| Established track record along with experienced management
Incorporated in 1983, the group is into the business of various railway equipment’s consisting of Bogie, CMS crossings, Wagon for Indian Railways and also provides management services to business entities. The group currently consists of 4 entities which are currently run by same management. The group over the year have developed extensive experience in this line of business, which also helps them to procure new orders from time to time. Further the management of the group has over 26 years of experience in production, services operation management, supply chain and marketing management in railway industry. Acuite believes that their experience will leverage the business and will continue to benefit the group going forward.
Scale of operation:
The group reported an 8.20% growth in topline in FY25, achieving revenues of Rs.526.48 crore compared to Rs.486.57 crore in FY24, supported by timely execution of existing orders and the addition of new ones, including a Rs.235-crore order from Braithwaite & Co. Ltd., of which Rs.47.44 crore was executed during FY25. The group has also recorded Rs.375 crore in revenue as of 9M FY26 and is expected to close FY26 at around Rs.550 crore. Operating profitability improved, with operating margins rising to 14.24% in FY25 from 13.21% in FY24, aided by lower raw material costs through better price negotiations and the group’s backward integration efforts with EISPL and EIFPL. However, PAT margins marginally moderated to 8.81% in FY25 from 9.04% in FY24 due to higher finance costs. As of January 2026, MWEPL has an unexecuted order book of Rs.596.56 crore, providing further revenue visibility in the near term. The group also plans to establish its own wagon manufacturing facility by mid-FY27, which is expected to enhance its revenue trajectory further.Acuité believes operating performance to remain marginally moderated over the medium term, while profitability is expected to improve or remain broadly in line with FY25 levels.
Stable Financial Risk Profile:
The group’s financial risk profile remains stable, supported by improved net worth, stable gearing, and comfortable coverage indicators. Adjusted Tangible net worth (net of goodwill of Rs.36.17 crore arising from the acquisition of Window Glass Ltd.) increased to Rs.122.62 crore in FY25 from Rs.111.69 crore in FY24 on account of accretion to reserves. Total debt increased to Rs.113.24 crore in FY25 from Rs.87.95 crore in FY24, primarily due to additional working capital facilities availed by EISPL and EIFPL, leading to a rise in gearing to 0.92 times in FY25 from 0.79 times in FY24. Debt protection metrics, though moderated, remained comfortable with ICR at 5.72 times and DSCR at 2.76 times in FY25 compared to 9.48 times and 7.07 times respectively in FY24. Further, TOL/TNW stood at 1.59 times and Debt/EBITDA at 1.49 times in FY25. Acuité believes the financial risk profile to remain stable over the medium term, supported by the absence of any debt-funded capex plans.
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| Intensive Working capital Management with slight improvement:
The group’s working capital management remains intensive, though GCA days improved slightly to 180 days in FY25 from 187 days in FY24 on account of slight improvement in debtors days, reduced other current assets. Debtor days slightly improved to 64 days in FY 25 from 66 days in FY 24. Inventory days, however, increased to 78 days in FY25 from 59 days in FY24 owing to higher year-end purchases, an increase in finished goods, and wheelset shortages that delayed deliveries. Other current assets reduced to Rs.79.91 crore in FY 25 from Rs. 88.95 crore in FY 24 driven by decrease in loan to related parties. Creditor days improved to 49 days in FY25 from 65 days in FY24, with suppliers generally offering an average credit period of 45 days, Acuite believes GCA days is expected to be in the range of 175-185 days over the medium term.
Customer concentration, however, mitigated by the established market presence:
MEWPL has maintained relationship with customers such as BESCO Ltd, Indian Railways, Titagarh Rail Systems Ltd, Brathwaite & Co ltd etc almost more than 15 years. Top 5 customers contributed around 86% of the total revenue. Acuite believes Though there is customer concentration, however risk is mitigated through established market presence.
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