Tara Chand Infralogistic Solutions Ltd Q4 FY26 Earnings Analysis

- The company targets a revenue growth of **20% to 25% for FY 2027**, adjusted conservatively due to a high base from previous years. - Previous year (FY 2025) growth was about **45% YoY**, reflecting an overshoot from initial targets. - Growth drivers include **equipment rentals, specialized services, and the new Tarachand Metallix business** (which will add revenues independently beyond the 20%-25% range). - Equipment rental segment growth is supported by **capex plans of around INR 60-70 crores next year**, aiding expansion and revenue gains. - Warehousing and transportation are expected to show **steady growth of about 20% YoY** due to long-term contracts and increasing steel volume handling. - The specialized services revenue is expected to surpass earlier plans, possibly exceeding INR 40 crores. - Overall, the company anticipates **robust demand visibility across segments and clients** to sustain growth momentum.

- Revenue growth guidance for FY '27 is targeted at 20% to 25%, reflecting steady but rational expansion considering the high base effect from FY '25 and FY '26. - EBITDA margins are expected to stabilize or improve, maintaining around 37% to 38% due to the capex already done and improved operational efficiencies. - Equipment rental segment growth is a key driver, supported by INR 60-70 crores planned capex for FY '27 and specialized service contracts adding to revenue. - Warehousing and transportation business expected to grow steadily at around 20% year-on-year. - Specialized services revenue to contribute meaningfully from Q4 FY '26 onward with EBITDA margins estimated between 18% to 20% annually. - Earnings growth tempered by depreciation costs from increased capex but cash PAT growth remains strong due to EBITDA expansion. - Overall, earnings per share (EPS) growth is aligned with the top line and margin improvements, reflecting consistent profitability expansion.

- The company completed its highest-ever annual capital expenditure of INR 145 crores in FY '25 and invested INR 121.34 crores in equipment in FY '26, surpassing the planned INR 100 crores capex for the year. - Newly added equipment capex primarily occurred in Q3 FY '26, with revenue impact expected from Q4 FY '26 onwards. - Future capex plans for FY '27 are yet to be finalized; clarity will come in the next quarter as client engagements become clearer. - Expected capex for FY '27 is estimated around INR 60-70 crores to support growth targets. - The company is cautious about capex, balancing growth and margin protection, and focuses on equipment rentals as a primary growth driver. - For the new subsidiary Tarachand Metallix, investment plans are still being worked out; more clarity expected by Q4 FY '26. - Debt-to-equity targets aim to remain below 1 even with new investments.

- No specific plans for new equity fundraising are mentioned in the transcript. - Debt reduction is happening regularly as repayments are made, but new debt arises from converting suppliers' credit into term loans. - The company aims to maintain steady debt levels around INR110 crores. - The overarching target is to keep the consolidated debt-to-equity ratio below 1. - For the new subsidiary, Tarachand Metallix, initial debt-to-equity could be around 2 to 2.5, but the company aims to keep it within 1 eventually. - No finalized investment plans for the new subsidiary yet; clarity expected by Q4. - Capex for next year is expected at INR60-70 crores, subject to client visibility; no explicit mention of raising fresh debt or equity for this.

- As of January 2026, the company's order book stands at INR 96.90 crores, fully executable within the current financial year (FY '26). - Of the order book, 34% comes from the warehousing and transportation segment, and 66% is from the equipment rental segment. - The company traditionally reports order book numbers only for orders executable within the current financial year. - There is a larger order book beyond the reported INR 97 crores, but details are usually confined to current-year executable contracts. - The specialized services segment has an expected order book of around INR 25 crores for Q4 FY '26. - The company aims to close Q4 FY '26 with over INR 100 crores in revenue, indicating healthy order inflow and execution.