E To E Transportation Infrastructure Ltd. (E2ERAIL)
SME CapInfra stocks · SME cap · NSE
E2ERAIL is India's only full-stack railway safety & intelligence platform. It offers OEM products (KAVACH 4.0), system integration for B2G & B2B clients, engineering design (EDRC), and O&M lifecycle services across mainline, metro, and private sidings in 14 countries.
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.
Weak fundamentals, management trust needs verification, 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 | ₹269 Cr | NDF | +69.2% |
| EBITDA | ₹39 Cr | +5.4% | +5.4% |
| Operating margin | 15.0% | -800 bps | -800 bps |
| PAT | ₹24 Cr | NDF | +0.0% |
| PAT margin | 8.9% | -617 bps | -617 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
FY26 revenue grew 51.5% YoY to ₹380 Cr, with EBITDA at ₹38.0 Cr (10.0% margin) and PAT at ₹16.8 Cr (4.4% margin). Order book (incl. L1s) reached ₹1,015 Cr, covering 2.3x FY26 revenue. Operating cash flow was negative due to Q4 billing concentration.
The company demonstrated strong top-line growth and secured a robust order book, indicating continued execution momentum. The strategic shift towards OEM with KAVACH CCA approval is a significant long-term positive. While working capital remains a concern, management attributes it to a timing anomaly, which needs close monitoring for normalization.
FY26 Segmental Revenue Breakup
Latest issuer-disclosed distribution across 4 reported categories.
KAVACH 4.0 OEM Platform
NOVA Control Tecnologix received RDSO CCA approval on May 15, 2026, for KAVACH 4.0 development, positioning E2E as a certified OEM/integrator for India's indigenous train collision-avoidance system.
Full-Stack Railway Intelligence Platform
The company's integrated capabilities across OEM (NOVA), system integration, engineering design (EDRC), and O&M services unlock larger, complex bids and provide recurring annuity revenues.
Strong Order Book & Pipeline
A current order book of ₹1,015 Cr (2.3x FY26 revenue) and a robust FY27 order pipeline, with 71% from Indian Railways, provides revenue visibility and execution opportunities.
Recurring Revenue Streams
O&M contracts (e.g., Chennai Metro 5-yr S&T + PSD O&M) and NOVA AMC for safety-critical products create a stable, recurring earnings base.
KAVACH Product Development
NOVA Control Tecnologix, a wholly-owned deep tech subsidiary, is developing KAVACH 4.0, with 75% acceptance readiness completion targeted by July 10, 2026.
Engineering Design & Research Center (EDRC)
The EDRC has 45+ design experts, enabling in-house advanced electrification modelling and EI configuration, reducing vendor dependency and accelerating development cycles.
Skill Development - Rail Village
The company is building a structured training ecosystem for rail engineers to ensure a scalable manpower pipeline for project execution.
Indian Railway Modernization Cycle
India's railway sector is entering a generational technology upgrade cycle driven by safety, automation, intelligent signaling, and indigenous systems like KAVACH.
KAVACH Mandate
KAVACH is India's indigenous train collision-avoidance system, mandated across 35,000+ km of rail network, creating a significant addressable market of ~₹1.5–2.0 Lakh Crore over 10 years.
Convergence of Capabilities
Management believes the convergence of system integration capability with technology ownership will define the next phase of industry leadership.
Working Capital Intensity
The company reported 181 working capital days for FY26 and negative operating cash flow, driven by a significant concentration of billing (48% of FY26 revenue) in March.
Project Execution Timelines
The disclaimer notes that actual results may vary due to factors including project execution timelines, which is inherent to the railway and infrastructure sector.
Regulatory & Policy Changes
Changes in the regulatory environment and government policies are identified as factors that may cause actual results to differ materially from forward-looking statements.
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.
YoY comparison is essential for assessing annual financial performance and growth trends. QoQ is relevant for tracking sequential order inflow momentum, working capital normalization, and project execution pace, especially given the Q4 concentration.
Order Book (incl. L1s)
Current Order Book (incl. L1s) is ₹1,015 Cr as of May 2026, representing 2.3x FY26 Revenue.
FY26 Order Wins
FY26 Order Wins totaled ₹453 Cr. From Jan-May 2026, new orders won (LOAs + L1s) amounted to ₹613 Cr.
Revenue Growth
FY26 Revenue from Operations was ₹379.99 Cr, a 51.50% increase YoY from ₹250.81 Cr in FY25.
EBITDA Margin
FY26 EBITDA was ₹38.25 Cr, with a margin of 10.07%. H2FY26 EBITDA margin was 14.76%.
Vision 2029 Revenue Target
Management's ambition is to build a railway technology enterprise capable of crossing ₹1,000 Cr in annual revenue by Vision 2029, implying 30%+ consolidated revenue growth.
Vision 2029 Margin Targets
Management aims for EBITDA margins in the range of ~12-14% and sustainably delivering PAT margins of 7% and above by Vision 2029.
Strategic Transformation
The company is strategically transforming into a technology-led railway systems platform, positioning itself as a creator of critical railway technologies and integrated mobility solutions.
Working Capital Normalization
Management expects OCF to turn positive, with ₹300 Cr+ receivables recovery in FY27 H1 (₹90 Cr already collected) and focused governance on billing/collection.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| KAVACH Field Trial Orders | RDSO CCA approval received (May 15, 2026). Acceptance readiness 75% complete (Target: July 10, 2026). | Securing field trial orders and subsequent prototype approval for KAVACH 4.0. |
| Operating Cash Flow (OCF) | FY26 OCF was -₹103 Cr due to Q4 billing concentration. | Material improvement and positive OCF in FY27, driven by receivables recovery and even distribution of billing. |
| EBITDA & PAT Margins | FY26 EBITDA margin 10.07%, PAT margin 4.42%. | Progress towards Vision 2029 targets of 12-14% EBITDA margin and 7%+ PAT margin, supported by product and O&M revenues. |
| Order Inflow & Execution | ₹613 Cr orders won Jan-May 2026. FY26 revenue growth 51.5%. | Consistent order inflow momentum and efficient execution of the robust order book to sustain revenue growth. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
61BullishSMA20 +7.3% / mo · RSI overbought · MACD + · near 52W high · sector +2.3pp vs Nifty (3M)
Technical chart
E2ERAILdaily · 1Y · AUTO+91.1%Daily history is available from 2026-01-02; the requested 1Y window is partially covered.
Daily technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 74. Wait for confirmation.
- SMA20 rising (~6.8% over last month) — short-term momentum positive.
- RSI(14) at 74 — overbought zone; risk of mean reversion.
- MACD above signal, histogram expanding — bullish momentum building.
- 5% off 52W high · 106% 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 20 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 20 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Growth contributes 13/25 to the score.
- Balance sheet contributes 5/15 to the score.
- Valuation contributes 0/30 to the score.
Main drags
- Penalty bucket subtracts 1 points.
- Fair-value margin of safety is negative at -50.6%.
- Valuation is weaker at 0/30; 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: +2 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.
Mixed Trust: Claim history is still being built. It ranks around the 18th percentile of the scored universe and 28th percentile within Infra. Main check: cash conversion is weak at 28/100.
Mixed Trust Lite: Promoter pledge is zero. Key concern: Operating cash flow is negative at ₹-102 Cr.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Infra: 28th pctile, median 64 · SME: 19th pctile, median 64
3 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
Mixed 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 pledge is zero.
- ▸Promoter holding increased 30.5%.
Trust risks
- ▸Operating cash flow is negative at ₹-102 Cr.
- ▸Only 0 years of positive FCF.
- ▸ROCE trend is -2.9%.
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
- 36.30
- P/B
- 2.97
- EV/EBITDA
- 19.82
- Market Cap
- 609.00Cr
Profitability
- ROE
- 10.40%
- ROCE
- 14.80%
- ROA
- 3.06%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 30.00%
- EPS 5Y
- 9.00%
- Revenue 3Y
- 41.00%
- EPS 3Y
- 29.00%
Balance Sheet
- Debt/Equity
- 0.80
- Interest Coverage
- 2.11×
- Altman Z
- 2.56
- Book Value
- 119.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 0/5
- OCF
- -102.00 Cr
- EPS TTM
- 9.73
Shareholding
- Promoter Hold
- 32.54%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 91%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
Business-comparable names in Infra, ranked by similarity
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.