Texmaco Secures ₹535 Crore Order From Cameroon’s CAMALCO for Wagons and Maintenance

26 Jun 2025 , 11:02 AM

Texmaco Rail & Engineering Ltd has bagged a major international contract from Cameroon-based CAMALCO SA, marking one of its largest export deals to date.

The ₹535 crore agreement includes the supply of 560 open-top freight wagons, alongside a 20-year maintenance commitment covering the entire fleet. The initial delivery will be carried out in two stages over a 24-month period. While execution is spread across phases, the longer-term component of the contract ensures recurring revenue over the next two decades.

What sets the deal apart is a built-in clause for future expansion. CAMALCO has the option to place an additional order for up to 1,040 wagons over the next five years. If exercised, this would significantly scale up Texmaco’s footprint in the African market and deepen its engagement with the client.

The order comes at a time when the company is increasingly looking beyond domestic markets for growth, especially in regions investing in core rail infrastructure.

Texmaco also reported its fourth-quarter earnings, with revenues rising 17.5% year-on-year to ₹1,346.4 crore. Operating profit stood at ₹97.6 crore, marking a 14.7% growth, while margins held steady at around 7.3%.

Despite higher revenues, net profit declined 12% to ₹40 crore, largely due to cost-side pressures and one-time adjustments. The board has recommended a final dividend of ₹0.75 per share, subject to shareholder approval.

Part of the Adventz Group, Texmaco manufactures railway wagons, coaches, and locomotives, and is a key supplier to both Indian and overseas railway networks. The latest deal with CAMALCO reflects its push to capture a greater share of long-term, global rolling stock opportunities.

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