Titagarh Rail Earnings Miss: SEBI Analyst Warns Of Breakdown Risks Below ₹770

Shares of Titagarh Rail Systems gained 2.4% on Tuesday, even as the company reported a sharp drop in revenue and profit for the quarter ended June 30, 2025.

Q1 Earnings Review

Revenue from operations fell to ₹679.30 crore, down 24.8% from a year earlier and 25% from the previous quarter. 

Total income slipped to ₹690.95 crore from ₹915.34 crore last year, while profit before tax dropped to ₹45.96 crore from ₹92.25 crore. Net profit came in at ₹30.94 crore, down from ₹67.01 crore. The PAT margin narrowed to about 4.48% from 7.3%.

SEBI-registered analyst Saurabh Sahu said the topline weakness was mainly due to slower delivery schedules and a dip in the pace of order execution. 

While overall expenses were moderated, raw material costs still made up nearly 74% of revenues, limiting any margin recovery.

Technical Breakdown

On the technical front, Sahu observed that the daily chart shows a persistent downtrend since the stock peaked near ₹1,780 in June 2024. 

The pattern of lower highs and lower lows continues, with a breakdown from the recent consolidation range of ₹870–₹940.

He identified immediate support at ₹770–₹772, which is currently being tested, and major support in the ₹680–₹700 zone, a previous accumulation area. Immediate resistance is seen at ₹920–₹940, which is a supply zone from recent failed breakouts. 

Volume action has been heavier on down days, indicating distribution.

Sahu cautioned that if the ₹770 support fails to hold, the stock could drift towards ₹700 in the short term. On the upside, only a sustained close above ₹940 would point to a potential reversal attempt.

What Should Investors Do?

He said that with earnings under pressure and the chart structure showing weakness, traders may need to exercise caution. 

Long-term investors could watch for value closer to stronger support levels, while short-term traders might monitor price behavior near ₹770 for potential breakdown trades.

What Is The Retail Mood?

On Stocktwits, retail sentiment was 'bearish' amid 'high' message volume.

Titagarh's stock has declined 28.3% so far in 2025.

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