Tarachand Infralogistic Q4FY26 Earnings Call: Revenue Hits Record INR2,848 Million
Tara Chand Infralogistic Solutions delivered record FY26 revenue of INR2,848 million (+14.90% YoY) and EBITDA of INR1,067 million (+27%), with margins expanding ~400 bps to 37.05%, while PAT grew 12% to INR278 million. The company deployed INR1,434 million in capex during FY26, expanding its fleet to 427 machines and gross block to INR558 crores, and received a CARE BBB Stable credit rating upgrade. For FY27, management targets 20%–25% revenue growth, EBITDA margins of 37%–38%, and has an executable order book of INR2,117 million, with the newly incorporated Tarachand Metallix subsidiary expected to commence operations in H2 FY28.
*this image is generated using AI for illustrative purposes only.
Tara Chand Infralogistic Solutions held its Q4 and FY26 Earnings Conference Call on Thursday, May 7, 2026, at 03:30 PM (IST), moderated by Mr. Ankit from Stellar Investor Relations. The call featured Mr. Himanshu Aggarwal, Whole-Time Director and Chief Financial Officer, who presented the company's financial results for the quarter and full year ended March 31, 2026. The transcript was subsequently filed with the National Stock Exchange of India on May 11, 2026, by Company Secretary and Compliance Officer Shefali Singhal, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
FY26 Full-Year Financial Performance
FY26 was described by management as "a year of disciplined growth," building on a 45% year-on-year expansion in FY25. The company reported its highest-ever annual revenue, with EBITDA also reaching a record level. The key full-year financial metrics are summarised below:
| Metric: | FY26 | FY25 | Change (%) |
|---|---|---|---|
| Total Income: | INR2,881 million | — | +13% YoY |
| Revenue from Operations: | INR2,848 million | — | +14.90% YoY |
| EBITDA: | INR1,067 million | — | +27% YoY |
| EBITDA Margin: | 37.05% | ~33% | +~400 bps |
| Profit After Tax (PAT): | INR278 million | — | +12% YoY |
| Cash PAT: | INR870 million | — | +27% YoY |
| Earnings Per Share: | INR3.53 | INR3.15 | — |
| Operating Cash Flow: | INR693 million | — | +23% YoY |
Management highlighted that PAT growth at 12% was meaningfully lower than EBITDA growth at 27%, primarily due to a 36% rise in depreciation and a 43% increase in finance costs — both direct consequences of the company's heavy fleet investment over the past two financial years.
Q4 FY26 Quarterly Performance
For the quarter ended March 31, 2026, the company reported total income of INR900 million, up 10% year-on-year. Management acknowledged that the company had targeted quarterly revenue of INR100 crores but closed at INR89.5 crores, with approximately INR10 crores of revenue deferred into Q1 FY27 due to project execution timeline delays. Additionally, the newly launched Dankuni Stockyard did not ramp up as anticipated during the quarter.
| Metric: | Q4 FY26 | Q4 FY25 | Change (%) |
|---|---|---|---|
| Total Income: | INR900 million | — | +10% YoY |
| EBITDA: | INR316 million | — | +23% YoY |
| EBITDA Margin: | 35.10% | — | — |
| PAT: | INR87 million | — | +11% YoY |
| Cash PAT: | INR258 million | — | +21% YoY |
Segment-Wise Performance
The company operates across three segments. The following table summarises FY26 segment performance:
| Segment: | FY26 Revenue | FY25 Revenue | YoY Growth |
|---|---|---|---|
| Equipment Hiring & Projects: | INR1,700 million | INR1,377 million | +23% |
| Warehousing & Transportation: | INR1,065 million | INR974 million | +9% |
| Steel Processing & Distribution: | INR84 million | INR128 million | Decline |
Equipment Hiring & Projects is now the primary revenue engine, contributing 60% of overall revenue (up from 56% in FY25). The segment's reported EBITDA margin, including specialized services, stood at 52% for FY26 versus 47% in FY25. Stand-alone equipment rental EBITDA margin reached 62% for FY26, with an average gross monthly rental yield of 3.05%. Within the equipment rental sectoral mix, cement leads at 30%, followed by metals and minerals at 25%, rural and urban infrastructure at 20%, renewable energy at 15%, power at 9%, and others at 1%. Notably, renewable energy's share tripled from 5% in FY25 to 15% in FY26.
Warehousing and Transportation handled total steel volumes of 11.56 million metric tons for FY26, with Q4 alone accounting for 2.14 million metric tons. Segment EBITDA margins held at 16%. The segment was impacted by the planned conclusion of a 7-year RINL Stockyard contract at Visakhapatnam at the end of Q3 FY26, while the new Dankuni Stockyard contract remained in its operational stabilization phase.
Steel Processing and Distribution revenue declined as the company consciously de-emphasizes this lower-margin business.
Capital Expenditure and Fleet Expansion
FY26 marked the second consecutive year of significant capital investment. The company deployed INR1,434 million during the year, broadly in line with the INR1,450 million spent in FY25. Cumulatively, over the last two financial years, approximately INR290 crores of capex has been deployed, taking gross block from INR298 crores as of March 2024 to INR558 crores as of March 31, 2026 — an 87% increase in two years.
| Capex & Fleet Parameter: | Details |
|---|---|
| FY26 Capex Deployed: | INR1,434 million |
| FY25 Capex Deployed: | INR1,450 million |
| Gross Block (March 2024): | INR298 crores |
| Gross Block (March 2026): | INR558 crores |
| New Machines Added (FY26): | 59 machines |
| Total Fleet Size: | 427 machines |
| Average Fleet Age: | Less than 6 years |
| FY27 Planned Capex: | INR80 crores – INR100 crores |
New additions during FY26 included the company's largest 900 metric ton altering crane, 2,800 metric ton crawler cranes, additional piling rigs, aerial working platforms, and prime movers. Management noted that fleet utilization (occupancy) for the full year stood at approximately 83% to 84%, with Q4 specifically at approximately 87%. The practical best-case scenario for annual occupancy was cited as 85% to 86%.
Balance Sheet and Credit Rating
The company's balance sheet strengthened during FY26, with net worth growing to INR1,492 million, up by INR278 million on the back of retained earnings. Total borrowings stood at INR1,384 million at year-end, with a net debt-to-equity ratio of 0.9 — within the company's stated ceiling of 1. The interest coverage ratio improved substantially to 10.3x from 5.6x in FY25.
On March 31, 2026, CARE Ratings upgraded the company's long-term bank facilities rating to CARE BBB Stable from CRISIL BBB- Stable, and the short-term rating to CARE A3+ from CRISIL A3, for aggregate INR160 crores of facilities. Receivable days closed at 93 days against a target of approximately 80 days, with the stretch primarily attributable to receivables tied to the conclusion of the RINL Stockyard contract. Management expects substantial recoveries in H1 FY27 and aims to bring receivable days back to approximately 80 days during FY27.
Strategic Outlook and FY27 Guidance
Management outlined FY27 growth strategy around three pillars — Scale, Specialize, and Sustain — with an annual growth target of 20% to 25% and EBITDA margins sustained in the 37% to 38% band. The order book executable in FY27 stands at INR2,117 million, with 64% from equipment hiring and projects and 37% from warehousing and transportation.
| FY27 Guidance Parameter: | Target |
|---|---|
| Revenue Growth Target: | 20% – 25% |
| EBITDA Margin Band: | 37% – 38% |
| Net Debt-to-Equity Ceiling: | Below 1x |
| Stand-alone Rental Growth: | 25% – 30% |
| Specialized Services Revenue Target: | Upwards of INR50 crores |
| Warehousing & Transportation Growth: | ~15% |
| Specialized Services EBITDA Margin: | 18% – 20% |
| FY27 Executable Order Book: | INR2,117 million |
| Planned Capex (FY27): | INR80 crores – INR100 crores |
In Q3 FY26, the company incorporated Tarachand Metallix Limited, a 100% wholly owned subsidiary with an initial capital of INR25 lakhs, focused on metal processing including high-frequency beams, fabrication, cutting, value-added metal solutions, and servicing of HR and CR coils, to be based out of Nagpur. Management indicated that operations are expected to commence in the second half of FY28, with investment plans and operational timelines to be firmed up over the next two to three quarters. Promoter and promoter group shareholding strengthened to 71.64% as of March 31, 2026, up from 70.67% a year earlier.
Historical Stock Returns for Tara Chand Infralogistics Solutions
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.75% | +6.68% | -7.37% | -20.43% | +3.02% | +59.62% |
Given the renewable energy segment's share tripling to 15% of equipment rental revenue in FY26, which specific renewable energy sub-sectors (solar, wind, green hydrogen) are driving this demand, and could this segment surpass cement as the top contributor within the next two to three years?
With the Dankuni Stockyard still in stabilization phase and ~INR10 crores of Q4 revenue deferred into Q1 FY27, what operational milestones or client ramp-up triggers would indicate whether the Warehousing & Transportation segment can realistically achieve its 15% growth target for FY27?
As Tarachand Metallix Limited targets operations in H2 FY28, how might the steel processing subsidiary's capital requirements impact the parent company's stated net debt-to-equity ceiling of below 1x, particularly if capex needs exceed initial estimates?
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