Jupiter Wagons Eyeing Rs 4,000 Crore Revenue From Wheelset Business

Jupiter Wagons expects to achieve a revenue of Rs 3,000–4,000 crore from its wheelset business by the end of fiscal 2027, the company’s Managing Director Vivek Lohia said.

Jupiter Wagons, on Sept. 17, had announced an investment of Rs 2,500 crore in a new plant in Odisha to make forged wheelsets and increase its production capacity to 1 lakh units per annum.

“The capacity will come in incrementally every year but the full capacity will come by the end of FY27,” Lohia told NDTV Profit.

He added that "revenues will be anything between Rs 3,000 crore and Rs 4,000 crore" and will depend on the product mix at that time.

Jupiter Wagons, in its statement, has said that almost half of the production capacity will be dedicated to exports, mostly through its partner Tatravagonka AS. 

With the European market being open for the company through Tatravagonka and demand picking up in the domestic markets, Jupiter Wagons expects the margins of the wheelset business to expand, Lohia said.

“Currently, in the wheel business, this year we will be doing anything between 13% and 14% of margins, which will further expand next year. When the business is fully integrated, we are definitely looking at margins of above 15%,” Lohia said.

The investment for this new expanded business is going to happen over a period of time, the top executive informed. The company will raise funds for the investment via multiple routes.

This includes the Rs 800-crore QIP that Jupiter Wagons did earlier this year.

“Our partners have brought about Rs 100 crore to the business. This whole pool of the QIP money will go towards the projects,” Lohia said.

Jupiter Wagons is zero-debt in terms of long-term loans, and the company plans to raise debts for the new facility.

“We are looking to raise some debts from this business. We have very strong internal accruals and cash flows. The rest of the business going forward will not require so much investment. So, a lot of those cash flows will come into the wheel business for us,” Lohia revealed.

At a group level, Jupiter Wagons aims to clock a revenue of Rs 8,000–10,000 crore by FY27, Lohia said. 

He expects the growth momentum to sustain in terms of both topline and margins.

“With the wheel business kicking in, by FY27-end we are looking at a revenue of Rs 8,000 crore to Rs 10,000 crore. We have consistently grown our margins over the years and as we keep on adding more value-added products, you will see the margins improve,” Lohia said.