Tara Chand Infralogistic Solutions: Scaling New Heights in Q2 & H1 FY26

Tara Chand Infralogistic Solutions Limited has delivered an exceptional performance in the second quarter and first half of fiscal year 2026, showcasing robust growth and enhanced profitability. The company reported its highest-ever Q2 and H1 revenue, a testament to its focused execution, strategic investments, and operational discipline across all verticals. Total income for H1 FY26 surged by 20% year-on-year to ₹128.8 crore, with revenue from operations growing 24% to ₹126.7 crore. This impressive top-line growth was complemented by a significant improvement in profitability, with EBITDA rising by 31% to ₹49.4 crore and margins expanding by over 300 basis points.

The company's segment-wise performance highlights its strategic shift and operational efficiency. The Equipment Hiring & Projects segment, including specialized services, contributed 55% of the total H1 FY26 revenue, clocking ₹69.5 crore. This segment demonstrated strong growth, with standalone EBITDA for equipment rentals achieving an impressive 64% margin. The Warehousing & Transportation segment accounted for 45% of the revenue, reaching ₹56.7 crore, and registered a 39% year-on-year growth. The Steel Processing & Distribution segment contributed a negligible 0.5 crore. This strategic re-focus towards higher-margin segments like metals, minerals, cement, and renewable energy, while reducing dependence on rural and urban infrastructure, has been instrumental in driving profitability.

Strategic Investments and Future Outlook

Tara Chand Infralogistic Solutions has demonstrated a clear commitment to strategic capital deployment. The company has already deployed ₹83.3 crore of its planned ₹100 crore CAPEX for FY26, primarily for expanding its fleet with next-generation equipment. These investments are geared towards serving upcoming projects in high-growth sectors such as Renewable Energy, Cement, and other industrial segments. The company's fleet size now stands at 392 machines, aggregating a gross block of almost ₹500 crore as of September 30, 2025.

Further solidifying its growth trajectory, the company secured domestic orders worth ₹58.76 crore for specialized services and equipment rentals, commencing Q3 FY26. A significant win is the ₹81.5 crore, 4.5-year warehousing contract with SAIL at Dankuni, set to begin shortly. This contract for Steel Authority of India's largest warehouse by volume in India underscores the company's strong market position and long-term visibility. Additionally, Tara Chand is exploring the addition of EV trucks to its logistics fleet, aiming to tap into new opportunities and cater to evolving client demands.

Operational Excellence and Risk Management

Operational efficiency and financial discipline remain core tenets of Tara Chand's strategy. The company has successfully maintained receivable days at 85 days, a significant improvement driven by a shift to clients with better payment cycles and streamlined billing processes. While acknowledging potential risks such as increased competition from Chinese crane imports and the possibility of a sudden halt in cross-sector investments, management remains confident in its diversified client base and strong order book. Logistical challenges, particularly during monsoons and in greenfield projects, are actively managed through robust planning and a focus on service delivery.

Sustained Growth and Investor Confidence

Tara Chand Infralogistic Solutions is poised for sustained growth, targeting an aggressive annual growth of 20%-30% over the next three years while maintaining strong margins. The company's conscious efforts to focus on margin-driven opportunities, particularly in equipment rental and specialized services, are expected to yield continued positive results. With a healthy order book executable entirely within FY26 and strategic investments in fleet and capacity expansion, Tara Chand is strengthening its position as a trusted partner in India's infrastructure progress. The management's transparent communication and proactive approach to market dynamics instill confidence in its ability to deliver enduring value for all stakeholders.