Texmaco Rail signed a non-binding deal with Czech firm Skoda Digital to explore AI solutions for railway infrastructure.

The two companies inked this Memorandum of Understanding on August 6, and disclosed it to stock exchanges the following day under standard listing regulations.

At this stage, the deal is exploratory rather than commercial. There is no money changing hands, no shares being issued, and no joint venture being formed.

Instead, the MoU simply lays out an intention to work together in good faith, with the aim of eventually reaching a proper commercial agreement if things go well.

The focus of this partnership is digital and AI based systems for railway infrastructure.

Texmaco wants to tap into Skoda Digital’s technology expertise to figure out where these tools could actually be useful, whether that’s things like predictive maintenance or smarter signalling systems.

The company has also confirmed that Skoda Digital has no connection to its promoters or group companies, so this isn’t a related party deal. This move comes shortly after two other developments at Texmaco.

Earlier in August, the company reported its June quarter results, with consolidated net profit rising 66.86% year on year to Rs 50.04 crore, even as revenue fell 16.90% to Rs 756.68 crore.

The company’s order book stood at Rs 9,923 crore as of June 30, giving it a fair amount of visibility into future work.

Separately, in late July, Texmaco also announced an expansion of its railcar leasing joint venture alongside Touax Group and TrinityRail Global, with plans to invest between Rs 1,800 crore and Rs 2,000 crore over the next three years.

Taken together, these moves point to a company trying to build out its technology and leasing businesses alongside its core rail manufacturing work, even as it navigates a bumpy quarter on the revenue side.

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