Stock Performance and Market Context
On 23 Feb 2026, Texmaco Rail & Engineering Ltd’s share price touched Rs.110.75, its lowest level in the past year. This decline comes after four consecutive days of losses, during which the stock has fallen by 4.56%. The day’s performance saw the stock underperform its sector by 0.43%, continuing a downward trend that contrasts sharply with the broader market’s positive momentum. The Sensex, for instance, closed at 83,331.97 points, up 0.62% on the day and only 3.39% shy of its own 52-week high of 86,159.02.
Texmaco Rail’s share price is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish sentiment. Over the past year, the stock has delivered a negative return of 22.61%, markedly underperforming the Sensex’s positive 10.65% return and the BSE500’s 13.26% gain.
Financial Metrics and Profitability Concerns
The company’s financial health has been a key factor in the stock’s decline. Texmaco Rail & Engineering Ltd carries a high Debt to EBITDA ratio of 3.76 times, indicating a relatively low capacity to service its debt obligations. This elevated leverage level has contributed to the company’s Mojo Score of 28.0 and a Mojo Grade of Strong Sell, an upgrade from the previous Sell rating issued on 10 Feb 2026.
Profitability metrics also highlight challenges. The average Return on Equity (ROE) stands at 4.93%, reflecting modest returns generated on shareholders’ funds. The company’s Return on Capital Employed (ROCE) is 10.9%, which, while more favourable, has not been sufficient to offset other financial pressures.
Recent Quarterly Results
The December 2025 quarter results further illustrate the company’s difficulties. Net sales declined by 21.46% to Rs.1,041.60 crores, while Profit Before Tax excluding other income (PBT less OI) fell by 37.60% to Rs.53.07 crores. Net profit after tax (PAT) dropped by 41.5% to Rs.44.86 crores. These figures underscore a significant contraction in both top-line and bottom-line performance over the quarter.
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Institutional Investor Activity and Market Position
Institutional investors have reduced their holdings in Texmaco Rail & Engineering Ltd by 0.92% over the previous quarter, now collectively holding 13.32% of the company’s shares. This decline in institutional participation may reflect concerns about the company’s recent financial performance and outlook. Institutional investors typically possess greater resources and analytical capabilities to assess company fundamentals, and their reduced stake is notable in the context of the stock’s recent price weakness.
Despite these headwinds, Texmaco Rail maintains a market capitalisation grade of 3, indicating a mid-tier valuation relative to its peers. The stock’s 52-week high was Rs.189, highlighting the extent of the recent price correction.
Valuation and Profitability Trends
While the stock has experienced a decline in price and profitability, some valuation metrics suggest the company is trading at a discount relative to its historical peer group. The Enterprise Value to Capital Employed ratio stands at 1.5, which may be considered attractive in comparison to sector averages. Additionally, the company has demonstrated healthy long-term growth in operating profit, with an annual growth rate of 37.58% over recent years.
However, this positive trend has not translated into improved profitability in the short term, as profits have fallen by 29.6% over the past year. This divergence between operating profit growth and net profitability highlights ongoing pressures on margins and cost structures.
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Summary of Key Metrics
To summarise, Texmaco Rail & Engineering Ltd’s current financial and market indicators are as follows:
- New 52-week low price: Rs.110.75
- One-year stock return: -22.61%
- Sensex one-year return: +10.65%
- Debt to EBITDA ratio: 3.76 times
- Return on Equity (average): 4.93%
- Return on Capital Employed: 10.9%
- Net sales decline in Dec 2025 quarter: -21.46%
- Profit Before Tax less other income decline: -37.60%
- Profit After Tax decline: -41.5%
- Institutional investor stake: 13.32%, down 0.92% from previous quarter
- Mojo Score: 28.0 (Strong Sell, upgraded from Sell on 10 Feb 2026)
Market Environment
The broader market environment remains positive, with the Sensex advancing steadily and mega-cap stocks leading gains. However, Texmaco Rail & Engineering Ltd’s performance diverges from this trend, reflecting company-specific factors that have weighed on investor sentiment and share price.
Conclusion
Texmaco Rail & Engineering Ltd’s fall to a 52-week low of Rs.110.75 encapsulates a year marked by subdued financial results, elevated leverage, and reduced institutional participation. While the company shows some signs of long-term operating profit growth and attractive valuation metrics, recent quarterly declines and profitability pressures have contributed to the stock’s underperformance relative to the broader market and sector peers.
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