Heavy Lifting, Higher Ambitions: Tara Chand Infralogistic Commits Rs 345.2 Million to Equipment Capex in Q1 FY26

Image Source : Tara Chand Infralogistic

Tara Chand Infralogistic Solutions Ltd has announced a capital expenditure of Rs 345.2 million in the first quarter of FY2025–26, aimed at expanding its equipment fleet to meet rising demand across infrastructure and industrial sectors. The investment underscores the company’s strategy to scale its high-margin Equipment Hiring (EH) vertical and deepen its presence in specialized logistics and project execution.

Here’s a detailed breakdown of the capex plan and its broader implications.

Key Highlights of the Q1 FY26 Capex

- The Rs 345.2 million investment is part of a broader Rs 1.6 billion capex roadmap for FY25–26, focused on acquiring high-tonnage cranes and specialized lifting equipment
- The new equipment is expected to enhance Tara Chand’s capacity to serve sectors like renewable energy, petrochemicals, and heavy civil infrastructure
- Management has indicated that all additions are backed by confirmed orders, ensuring optimal asset utilization from day one
- The company plans to fund the capex through internal accruals and supplier credit, maintaining a conservative debt profile

Strategic Rationale and Growth Outlook

- The EH segment, which contributed 44 percent of revenue in FY24, is projected to grow to 50 percent by FY27, driven by strong demand and superior margins
- Tara Chand is targeting a 30 percent revenue growth in FY25, supported by this capex and its foray into specialized EPC contracts
- The company is also de-risking its transportation and warehousing vertical by onboarding private sector clients and diversifying its customer base
- At peak utilization, the new equipment could generate an additional Rs 550 million in annual revenue

Operational and Financial Context

- Tara Chand reported a 45 percent year-on-year revenue growth in Q4 FY25, with strong margins and a robust order book
- The company is actively bidding for EPC contracts in steel, cement, and energy sectors, with a potential lifetime value exceeding Rs 1 billion
- Its asset-light model and disciplined capital allocation continue to attract investor confidence, with shares trading near 52-week highs

As Tara Chand Infralogistic Solutions accelerates its equipment expansion, the Q1 FY26 capex signals a confident bet on India’s infrastructure momentum—and a clear intent to lead from the front in heavy logistics and project execution.

Sources: Nuvama Wealth Research, Screener.in, Tara Chand Infralogistic Solutions Investor Updates, June 2025