TIL Limited

TIL Limited reported a highly transformative fiscal year 2025, achieving its highest revenue in the last five years at INR343 crores, representing a 398% increase over FY24. This significant growth was accompanied by a turnaround in profitability, with EBITDA reaching INR40 crores compared to a negative INR74 crores in the previous year. The company also posted a positive Net PAT of INR2.9 crores and an EBITDA margin of 11.73%, both for the first time in six years, driven by project range expansion, process optimization, and operational efficiency.

The company renewed its dealer sales and service agreement with Hyster-Yale Asia Pacific for another five years and is finalizing an expanded product range agreement with Manitowoc. TIL also partnered with Snorkel of Europe for aerial work platforms in Southeast Asia. In FY25, TIL sold 242 machines, a substantial increase from 58 in FY24, and introduced new Hyster-TIL high-capacity forklift trucks and empty container handlers. Plans are underway to introduce 5-6 new product ranges for the non-defense sector over the next two years, alongside continued collaboration with defense agencies.

TIL has meticulously managed operational expenses and significantly improved working capital, reducing inventory days to 227 in FY25 from 1061 in FY24. The company is undertaking a capacity utilization project with IIM Mumbai to optimize manufacturing costs and has begun producing rough terrain cranes at its Kharagpur facility, which previously were exclusively made at Kamarhati. A 1-megawatt solar plant at Kharagpur meets approximately 90% of the plant's energy needs, enhancing financial efficiency and environmental protection.

To support its growth ambitions and reduce debt, TIL has secured shareholder approval for a QIP of INR150 crores and received an offer for INR60 crores through promoter warrants. Management projects that with the approved capex of INR24-25 crores for FY26, the current fixed cost structure can support a top line of INR800-1,000 crores over the next 3-4 years. The company anticipates strong growth driven by India's domestic demand in construction, mining, and logistics, as well as emerging international manufacturing opportunities.

In FY25, the defense portfolio contributed approximately 47% to the overall operating revenue, with non-defense accounting for 53%. Management expects to maintain a similar revenue split in FY26 while pursuing strong growth in both segments. A separate SBU for defense is being established to enhance focus, and new product launches are planned across both defense (e.g., tender for 102 rough terrain cranes) and non-defense (e.g., 110-130 ton truck cranes, pick and carry safe crane) categories.

While there are no product overlaps with other Gainwell Group companies, significant synergy potential exists, particularly in fabrication. Gainwell Engineering, which has an India revenue target of INR480-500 crores for this fiscal year, outsources approximately INR160-200 crores worth of fabrication. TIL has offered its services, but management noted that Gainwell Engineering's underground mining machinery requires complex fabrication, which TIL may take 1-2 years to fully master, though simpler drawings are already being quoted.