JWL - JUPITER WAGONS LIMITED Share Price

During the Q1 FY26 earnings call for Jupiter Wagons Limited, management provided a cautiously optimistic outlook. Key points from the management include:

1. Performance Summary: The company reported total income of INR 425 crore for Q1 FY26, down 53% from INR 902 crore in Q1 FY25. EBITDA was INR 51 crore and profit after tax was INR 33 crore. Consolidated figures showed total income of INR 476 crore, EBITDA of INR 60 crore, and PAT of INR 31 crore.

2. New Developments in Electric Mobility: The launch of Jupiter Electric Mobility (JEM) is a significant highlight. The company began production and sales in June 2025 and plans to open 4 to 6 showrooms by September 2025. They have already dispatched 50 vehicles and signed an MOU with Pickkup for deploying 300 electric vehicles by year-end.

3. Growth Projections: Management expects to recover lost production due to normalized wheelset supply, anticipating revenue of approximately INR 550 crore from the wheelset business in FY26, growing to INR 1,000 crore in FY27. The outlook includes ambitious projections of INR 10,000 crore for FY27, with significant contributions from the battery and electric vehicle sectors.

4. Battery Division Growth: The battery business is experiencing 100% month-on-month growth, supported by early orders for both domestic and export markets. The company forecasts a substantial market shift towards battery energy storage systems (BESS) as demand increases.

5. Credit Rating Upgrade: The company received an upgrade in its long-term credit rating to ACUITE AA with a stable outlook, reflecting strong financial management.

6. Order Book Status: The confirmed order book stood at INR 5,972 crore, with expectations for substantial new tenders from Indian Railways in the upcoming quarters.

Overall, Jupiter Wagons Limited is positioned to leverage its strategic initiatives and recovering supply chains, aiming for substantial growth in its financial performance and market share over the coming years.

1. Question: "So, I wanted to understand if we'll still be able to meet that kind of a projection because our margins have kind of contracted this quarter. So, if you could just provide some more highlights around that?"

   Answer: We maintain our guidance. With wheel supplies stabilizing from July, we expect to recover lost production in the next two quarters. Our margin per wagon increased as we sold more to private sectors. Although revenue contraction impacted the overall margins, we anticipate improved margins as production ramps up.

2. Question: "In terms of the order book and the order pipeline, are you seeing any more orders coming in from the Indian Railways?"

   Answer: We receive sizable orders from the private sector, such as GATX. Regarding Indian Railways, we expect substantial tenders in the third or fourth quarter as they address pending supplies.

3. Question: "What are the total wagons in our order book currently?"

   Answer: The total number of wagons in our order book is approximately 11,500.

4. Question: "Do we have the capacity in our foundry and our plant to be able to run at that scale?"

   Answer: Yes, we have the capacity to increase to that scale. While wheelset supply has impacted production, we believe things will improve from July onwards, allowing us to meet our targets.

5. Question: "Will we be able to do more wagons than we did last year?"

   Answer: Definitely. We aim to achieve a higher growth rate compared to last year, especially if wheel supplies continue to improve.

6. Question: "What is our internal estimate of the total interest cost and total depreciation that we'll have for FY26 and FY27?"

   Answer: We expect minimal impact on interest costs in FY26 as most capex occurs in FY27. Depreciation might slightly increase, but overall, costs won't change substantially compared to last year.

7. Question: "How many eLCVs did we sell in Q1, and how has the response been at the new dealer showroom?"

   Answer: We supplied over 50 eLCVs starting in June, with promising dealership responses. We plan to open more showrooms and accelerate sales growth this year.

8. Question: "What are the revenues expected from the brake system business?"

   Answer: For the brake systems, we anticipate over INR250 crore revenue this year, with significant contributions expected from the last quarter onward.

9. Question: "For FY26, FY27, and FY28, what is the expected turnover?"

   Answer: We project INR1,000 crore for wheel project revenue in FY27, and the wheel business could generate approximately INR3,000 crore in FY27 and FY28. Revenue from the vehicle and battery segments could be INR500 crore to INR1,000 crore combined.

10. Question: "Is there an option open for us to import wheelsets from China?"

    Answer: For private supplies, we have sufficient capacity. However, Indian Railways requires us to use their specified supplies. Although imports were permitted, cost differentials made it less feasible.

11. Question: "What would be the capex for FY26 and FY27?"

    Answer: Overall, we'll spend about INR2,500 crore on the Orissa project between FY26 and FY27. It's challenging to bifurcate as most capex will occur during this period.

12. Question: "Are you planning for any QIP now?"

    Answer: Currently, there are no plans for a QIP. The Board's prior approval does not indicate any imminent fundraising.

13. Question: "What will our revenue from the BESS segment look like in the next two years?"

    Answer: We expect BESS business revenue to reach around INR300 crore in two years as we begin supplying integrated systems.

14. Question: "Do you think future railway batteries will all be lithium-based?"

    Answer: Current railway specifications favor nickel-cadmium, but we're seeing a transition towards lithium-ion. We anticipate increased demand for lithium batteries next year.