Tara Chand Infralogistic Solutions Ltd (NSE:TARACHAND) Q4 2025 Earnings Call Highlights: Record ...

In This Article:

  • Revenue: INR254 crores in FY25, 45% year-on-year growth.

  • EBITDA: INR84.1 crores, 45% year-on-year growth, with a margin of 33.1%.

  • Profit After Tax (PAT): INR24.86 crores, 54% year-on-year growth, with a margin of 9.8%.

  • Q4 FY25 Revenue: INR82.11 crores, 75% year-on-year growth.

  • Q4 FY25 PAT: INR7.86 crores, 25% year-on-year growth.

  • Cash PAT: INR68.52 crores for FY25.

  • Cash and Cash Equivalents: INR19.80 crores at the end of FY25, up from INR0.2 crores last FY.

  • CapEx: INR145 crores in FY25.

  • Equipment Rental Revenue: INR137.67 crores, 82% year-on-year growth.

  • Warehousing and Transportation Revenue: INR97.36 crores, 18% year-on-year growth.

  • Steel Processing and Distribution Revenue: INR12.79 crores, 8% decline.

  • Order Book: INR136.8 crores as of May 1, 2025.

  • Receivable Days: Reduced to 75 days from 98 days.

  • Debt-to-Equity Ratio: 0.92.

  • Cash Flow from Operations: INR56.2 crores for FY25.

Release Date: May 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Tara Chand Infralogistic Solutions Ltd (NSE:TARACHAND) achieved a record revenue of INR254 crores in FY25, marking a 45% year-on-year growth.

  • The company maintained a healthy EBITDA margin of 33.1% and PAT margin of 9.8% for FY25.

  • The Equipment Rental segment saw an 82% year-on-year increase in revenue, contributing significantly to the company's growth.

  • The company completed its highest ever annual CapEx of INR145 crores, enhancing its equipment rental capabilities.

  • The order book as of May 2025 stands at INR136.8 crores, providing strong visibility for future revenue.

Negative Points

  • Other expenses rose by 47% quarter-on-quarter, outpacing the 27% increase in revenue, primarily due to specialized service contracts.

  • The Steel Processing and Distribution segment experienced an 8% decline in annual revenue.

  • The Warehousing and Transportation segment's EBITDA was impacted by a one-off issue at the Visakhapatnam Steel plant.

  • The company faces challenges in maintaining its EBITDA margins due to aggressive growth targets.

  • There is uncertainty regarding the full year depreciation impact due to the timing of CapEx execution.

Q & A Highlights

Q: What drove the 47% increase in other expenses compared to a 27% increase in revenue, and were there any one-offs involved? Also, what is the revenue growth target for FY26, particularly from renewables? A: The increase in other expenses was primarily due to specialized service contracts executed in Q4, which had lower EBITDA margins compared to equipment rentals. For FY26, the company targets a 25% to 30% revenue growth, with renewables expected to contribute 15% to 20% of the Equipment Rental segment's revenue. The execution for wind energy clients has improved compared to previous delays. - Himanshu Aggarwal, CFO