Mumbai: Hirect Limited has emerged as the lowest bidder in a 750-unit railway propulsion tender floated by Chittaranjan Locomotive Works (CLW) – a state-owned electric locomotive manufacturer owned and operated by Indian Railways and located in Chittaranjan, West Bengal – marking a significant development in its efforts to expand its presence in India’s railway propulsion market.
However, the company is yet to receive purchase orders for the development-source allocation, with Indian Railways currently restructuring its approved vendor list.
During its earnings call on November 11, 2026, Hirect management clarified that Indian Railways had already released purchase orders to vendors on its approved-source list, while allocations for development-source suppliers were still pending.
Although Hirect has emerged as the lowest bidder in the railway propulsion tender, the company has not yet secured purchase orders for the entire 750-unit requirement.
The distinction is important, as the lowest-bidder position does not automatically translate into an awarded contract.
The final business opportunity for the company will depend on the allocation of purchase orders and the completion of the vendor-list restructuring process.
The latest disclosure follows the company’s November 10, 2026 results announcement, in which Hirect reported its inclusion in the Research Designs and Standards Organisation (RDSO) development-source list for propulsion systems and the commencement of supplies.
Hirect’s Railway Propulsion Business Enters Expansion Phase
Hirect, formerly known as Hind Rectifiers Limited, is expanding its railway business through the development and supply of propulsion systems.
The company said supplies commenced in October 2026, with production expected to scale up over the next three to four quarters.
During the earnings call, management said field trials had covered 30,000 km against a planned 50,000 km, with no issues reported so far. The company is also executing an existing order for approximately 38 propulsion systems.
The 750-unit railway propulsion tender represents an additional business opportunity for Hirect as it seeks to establish its position in the segment.
However, the extent to which the tender translates into revenue will depend on the purchase orders eventually allocated to the company.
Management indicated that the initial expansion phase would involve competitive pricing to establish the company’s presence in the propulsion market.
This is expected to put pressure on margins as Hirect scales up its operations and builds capabilities in the new product segment.
The company expects consolidated margin pressure to continue for at least the next two quarters, extending into Q4 FY27.
Consequently, the railway propulsion tender brings potential business expansion alongside near-term profitability challenges associated with product introduction, competitive pricing and capacity ramp-up.
Manufacturing Background and Railway Presence
Established in 1958, Hirect was originally set up in partnership with Westinghouse Brake & Signal of the UK. The Mumbai-based company manufactures power-electronics and electrical equipment for railway, defence and industrial applications.
Its product portfolio includes power converters, control electronics, transformers, rectifiers, inverters, motors and HVAC systems.
Hirect serves customers across several sectors, including railways, defence, power, steel and cement. The company has approximately 950 employees and operates manufacturing facilities in Nashik and Bhandup.
It also exports its products to more than 30 countries.
Elventive France Targets Breakeven Between September and December 2027
Alongside the railway propulsion business, Hirect management provided an updated timeline for improving the financial performance of its French subsidiary, Elventive France.
The company is targeting breakeven for the overseas business between September and December 2027. Losses at Elventive France have been one of the factors affecting Hirect’s consolidated profitability.
Management said the subsidiary had secured two new customers and was working on a product line that had reached trial volumes.
It also highlighted enquiries from European automotive companies as part of the business development pipeline.
However, these enquiries have not yet translated into firm orders. The September-December 2027 breakeven timeline remains a management target rather than an achieved financial milestone.
Hirect Q2 FY27 Results: Revenue Rises 39% to ₹315.7 Crore
Hirect’s financial results for the second quarter of FY27, announced on November 10, 2026, showed strong consolidated revenue growth, although profitability continued to face pressure.
The company reported consolidated revenue of ₹315.7 crore, registering a 39% year-on-year increase. This was its highest-ever quarterly revenue.
Consolidated EBITDA stood at ₹13.6 crore, translating into an EBITDA margin of 4.3%. Profit after minority interests was ₹6.8 crore.
On a standalone basis, Hirect reported revenue of ₹294.3 crore, up 29.6% year-on-year. Standalone EBITDA stood at ₹24 crore, with a margin of 8.2%, while profit after tax (PAT) was ₹14.5 crore.
The difference between standalone and consolidated profitability reflects the impact of the overseas subsidiary and other costs at the consolidated level.
Management attributed the pressure on profitability to multiple factors, including higher raw-material costs, changes in product mix, investments in people and capabilities, and losses at Elventive France.
Hirect H1 FY27 Revenue Grows 29.9% to ₹574.1 Crore
For the first half of FY27, Hirect reported consolidated revenue of ₹574.1 crore, marking a 29.9% year-on-year increase.
Consolidated EBITDA for H1 FY27 stood at ₹26.8 crore, with an EBITDA margin of 4.7%. Profit after minority interests was ₹16.2 crore.
The company also reported exceptional gains arising from the sale of its Dehradun plant. These amounted to ₹2.68 crore on a pre-tax basis in Q2 FY27 and ₹6.20 crore for the first half of the financial year.
The gains are non-recurring in nature and are separate from the company’s operating earnings.
Hirect’s order book stood at ₹795.2 crore as of September-end, providing visibility into its existing business pipeline.
