mobility

Through its wholly owned subsidiary, Oriental Foundry Private Limited, the Group has significantly expanded its presence in the freight mobility segment by establishing capabilities in freight wagon manufacturing and railway components.

Indias increasing focus on freight transportation, logistics efficiency, and wagon fleet expansion presents a significant long-term opportunity for the business. The subsidiary is strategically positioned to cater to the growing demand for modern freight wagons and specialised rolling stock as the railway freight ecosystem continues to evolve.

Building Future Mobility Capabilities

Recognising the structural transformation underway within the railway industry, the Company has undertaken several strategic initiatives aimed at strengthening its long-term competitive positioning.

During the year, the Company entered into a strategic collaboration with HUM Industrial Technology for the development of Smart Wagon solutions, enabling the integration of intelligent technologies into freight operations.

The Company has also entered into a collaboration with United Wagon Company for advanced wagon design and engineering solutions, strengthening its capabilities in next-generation freight wagon platforms.

Further, the Company has received approval to enter the wagon leasing business, representing an important strategic milestone. Wagon leasing is expected to emerge as an increasingly relevant business model within Indias evolving freight ecosystem, enabling customers to optimise capital deployment while improving fleet availability and operational flexibility.

Collectively, these initiatives position the Company to participate across multiple segments of the rail mobility value chain while creating new long-term revenue opportunities beyond conventional manufacturing.

Strategic Positioning

Oriental Rail Infrastructures evolution reflects a clear transition from a component manufacturer to a diversified rail mobility platform. By combining its established passenger mobility business with expanding freight capabilities and future-oriented strategic initiatives, the Company is building a resilient business model aligned with the long-term transformation of Indias railway sector.

As the railway ecosystem continues to evolve, the Company remains focused on enhancing its manufacturing capabilities, strengthening technology partnerships, expanding its product portfolio, and creating sustainable value for all stakeholders.

Strategic Priorities

Building a Future-Ready Rail Mobility Platform

Oriental Rail Infrastructure continues to execute a strategy focused on strengthening its core business while expanding into high-growth opportunities across the railway value chain. The Companys strategic priorities are centred on enhancing manufacturing capabilities, broadening its product portfolio, leveraging technology partnerships, and building scalable business platforms that support long-term value creation.

1. Strengthening Leadership in Passenger Mobility

The Company remains committed to reinforcing its leadership in passenger mobility by expanding its product portfolio, enhancing manufacturing capabilities, and delivering innovative seating systems, berths, coach interiors, and passenger comfort solutions. Continued investments in product quality, operational excellence, and customer engagement will enable the Company to capitalise on the ongoing modernisation of passenger rolling stock.

2. Expanding Freight Mobility Capabilities

The Company is focused on strengthening its freight mobility platform through Oriental Foundry Private Limited by enhancing manufacturing capabilities for freight wagons and railway components. Increasing freight transportation, logistics reforms, and sustained investments in railway infrastructure are expected to provide significant long-term growth opportunities for the business.

3. Advancing Technology-Led Mobility Solutions

Recognising the growing importance of digitalisation within the railway sector, the Company is investing in technology partnerships aimed at developing intelligent railway solutions. Strategic collaborations for Smart Wagon technologies and advanced wagon platforms are expected to strengthen the Companys product offerings while positioning it to participate in the next generation of rail mobility.

4. Building New Growth Platforms

The Company is actively developing new business opportunities beyond conventional manufacturing. The proposed wagon leasing business represents an important strategic initiative that complements the Companys manufacturing capabilities while enabling participation in emerging asset-based business models within the freight ecosystem.

5. Delivering Sustainable Value Creation

The Company remains committed to disciplined capital allocation, operational excellence, innovation, quality, and strong corporate governance. By maintaining a balanced approach towards growth, profitability, and financial discipline, the Company aims to create sustainable long-term value for customers, shareholders, employees, and other stakeholders.

Operational Review

Executing the Growth Strategy

FY2025-26 marked an important year in Oriental Rail Infrastructures strategic evolution. While the Company encountered temporary execution-related challenges during the year, including wheel supply constraints, labour shortages, elevated gas prices and supply chain disruptions, it remained focused on strengthening operational efficiencies, expanding manufacturing capabilities and advancing strategic initiatives across the passenger and freight mobility businesses. These initiatives enabled the Company to improve profitability while laying the foundation for sustainable long-term growth.

Business Mix

The Companys business continues to evolve towards a more diversified rail mobility platform. Freight wagons and wagon components have emerged as the largest contributor to revenue, while the passenger mobility business continues to provide a stable and established revenue base supported by long-standing relationships with Indian Railways.

FY26 Revenue Mix

Business	Contribution
Freight Wagons	70%
Seats & Berths	23%
Rexine	4%
Others	3%

Business Analysis

The freight business accounted for approximately 70% of the Companys revenue during FY26, reflecting the increasing scale of Oriental Foundry Private Limited and the growing importance of freight mobility within the Groups overall business portfolio. Passenger mobility, comprising seats and berths, continued to contribute 23% of revenue, supported by sustained demand from Indian Railways. The Companys backward-integrated rexine business contributed 4%, while other allied products accounted for the balance 3%, resulting in a diversified and integrated revenue profile.

Passenger Mobility

Passenger mobility continues to remain one of the Companys core businesses. Oriental Rail Infrastructure maintains an estimated 30% share of the organised seats and berths market and has supplied more than 40,000 coach sets to Indian Railways over the years. The business is supported by an integrated manufacturing platform with installed capacity of 3,600 coach sets per annum, complemented by backward integration into rexine, PU foam, silicon foam, engineered boards and other interior products. The Companys products are deployed across premium, express and suburban coaches, including Vande Bharat, Rajdhani and Duronto Express, positioning it as a trusted supplier for Indias passenger rail modernisation programme.

Freight Mobility

Freight mobility remained the principal growth driver during FY26. Through Oriental Foundry Private Limited, the Company operates an integrated freight manufacturing platform with an installed capacity of 2,400 wagons per annum and has delivered over 4,000 wagons to date. The Company has developed in-house capabilities across critical wagon components, including bogies, couplers, draft gears, bogie springs and side bearers, enabling greater manufacturing integration, quality control and operational efficiencies. During the year, the freight segment reported revenue of Rs.409 crore, while maintaining an order book of approximately Rs.1,605 crore, providing strong visibility for future growth. The business continues to operate with significant capacity headroom, with current utilisation of nearly 50%, offering substantial opportunities for scaling production as wagon demand increases.

Order Book & Revenue Visibility

The Company entered FY2026-27 with a robust consolidated order book of approximately Rs.1,740 crore, equivalent to nearly 3.3x FY 26 revenue, providing strong revenue visibility over the medium term. Of the total order book, approximately Rs.1,605 crore pertains to Oriental Foundry Private Limited, reflecting the increasing scale of the freight wagon business, while the balance Rs.135 crore relates to Oriental Rail Infrastructures passenger mobility business.

The strong order pipeline is supported by sustained investments in railway infrastructure, increasing wagon procurement, and continued demand across both passenger and freight mobility segments. The order book provides a solid foundation for future execution while reinforcing the Companys confidence in its long-term growth strategy.

Order Book Snapshot

Particulars	FY26
Total Order Book	Rs.1,740 Cr
Freight Business (OFPL)	Rs.1,605 Cr
Passenger Business (ORIL)	Rs.135 Cr
Order Book / FY26 Revenue	3.3x

Building Future Mobility Platforms

The Company continued to execute several strategic initiatives designed to position itself at the forefront of next-generation rail mobility.

During the year, Oriental Rail Infrastructure entered into a five-year strategic partnership with HUM Industrial Technology (USA) to introduce AI-enabled Smart Wagon Monitoring Systems in India. The Company also participated in the RDSO development tender for 300-400 smart wagons, with production targeted to commence during FY27 following order finalisation. The collaboration is expected to strengthen the Companys presence in intelligent freight technologies and position it within a market estimated at approximately ^10,000 crore.

The Company also strengthened its technology capabilities through a strategic collaboration with United Wagon Company (Russia) for the development of advanced 25-ton high axle-load wagon platforms. The collaboration focuses on designing next-generation freight wagons with higher payload capacity, improved operating efficiency and enhanced structural performance, with wagon design submission to RDSO targeted during FY27.

In addition, the Company received approval in principle to establish a wagon leasing business and participated in two leasing tenders during the year. The proposed leasing platform is expected to complement the Companys manufacturing capabilities by creating a recurring revenue stream and expanding its participation across the freight logistics value chain.

Financial Review

Financial Performance Overview

FY2025-26 was a year of resilient financial performance for Oriental Rail Infrastructure. While revenue was impacted by temporary execution challenges, including wheel supply constraints and delays in wagon deliveries, the Company demonstrated improved profitability through better product mix, operational efficiencies, and disciplined cost management. The continued expansion of the freight mobility business, coupled with the Companys focus on value-added products and manufacturing integration, contributed to margin improvement during the year.

Financial Highlights

Particulars	FY26	FY25
Revenue from Operations	Rs.573.3 Cr	Rs.602.2 Cr
EBITDA	Rs.85.4 Cr	Rs.70.0 Cr
EBITDA Margin	14.9%	11.6%
Particulars	FY26	FY25
Profit Before Tax	Rs.57.0 Cr	Rs.44.4 Cr
Profit After Tax	Rs.42.2 Cr	Rs.29.2 Cr
PAT Margin	7.4%	4.9%
EPS (Rs.)	6.37	4.68

Revenue Analysis

Revenue from operations stood at Rs.573.3 crore during FY2025-26. The decline in revenue was primarily attributable to execution timing in the freight wagon business arising from temporary wheel supply constraints and deferred deliveries. Despite these short-term challenges, the Company maintained a healthy order pipeline, providing strong revenue visibility for the coming years.

The increasing contribution from the freight mobility segment reflects the Companys strategic diversification and is expected to support sustainable long-term growth.

Profitability Analysis

Despite revenue headwinds, the Company reported an improvement in operating profitability, supported by favourable product mix, higher operating efficiencies, backward integration, and disciplined cost optimisation initiatives. EBITDA margins improved during the year, reflecting the benefits of operational leverage and continued focus on manufacturing excellence.

Profit after tax also improved, demonstrating the Companys ability to preserve profitability while continuing to invest in future growth initiatives.

Balance Sheet Strength

The Company continues to maintain a healthy financial position supported by prudent capital allocation and disciplined working capital management. Investments in manufacturing capabilities and strategic initiatives were undertaken while maintaining financial flexibility to support future expansion.

The robust order book, diversified revenue streams, and continued emphasis on operational efficiency provide a strong foundation for sustainable growth.

Working Capital & Cash Flow

The Company remains focused on improving working capital efficiency through effective inventory management, timely execution of orders, and prudent receivable management. Strong order visibility and disciplined execution are expected to support healthy cash generation over the medium term.

Capital Allocation

The Company continues to follow a balanced capital allocation strategy by investing in capacity enhancement, technology partnerships, product innovation, and new business platforms while maintaining financial discipline. Investments made during the year are aligned with the Companys long-term objective of strengthening its presence across the passenger and freight mobility ecosystem.

Managing Risks While Creating Long-Term Value

Risk management remains an integral part of Oriental Rail Infrastructures corporate governance framework and strategic decision-making process. As the Company expands its presence across passenger mobility, freight wagons, advanced rail technologies, and emerging business models, it continues to strengthen its risk management practices to identify, assess, monitor, and mitigate risks that could impact its operations and longterm objectives.

The Companys risk management framework enables timely identification of strategic, operational, financial, regulatory, and business risks while ensuring that appropriate mitigation measures are embedded across business functions. Management regularly reviews the risk landscape to enhance operational resilience, support sustainable growth, and protect stakeholder value.

Risk	Potential Impact	Mitigation Strategy
Dependence on Indian Railways	Delay in tendering, order execution or procurement may impact revenues.	Diversifying into freight mobility, wagon leasing, technology-led solutions and expanding the customer base across public and private sectors.
Raw Material Price Volatility	Fluctuations in steel and other input costs may impact margins.	Long-term supplier relationships, cost optimisation initiatives, and contractual price variation clauses wherever applicable.
Supply Chain Disruptions	Delay in procurement of critical components, including wheels and specialised inputs, may affect production schedules.	Multiple sourcing strategies, inventory planning, vendor diversification and continuous monitoring of the supply chain.
Execution Risk	Delays in project execution could impact revenue recognition and profitability.	Strong project monitoring systems, manufacturing planning, and continuous operational reviews.
Technology Risk	Rapid technological advancements may require continuous product innovation.	Strategic collaborations with global technology partners and ongoing investments in product development and engineering capabilities.
Regulatory & Compliance Risk	Changes in railway standards or regulatory requirements may affect product approvals.	Continuous engagement with regulatory authorities, adherence to quality standards, and robust compliance mechanisms.
Competitive Risk	Increased competition may impact market share and pricing.	Focus on quality, innovation, integrated manufacturing, customer relationships and diversified product offerings.

Risk Management Approach

The Company adopts a proactive approach towards enterprise risk management by integrating risk assessment into strategic planning and operational decision-making. Risks are reviewed periodically by the management and the Board, enabling timely implementation of mitigation measures and ensuring alignment with the Companys long-term growth strategy.

As Oriental Rail Infrastructure expands into new technologies and business segments, the Company remains focused on strengthening operational resilience, maintaining financial discipline, and enhancing governance practices to effectively manage evolving business risks.

Internal Control Systems & Their Adequacy

The Company has established an adequate system of internal controls commensurate with the nature, size, and complexity of its business. These controls are designed to safeguard assets, ensure the reliability of financial reporting, maintain operational efficiency, and ensure compliance with applicable laws, regulations, and internal policies.

An independent internal audit function periodically reviews the effectiveness of internal controls across manufacturing, procurement, finance, inventory management, information technology, and other critical

business processes. The observations and recommendations arising from these reviews are placed before the Audit Committee, which monitors the implementation of corrective actions wherever required.

The Company continues to strengthen its internal control environment through process automation, defined authority matrices, standard operating procedures, periodic management reviews, and continuous monitoring of key business risks. Management believes that the existing internal financial control framework is adequate and operating effectively.

Human Resources & Industrial Relations

The Companys employees remain its most valuable asset and play a critical role in driving operational excellence, innovation, and long-term growth. Oriental Rail Infrastructure is committed to fostering a safe, inclusive, and performance-driven work environment that encourages continuous learning, collaboration, and professional development.

The Company continues to invest in employee training, skill enhancement, leadership development, and workplace safety to strengthen organisational capabilities and improve operational efficiency. Employee engagement initiatives, transparent communication, and a culture of mutual respect contribute to a positive work environment across all manufacturing locations.

Industrial relations remained cordial throughout the year, and the Company continued to maintain harmonious relationships with its workforce. As on 31 March 2026, the Company employed approximately 198 employees across its operations.

Environment, Health & Safety (EHS)

Oriental Rail Infrastructure is committed to conducting its operations in an environmentally responsible and socially sustainable manner. The Company continuously focuses on improving resource efficiency, minimising waste generation, ensuring regulatory compliance, and adopting responsible manufacturing practices across its facilities.

Workplace health and safety remain integral to the Companys operational philosophy. Regular safety training programmes, preventive maintenance, safety audits, and awareness initiatives are conducted to strengthen workplace safety and minimise operational risks. The Company continues to promote a culture of safety, accountability, and continuous improvement across all its manufacturing facilities.

Sustainability & Corporate Governance

The Company believes that sustainable growth is built on a strong foundation of ethical business practices, responsible governance, environmental stewardship, and stakeholder engagement. Sustainability considerations are integrated into business decisions with a focus on creating long-term value for shareholders, customers, employees, business partners, and the communities in which the Company operates.

The Company remains committed to maintaining high standards of corporate governance through transparency, accountability, regulatory compliance, and effective risk management. Continuous focus on product quality, operational excellence, responsible sourcing, employee welfare, and stakeholder trust supports the Companys objective of building a resilient and sustainable organisation.

Outlook & Way Forward

Indias railway sector is entering a multi-year growth cycle supported by sustained government investment, expanding freight infrastructure, passenger rail modernisation, and increasing adoption of advanced technologies. These structural trends are expected to create significant opportunities across both passenger and freight mobility over the coming years.

Oriental Rail Infrastructure is well positioned to capitalise on these opportunities through its diversified business model spanning passenger mobility, freight wagons, integrated railway components, and emerging

technology-led solutions. The Companys strategic initiatives in Smart Wagon technologies, advanced wagon platforms, and wagon leasing are expected to further strengthen its competitive positioning while expanding its addressable market.

Backed by a robust order book of approximately Rs.1,740 crore, integrated manufacturing capabilities, strategic global partnerships, and a strong focus on innovation and operational excellence, the Company remains confident of delivering sustainable long-term growth.

Going forward, the Company will continue to focus on strengthening its core businesses, improving execution capabilities, enhancing manufacturing efficiencies, expanding technology partnerships, and creating long-term value for all stakeholders. With a resilient business model, disciplined capital allocation, and a clear strategic roadmap, Oriental Rail Infrastructure remains well positioned to participate in the next phase of Indias railway transformation.

Cautionary Statement

Statements contained in this Management Discussion and Analysis describing the Companys objectives, expectations, estimates, projections or outlook may constitute forward looking statements within the meaning of applicable laws and regulations. These statements are based on assumptions and expectations that the Company believes to be reasonable at the time of preparation. However, actual results may differ materially from those expressed or implied due to various factors beyond the Companys control, including changes in economic conditions, government policies, industry developments, raw material prices, competitive intensity, supply chain disruptions and other risks affecting the business environment.

The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are advised to consider these statements in conjunction with the Companys financial statements and the notes forming part of this Annual Report.