Tara Chand Infra

- The company plans a capex of INR 100 crores for the current financial year. - Funding for capex is partly from internal accruals (about 25% upfront margin) and the balance through debt. - The company also utilizes suppliers' credit, allowing debt recognition on books at a later time. - The target is to maintain the current debt-to-equity ratio around 0.9. - The company is aggressively paying off current debt while undertaking new acquisitions. - If new opportunities arise requiring higher capex, the company has necessary avenues lined up with banking partners and may increase debt accordingly. - No explicit mention was made of raising funds via equity in the disclosed discussions.

- FY '25 capex: INR145 crores, adding 41 machines in equipment rental and 20 prime movers for warehousing. - FY '26 planned capex: INR100 crores for equipment rental segment; INR24 crores already spent by May 2025. - INR20 crores of FY '26 capex is a carryforward from last year. - Capex is primarily funded through a mix of internal accruals, debt, and supplier credit. - Company maintains a debt-to-equity ratio of about 0.9 while aggressively paying down debt. - Opportunity-driven approach allowing for more aggressive capex if opportunities arise, backed by banking partners. - Strategic focus on expanding renewable energy sector footprint, including acquisition of 7.5-acre land in Nagpur MIDC for specialized service contracts starting FY '27.

- The company targets overall revenue growth of 25% to 30% annually, continuing the strong 45% growth achieved in FY '25. - Growth will come from existing segments, primarily Equipment Rentals, Warehousing, and Transportation. - Within Equipment Rentals, renewal energy contributions are expected to increase from 5% last year to 15%-20% in the current year. - Specialized service contracts, contributing INR31 crores last year, will continue to grow and contribute to revenue. - The company plans capex of INR100 crores in FY '26 to support growth, with potential to increase if opportunities arise. - Order book as of May 2025 is INR136.8 crores, executable in current FY, indicating good visibility into revenue. - EBITDA and PAT margins of approximately 33% and 10% respectively are targeted to be maintained alongside growth.

- The company targets a 25% to 30% revenue growth annually going forward while maintaining strong EBITDA and PAT margins (33% EBITDA, 9-10% PAT). - Despite aggressive growth, they aim to sustain or slightly improve EBITDA margins by selectively picking contracts with healthy profitability. - Equipment rental segment is expected to maintain EBITDA margins around 60%-62%, supported by addition of larger tonnage cranes. - Specialized service contracts are expanding and expected to contribute steadily, with attempts to improve their EBITDA margins closer to equipment rental levels. - Renewable energy segment contribution within equipment rentals is targeted to rise from 5% to 15%-20% this year, supporting growth. - Capex of INR100 crores is planned for FY '26 to expand capabilities, partly funded by internal accruals and manageable debt, which supports future earning capacity. - Strong operating cash flow and reduced receivable days enhance financial health for sustained profit growth.

- As of May 2025, the order book stands at INR136.8 crores, fully executable in the current financial year. - The order book comprises 53% from the Warehousing segment and 47% from the Equipment Rental segment. - Orders in Equipment Rentals typically have a 6-month duration, providing visibility up to June or September. - New tenders and contracts continually add to the order book throughout the year. - The order book fluctuates as new contracts are secured post investor calls, explaining differences between order book and actual revenue. - Last year, order book visibility was around INR150 crores as of May 2024, reflecting normal order inflow and execution timing variability. - Overall, order inflow and execution are robust, supporting the company's growth outlook.