Tara Chand InfraLogistic Solutions Limited

Tara Chand Infralogistic Solutions Limited reported a total revenue of INR69.27 crores in Q3 FY26, marking an 8% annual growth. EBITDA for the quarter surged 24% to INR25.74 crores, with the EBITDA margin expanding by 478 basis points to 37.16%. Cash PAT also grew steadily by 22% to INR21 crores. For the nine-month period ending December 31, 2025, total revenue reached INR198.11 crores, with revenue from operations growing 17.5% YoY to INR195.30 crores. 9M FY26 EBITDA increased 28% to INR75.16 crores, with the margin rising by 390 basis points, while PAT grew 13% to INR25.6 crores despite a 39% rise in depreciation.

The company continued its focus on strategic capital expenditure, investing INR121.34 crores in equipment during FY26, surpassing its initial plan of INR100 crores. This investment included approximately INR40 crores in Q3 FY26, primarily in December, with revenues from this capex expected to materialize in Q4 FY26 and subsequent periods. The fleet size stood at 403 machines as of December 31, 2025, aggregating to a gross block of INR536.10 crores. Management anticipates Q4 utilization levels to reach 86-87% due to strong demand across all sectors.

The equipment rental vertical (Segment A) recorded INR112.69 crores in revenue for 9M FY26, a 23% YoY increase, with a standalone EBITDA margin of 62%. Specialized service contracts contributed INR18.14 crores to this segment. The warehousing and transportation segment (Segment B) grew 22% YoY to INR80.03 crores, with a 16% EBITDA margin. Q3 FY26 saw some one-off^📎 impacts, including a specialized services contract delay that pushed INR4-odd crores of revenue to Q4, and a warehousing contract closure where the company chose not to renew due to unviable rates, impacting Q3 revenue and expenses. These issues are expected to stabilize in Q4.

Tara Chand Infra established a new wholly-owned subsidiary, Tarachand Metallix Limited, to expand into metal processing and manufacturing activities. This initiative leverages the company's four decades of experience in the metal industry and land procured in Nagpur. Operations for this new entity are anticipated to commence in the next financial year. Management expects Tarachand Metallix to become a significant revenue driver, potentially generating 'hundreds of crores' in revenue, and aims to maintain similar EBITDA margins as the core business (37-38%).

Despite strong EBITDA growth, Q3 FY26 PAT margin was affected by a 32% increase in depreciation and a 63% rise in finance costs. Additionally, INR1.7 crores of doubtful debt from previous financial years impacted Q3 revenue and profitability. Management emphasized its commitment to maintaining EBITDA margins in the 37-38% range, noting that specialized services contracts now carry higher margins. The company aims for 20-25% annual growth while ensuring profitability, targeting a Q4 FY26 top line exceeding INR100 crores.

Receivable days increased to approximately 90 days in Q3 FY26, up from 82-83 days, primarily due to the closure procedures of a warehousing contract. Management is focused on bringing receivable days back to within 80-odd days by the end of the financial year. The company's debt strategy prioritizes maintaining a net debt-to-equity ratio below 1, currently at around 0.8, with total debt at approximately INR110 crores. The cost of capital is estimated at 8-8.2%.