Jupiter Wagons is aiming to generate ₹3,000 to ₹4,000 crore in revenue from its wheelset business by the end of fiscal year 2027, according to Managing Director Vivek Lohia. On September 17, the company announced a ₹2,500 crore investment in a new plant in Odisha, which will produce forged wheelsets and expand its annual production capacity to 1 lakh units.
“The capacity will gradually increase each year, but we expect to reach full capacity by the end of FY27,” Lohia said during an interview with a TV Channel. He added that the revenue outcome would depend on the product mix at the time, with projections ranging from ₹3,000 crore to ₹4,000 crore.
Jupiter Wagons also revealed that nearly 50% of its production capacity would be dedicated to exports, largely through its partnership with Tatravagonka AS. With access to the European market through Tatravagonka and rising demand in India, the company expects its wheelset business margins to grow.
“This year, we anticipate margins of around 13% to 14% in the wheelset business, and we expect these to improve further next year. Once the business is fully integrated, we are targeting margins above 15%,” Lohia added.
The investment for this expansion will be rolled out over time, with funding sourced through various channels, including an ₹800 crore Qualified Institutional Placement (QIP) that Jupiter Wagons completed earlier in the year. Lohia mentioned that the company’s partners have contributed ₹100 crore to the business, and the funds from the QIP will be allocated toward the expansion projects.
Jupiter Wagons has no long-term debt, but the company plans to raise additional debt to support the new facility. “We will be looking at raising some debt for this business. Our internal accruals and cash flows are strong, and since the rest of the business won’t need significant investment, much of those cash flows will go toward the wheelset business,” Lohia explained.
At the group level, Jupiter Wagons is aiming for total revenue between ₹8,000 crore and ₹10,000 crore by FY27. Lohia is confident that the company’s growth momentum will continue, both in terms of revenue and profit margins. “With the wheelset business coming online, we expect to hit ₹8,000 to ₹10,000 crore in revenue by the end of FY27. Our margins have consistently improved, and as we introduce more value-added products, we foresee further margin growth,” Lohia concluded.
