Tara Chand InfraLogistic Completes ₹83.14 Crore Capex for FY26; Stock Jumps 16%

Mumbai, October 6, 2025: Tara Chand InfraLogistic Solutions Ltd (NSE: TARACHAND) jumped more than 16% in the opening trade following the announcement of the completion of its FY2025–26 capex program of ₹83.14 crore as of September 30, 2025. The action indicates sustained growth momentum, particularly in the renewable energy vertical, which now accounts for more than 50% of the company’s overall revenue.

Stock Performance

As of 10:41 am IST, the stock was trading at ₹82.20, up 16.53%. The stock opened at ₹77.04, touched a high of ₹84.00 and a low of ₹76.00 during the session, with a market capitalization of ₹647.94 crore. It currently trades at a P/E ratio of 24.18, has no declared dividend yield, and remains within a 52-week range of ₹46.50 to ₹97.60.

Strengthening Fleet and Capabilities

The FY26 capex also involved the acquisition of 15 high-capacity equipment units to enhance infrastructure and rental operations. Additions include tyre-mounted cranes (110 MT and 60 MT), aerial working platforms (42 meters), and heavy-duty modular axles (18 MT). These assets are being utilized on newly acquired renewable energy and infrastructure projects under the company’s Equipment Rentals & Infra Projects division.

The investment has been made according to management strategy, in line with Tara Chand’s growth plan, and to help it become a prime logistics partner for India’s infrastructure and clean energy ecosystem.

Strong FY26 Financial Performance

Tara Chand reported a good beginning to FY26 with aggregate income increasing 31% year-on-year at ₹617 million in Q1. EBITDA increased 45% at ₹231 million, and profit after tax increased 45% at ₹65 million, indicating increased operational efficiency. The equipment rental and projects business contributed around ₹315 million (52% revenue), whereas the warehousing and transportation business registered growth of 82% year-on-year to ₹295 million.

The firm has also bagged a ₹81.51 crore, 4.5-year contract with SAIL’s Dankuni unit, the implementation of which is expected from Q3 FY26. With a combined order book of about ₹1,572 million, Tara Chand has clean revenue visibility for the remainder of the year.

Strong Balance Sheet and Operational Discipline

The firm continues to stay lean with a debt-to-equity of approximately 0.9x and an interest coverage ratio of 5.0x. Receivable days have come down to 64 from 75 in FY25, indicating improved working capital management. Net worth remained at ₹1,278 million as of Q1 FY26, underpinned by consistent earning growth and effective asset deployment.

Management pointed out that the majority of newly procured equipment is already committed to current projects, reducing the idle time and maximizing the return on capital deployed.

Investor Sentiment and Market Outlook

After the announcement of capex, investor sentiment became very bullish. The stock saw a buy order of 1.85 lakh shares compared to 85,701 on the sell side, reflecting unyielding short-term optimism.

With steady revenues, expanding margins, and a robust order book, Tara Chand InfraLogistic is emerging as an exciting new player in the country’s infrastructure value chain. Having made its listing on the NSE in April 2024, the company is driving momentum through careful execution and strategic deployment of capital, positioning itself for another excellent financial year.

REF: https://nsearchives.nseindia.com/corporate/TARACHAND_03102025163456_Capex_upload.pdf

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