The MoU was signed on August 10, 2026, according to a regulatory filing by the company.
Under the agreement, the two companies intend to work towards a strategic collaboration in the field of ETCS solutions. The scope includes, but is not limited to, the contemplated Kavach development for the Indian market.
The companies will negotiate and seek to execute a definitive agreement for the proposed collaboration. Texmaco said the commercial terms will be finalised under the definitive agreement.
The MoU currently records the parties’ mutual intention to explore the collaboration and does not specify the size or commercial value of the proposed agreement. The definitive arrangement will also be subject to mutual negotiations and the requisite approvals from the respective managements.
Texmaco said TSC is not related to its promoter, promoter group or group companies. The transaction also does not constitute a related-party transaction, according to the filing.
The company said it does not hold any shareholding in TSC as part of the arrangement.
Texmaco Rail Q1 Results
The firm had reported a mixed set of June-quarter earnings on Monday, with revenue declining year-on-year but profitability improving sharply, reflecting stronger operational efficiency despite a softer topline.
The company posted a 67% increase in net profit to ₹50 crore, compared with ₹30 crore in the corresponding quarter last year.
Revenue, however, declined 17% to ₹757 crore from ₹911 crore, while EBITDA fell 19.6% to ₹57 crore. Operating margin remained broadly steady at 8%, indicating that profitability was maintained despite lower sales.
Texmaco Rail & Engineering Ltd. shares closed at ₹107.20 on Monday, August 10, down 1.45% from the previous close.
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