VMPL
Bhilai (Chhattisgarh) [India], May 29: Simplex Castings Ltd is positioning its railway business as a major growth engine after securing approval from the Research Designs & Standards Organisation (RDSO), a move that could unlock more than ₹100 crore in annual revenue opportunities over the next two years.
The approval allows the company to undertake prototype testing of Cast Steel CASNUB Bogies and critical railway wagon components, enabling it to participate in railway procurement programs and strengthen its presence within India's expanding railway supply chain ecosystem. The company expects the railway segment to generate nearly ₹50 crore in revenue by the end of the current financial year and more than ₹100 crore by the end of the next financial year.
For Simplex Castings, the development marks a return to one of its most successful legacy businesses. The company was historically among the dominant players in the cast bogie segment, commanding an estimated 60-70 percent market share at its peak. With Indian Railways accelerating investments in freight corridors, wagon modernization and logistics infrastructure, management believes the sector presents a significant long-term growth opportunity.
To capitalize on the opportunity, Simplex Castings has already initiated capital expenditure to scale bogie manufacturing and is actively pursuing railway tenders. The company expects the railway vertical to become a meaningful contributor to future revenues while diversifying its existing engineering and industrial casting business.
The railway expansion comes alongside a strong FY26 performance. Simplex Castings reported revenue of ₹202.9 crore, up 18 percent year-on-year, while EBITDA grew 20 percent and profit after tax surged more than 40 percent. The company also significantly reduced debt levels during the year, strengthening its balance sheet and improving cash flow generation as it prepares for its next phase of growth.
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