1. At a Glance
Oriental Rail Infrastructure (ORIL) is that overachiever cousin in the railway family who started with seat covers and now wants to build entire wagons. From making berths for Rajdhani passengers to co-developing “smart wagons” with Americans and Russians, this company has upgraded faster than your neighborhood kirana store turning into a Swiggy Instamart. But while the order book is fat at ₹2,255 Cr, the profits are still thinner than IRCTC chai.
2. Introduction
Imagine you board a Shatabdi Express. The berth you sit on, the rexine covering, the backrest that refuses to recline, and even that smelly compreg board – chances are, Oriental Rail had a hand in it.
Started as a seat-and-berth company, ORIL has morphed into a railway infra hybrid. On one side, it sells passenger division products like seats, berths, and coach furnishings. On the other, its subsidiary OFPL goes full “engineering wala swag” with bogies, wagons, and couplers. Basically, they went from supplying pillows to Indian Railways to trying to sell the whole bedroom.
Their market position? A monopoly-ish 30% share in railway seats and berths, the only listed player here. They are also RDSO-approved — which in Railways land is like being verified on Twitter (sorry, X). Without it, you don’t even get an entry ticket.
The kicker? They’re not stopping. They want to double wagon capacity, launch LoRa-sensor powered wagons (yes, trains are going IoT now), and even co-develop gondola wagons with Russians. This is not “rail infra” anymore; this is railway’s version of Shark Tank.
3. Business Model (WTF Do They Even Do?)
Let’s decode this buffet:
- Passenger Division (ORIL): The bread and butter. Seats, berths, recliners, compreg boards, upholstered fabrics, and even timber. They’re the official “cushion waale” of Indian Railways, ensuring that your 14-hour Patna journey doesn’t feel like a wooden plank torture test.
- Freight Division (OFPL): The real heavy hitter. Manufactures wagons, bogies, couplers, springs, and other rolling stock. With capacity for2,400 wagons a year (soon 4,800), this is their ticket to serious scale.
- Backward Integration: They even make their own rexine under theORVIN brand– 60 lakh MTPA. Yes, they sell fake leather to themselves. Talk about vertical integration.
- Collaborations:
- HUM Industrial (USA):Smart wagons with LoRa sensors to monitor wheels/bearings. Reduces downtime 25%. Market potential? ₹20,000 Cr.
- Uniwagon (Russia):Heavy load gondolas under “Make in India.” Basically, a Russian vodka + Indian jugaad partnership.
Revenue-wise,83% comes from seats & berths, rest is scattered across upholstery, resins, and boards. But freight is the real growth rocket.
Question for you: Do you think passengers (seats/berths) or freight (wagons/bogies) will be their bigger moneymaker 5 years from now?
4. Financials Overview
| Metric | Latest Qtr (Jun’25) | YoY Qtr (Jun’24) | Prev Qtr (Mar’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 118 | 123 | 140 | -4.1% | -15.7% |
| EBITDA (₹ Cr) | 14.6 | 13.9 | 17.5 | +5.0% | -16.6% |
| PAT (₹ Cr) | 5.9 | 5.9 | 5.4 | 0.0% | +9.3% |
| EPS (₹) | 0.91 | 0.95 | 0.83 | -4.2% | +9.6% |
| Annualised EPS (₹) | 3.64 |
Commentary:Revenue slipped but PAT flatlined like an Indian soap opera character. EPS annualised at ₹3.6 makes the P/E~43xat CMP ₹156. So, investors are paying more than first-class Rajdhani ticket prices for sleeper-class returns.
5. Valuation (Fair Value Range Only)
- P/E Method:EPS annualised = ₹3.64Industry P/E = 33.5FV = 3.64 × (25–35) =₹91 – ₹127
- EV/EBITDA:EV = ₹1,199 Cr, EBITDA TTM = ₹71 Cr → EV/EBITDA = 16.9xFair multiple (12–15x) → FV = ₹850 – ₹1,065 Cr EV → per share₹132 – ₹165
- DCF (Quick & Dirty):Assume FCF growth 10% for 5 years, WACC 11% → FV per share ~₹120 – ₹150
👉Fair Value Range = ₹91 – ₹165(Disclaimer: For educational purposes only, not investment advice. No SEBI gyaan here.)
6. What’s Cooking – News, Triggers, Drama
- Massive Order Book:₹2,255 Cr order book, plus ₹600 Cr in Jan-Feb 2025. Compare that to annual revenue of ~₹600 Cr – that’s 4x visibility.
- Smart Wagon Hype:Partnership with HUM Industrial (USA). If Indian Railways adopts this at scale, Oriental could mint money. If not, it’s just another “Digital India” brochure.
- Russian Gondola Deal:With Uniwagon, they’re pushing heavy payload wagons. This could align with India’s DFC (Dedicated Freight Corridor) boom.
- Capacity Expansion:New plant at Kutch for bogie springs, land acquired in Gujarat. Think of it as buying farmland but instead of wheat, they’ll grow wagons.
- AGM Drama:34th
