Jupiter Wagons shares fell 5.25% to ₹275.50 on the NSE on Monday following the company's sharp deterioration in fourth-quarter earnings for FY26. The railway wagon and mobility solutions manufacturer reported a consolidated net profit of ₹27 crore for Q4 FY26, representing a massive 73.5% decline from ₹103 crore posted in the same period last year and a 56% sequential decline from ₹62 crore in Q3 FY26. According to The Hindu BusinessLine, the stock has been under pressure, trading at a PE of 71 and down 30% over the past year and 18% year-to-date, significantly underperforming the Nifty 500. Global brokerage Jefferies has maintained its 'Underperform' rating on the stock and raised its target price to ₹210 from ₹200, implying a potential downside of 23% from current market levels.
The company's revenue from operations came in at ₹790 crore, down 25% from ₹1,057 crore reported in the corresponding quarter of the previous financial year. As reported by The Hindu BusinessLine, the company's EBITDA declined 45.5% to ₹83 crore, with EBITDA margin compressing to 10.7% from 14.7% a year earlier. Jefferies noted that EBITDA came in 32% below estimates due to weak wagon sales, with wagon volumes falling 43% year-on-year due to supply-chain-related challenges that weighed heavily on profitability despite healthy gross margins. Management attributed the weak performance to two main disruptions: an industry-wide wheelset shortage in the first half of FY26 that constrained wagon production, and LPG supply disruptions in Q4 linked to global geopolitical tensions that hit manufacturing operations.
For the full year under review, revenue from operations came in at ₹2,961 crore, lower by more than 26% from ₹3,963 crore posted in the previous financial year. As reported by The Hindu BusinessLine, profit after tax declined 56% to ₹166 crore, with PAT margin narrowing to 5.7% from 9.6% in the previous year. The company's expenses for the quarter came in at ₹731 crore, down 20% from ₹923 crore in Q4FY25, according to the regulatory filing. Jefferies has reduced its earnings estimates for FY27 and 2028 by 4-9% to reflect the March 2026 quarter miss.
Despite the earnings miss, Jupiter Wagons highlighted several positive operational developments. Its wheelset subsidiary, Jupiter Tatravagonka Railwheel Factory, crossed ₹500 crore in revenue at a 16% EBITDA margin and secured a long-term supply agreement with European wagon manufacturer Tatravagonka covering 20,000–30,000 wheelsets per year from its upcoming Odisha facility. Another subsidiary, Stone India, received RDSO approval for its freight brake system, with production scheduled to begin in July 2026. The company's order book stood at ₹4,675 crore as of March 31, 2026, with orders for around 7,400 wagons providing earnings visibility over the coming financial year. However, Jefferies remains cautious about the wheel manufacturing project in Odisha, now expected to begin interim operations only in Q4 FY27 compared with earlier expectations of Q2, with full commissioning now expected by end of FY28.
Apart from wagon manufacturing, Jupiter Wagons is expanding into railway components and other related businesses. According to Jefferies, the company's component manufacturing joint ventures are still in early development stages and have yet to make meaningful contributions. The company is also exploring opportunities in marine containers under the Government of India's Production Linked Incentive (PLI) scheme, with Jefferies noting the company is keen to diversify into this segment. However, the brokerage added that further details on the business opportunity are still awaited. The company's clean energy arm, Jupiter Electric Mobility, signed MoUs for 110 MWh of Battery Energy Storage System deployments and has set an aspirational revenue target of ₹1,000 crore from the battery segment over three to four years.
