Dhara Rail Projects Limited is an engineering and services company primarily engaged in executing railway electrical and maintenance contracts for Indian Railways. The company earns revenue through direct railway contracts and pre-bid arrangements with OEMs. Its services include installation, testing, commissioning, operations, and maintenance of electrical systems in railway coaches and rolling stock, including modern trains like Vande Bharat.

Key Clients & Manufacturing / Operating Facilities
The company’s principal client is the Ministry of Railways, Government of India, with operations spread across multiple railway zones. Dhara Rail Projects operates through project execution sites rather than owning large manufacturing plants. Its registered office and corporate office are located in Mumbai, from where project planning, coordination, and administrative functions are managed.

Product Portfolio & Order Book Execution
The company’s portfolio includes railway electrical systems, train lighting equipment, HVAC maintenance, power car equipment, and annual maintenance contracts. These services support the full lifecycle of railway assets by ensuring operational efficiency and safety. As of December 12, 2025, the company has an order book of 60 projects worth ₹14,378.01 lakh, with ₹6,450.54 lakh expected to be executed during FY2026–FY2027.

Merger, Capex & Expansion Plans
Dhara Rail Projects took over the business of M/s Dhara Industries in 2010, strengthening its railway-focused operations. The company plans to scale project sizes and increase inventory and fixed deposits to support performance guarantees for larger contracts. IPO proceeds are intended to support working capital needs and general corporate purposes to enable future growth and expansion.

Employees & Banker Details
As of October 31, 2025, the company had 697 employees. The Banker to the Company is Canara Bank Limited.

MANAGEMENT & GROWTH VISION

The promoters and management aim to strengthen Dhara Rail Projects’ position as a specialized railway services provider by increasing direct contract participation with Indian Railways. Their near-term focus is on timely execution of the existing ₹14,378.01 lakh order book, while long-term plans include scaling operations, bidding for higher-value contracts, and improving margins. Capex and expansion funding will be supported through IPO proceeds, internal accruals, and optimized working capital management.

INDUSTRY OVERVIEW

Dhara Rail Projects operates within the Indian railway infrastructure and maintenance services industry. The sector benefits from continuous government investment in railway modernization, electrification, and maintenance. Indian Railways is among the world’s largest rail networks, supporting steady demand for electrical systems, maintenance, and refurbishment services. Globally, railway infrastructure continues to grow steadily, driven by urbanization and sustainability goals, with long-term growth expectations remaining positive.

KEY RISK FACTORS

1. Dependence on Indian Railways
   A significant portion of revenue comes from Indian Railways. Any reduction in government spending, delays in approvals, or policy changes could directly impact order inflows and revenue stability.
2. Order Book Execution Risk
   The ₹14,378.01 lakh order book may face delays, modifications, or cancellations. Such uncertainties can affect revenue recognition, profitability, and cash flows despite confirmed work orders.
3. Working Capital Intensity
   Execution of railway contracts requires fixed deposits for performance guarantees and security deposits, leading to high working capital requirements that may pressure liquidity.
4. Cash Flow Volatility
   The company has reported negative operating cash flows in certain periods. Continued cash flow volatility could impact its ability to fund operations and expansion internally.
5. Project Execution Delays
   Railway projects involve long execution timelines and coordination with multiple stakeholders. Delays can increase costs, defer payments, and reduce project profitability.
6. Legal and Contractual Risks
   The company is involved in ongoing arbitration and legal matters related to contract terminations and labour issues, which may result in financial or operational impact.

KEY STRENGTHS & OPPORTUNITIES

1. Strong Order Book Visibility
   An order book of ₹14,378.01 lakh provides revenue visibility for the next two to three years, supporting predictable business growth and operational planning.
2. Long-standing Railway Expertise
   Over a decade of experience in railway electrical and maintenance services positions the company as a reliable execution partner for Indian Railways.
3. Lifecycle-based Service Model
   The company’s services span installation, commissioning, and maintenance, enabling recurring revenue and long-term client relationships across the asset lifecycle.
4. Growing Direct Railway Contracts
   Revenue from direct railway contracts increased to 69.18% in FY2024–25, improving margins and reducing dependence on OEM-led arrangements.
5. Scalable Business Model
   The asset-light, project-based model allows expansion without heavy manufacturing capex, supporting scalability and return optimization.
6. Favorable Industry Outlook
   Continued investment in railway modernization, electrification, and safety upgrades creates long-term growth opportunities for specialized service providers like Dhara Rail Projects.