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Trishakti Industries Limited — Q1 FY26 earnings call

Call held 24 Jul 2025

Company page: Trishakti Industries share price, financials & guidance record

Management summary

Trishakti Industries Limited reported a strong Q1 FY26, with revenue growing 86% sequentially to INR 4.08 crores and EBITDA surging 131% to INR 2.7 crores. The heavy equipment hiring segment saw remarkable 382x YoY growth. The company successfully raised INR 27.89 crores in capital and crossed INR 50 crores in rental assets, affirming its INR 400 crore CapEx plan by FY28. Management expressed confidence in sustainable growth, focusing on higher tonnage machines and diversification to mitigate competition and industry slowdowns.

Highlights

  • Strong top line of INR 4.08 crores, marking an 86% sequential growth.

  • EBITDA surged by 131% to INR 2.7 crores, driven by robust asset utilization and improved operating leverage.

  • Heavy equipment hiring segment revenue grew 382x YoY to INR 3.6 crores in Q1 FY26 from INR 9 lakhs in Q1 FY25.

  • Successfully completed an INR 27.89 crore capital raise, including promoter and institutional investor participation.

  • Rental assets base crossed INR 50 crores in Q1 FY26, with strong demand visibility.

Concerns

  • Management noted a drop in PAT in Q4 FY25 due to a deferred tax reversal from depreciation, which was a baseline adjustment, making Q1 FY26 PAT look lower in comparison.

  • Acknowledged missing some orders due to machine unavailability, indicating potential capacity constraints or deployment challenges.

Key financials

  1. Revenue ₹4.08 Cr +86%QoQ
  2. EBITDA ₹2.7 Cr +131%QoQ
  3. PAT Margin 22%

What they filed

Q1 FY27: revenue up 252.5%, net profit up 372.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue2 2 2 4 7 +214%8 +357%9 +314%14 +252%
EBITDA1 1 1 3 4 +367%6 +368%3 +190%8 +213%
Net profit0 0 2 1 2 +335%2 +1785%3 +50%4 +373%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Heavy Equipment Hiring
    ₹3.6 Cr Revenue382× YoY Growth

Capital allocation

high confidence
  • Capex ₹25 Cr this quarter · ₹125 Cr (FY26) planned
    • Strengthen fleet and expand into high growth verticals such as metro, rail, and industrial CapEx
    50 plus crores has already been spent in FY '26 targeting another INR 100 crores of fresh CapEx in FY '26 alone to strengthen our fleet and expand into high growth verticals such as metro, rail, and industrial CapEx. ... This year, cumulative CapEx, what we have achieved is INR 25 crores.
  • Debt Debt disclosed Maturity: Financing period is 3-4 years (ideal)
    • Repayment Repaying some debts taken at a higher interest rate at the very beginning of our journey.
    I'll tell you one thing that in this particular industry, the financing period, the tenure is anywhere between three years to four years on an ideal side.
  • Liquidity Liquidity disclosed Successfully completed an INR 27.89 crore capital raise through preferential allotment of equity shares and warrants. No short-term borrowings last FY, taken first short-term borrowing limit this FY.
    In line with this scale up, I'm pleased to share that during the quarter, we successfully completed a INR 27.89 crore capital raise through preferential allotment of equity shares and warrants. ... So this financial year, we have taken the first short-term borrowing limit for us, and we have been growing organically since the past 18 months.

Guidance & targets

Capex

  • Total CapEx Plan Capex · FY28 · High confidence INR 400 crore
    We remain committed to our INR 400 crore CapEx plan projected for FY '28.

    — Dhruv Jhanwar

  • Additional CapEx for FY26 Capex · FY26 · High confidence INR 100 crores
    targeting another INR 100 crores of fresh CapEx in FY '26 alone to strengthen our fleet and expand into high growth verticals such as metro, rail, and industrial CapEx.

    — Dhruv Jhanwar

EBITDA

  • Annualized EBITDA Achievement EBITDA · Q3/Q4 on a quarterly basis · Medium confidence 70-80% of last year's annualized EBITDA
    We expect that what EBITDAs we did in last year on an annualized term on an annualized basis, we shall be reaching 70% to 80% of that yearly annualized, EBITDAs by Q3, Q4 on a quarterly basis.

    — Dhruv Jhanwar

  • Quarterly EBITDA EBITDA · Quarterly · Medium confidence INR 3.5-4 crores
    If we did INR 5 crores of EBITDA last year, then I personally feel that with the demand going up by Q3 and Q4 or Q4, we can easily reach INR 3.5, INR 4 crores of EBITDAs on a quarterly basis if the demand supports us.

    — Dhruv Jhanwar

PAT Margin

  • PAT Margin PAT Margin · Future · Medium confidence 25-35%
    In future, we are expecting good amount of PAT margins. It can range anywhere between 25% to 35% also. It all depends on your time. Ideal PAT margins in our business should be 30%, 35%.

    — Dhruv Jhanwar

Vision

  • Company Positioning Vision · 2030 · Low confidence India's biggest equipment hiring company
    So, yeah, so, basically, the vision for 2030 is that we want to become India's biggest equipment hiring company.

    — Dhruv Jhanwar

Product Diversification

  • Product Portfolio Expansion Product Diversification · by FY2030 · Medium confidence Hydraulic truck mounted cranes, crawler cranes, manlifts, reed stackers, electrical reed stackers, sizzle alerts
    We are what our planning is that, like, to buy FY 2030, we don't really want to stick to cranes. We are getting into hydraulic truck mounted cranes. We have crawler cranes. We also have manlifts. So we'll be entering into reed stackers, electrical reed stackers, sizzle alerts.

    — Dhruv Jhanwar

What to watch in Q2 FY26

CapEx Deployment Progress

next quarter
Current INR 25 crores cumulative CapEx achieved this FY
Target Progress towards another INR 100 crores fresh CapEx for FY26

Why it matters

Tracking CapEx execution is crucial for assessing growth and fleet expansion against stated targets.

This year, cumulative CapEx, what we have achieved is INR 25 crores. We have a lot of, more, orders coming up in our pipeline as well once the monsoon ends. So once at the monsoon ends, the newer projects will also open, and we open more and more machines within the floor.

Risks & concerns

  • Capacity Constraints / Missed Orders

    medium

    Company sometimes misses orders due to machine unavailability, indicating potential capacity constraints in meeting immediate demand.

    So we have to miss out on those orders, but the frequency of the orders is quite fast.

    Management acknowledged

  • Industry Slowdown (Long-term)

    medium

    Sticking to only one or two products could make the company vulnerable to industry slowdowns in the long term, which they plan to mitigate by diversifying their product portfolio.

    The only problem is that if you only stick to one or two or three products, then you can be victim to an industry slowdown.

    Management acknowledged

  • Higher Interest Cost with Increased Debt

    low

    If more debt is taken to meet demand, interest costs will rise, potentially impacting PAT margins.

    But it also depends on if there is a lot of demand and we'll have to take more debt, then, obviously, the interest cost will be more. So our PAT falls.

    Management acknowledged

Q&A highlights

8 direct
Fund Deployment & Leverage Direct
So, basically, this fundraise will be used for mostly buying new machines and also to repay some debts taken at a higher interest rate at the very beginning of our journey. ... I'll tell you one thing that in this particular industry, the financing period, the tenure is anywhere between three years to four years on an ideal side.

Clarifies the strategic use of the recently raised capital for growth and debt management, outlining the company's approach to leverage.

Asked by Jayesh Shah

PAT Drop Clarification Direct
So, in Q4, what had happened is that most of our machines that we bought earlier in, like, four, five months from today, so in those particular machines, the depreciation and all those claimed on a four-month basis, but in income tax, we got 15% depreciation because we use SLN method. Right? So, because of that, there was a deferred tax reversal.

Explains the apparent discrepancy in PAT figures by detailing a one-time accounting adjustment in the previous quarter, providing context for current quarter's performance.

Asked by Jayesh Shah

Margin Sustainability Direct
For the first 5 years, the machines don't really need a lot of maintenance. So, we enjoy 65% to 71% margins, EBITDA margins. But eventually, when five years down the line, when the machine will start requiring some maintenance and all, then obviously, the margin will drop down to 60% to 65%.

Provides a clear outlook on margin durability, linking it to the newness of the fleet and long-term asset replacement strategy.

Asked by Jayesh Shah

Vision 2030 & Diversification Direct
So, yeah, so, basically, the vision for 2030 is that we want to become India's biggest equipment hiring company. ... We are getting into hydraulic truck mounted cranes. We have crawler cranes. We also have manlifts.

Outlines the company's ambitious long-term strategic goals, including market leadership and product portfolio diversification to ensure resilience.

Asked by Jayesh Shah

Industry Demand & CapEx Drivers Direct
So, if you technically see in FY '25 and FY 26, many of these steel companies have started their capacity expansion. ... Bullet train projects are coming up. Metro projects are coming up. Water based projects are coming up. So all these things have actually started in FY '25 or FY '26.

Highlights the strong macroeconomic tailwinds from various infrastructure and industrial sectors that are driving demand for equipment rental and supporting the company's CapEx plans.

Asked by Ishit Desai

Competition Strategy (Higher Tonnage Machines) Direct
So we only tend to work in the higher tonnage machines where the entry value is a lot. Like, I told you recently that our machine cost is anywhere between INR 2 crores to INR 15 crores. An average will be spent around INR 4 to INR 5 crores in all our machines.

Explains the company's competitive differentiation strategy by focusing on high-value, high-entry-barrier equipment, avoiding commoditized segments.

Asked by Sarthak Awasthi

CapEx Deployment Progress Direct
So in Q1 FY '26, we did INR 55 crores of CapEx till date. So from FY '25 or till now, we have done INR 55 crores of CapEx in six months. ... This year, cumulative CapEx, what we have achieved is INR 25 crores. We have a lot of, more, orders coming up in our pipeline as well once the monsoon ends. So once at the monsoon ends, the newer projects will also open, and we open more and more machines within the floor. Total on net of INR 75 crores of machines we have already deployed on a cumulative basis.

Provides an update on the execution of the ambitious CapEx plan, detailing current spend and future pipeline, indicating active growth.

Asked by Rahul Singhania

Working Capital Management Direct
So, we get around 45 days to 60 days when we are able to get the payment. So, for us, right now, the market is good. There's no cash funds in the market. So we are getting paid timely. ... So this financial year, we have taken the first short-term borrowing limit for us, and we have been growing organically since the past 18 months.

Reassures investors about healthy working capital management and liquidity, indicating the company's ability to fund organic growth without significant short-term borrowing until recently.

Asked by Ishit Desai

2 min read 6 chapters

Detailed narrative

Strong Q1 FY26 Performance and Growth Drivers

Trishakti Industries reported a robust Q1 FY26, with a top line of INR 4.08 crores, marking an 86% sequential growth. EBITDA surged by 131% to INR 2.7 crores, driven by efficient asset utilization and cost management. The heavy equipment hiring segment, a core growth engine, saw a remarkable 382x year-on-year growth, generating INR 3.6 crores compared to INR 9 lakhs in Q1 FY25.

Strategic Capital Raise and CapEx Plans

The company successfully completed an INR 27.89 crore capital raise through preferential allotment, with significant participation from promoters and a major domestic institutional investor. This capital will support fleet expansion and working capital needs. Trishakti has already crossed INR 50 crores in rental assets base in Q1 FY26 and remains committed to its INR 400 crore CapEx plan by FY28, with INR 25 crores cumulative CapEx achieved this year and another INR 100 crores targeted for FY26.

Industry Demand and Infrastructure Tailwinds

Management highlighted a massive surge in demand, particularly from the steel industry undergoing 200-500% capacity expansions. Major infrastructure projects by companies like L&T, including bullet train, metro, and water projects, commenced in FY25/FY26, with Phase 1 ending and subsequent phases expected to drive demand for the next 6-7 years. The company has also diversified into the renewable energy sector, securing an order from Reliance.

Differentiation Strategy and Competitive Edge

To counter competition, Trishakti focuses on higher tonnage machines (costing INR 2-15 crores each, averaging INR 4-5 crores), which have high entry barriers compared to the cheaper 16-20 ton machines used by unorganized players. The company's fleet consists of brand new 2024/2025 models, ensuring 65-71% EBITDA margins for the first five years due to minimal maintenance, with a potential slight drop to 60-65% after this period.

Long-Term Vision and Diversification by 2030

Trishakti aims to become India's largest equipment hiring company by 2030, aspiring to introduce new-generation electrical and hybrid equipment. The company plans to diversify its product portfolio beyond cranes to include hydraulic truck-mounted cranes, crawler cranes, manlifts, reed stackers, and sizzle alerts, creating a comprehensive offering to mitigate risks from potential industry slowdowns.

Financial Outlook and Margin Guidance

For the next 2-3 quarters, the company expects strong revenues and EBITDA, projecting to achieve 70-80% of last year's annualized EBITDA on a quarterly basis by Q3/Q4 FY26, potentially reaching INR 3.5-4 crores quarterly EBITDA. Q1 FY26 PAT margin stood at 22%, with expectations to improve to 25-35% in the future, ideally 30-35%, driven by rapid debt repayment and lower interest costs.

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