Alstom Ramps Up Indian Metro Work as Rating Outlook Darkens
Published on 11/14/2026 at 17:01 | Editorial boerse-global.de
Alstom has launched production of 96 additional driverless metro cars for Chennai Metro, a move that pushes forward one of several international contracts the French rail manufacturer is juggling while it works to shore up its balance sheet.
The cars, to be built as 32 automated train sets, fall under an order worth €135 million that also carries 15 years of maintenance. They are earmarked for the second phase of the Chennai network's expansion.
Work on the subcontinent is advancing on more than one front. Alstom confirmed that its CBTC signalling system has entered passenger service on an initial stretch of Bengaluru's Pink Line, covering six stations across 7.5 kilometres. The line uses the train-based CBTC system at automation grade 2.
Riyadh Contract and European Service Push
Elsewhere, the company signed a contract worth roughly €460 million with the Royal Commission for Riyadh City on 6 November, covering additional driverless metro trains and their integration into the existing infrastructure. Alstom expects to book the order in the second quarter of fiscal 2026/27.
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Its service business also expanded this week. On Monday the group opened a new maintenance facility for trains and locomotives in Vado Ligure, Italy, alongside a control centre supporting European Traxx fleets. In the high-speed segment, Alstom said on Thursday it will submit its Avelia Stream for Portugal's high-speed train tender — an announced bid rather than a contract already awarded.
Guidance Cut and Cash Drain
The commercial momentum contrasts with a tougher financial picture. On 2 November Alstom cut its forecast for the adjusted operating margin in fiscal 2026/27 to around one percent from roughly 6.5 percent, citing delays in industrialisation and certification of the Coradia Max as well as other projects handled in Germany. Free cash flow for the year is now expected to show an outflow of €1.5 billion, rather than the positive figure previously guided.
Rating agency Moody's kept Alstom's long-term issuer rating at Baa3 on Monday but shifted the outlook from stable to negative, the company said. Alstom pointed at the same time to an additional €2 billion revolving credit facility.
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Management reiterated its target of cutting debt by about €2 billion by September 2027. Investors will get a fuller picture on 17 November 2026, when the group publishes its half-year results for fiscal 2026/27.
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