THIS railway stock is down 29% in a year; Can it recover after weak Q4 results?

Shares of Jupiter Wagons remained in focus on Wednesday after the company reported a weak set of earnings for the March quarter and brokerage Jefferies maintained its cautious stance on the stock.

The stock was trading at Rs 279.45 around 10:32 am, down 1.64 per cent for the day.

Jupiter Wagons shares have been under pressure in recent months, falling around 7 per cent over the last five trading sessions. On a year-to-date basis, the stock has declined 17 per cent, while it has lost nearly 29 per cent over the past one year.

Jefferies maintains 'Underperform' call

Jefferies maintained its "Underperform" rating on Jupiter Wagons while raising its target price to Rs 210 from Rs 200.

According to the brokerage, the company's fourth-quarter EBITDA came in 32 per cent below its estimates. Jefferies attributed the miss primarily to weak wagon sales during the quarter, although the impact was partly offset by a 19 per cent year-on-year increase in wheelset sales.

The brokerage noted that Jupiter Wagons remains one of the key beneficiaries of Indian Railways' indigenisation initiatives, particularly in wheel manufacturing and railway components.

However, Jefferies highlighted that some of the expected growth drivers could take time to contribute meaningfully. The brokerage said the company's Odisha wheel manufacturing plant is expected to become operational only by the end of FY28. It also pointed out that component manufacturing joint ventures are still in the early stages of development.

March quarter earnings disappoint

Jupiter Wagons reported a sharp decline in profitability during the January-March quarter of FY26.

The company posted a consolidated net profit attributable to the owners of the company of Rs 28.83 crore in Q4 FY26, marking a decline of 72.08 per cent from Rs 103.26 crore reported in the corresponding quarter of the previous financial year.

On a sequential basis, profit also declined significantly. Net profit fell 54.23 per cent from Rs 62.99 crore reported in the December quarter of FY26.

Revenue performance was also weak during the quarter.

Revenue from operations stood at Rs 780.15 crore, down 25.3 per cent from Rs 1,044.55 crore recorded in the March quarter of FY25. Compared with the previous quarter, revenue declined 12.4 per cent from Rs 890.36 crore.

At the operating level, EBITDA came in at Rs 83.3 crore during the quarter under review. This represented a decline of 45.5 per cent from Rs 152.7 crore reported a year ago. On a quarter-on-quarter basis, EBITDA dropped 28.1 per cent from Rs 115.9 crore.

The company's EBITDA margin also contracted sharply. Margin stood at 10.7 per cent in Q4 FY26 compared with 14.6 per cent in the corresponding quarter of the previous year. On a sequential basis, margin declined from 13 per cent in the December quarter.

Order book remains healthy

Despite the weak quarterly performance, Jupiter Wagons said its order book stood at Rs 4,675 crore as of March 31, 2026.

The company said the order book provides healthy revenue visibility for the coming year. It also witnessed healthy growth in its container sales business during FY26.

Jupiter Wagons is engaged in manufacturing railway wagons, wagon components, wheelsets and other mobility-related products, with a significant portion of its business linked to investment and procurement activities by Indian Railways.