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Trishakti Industries Limited — Q4 FY25 earnings call

Call held 29 Apr 2025

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

Management summary

Trishakti Industries Limited reported a strong Q4 FY25, driven by its strategic shift to heavy equipment hiring services. The company achieved significant revenue and profit growth, supported by high asset utilization and substantial CapEx investments. Management outlined ambitious plans for FY26 CapEx and long-term revenue targets, emphasizing organic growth funded by internal accruals and strategic debt.

Highlights

  • Q4 FY25 Standalone Revenue: INR 3.3 crores, up 82.61% QoQ.

  • Q4 FY25 EBITDA: INR 2.28 crores, with a healthy margin of 68.99%.

  • Q4 FY25 PAT: INR 1.79 crores, significantly up 1247% QoQ.

  • FY25 CapEx: Over INR 48.8 crores, achieving 97% of the INR 40 crore target.

  • FY26 CapEx Plan: Aggressive plan of over INR 100 crores for fleet expansion.

  • FY28 Revenue Target: INR 90-100 crores, backed by robust operating profit margins.

  • Current Fleet Utilization: 100% across all machines.

  • Current Annual Recurring Revenue (ARR): INR 22-24 crores already locked in.

Key financials

  1. Revenue ₹3.3 Cr +82.6%QoQ
  2. EBITDA ₹2.28 Cr
  3. EBITDA Margin 69%
  4. PAT ₹1.79 Cr +1,247%QoQ

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.

Capital allocation

high confidence
  • Capex ₹100 Cr majorly landing on the internal accruals, not used any banking limits or anything like that. Everything has been extremely organic. Will be monetizing those things as well in the upcoming quarters or maybe the upcoming few months. Will be reinvesting INR 8-10 crores cash flow from current revenue. In the next few months, will be getting things with the bank to reach a ticket of INR 100 crores.
    During the quarter, we successfully achieved over 97% of our FY '25 CapEx target, investing more than INR 48.8 crores to expand and strengthen our equipment fleet. This investment not only enhances our operational capabilities, but also ensures high asset utilization and strong margins in the coming years. We continue to see full utilization of our fleet and with high quality planes, van lifters and other earthmoving equipment sourced from globally reputed brands. We are confident of sustaining superior performances. In FY 2026, we plan an even more aggressive CapEx of over INR 100 crores aiming to significantly expand our fleet size and widen our sectoral footprint across ports and coastal infrastructure. We are majorly landing on the internal accruals of this. In the first year of business, we had more than 50% ownership in our machines. So, we have a very heavily cash flow auditor. So, for us, we are depending on the internal accruals as of now. So, this will help us to do CapEx consistently rather than doing it just in one single month. And another thing is that we have not used any banking limits or anything like that. Everything has been extremely organic. So we will be monetizing those things as well in the upcoming quarters or maybe the upcoming few months. So, if you actually see, we will be able to generate around INR 8 crores to INR 9 crores or maybe INR 10 crores of cash flow from this particular revenue. So that will be reinvested into the business to purchase further machines. Right now, if you see, we just recently started taking debt, so we don't even have much credit limits as of today. It's even been funded by ourselves only. So, this is also now coming to the future, we'll be able to maximize our debt and that will actually help us to buy more and more machines and this is how we are planning to get it done in the next 2 to 3 years.
  • Debt Debt disclosed
    Right now, if you see, we just recently started taking debt, so we don't even have much credit limits as of today. It's even been funded by ourselves only. So, this is also now coming to the future, we'll be able to maximize our debt and that will actually help us to buy more and more machines and this is how we are planning to get it done in the next 2 to 3 years. In now, we have not taken a lot of debt, so slowly and steadily we'll be going forward with it. So right now, we are very under leveraged, but slowly and gradually, we are taking on debt as well, and we are trying to max out our debt. Because as everyone knows that this is a very debt heavy business, so the payback period is 3 and 3.5 years. So we have to maintain a certain amount of debt as well so that in 3, 3.5 years, we are able to generate, like, make our machines totally bank finance free and then we can enjoy those cash flow and then further expand.
  • Liquidity Liquidity disclosed Company has not used any banking limits or credit limits as of today, funding has been organic. Currently very under leveraged.
    Right now, if you see, we just recently started taking debt, so we don't even have much credit limits as of today. It's even been funded by ourselves only. So right now, we are very under leveraged, but slowly and gradually, we are taking on debt as well, and we are trying to max out our debt.

Guidance & targets

Revenue

  • Revenue Target Revenue · by FY 2028 · High confidence INR 90 to INR 100 crores
    Our ambition is to scale through revenues in between INR 90 to INR 100 crores by FY 2028, which is backed by robust operating profit margins.

    — Dhruv Jhanwar

  • Annual Recurring Revenue (ARR) Revenue · already · High confidence around INR 22 to INR 24 crores
    Right now, we are at an ARR of around INR 22 to INR 24 crores already. So, we have that much revenue locked in with us, but this is something which the contract sizes are very medieval.

    — Dhruv Jhanwar

Profitability

  • Return on Capital Employed (ROCE) Profitability · High confidence 22% to 25%
    We remain focused on delivering consistent revenue and EBITDA growth while maintaining high asset utilization and strong returns on capital employed, targeting an ROCE of in between 22% to 25%.

    — Dhruv Jhanwar

Capex

  • CapEx Plan Capex · In FY 2026 · High confidence over INR 100 crores
    In FY 2026, we plan an even more aggressive CapEx of over INR 100 crores aiming to significantly expand our fleet size and widen our sectoral footprint across ports and coastal infrastructure.

    — Dhruv Jhanwar

Margin

  • EBITDA Margin (new machines) Margin · right now · High confidence 70% - 75%
    See, in our guidance also we had said that right now the machines are brand new machines. So, it's easier for us to get 70% - 75% EBITDA margins.

    — Dhruv Jhanwar

  • EBITDA Margin (older machines) Margin · in future 3 years, 4 years down the line · High confidence around 65%
    But eventually, when our machines will require maintenance, which is a long time, it is a minimum 3 to 4 years down the line. So that time, the EBITDA margins on those machines will come down to around 65%.

    — Dhruv Jhanwar

Utilization

  • Fleet Utilization Utilization · as of now and in future · High confidence 100%
    We are at 100% free utilization as of now. In future also, we want to be at 100% field utilization because at this point of time, we are trying to go for a larger duration of the contract so that the revenue growth is consistent in our company.

    — Dhruv Jhanwar

Client Concentration

  • Revenue from single client Client Concentration · High confidence under 25%
    So, we try to keep a good mix where we don't want more than 25% revenue coming from one single client.

    — Dhruv Jhanwar

What to watch in Q1 FY26

FY26 CapEx Execution

next quarter (H1 FY26 progress)
Current Over INR 48.8 crores spent in FY25 (97% of INR 40 crores target).
Target Progress towards 'over INR 100 crores' CapEx in FY26, with 25-30% planned for H1.

Why it matters

Aggressive CapEx is central to growth strategy; execution and funding mix (internal accruals vs. debt) are key.

In FY 2026, we plan an even more aggressive CapEx of over INR 100 crores aiming to significantly expand our fleet size and widen our sectoral footprint across ports and coastal infrastructure.

Risks & concerns

  • Maintaining high utilization with aggressive CapEx

    medium

    Management plans to focus on higher-tonnage machines (100-250 ton) where market saturation is lower and entry barriers are higher, making it easier to maintain utilization.

    Analyst acknowledged

  • Payback period for CapEx

    medium

    The payback period for new machines is 3-3.5 years, meaning significant cash flows from current CapEx will only materialize from FY28 onwards.

    Management acknowledged

  • Decline in EBITDA margins as machines age

    low

    Current EBITDA margins of 70-75% for brand new machines are expected to reduce to around 65% in 3-4 years due to increased maintenance requirements.

    Management acknowledged

  • Unorganized market and peer tracking

    low

    The equipment rental market in India is largely unorganized, making it difficult to track peers, but Trishakti believes its current EBITDA margins are healthy.

    Management acknowledged

Q&A highlights

7 direct
Utilization after doubling CapEx in FY26 Direct
we tend to only buy those machines which are anywhere between 100 to 250 ton for the very start. So that is something where the entry is not very easily possible for majority of the players because the machine cost is more. So, to do further CapEx also and to keep our fleet utilization at 100% is easier for us if we are dealing with higher tunnel machines.

Addresses a key concern about maintaining high utilization with aggressive CapEx, highlighting the strategy of focusing on higher-tonnage, less commoditized machines.

Asked by Jayesh Shah

Proportion of FY26 CapEx committed vs. exploratory Direct
In H1, we are planning around 25% to 30% and the remaining in H2, but no such thing like we'll be referring to one single or just a few clients. We are continuously getting multiple RFUs every single day.

Provides insight into the CapEx phasing and the demand pipeline supporting future investments.

Asked by Jayesh Shah

Long-term perspective (3-5 years) and payback period Direct
our payback period for the machine which we purchase is around 3 to 3.5 years. So, if I'm doing CapEx in FY '25, I'll actually be able to generate good cash flows and everything in FY '28. So that is the time when our company will be a turnaround thing.

Explains the long-term nature of returns in this capital-intensive business and the expected inflection point for cash flow generation.

Asked by Rahul Arya

Funding of INR 400 crores CapEx (FY25-FY27) Direct
we are depending on the internal accruals as of now. So, this will help us to do CapEx consistently rather than doing it just in one single month. And another thing is that we have not used any banking limits or anything like that.

Clarifies the initial funding strategy for CapEx, emphasizing organic growth and future debt utilization.

Asked by Raj

Inorganic growth (M&A) Direct
Oh, no, no. Not as of now. Because we firstly, as I told you that all these things will come into the picture in FY '28, '29 and at least for the first 2 years of CapEx.

Provides clarity on the company's M&A strategy, indicating a focus on organic growth and asset base expansion before considering acquisitions.

Asked by Yashovardhan Banka

Geographical demand for services Direct
Right now, we are seeing an insane amount of demand... Odisha is the biggest hub, because in Odisha, it is the manufacturing hub of India and Gujarat as well.

Identifies key demand centers and client industries (metal, steel) driving the company's growth.

Asked by Yashovardhan Banka

EBITDA margin target vs. actual Direct
There is no problem coming in honestly. Like these things take a bit of time actually because in the when you buy new machines, then in that particular quarter, there is a few cost also involved to get the machine from one place to another. And these are a few things which even I cannot help. But in future, like in the coming quarters, we will be able to get into that range.

Explains the slight miss on EBITDA margin target for the quarter due to initial costs of new machines and expresses confidence in achieving the target in future quarters.

Asked by Nikhil Gala

Cost economics of a hydraulic crane Partial
See, the cost is very variable. I cannot disclose the cost because every person gets a different cost... But when it comes to margin, I can tell you that on the gross block, whichever we do, is we are able to generate a blended deal of 2.2% to 2.3% on the gross block.

While specific machine costs were not disclosed, management provided a key profitability metric (blended deal on gross block) and a breakdown of major costs (operator salaries, maintenance).

Asked by Raj

2 min read 7 chapters

Detailed narrative

Q4 FY25 Performance Overview

Trishakti Industries Limited delivered a robust Q4 FY25, with standalone revenue reaching INR 3.3 crores, marking an 82.61% quarter-on-quarter growth. EBITDA for the quarter stood at INR 2.28 crores, translating to a strong margin of 68.99%. The company's profitability saw a significant surge, with PAT growing by over 1247% quarter-on-quarter to INR 1.79 crores, underscoring the high profitability of its heavy equipment rental operations.

Strategic Shift and Business Model

The company successfully completed a strategic transition in FY25, shifting its focus entirely to the heavy equipment hiring services business. This segment is perceived to offer sustainable high margins and growth opportunities, aligning with India's booming infrastructure sector. Trishakti emphasizes acquiring higher tonnage machines (100-250 tons) to avoid market saturation and maintain high utilization, as these machines have higher entry barriers and less competition.

CapEx and Fleet Expansion Plans

In FY25, Trishakti invested over INR 48.8 crores in CapEx, achieving 97% of its INR 40 crore target, to expand and strengthen its equipment fleet. Looking ahead, the company plans an even more aggressive CapEx of over INR 100 crores in FY26 to significantly expand its fleet size. This investment is primarily aimed at widening its sectoral footprint across ports and coastal infrastructure, with 25-30% of the CapEx planned for H1 FY26.

Client Relationships and Market Opportunity

The company has secured additional marquee contracts in Q4 FY25, building on trust with leading corporates like Tata Steel, L&T, RVNL, Jindal Group, KEC International, and NCC. Management noted an 'insane amount of demand,' particularly from Odisha, which is a major manufacturing hub. The strategy focuses on blue-chip clients who typically require 250-500 ton machines, ensuring a strong and consistent demand pipeline.

Financial Outlook and Long-Term Vision

Trishakti aims for consistent revenue and EBITDA growth, targeting a Return on Capital Employed (ROCE) between 22% and 25%. The company's ambition is to scale revenues to INR 90-100 crores by FY28, supported by robust operating profit margins. Management highlighted that the payback period for machines is 3-3.5 years, with significant cash flow generation expected from FY28 onwards, enabling further expansion.

Capital Allocation Strategy

The company's CapEx is currently funded primarily through internal accruals, with management noting they are 'very under leveraged' and have not used significant banking limits. They plan to gradually increase debt utilization in the coming months to fund the aggressive CapEx, aiming to 'max out our debt' as it is a debt-heavy business. Current annual recurring revenue (ARR) of INR 22-24 crores is expected to generate INR 8-10 crores of cash flow for reinvestment.

Operational Efficiency and Margins

Trishakti reported a Q4 FY25 EBITDA margin of 68.99%, slightly below the 70-75% target for new machines, attributed to initial costs of new equipment. Management expects to achieve the 70-75% range in coming quarters. However, they anticipate margins to normalize to around 65% in 3-4 years as machines age and require more maintenance. The company maintains 100% fleet utilization and aims to secure longer-term contracts for consistent revenue growth.

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