Oriental Rail Rockets on Rs 432 Crore Order Win

Oriental Rail Infra saw its shares hit a 5% upper circuit, reaching Rs 397.45, following the announcement that its subsidiary, Oriental Foundry, secured a significant order from Indian Railways worth Rs 432.15 crore. This boost comes as a part of the company's ongoing efforts to expand its footprint in the rail infrastructure sector.

The substantial contract involves the manufacturing and supply of 1,200 BVCM-C wagons, a crucial addition to the Indian Railways' fleet. The project is slated for completion by 31 March 2026, highlighting Oriental Foundry's capability to handle large-scale orders within stringent timelines.

Financially, the deal is structured to ensure robust cash flow for Oriental Foundry. The company will receive 90% of the total cost upon the issuance of an inspection certificate by the Research Designs and Standards Organisation (RDSO) and proof of dispatch or delivery. The remaining 10% will be paid after the goods' receipt, inspection, and acceptance.

This order marks a significant milestone for Oriental Rail Infra, demonstrating its strong partnership with Indian Railways and its growing reputation in the rail manufacturing industry. The company's strategic focus on quality and timely delivery continues to yield positive results.

News by Rahul Yelligetti