Texmaco Rail Wins USD 135 Million International Locomotive Order

Texmaco Rail & Engineering Limited (NSE: TEXRAIL) has received a Letter of Award (LoA) worth USD 135 million from Tsiko Africa Logistics (Pty) Ltd., together with Barberry Holdings (Pty) Ltd., for the design, manufacture, supply and commissioning of diesel-electric locomotives.

The international order is for Wabtec ES43ACi locomotives with 4,500 HP capacity and is expected to be executed within 20 to 24 months from the signing of the Definitive Agreement.

USD 135 Million Locomotive Contract

The contract covers the complete scope of design, manufacturing, supply and commissioning of Wabtec ES43ACi 4,500 HP diesel-electric locomotives.

The order value stands at USD 135 million, excluding applicable taxes and duties.

The size of the contract makes it a significant addition to Texmaco Rail’s order pipeline and strengthens its international presence in the railway rolling-stock and locomotive segment.

International Expansion Strengthens

The order has been awarded by Tsiko Africa Logistics (Pty) Ltd. along with Barberry Holdings (Pty) Ltd., making this an international contract for Texmaco Rail.

The deal provides the company with an opportunity to expand its locomotive and railway engineering business in overseas markets, while adding exposure to Africa’s logistics and rail infrastructure requirements.

For Texmaco Rail, international orders can also help diversify its revenue base beyond the domestic railway market.

Execution Over 20–24 Months

The contract is scheduled for execution within 20 to 24 months from the signing of the Definitive Agreement.

This means the order could provide a meaningful revenue opportunity over the next two financial years, although the actual revenue contribution will depend on the final agreement, manufacturing schedule, deliveries and commissioning.

Investors should therefore track the signing of the Definitive Agreement and subsequent execution milestones.

No Related-Party Involvement

Texmaco Rail has confirmed that the promoter, promoter group and group companies have no interest in the entities awarding the contract.

The company has also stated that the transaction does not fall under related-party transactions.

Points to consider

The USD 135 million Letter of Award is a significant positive development for Texmaco Rail & Engineering.

The contract combines a sizeable order value with an international customer and a substantial locomotive manufacturing and commissioning scope. It also strengthens Texmaco Rail’s positioning in the global rail and locomotive market.

The key factors for investors to watch will be the Definitive Agreement, order execution, locomotive deliveries and the resulting revenue and margin contribution.

Overall, the order provides additional order-book visibility and strengthens Texmaco Rail’s international growth opportunity in railway locomotives and infrastructure.