Shares of Texmaco Rail & Engineering Ltd rose 1% on August 11 after the company announced a strategic partnership with Belgium-based The Signalling Company NV (TSC) to develop and deploy advanced railway signalling solutions.

The agreement focuses on European Train Control System (ETCS) technology and its potential integration with India’s indigenous Kavach train protection system. The MoU brings together TSC’s expertise in signalling technology and software with Texmaco Rail’s engineering, manufacturing and execution capabilities in the Indian railway sector.

The companies will explore opportunities to develop solutions suited to the Indian market, particularly as the government continues to expand Kavach across busy railway routes. The partnership will also support the development of Kavach for the Indian market. Kavach is an automatic train protection system designed to enhance railway safety by helping prevent collisions and assisting trains in situations that could pose a risk.

For Texmaco Rail, the partnership could open another avenue for growth beyond its traditional railway manufacturing business. The company is already involved in railway infrastructure and rolling stock, while the growing focus on modern signalling creates opportunities in a different part of the rail ecosystem.

However, the agreement is currently only a framework for collaboration. Commercial terms, financial details and operational arrangements have not been finalised and will be discussed under a future definitive agreement. The MoU is also non-equity in nature, meaning it does not create a joint venture or involve any exchange of shares.

The development comes as India accelerates investments in railway safety and modernisation. Wider adoption of Kavach could create demand for signalling equipment, software and related infrastructure, giving companies with relevant capabilities an opportunity to participate in future projects.

At 11:28 am, the shares of Texmaco Rail were trading 0.5% higher at Rs 107.92 on NSE.

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