Company plans ₹25.53 crore fleet purchase after ₹29.60 crore rent

Company plans a ₹25.53 crore fleet purchase after recording ₹29.60 crore of equipment rent in Fiscal 2026. The proposal is intended to reduce reliance on hired machinery, a significant portion of which has been sourced through group company Tykmoon Mines GK Limited since August 2025, but no purchase orders have been confirmed.

Why is Company making a ₹25.53 crore fleet purchase?

Company is proposing to use up to ₹25.53 crore from net proceeds to buy heavy equipment for project execution and reduce its dependence on leased or rented machinery. The equipment is intended for material transportation, earthmoving, site preparation, loading and unloading, and related operational work across project sites.

The proposed fleet comprises 33 units: 11 dumper trucks, 14 trucks, two hydraulic excavators, two backhoe loaders, three rough-terrain cranes and one electric forklift. The estimate includes ₹21.64 crore of equipment and related costs before goods and services tax, or GST, plus ₹3.89 crore of GST.

Company says ownership may improve control over machinery availability and allow equipment to be redeployed between sites according to operational requirements. The plan is also linked to eligibility for bids that require contractors to own specified equipment before executing a project, although the stated benefits depend on delivery, deployment and sufficient fleet utilisation.

How much does Company rely on rented equipment?

Company incurred ₹29.60 crore of lease rental expense in Fiscal 2026 and ₹11.10 crore during the three months ended June 30, 2026 for 41 listed units. The Fiscal 2026 rental bill was ₹4.07 crore higher than the proposed ₹25.53 crore equipment purchase, but the figures measure different items: historical rental payments and the estimated acquisition cost of a new fleet.

Dumpers accounted for ₹20.40 crore, or about 69%, of the Fiscal 2026 rent listed in the schedule, while excavators accounted for ₹7.04 crore. Company separately states that aggregate monthly equipment-rental outflow is approximately ₹3.70 crore; the disclosure does not reconcile that statement with the ₹36.50 lakh monthly total shown for the 41 units in the rental schedule.

Company’s proposed 33-unit fleet does not exactly match the 41 rented units listed for Fiscal 2026. The purchase therefore does not establish that all hired equipment will be replaced, particularly because the proposed fleet includes 14 trucks, three cranes, two backhoe loaders and one forklift that are not among the four categories in the disclosed rental schedule.

What is Tykmoon Mines’ role in Company’s rental dependence?

Tykmoon Mines has supplied a significant portion of Company’s operational equipment requirements under a third-party rental arrangement from August 2025 onward. Company identifies dumpers, dozers, graders and excavators as equipment sourced through this arrangement, making the group-company relationship relevant to its operational access to machinery.

Company does not disclose how much of the ₹29.60 crore Fiscal 2026 rental expense was paid specifically to Tykmoon Mines. It also does not disclose the number of the 41 listed rental units supplied by Tykmoon Mines, so the available disclosure does not quantify the group company’s share of equipment rent.

The planned ₹25.53 crore outlay is not described as a payment to Tykmoon Mines. Company states that no part of the issue proceeds will be paid as consideration to group companies, directors or key managerial personnel, except as disclosed, and the equipment estimate is based on quotations from third-party manufacturers and dealers.

What equipment will Company buy and at what estimated cost?

Company’s estimated fleet cost is led by 11 Eicher Pro 8035XM dumper trucks at ₹8.84 crore including GST, followed by 14 Tata Signa 4225 trucks at ₹6.83 crore and three Sany rough-terrain cranes at ₹6.02 crore. The quoted fleet total of ₹25.53 crore includes GST and related charges specified by individual suppliers.

The two Tata Hitachi hydraulic excavators are estimated at ₹2.60 crore including GST, two backhoe loaders at ₹83.05 lakh and one electric forklift at ₹41.30 lakh. The backhoe-loader quotation includes road transport office charges of ₹6.05 lakh, while the truck quotation excludes ₹2,000 per truck for CR-TEM charges.

Company obtained quotations from six vendors, with validity periods varying by product. The VE Commercial dumper quotation dated March 16, 2026 was valid until December 17, 2026, while the Sany crane quotation dated October 2, 2026 was valid for 60 days and the Tata truck quotation dated October 5, 2026 was valid for 180 days, subject to original-equipment-manufacturer price changes.

What remains uncertain about the fleet purchase?

Company has not issued confirmed purchase orders, entered definitive supplier agreements or deployed funds toward the equipment as of the Red Herring Prospectus date. It states that there is no assurance the quoted suppliers will deliver on time, ultimately supply the equipment, or sell it at the quoted costs.

Company may select other suppliers, place new orders or amend orders based on equipment specifications, quoted price, delivery schedules, transportation costs and other commercial factors. Expired quotations, changed taxes or levies, and different vendors could alter the final equipment mix and the ₹25.53 crore estimated cost.

Brickwork Ratings India Private Limited, a Securities and Exchange Board of India registered credit rating agency, has been appointed to monitor net-proceeds utilisation quarterly until the proceeds are fully used. Company must also report quarterly deviations and category-wise variations in the use of fresh-issue proceeds to stock exchanges under the Securities and Exchange Board of India listing regulations.

Conclusion

Company’s ₹25.53 crore fleet purchase addresses a rental model that recorded ₹29.60 crore of payments in Fiscal 2026 and includes equipment dependence on Tykmoon Mines from August 2025. The comparison demonstrates the scale of rental outflows, but it does not show what portion of rent went to Tykmoon Mines or confirm that owned equipment will eliminate hired-fleet needs.

The next disclosed developments are supplier selection, confirmed purchase orders, delivery timing and actual acquisition costs. Company has retained the flexibility to change vendors and equipment orders, while Brickwork Ratings will monitor utilisation quarterly until the net proceeds have been fully deployed.