Tarachand Infralogistics’ Profit Up by 45%

=Mumbai, July 31 – Tarachand Infralogistic Solutions Ltd (NSE: TARACHAND) announced its strongest-ever Q1 results for FY26, with record revenue and profit driven by strategic capex and strong order execution. The board approved the Q1 FY26 financials in a meeting held on July 31, 2025.

Tarachand Infralogistic Solutions Ltd Share Price Performance

The share price of Tarachand Infralogistic Solutions Ltd is trading at 75.72, up 4.90 from its previous close of 72.18. The share opened at 69.10 and traded between 69.10 and 77.88, representing the high and low. The share’s 52-week high is reported at 104.78, while the 52-week low remains at 46.50.

Q1 FY26 Financial Performance

The quarter recorded a strong financial performance with total income of 617million by the company in the period, which is an improvement of 31% in Q1FY25 compared to 473 million in the same quarter in the previous financial year. The EBITDA increased by 45% to 231 million in comparison to 159 million achieved a year earlier, with the EBITDA margin growing by 370 basis points to 37.4%. This impressive growth is attributable to the effective operations of the firm and cost control strategies.

The profit after tax (PAT) improved 45 percent year on year to ₹65 million, and the profit after tax (PAT) margin continued to expand at 10.5 percent as compared to 9.4 percent in the previous year. There is also a 51 percent increase to 188 million cash PAT. The EPS also rose to an extent of 39% to 0.82, which once again demonstrates high rates of profitability and earnings efficiency in comparison to the earlier year.

Segment-wise Revenue Highlights

Equipment Hiring & Projects revenue was 315 million in Q1 FY26 (52% share), and was also up ~36% YoY. Warehousing & Transportation came afterwards and gained 82 percent YoY to stand at 0.295 billion (48 percent share). Steel Processing & Distribution contributed a million rupees, which is a decrease of almost 98 percent.

• Rentals, standalone EBITDA margin: 64%
• Steel dealt with: 3.78 million MT
• Gross monthly rental Yield: 3 %

Strategic Investments & Order Wins

• Capex Deployed in Q1 FY26: ₹350 Mn out of planned ₹1,000 Mn for the year.
• Inducted the largest-ever crane with a 900 MT lifting capacity.
• SAIL Dankuni Contract: ₹81.51 Cr (incl. taxes) over 4.5 years starting Q3 FY26, marking strategic entry into Eastern India logistics.

Key Operational Metrics

The company had good business visibility as it had a robust order book of 1.572 billion at the end of Q1 FY26. They had net worth of 1278.1 million and the finance cost during the quarter was 22 million. Its interest coverage ratio was also good at 5.0x which means its debt servicing ability was also good. The balance sheet has a debt-to-equity of 0.9x which makes it to be moderately leveraged. Receivable days were 64, indicating an effective work cycle of collection and control of the working capital.

Strategic Outlook

Tarachand envisions 20%30 growth per year in the next three years through strategic investments in large capacity cranes, aerial platforms, and infrastructure delivery in additional warehousing with an 8 acre land acquisition in Nagpur. It is also changing perspective geared towards special services contracts rather than general EPC orders, the long term vision of the company is to improve their operational efficiency, its service capabilities, and trying to enter into a higher margin business.

About the Company

Tarachand Infralogistic Solutions Ltd, listed on the NSE Main Board, is a leading infra-logistics player with a 40+ year track record in equipment rentals, steel warehousing, and turnkey infrastructure projects. The company operates across 21 states with a fully owned fleet of 375 machines and has marquee clients including SAIL, Adani, Tata Steel, L&T, and Reliance.

REF:https://nsearchives.nseindia.com/corporate/TARACHAND_31072025133758_Earrnings_Call_Presentation.pdf

Disclaimer:  At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations