Dhara Rail Projects Ltd. (DHARARAIL)
SME CapInfra stocks · SME cap · NSE
Dhara Rail Projects Ltd. (DRPL) is an ISO 9001-2015 certified company providing contractual railway projects and allied services for Indian Railways. Services include AMC, repair, maintenance, inspection, and SITC for rolling stock electrical and mechanical systems, including Vande Bharat coaches and OHE vehicles.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is acceptable, price trend is neutral, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Average · 30/100YoY data unavailable — classification deferred
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹28 Cr | NDF | +0.0% |
| EBITDA | ₹10 Cr | +233.3% | +0.0% |
| Operating margin | 36.0% | +2600 bps | +200 bps |
| PAT | ₹8 Cr | NDF | +14.3% |
| PAT margin | 28.6% | +1746 bps | +357 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
DHARARAIL reported a record FY26 with Revenue from Operations up 27.5% YoY to ₹56.74 Cr, EBITDA surging 151.8% to ₹21.52 Cr, and PAT increasing 143.2% to ₹15.44 Cr. EBITDA margin expanded to 37.9% and PAT margin to 27.2%.
Strong FY26 results driven by increased direct contracts with Indian Railways and higher-margin AMC business. The current order book provides good revenue visibility, but working capital management and timely collections from legacy OEM contracts remain key monitorables.
Revenue mix by service type
Latest issuer-disclosed distribution across 2 reported categories.
Indian Railways Modernisation
Indian Railways modernisation and rising rolling-stock maintenance needs.
Vande Bharat Rollouts
Vande Bharat rollouts increasing technology intensity in coaches and significant opportunities as the fleet matures.
Order Book Visibility
₹184 Cr order book providing medium-term execution visibility.
Shift to Direct Contracts
Strategic shift towards direct bidding with Indian Railways, improving profitability by eliminating OEM revenue sharing.
Workforce Expansion
Workforce deployed nationally expanded from 440+ (Mar 2025) to 1,300+ (Mar 2026) to support execution of recurring railway contracts.
Expanding Rolling Stock Fleet
Expansion of the rolling stock fleet is expected to support long-term growth.
Railway Electrification
99% railway electrification is expected to support long-term growth.
Recurring Maintenance Needs
Recurring maintenance requirements are expected to support long-term growth.
Working Capital Cycle
Working capital cycle and debtor days are key monitorables.
Manpower Availability
Manpower availability across Railway Zones is a key monitorable.
Dependence on Railway Contracts
Dependence on railway-related contracts is a key monitorable.
Quality Standards & Efficiency
Maintaining quality standards and operational efficiency is a key monitorable.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The document explicitly compares FY26 results to FY25 for all key financial metrics (Revenue, EBITDA, PAT, margins, EPS, Net Worth), indicating an annual performance review.
Order Book
Latest disclosed order book is ₹184 Cr including GST across 17 Railway Zones.
Revenue from Operations
₹56.74 Cr in FY26 vs ₹44.48 Cr in FY25 (+27.5% YoY).
EBITDA Margin
37.9% in FY26 vs 19.2% in FY25.
PAT Margin
27.2% in FY26 vs 14.3% in FY25.
Focus on Direct Business
Management remains focused on expanding direct business with Indian Railways while maintaining disciplined execution.
Cautious Expansion
Management intends to expand cautiously, entering new service areas only after ensuring adequate technical manpower.
Specific Project Focus
The company is not pursuing freight rolling stock, dedicated freight corridors, high-speed rail or station redevelopment projects.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Order Book Execution | ₹184 Cr order book across 17 Railway Zones. | Tendering intensity and timely order execution. |
| Working Capital & Debtor Days | Operating cash flow temporarily impacted by delayed collections from legacy OEM contracts. | Improvement in working capital cycle and debtor days as direct contracts increase. |
| Direct Contract Share | Around 95% of the order book comprises direct contracts with Indian Railways. | Maintenance or increase in the share of direct contracts with Indian Railways. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
57NeutralSMA20 +6.1% / mo · MACD − · sector +2.3pp vs Nifty (3M)
Technical chart
DHARARAILdaily · 1Y · AUTO+18.9%Daily history is available from 2025-12-31; the requested 1Y window is partially covered.
Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 42. Wait for confirmation.
- SMA20 rising (~5.7% over last month) — short-term momentum positive.
- RSI(14) at 42 — falling, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 21% off 52W high · 52% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 72 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 72 · UNDERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 47.4%.
- Growth contributes 25/25 to the score.
- Quality contributes 20/20 to the score.
Main drags
- Penalty bucket subtracts 3 points.
- Cash flow is weaker at 0/10; verify the latest quarterly trend.
- Valuation is weaker at 16/30; verify the latest quarterly trend.
Execution business valuation: EV/EBITDA plus order and working-capital risk
Capital-intensive execution stories need cash-flow and balance-sheet checks alongside valuation.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +3 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 66th percentile of the scored universe and 73rd percentile within Infra. Main check: cash conversion is weak at 28/100.
Healthy Trust Lite: Promoter holding is 74.6%. Key concern: Operating cash flow is negative at ₹-7 Cr.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Infra: 73rd pctile, median 64 · SME: 85th pctile, median 64
1 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 74.6%.
- ▸Promoter pledge is zero.
- ▸Promoter holding increased 55.6%.
- ▸ROCE is 35.5%.
Trust risks
- ▸Operating cash flow is negative at ₹-7 Cr.
- ▸Only 1 years of positive FCF.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 13.40
- P/B
- 2.81
- EV/EBITDA
- 10.95
- Market Cap
- 206.00Cr
Profitability
- ROE
- 35.70%
- ROCE
- 35.50%
- ROA
- 15.15%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 28.28%
- EPS 5Y
- 146.62%
- Revenue 3Y
- 29.00%
- EPS 3Y
- 164.00%
Balance Sheet
- Debt/Equity
- 0.18
- Interest Coverage
- 20.00×
- Altman Z
- 7.29
- Book Value
- 48.80
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 1/5
- OCF
- -7.00 Cr
- EPS TTM
- 10.24
Shareholding
- Promoter Hold
- 74.56%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 57%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
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Peers
Business-comparable peers in Infra — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.