Trishakti Indus

Trishakti Industries has undergone a complete strategic transformation over the past two years, shifting from a diversified legacy business to a focused pure-play infrastructure equipment rental platform. The company now owns critical assets and deploys them into long-term execution-linked opportunities, aligning with India's multi-decade infrastructure build-out. This model leverages the high demand for heavy machinery in sectors like roads, railways, renewable energy, and urban infrastructure.

The company reported robust financial results for Q4 FY26, with revenue growing approximately 90% YoY to INR 32.44 crores. EBITDA saw a significant increase of over 220% to INR 20.21 crores, achieving a healthy margin of 62%. Profit After Tax (PAT) stood at INR 7.66 crores, representing a 25% margin. Management highlighted that these figures reflect strong unit economics and the successful execution of their strategic shift.

Trishakti significantly expanded its asset base in FY26, deploying INR 210 crores in fresh CapEx, which exceeded their initial guidance of INR 100 crores. This investment led to a substantial increase in their fleet from just 8 machines in FY24 to over 140 machines today, operating at near full utilization. The company aims to further expand its fleet to 'north of 200' machines, focusing on the 50 to 250-ton category for stable demand and high utilization.

A key discussion point was the company's receivable days, which are currently around 200 days. Management attributed this to a small, historical family settlement issue from 2023, which included a write-off of INR 1 crore in trade receivables. They assured that this amount is not significant for core operations and expect receivable days to normalize to around 60 days in FY27. The company primarily works with Tier-1 blue-chip clients, which helps in timely payments and access to bill discounting facilities.

The rapid CapEx expansion in Q4 led to a significant increase in employee costs and other expenses. Management explained that this was due to the need to station labor 20-25 days in advance for new machines and procure spare parts for the expanding fleet. They anticipate that as these new machines start generating revenue and operations streamline from Q1 FY27, these costs will blend in, and the overall numbers will become clearer.

Management expressed strong confidence in the demand outlook for heavy equipment rental over the next two to three years, citing continuous new RFUs for various machine tonnages. They are focusing on diversifying their fleet across different types of cranes (crawler, truck-mounted, all-terrain) and operating in high-growth sectors like renewable energy and chemical space, with plans to increase exposure in new metro projects to mitigate client concentration risk and ensure sustained demand.

The company's non-current borrowing stands at INR 65 crores, with a cost of debt ranging from 4% to 6%. While the current debt-to-equity ratio is close to 2:1, management aims to bring it down to 1.5 eventually. They highlighted a fast debt repayment cycle of approximately 2.5% per month, which allows for continuous borrowing to fund CapEx. The company is confident in its ability to manage debt levels given strong demand visibility and robust financial stability.