Tara Chand InfraLogistic Solutions Reports Q1FY27 Results; Equipment Segment Grows 55% as Energy Focus Increases

Tara Chand InfraLogistic Solutions Reports Q1FY27 Results; Equipment Segment Grows 55% as Energy Focus Increases​

Tara Chand InfraLogistic Solutions Limited, a major provider of integrated infrastructure logistics services in India, reported its standalone financial results for the quarter ending June 30, 2026. The Company saw Revenue from Operations rise by 11% year-on-year, driven primarily by strong growth in its Equipment Hiring and Projects segment. Profitability, however, was lower compared to the previous year due to transitional factors within specialized services and the warehousing division.

The Company recorded a stand-alone revenue of ₹676 Mn for Q1FY27 (Total Revenue: ₹684 Mn). EBITDA stood at ₹210 Mn, resulting in an EBITDA margin of 30.7%, down from 37.4% in the prior year. Profit After Tax was reported at ₹17 Mn, and Cash Profit (cash accruals) was ₹176 Mn, marking a 6% decrease year-on-year.

Financial Highlights Overview (₹ in Million)​

Segment Performance and Operational Shifts​

The Equipment Hiring and Projects segment demonstrated significant strength, growing 55% year-on-year to ₹489 Mn (compared to ₹315 Mn in Q1FY26). This segment now contributes approximately 72% of total revenue, comprising ₹356 Mn from equipment rentals and ₹133 Mn from specialized services.

The structural shift within the equipment rental market was a defining feature of the quarter. Renewable Energy accounted for 31% of rental revenue, and Power contributed 26%, meaning that together these two areas made up 57% of rental revenue, up sharply from 24% in FY26. The remaining portfolio included Cement at 18%, Rural and Urban Infrastructure at 10%, Metals and Minerals at 9%, and Petrochemical at 6%.

In contrast, the Warehousing and Transportation segment generated ₹187 Mn (down from ₹295 Mn in Q1FY26). This decline was attributed to the segment being between anchor stockyard contracts. The Company noted that steel movement remained subdued due to elevated fuel costs.

Profitability Drivers and Outlook​

Management stated that Q1 was a transitional period, with the core business growth offsetting temporary margin pressures. The principal factors impacting profitability included the specialized services EBITDA margin nearly halving—to about 10% from approximately 18% in previous periods—which was linked to a client-led change in scope for a carried-forward project that left mobilized equipment idle and incurred demobilization costs.

The Company is pursuing an appropriate settlement of these losses, expecting the recovery to be recognized as it materializes. Furthermore, the Warehousing segment is transitioning between anchor contracts.

Despite these pressures, cash generation remained strong, with Cash Profit standing at ₹176 Mn. The balance sheet also improved, with Net Debt to Equity improving to 0.87x from 0.92x, remaining within the Company’s 1.0x ceiling, even after deploying ₹428 Mn in capital expenditure during the quarter.

Looking ahead to FY27, the Company reaffirmed its medium-term target for annual revenue growth of 20% to 25%, targeting an EBITDA margin band of 37% to 38%. The executable order book for FY27 was reported at ₹2,048 Mn (₹204.82 crore) as of July 2026.

The Company expects the first half of FY27 to operate below the target margin band due to reduced specialized services margins and the warehousing transition, with recovery weighted toward the second half. The Equipment Hiring and Projects segment, fueled by renewable energy and power verticals, is anticipated to remain the main driver of growth as Dankuni scales within Warehousing and Transportation.