Tara Chand Infra Posts 55% FY27 Equipment Growth

FY27 begins with a shift toward core investment sectors

Tara Chand Infralogistic Solutions Ltd began FY27 with stronger activity in the infrastructure-linked sectors where its equipment fleet is deployed. The company said revenue from operations rose 11% year-on-year to ₹67.6 crore during the opening quarter. Equipment Hiring & Projects revenue increased 55% from the corresponding quarter a year earlier. Renewable energy and power together contributed more than 50% of equipment rental revenue, compared with about 25% a year earlier. The change indicates that the company’s equipment business is becoming more exposed to sectors receiving substantial project investment. Tara Chand operates across equipment hiring and projects, warehousing and transportation, and steel processing and distribution. Its operations serve industrial and infrastructure customers across India.

Renewable energy and power gain revenue share

The rise in renewable energy and power activity was the central operational development in the company’s FY27 opening-quarter update. These sectors crossed half of equipment rental revenue for the first time, according to the company. The comparison with roughly one-fourth of rental revenue a year earlier points to a significant change in the business mix. Equipment rental supports project execution through the deployment of specialised machinery and related services. For Tara Chand, greater work in these sectors helped drive the 55% year-on-year rise in Equipment Hiring & Projects revenue. The disclosure does not provide separate revenue figures for renewable energy or power. It nevertheless identifies these two segments as important sources of fleet utilisation and demand.

Reported revenue includes an earlier-period write-off

Revenue from operations was ₹67.6 crore, up 11% year-on-year. Tara Chand also stated that growth would have been about 14% after adjusting for a ₹1.9 crore revenue write-off related to earlier years. This distinction is relevant because the reported figure includes the accounting effect of that write-off. The company did not provide further details on the earlier-period items in the supplied update. Investors can therefore assess both the reported growth rate and the adjusted comparison disclosed by management. The update presents ₹67.6 crore as the revenue from operations figure for the quarter.

Specialised-services margin faces project-scope impact

Not all business lines moved in the same direction during the period. Tara Chand said the margin in its specialised services business almost halved in the quarter. It attributed the decline largely to a client-led change in project scope that left equipment idle. The company said it is pursuing a fair settlement for the losses arising from the situation. Idle equipment can affect profitability because ownership and operating costs continue even when assets are not deployed. The disclosure did not quantify the margin reduction or specify the potential settlement amount. As a result, the financial outcome of the matter remains unspecified in the information provided.

Capital spending continues to expand the fleet

The company invested ₹42.8 crore in capital expenditure during the quarter. It reported cash profit of ₹17.6 crore and said its balance sheet improved to net debt of 0.87 times equity. Tara Chand described this level as being within the limit it has set for itself. The capital expenditure programme is intended to support fleet deployment in its equipment-related operations. Management has outlined planned FY27 capital expenditure of ₹80 crore to ₹100 crore. The figures show that a meaningful part of this planned range had already been invested in the opening quarter.

Executable order book stands at ₹204.82 crore

Tara Chand reported an executable FY27 order book of ₹204.82 crore as of July. An order book represents work that the company identifies as available for execution, rather than revenue already recorded. The disclosed order book provides visibility for its equipment and project-related activities, although the update does not provide a breakdown by business vertical or customer. Management continues to target revenue growth of 20% to 25%. That target is a company objective and not a confirmed outcome. Actual growth will depend on project execution, fleet utilisation, customer requirements and the resolution of the specialised-services issue.

Recent results show continued expansion

The FY27 update follows a period of reported revenue and profitability growth. In Q3 FY25, Tara Chand reported its highest-ever quarterly revenue at that point of ₹64.2 crore, up 45% year-on-year. EBITDA for that quarter was ₹20.8 crore, up 43%, while profit after tax was ₹5.2 crore, up 56%. For the first half of FY26, total income was ₹128.8 crore, up 20% year-on-year. In Q2 FY26, total income was ₹67.1 crore and EBITDA margin expanded by 300 basis points to 39%, according to the company’s investor presentation. These earlier disclosures provide context for the latest operational update, but they relate to different reporting periods.

Key financial and operating disclosures

What the update means for investors

The latest disclosure shows that Tara Chand’s growth mix is increasingly tied to equipment demand from renewable energy and power projects. The company has paired that shift with higher capital spending and a stated intention to maintain net debt within its internal limit. At the same time, the specialised-services margin decline highlights the effect that changes in client project scope can have on asset-intensive operations. The ₹204.82 crore executable order book and the planned FY27 capital expenditure range will be important reference points in subsequent disclosures. Management has also set a 20% to 25% revenue-growth target for FY27. Future updates will indicate how project execution, equipment utilisation and the proposed settlement affect the company’s financial performance.