Operator: Ladies and gentlemen, good day and welcome to the Q2 and H1 FY27 earnings conference call for Tara Chand Infralogistic Solutions Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. I now hand the conference over to Mr. Manveer from Stellar Investor Relations. Thank you, and over to you, sir.
Manveer Sharma: Thank you, Rutuja. Good afternoon, everyone, and thank you for joining us today to discuss Q2 and H1 FY27 business performance. We have with us the senior management team represented by Mr. Himanshu Aggarwal, Whole-Time Director and Chief Financial Officer. Before we proceed with this call, I would like to mention that some of the statements made in today's call may be forward-looking in nature and may involve risks and uncertainties. The company also undertakes no obligation to update any forward-looking statements to reflect developments that occur after this statement is made. Documents relating to the company's financial performance, including the investor presentation, have been uploaded to the stock exchange and the company's website. I now invite Mr. Himanshu Aggarwal to share his initial remarks on the company's performance, and then we will open the floor for Q&A. Thank you, and over to you, sir.
Himanshu Aggarwal: Thank you for the introduction, Manveer. Good afternoon, ladies and gentlemen. I, Himanshu Aggarwal, the Whole-Time Director and CFO of Tara Chand Infralogistic Solutions Limited, welcome you and thank you for joining the earnings call for the quarter and half year ended 30 September 2026. I hope you have had the opportunity to go through the investor presentation that was posted on the NSE website. Let me begin with Q2 FY27, which marks as a clear and measurable recovery from a difficult Q1. Revenue from operations grew 27% year on year to INR 83.11 crores, while profit after tax grew 21% year on year to INR 9.05 crores, the highest quarterly profit the company has reported to date. The EBITDA margin recovered by 400 basis points over Q1 to 34.7%.
Himanshu Aggarwal: We have consistently said that given the seasonality of our business, with Q3 and Q4 historically contributing close to 60% of annual revenue, the year-on-year comparison is the right lens. However, this quarter, the sequential comparison also matters because it demonstrates that the disruption in Q1 was transient. The one-off factors that defined Q1 are behind us, and Q2 reflects our journey back towards the normal operating rhythm of the business. On the financial front for the quarter, total revenue grew 25% year-on-year to INR 84.03 crores, with revenue from operations at INR 83.11 crores, as highlighted above, and 23% above the Q1. EBITDA grew 11% year-on-year to INR 29.16 crores, while PAT margin was maintained at 11% in line with the same quarter last year. Earnings per share also stood at INR 1.15 per share against INR 0.95 a year ago.
Himanshu Aggarwal: Cash PAT, which we continue to regard as an important earnings measure for a capital-intensive fleet business, grew 8% to INR 23.3 crores. For the half year ended 30 September 2026, total revenue grew 18% year-on-year to INR 152.46 crores, with revenue from operations up 19% at INR 150.74 crores. EBITDA for the half year stood at INR 50.18 crores, marginally ahead of last year, and Cash PAT at INR 40.9 crores. Profit after tax for the INR 4 crore last year for the same period. The entire shortfall, as I mentioned earlier, is attributable to the Q1, and the half-year EBITDA margin of 32.9% should also be read in that light. I would like to be clear about the margin trajectory. The Q2 EBITDA margin of 34.7% is a four percentage improvement over Q1, but it remains below the 39% reported in Q2 last year.
Himanshu Aggarwal: For our equipment rental segment, the standalone rentals EBITDA stood at 55% for Q2, while the specialized services contributed revenue of INR 17.03 crores with an EBITDA of 12%. A lower EBITDA for specialized services is primarily attributed to higher costs on account of heavy monsoons that led to lower-than-desired output at the project site. That brings me to CapEx. The company invested INR 106.6 crores in equipment in H1 FY27, ahead of the INR 80 to 100 crores that we had planned for the full year. This was a deliberate decision. We saw the opportunities in power and renewable energy sectors that were firm, backed by client commitments, and we chose to secure them. Nine machines were added in the half year, including two 900-ton crawler cranes, two 800-ton crawler cranes, a 700 all-terrain crane, and a 500-ton crawler crane as well.
Himanshu Aggarwal: The majority of this equipment is being commissioned during the Q3, which is when it begins to contribute towards revenue. As of 30 September 2026, the fleet stood at 436 machines with a gross block of approximately INR 662 crores. Going forward, for the remainder of the financial year, the company will take a call on more CapEx depending on the upcoming opportunities and commitments from our client. Turning to the segments, equipment hiring and projects contributed 72% of revenue in the H1 of this financial year, while warehousing and transportation was at 28%, whereas steel and processing and distribution, which we have been consciously de-emphasized, was negligible at only 0.2%. The equipment hiring and project segment recorded a revenue of INR 59.55 crores in Q2, a growth of 57% year-on-year, and INR 108.43 crores for the half year, which was up 56% year-on-year.
Himanshu Aggarwal: The reported EBITDA for the segment is 44%, which includes specialized services. The standalone equipment rental EBITDA margins stood at 55% for the quarter and 56% for the H1, supported by fleet utilization of 82%. The average gross monthly rental yield for H1 FY27 was 2.83%. The sectoral mix of our rental revenue has shifted decisively towards the energy build-out, which is power and renewable energy together, accounting for 53% of equipment rental revenue in the H1, with cement, steel, petrochemicals, and other sectors making up the balance. This is precisely the deployment the high-tonnage CapEx was intended for. The warehousing and transportation segment returned to profitability in Q2, with revenue of INR 23.3 crores, a 24% improvement over Q1, and a segment EBITDA margin of 16% against a marginal loss in the Q1. Steel volumes handled rose to 1.95 million metric tons in Q2.
Himanshu Aggarwal: On a year-on-year basis, the segment revenue is lower by 15%, which reflects the conclusion of our RINL Visakhapatnam contract, which was there in the base period last year, and the new contract of Dankuni Stockyard in West Bengal still ramping up. The sequential recovery in both volumes and margin indicates that this segment has found its footing on the new base. As of October 2026, our order book stands at INR 163.7 crores, executable entirely within FY27, with 74% from equipment hiring and projects and 26% from warehousing and transportation. Together with the revenue already booked in H1, this gives us the visibility to speak to full-year guidance with confidence. On the balance sheet, our net worth stood at INR 158 crores as of 30 September 2026.
Himanshu Aggarwal: The CapEx program has taken net debt-to-equity to the upper limit of one that we have set for ourselves, and we intend to operate within that ceiling. The average cost of borrowing stood at 6.26% on an annualized basis, while the net cash flow from operations for the H1 was INR 303.3 crores, lower than last year, principally on account of working capital. The receivable days were slightly above 100 days, while our target still remains to bring it down closer to 80 days. The major change has been the receivables from what we have noticed from the renewable energy sector are a little prolonged, and we are trying to work out with our clients to ensure that the receivable cycles improve going forward. We have good visibility on that as well.
Himanshu Aggarwal: On guidance, we remain on course for the lower end of our 20% to 25% revenue growth target for FY27. While on margins, we expect that the full-year EBITDA margin should be around 35% below our earlier band of 37 to 38 on account of the Q1 challenges. We expect that to exit the year closer to the band as the new fleet is fully deployed and specialized services also stabilize in Q3 and Q4. Our strategy remains anchored on three pillars: scale, specialize, and sustain. Scale through calibrated fleet expansion aligned to confirmed demand. Specialize through a differentiated high-tonnage fleet, the 900 metric ton cranes, the 68-meter aerial platforms, and also the self-owned rubber tire gantries in our warehousing division. This creates entry barriers and commands premium yields.
Himanshu Aggarwal: And sustain through disciplined leverage and a conscious decision to stay away from run-of-the-mill EPC work that does not meet our return thresholds. Every sector we serve, power, renewables, cement, petrochemicals, steels, and the others, is still building. The demand environment is robust. Our visibility on the work ahead is the strongest it has been, and the fleet to execute it is already on the ground. Q1 tested the business. Q2 has shown its resilience, and we believe we are back on track. With that, I would now like to hand it back to the moderator for the Q&A session. Thank you.
Operator: Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may please press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question is from the line of Rohan Mehta from FICOM Family Office. Please go ahead.
Rohan Mehta: Hi, Himanshu. Am I audible?
Operator: Yes, you are. Please go ahead.
Rohan Mehta: Great. Thanks for taking my question. Couple of questions. Firstly, on CapEx and compared to the growth guidance. CapEx for FY27 was planned at INR 80 to 100 crores, and H1 you have already spent close to INR 106 crores. You have cited that this was because the opportunities in power and renewables, it was there to be taken. I was expecting the growth guidance to be at the higher end. Could you just explain, if you are seeing opportunity, why are you guiding for the lower end of the range, that is 20%? Given that the demand is shaping up, are we being conservative at 20%?
Himanshu Aggarwal: Okay. Thank you for the questions, Mr. Rohan. The CapEx is primarily the INR 106 crores is consumed by a chunk of the larger machines that I mentioned in the opening remarks. A good amount of those coming into play in Q3 and Q4 will help with the growth trajectory that we are focusing on. As I mentioned, we could end up on the lower band of the growth target. It is also based on the fact that our revenues are a mix of equipment rental, specialized services, and warehousing and transportation. Q1 being a little slow, there has been a good movement in Q2, which is giving us positivity in H1, where we concluded H1 at 19% revenue growth compared to last year. Going by H2 being on the heavier side on revenue generation as well, which was there last year as well.
Himanshu Aggarwal: The base is also on the higher side, and pushing on that, 20% seems very likely with the growth opportunities that we already helped take up with the new CapEx that we have done. That is where we see currently that it should be where we would be able to exit the year.
Rohan Mehta: Got it. In terms of your order book, currently it stands at about INR 163 crores, and for about 20% growth, H2 revenue approximately requires about INR 190 crores. If I see on a net-on-net basis, you will require additional INR 30 odd crores of incremental orders. What sort of inquiries are you seeing right now, and how confident are you that not only will these come in H2, but you will also be able to execute them? In terms of the nine new machines, are they still awaiting contracts to be used in Q3 or Q4?
Himanshu Aggarwal: Okay. To answer those questions, I will answer the second one first. The nine machines that have been added, some are already deployed, and the others are waiting deployment, but the contracts are already in hand. The deployment is based on the availability of space and the timeline provided by the client. They are en route, and some are already en route deployment. The others probably would go into next month or so. We already have contracts in line. The way we have always approached CapEx is that we go by backed-up client orders when we do CapEx. That has always been the company's policy and will remain the same going forward as well. Could you repeat the first question?
Rohan Mehta: Yes. This was basically on the incremental orders that you will have to receive about INR 30 crores.
Himanshu Aggarwal: Yeah. We have certain ongoing discussions, and they are specifically towards the end of Q3 and Q4, execution of orders towards the end of Q3 and Q4, where we do see opportunity that incremental orders would flow into the tune that we would be able to hit our lower band of the growth target.
Rohan Mehta: Got it. In terms of your renewables segment, renewables was 15% of rental revenue in FY26, which rose to 31% in Q1. For H1, that figure is at 20%. If you were to just calculate Q2, that comes to about 11% as per my calculation. I am trying to understand what is happening in the renewable segment in terms of the volatility of the mix. One reason maybe which I can think of is it because of the curtailment? Because curtailment is rising because transmission is not keeping pace with capacity. Essentially what I am trying to ask is, are your wind clients slowing new erection work because of this?
Himanshu Aggarwal: Not necessarily. Actually, in this Q2 specifically, the share of the power sector rose significantly for our equipment rental segment, primarily because the entire specialized services that we recorded, INR 17.03 crores, was in the power sector itself. A large chunk of our revenue from the power sector was there in Q2, which kind of gave a higher percentage to the power sector independently, while the renewable energy sector saw similar absolute numbers to the Q1. We have contracts in hand for Q3 and Q4, where we anticipate that with Q3 and Q4 numbers, the renewable energy numbers again would be on the higher side when we look at revenue distribution.
Rohan Mehta: Right. Just to follow up on that, in terms of renewables and power, the nature of the contracts, how are they? Are they long-term or short-term? I presume they are slightly longer term. In terms of the power sector, how sustainable do you think the order flow is for the power segment compared to the renewable?
Himanshu Aggarwal: Okay. Yes, on the duration of contracts, if I talk about specialized services, those are usually four to six-month contracts, whereas the equipment rental contracts in the power sector and renewable both are more on the long-term basis. When I say long-term, that is at least one year or longer. There we do not see any challenge, and the order flow from the power sector itself is also pretty decent because we are seeing a good activity with our capacity expansion, especially with a lot of these companies growing into the 3x800 MW power plants across various states in the country that we are noticing. There is a good order inflow from the power sector, specifically for the long-term equipment rental orders as well.
Rohan Mehta: Got it. Great. I will get back in the queue for more questions. Thank you.
Himanshu Aggarwal: Thank you.
Operator: Thank you. Next question is from the line of Niraj Shahji from Branch Business Ventures. Please go ahead.
[Analyst] (Branch Business Ventures): Hi. Firstly, I wanted to clarify a reply that you have given very recently to the previous participant, which is with regards to your current order book, that is not only to be executed within this financial year. It is your long-term order book, like your Adani contract is for 12 months or 15 months, and same way BHEL is for longer. So in order to meet your full year guidance, you will be getting much more orders, and that's the nature of your business, which is you don't get many long-term orders, but it goes as the demand from the customers happens. Is this understanding correct?
Himanshu Aggarwal: To clarify that, sir, thank you for the question. The recent update on NSE, I think you're referring to that.
[Analyst] (Branch Business Ventures): Yeah.
Himanshu Aggarwal: Those are long-term contracts. Out of those long-term contracts, only the portion that is executable in the current FY forms a part of the order book. The order book that we give out, as we talked about in the earlier answer as well, is the order book across both the segments, which is warehousing and transportation and equipment rentals, but executable within FY27. The INR 163 odd crores is executable in Q3 and Q4.
[Analyst] (Branch Business Ventures): Within the Okay. Then you need INR 26, 27 crores more of an order book to meet your lower end of your 20% guidance.
Himanshu Aggarwal: Right.
[Analyst] (Branch Business Ventures): My question is, while I am a bit surprised for a 20% guidance when you have front-loaded your CapEx in the H1 itself. I am also a bit surprised to have a lower end of your EBITDA margin, even after considering the Q1 result, because more revenue will be coming from your equipment hiring and project business, which are reasonably higher IRR project, and still we will not be able to meet 37% to 38% of EBITDA margin on a consolidated basis for the current financial year. Why? What is the reason? Has the rental yield actually come down compared to the last year?
Himanshu Aggarwal: To answer that question, the rental yield for the half year stood at 2.8 odd percent, and that is where we see that the number should sustain for the coming 2 quarters as well. To answer that, with regards to CapEx done already and reflecting in Q3 and Q4, the incremental revenue from just those 5 or 7, I do not have the exact numbers of the machines which are yet to bring in revenue from Q4, Q3, and Q4. The incremental revenue overall will not be able to jack up the EBITDA to that state, right? It is at about 33 odd percent. Getting 500 basis points of additional EBITDA out of just 5 or 6 equipment over a period of 6 months is not ideal, because otherwise the revenue earning would have to be significantly large for that to happen.
Himanshu Aggarwal: So that is why the guidance, or what would be company targets, is on the lines that I have stated.
[Analyst] (Branch Business Ventures): Okay. In your balance sheet, there is other financial liability. I guess these are vendors' credit for the equipment supplier, which you don't consider that as a debt for your debt-to-equity ratio.
Himanshu Aggarwal: That's correct. That understanding is correct.
[Analyst] (Branch Business Ventures): Okay. When you are saying that you have already reached close to the one-is-to-one debt-to-equity ratio, any further CapEx requirement depending on the need of the business will be then largely coming from if a vendor credit is available for that equipment.
Himanshu Aggarwal: Not necessarily, sir. It will be a combination going forward, like we've always been into margin plus.
[Analyst] (Branch Business Ventures): No, no. For the current financial year, not for the future one, for the current financial year. Because you said if there is an opportunity, we might still go ahead and do more CapEx, but then if you will do it, then you will breach your debt one-is-to-one debt-to-equity ratio.
Himanshu Aggarwal: Right. So that will always be there, that we'll be looking at opportunities considering all aspects and not just the opportunity that walks in. Considering all aspects, company will take a call and will factor in what the vendor credits, the banking limits, and other facilities that the company has in place, while also ensuring that those internal targets that we have set for ourselves. It is more of a ceiling set for ourselves to maintain a certain level of understanding as to how we take decisions, and if an opportunity does come in that requires for us to go higher than one for a short to pre-short period of time, because we're also paying back debt on a regular basis, on a yearly and quarterly basis. All those factors will be put into place before we go in for any new debt for this financial year itself.
[Analyst] (Branch Business Ventures): Understood. One last question is with regards to, can you give the guide, what will be the expected depreciation for the full year and expected interest cost?
Himanshu Aggarwal: Looking at where we stand as of September, we had about 30 odd crores of depreciation for the H1. Considering those numbers, it could be at about 60 to 62 odd crores of depreciation for the full year, if I extrapolate from here, because there is certain amount of depreciation for the equipment already purchased in the H1 that has also been factored into this. That is the number. With the interest cost, it stands at about INR 5.3 crores currently. Somewhere around INR 10.5 or up to INR 11 odd crores for the full financial year is what I could.
[Analyst] (Branch Business Ventures): Okay. Thank you.
Himanshu Aggarwal: Going by the current numbers, although I do not have the actual projections.
[Analyst] (Branch Business Ventures): Understood. Thank you.
Himanshu Aggarwal: Thank you, sir.
Operator: Thank you. Next question is from the line of Ishit from Forbes Family Office. Please go ahead.
[Analyst] (Forbes Family Office): Yeah. Thank you for the opportunity, Himanshu. First question, Himanshu, is on the equipment hiring and project side. I believe there were some specific issues for a particular specialized service project in last quarter, and then I can see that there is a negative EBITDA contribution in this quarter also. If you could help us understand, where do we stand in terms of that particular project? Are we through with that project particularly? What are the specific learnings for us from those kind of projects? I mean, how do we avoid such a situation in future? What are the internal steps we have taken for that?
Himanshu Aggarwal: All right. Thank you for the question, Ishit. On that specific project, the settlement with the client is still ongoing, and once that happens, that will reflect on the numbers as well going forward. We anticipate, given the timelines and the time it takes for such matters to be closed, it could be towards the end of Q4. By the end of Q4, we will be able to get the real picture onto the books with regards to that settlement. With regards to learnings and how we are safeguarding ourselves going forward, the first learning is that we have already put into place in subsequent contracts the variation clauses that will safeguard us from getting into a situation where such large variation of scope leads to these kinds of challenges.
Himanshu Aggarwal: The mobilization of resources has also been done in phased manners in subsequent projects to ensure that we do not face a similar situation. There are certain other internal safeguards that we have put into place, which I cannot disclose in the call, but which are ensuring that we take specific measures to ensure that we do not find ourselves in a situation where we over-mobilize or we over-anticipate the execution that has to be done by the client.
[Analyst] (Forbes Family Office): Understood, sir. Thank you. I shall try to assume that the Q2 numbers also have an impact of that particular project on the P&L side.
Himanshu Aggarwal: No. For Q2, not much of an impact from that project because that was primarily in the last quarter of the previous financial year and Q1. Q2, primarily, we saw that with the new project that we initiated, which was in Q2 itself, and monsoons playing the role that they do usually in the Q2, did not allow us for the required results that we were anticipating or we required to be generated with the kind of cost input that went into it. That is stabilizing already since October, but that impact has led to the lower EBITDA margin for specialized services in Q2 as well.
[Analyst] (Forbes Family Office): Understood, sir.
Himanshu Aggarwal: It has slightly improved from Q1, but still it is lower than what our targets are.
[Analyst] (Forbes Family Office): Understood. Sir, on the standalone equipment rental EBITDA margin, I believe we used to do around 60% to 62% margins, and for last couple of quarters, we have gone meaningfully down. Just to understand, I believe there are some upfront costs regarding mobilization of larger cranes and equipment, but we have done this kind of CapEx earlier and looked at larger machines. Moving forward, do you think we would be able to move back to that 61% to 62% margin, or we should factor in a new base which is in the current range right now?
Himanshu Aggarwal: Right. To answer that and to further clarify on that, one additional aspect to our standalone equipment rentals is there are also cases where we have equipment hired from our associate crane owners. Because there the ultimate EBITDAs are much lower compared to a standalone EBITDA of owned equipment. The reason to do so is certain contracts. We have large contracts where we have got large number of machines to be deployed, and all of the machines, even though owned by us, but still not available close to that project or not able to meet the timelines as defined by the client, we have to go for local sourcing and hiring. Those costs have also come into play.
Himanshu Aggarwal: But if I look at purely standalone equipment hiring of owned equipment, the EBITDA margins would still be in that 58% to 60% odd percent range that the company has traditionally been in. That remains as is. It is only overall the EBITDA margins have stabilized or have kind of been at this 56% to 57% range now because of the additional factor of the revenue coming in from these cross-hired or outside hired equipment as well.
[Analyst] (Forbes Family Office): Understood, sir. Understood. On the warehousing and transportation side, I wanted to understand, last quarter was almost a washout for us. Now here, what has contributed in terms of pullback of this business? I mean, has the Dankuni warehouse ramp-up contributed, or are we back on track in terms of the transportation contract? What is the contribution of both these segments in Q2? Moving forward, at full potential of Dankuni, I mean, what kind of run rate are we looking to achieve this business?
Himanshu Aggarwal: The ramp-up has primarily been because, as I mentioned in the opening remarks, the volumes have also increased, which has been because transportation has come back on track, which was the biggest challenge that we faced in Q1. In Q2, that is stabilized and back on track. The warehousing aspect also with all the warehouses combined, especially Dankuni and the others, the volumes we saw were much better in Q2 compared to Q1. That has helped to bring back this quarter to traditionally where we usually have been. Going forward also, we do see Dankuni doing. Traditionally, Q3 and Q4 steel volumes tend to be higher as well.
Himanshu Aggarwal: We do see going forward that we will be able to, this segment will be able to also support the targets that we have set for the year and push us through them accordingly.
[Analyst] (Forbes Family Office): Sure, thank you. Last question is on across the segments, how significant is the higher fuel cost factor in terms of lower EBITDA margin? I mean, across segments, is that a meaningful portion for us to consider if the fuel cost remain high?
Himanshu Aggarwal: So, to answer that, within our warehousing and transportation contracts, there are escalation clauses which cater to a good chunk of the rise in diesel prices on a quarterly or monthly basis, depending on the nature of contracts. So that necessarily, in that segment, there is not much of a challenge. We do not see much of a challenge with any specific rise in fuel cost. It can be nominal for a certain month or so, but overall, it regularizes with the escalation clause. And for the other segment, which is our equipment rentals, there primarily diesel is in the scope of the client. So, there the cost is not borne by us. In specialized services, the nature of contracts are such which are shorter in nature, and we have visibility of the diesel prices, which we factor in when we are quoting for those contracts.
Himanshu Aggarwal: There again, we do not see much of a challenge coming in with the fuel prices like we have seen in the past quarter or so.
[Analyst] (Forbes Family Office): Understood. Thank you so much, and wishing you good luck for the H2.
Himanshu Aggarwal: Thank you.
Operator: Thank you. Next question is from the line of Prashant Rishi from Cascade Capital. Please go ahead.
Prashant Rishi: Hi. Good afternoon, Himanshu. Considering that we have already crossed our CapEx guidance of INR 80 to 100 crores, we are sitting at INR 107 crores odd of CapEx that we have done in this year already. Is there any more CapEx that you see happening for the next H2?
Himanshu Aggarwal: Thank you for the question, sir. As of today, we do not have the clarity, or we have not had a plan on the CapEx, a firm plan on CapEx for the rest of the financial year. As I answered an earlier question as well, once we do have any firm order in hand where we feel the CapEx would make sense, considering all parameters, the same will be done and executed, because we would not want to let any opportunity go because of postponing any CapEx to the next FY. We can prepone certain CapEx in the current financial year, which we would have otherwise planned for the next financial year.
Prashant Rishi: Okay, perfect. Second question is, you mentioned that our EBITDA margins on the construction equipment hiring segment were lower partly as a result of hiring equipment from associate companies and then subleasing them, if you will, to the project guys. The rental yields have been soft over last two to three quarters. This time it was 2.9% or 2.8% versus 3.1%, which it used to be about three quarters back. Is it primarily a result of this, hiring the equipment and then instead of loaning it, the overall rental yields which are coming down, is it because of this?
Himanshu Aggarwal: No. One of the primary reasons, sir, for that would be that if you would look at our CapEx in this financial year as well, and towards the H2 of the last financial year also, we have been investing in larger machines which have a larger absolute value of cost of purchase. But the yields tend to be on the lower side compared to a smaller machine, while the absolute rentals are much higher. So, because we are talking about gross yields here, that metric that you see of 2.8% versus 3 odd percent earlier is changing because of that dynamic. And the stable situation we do see would be anywhere around the number that we are right now.
Prashant Rishi: Okay. All right. Understood. So, we can expect around 2.7%, 2.8% rental.
Himanshu Aggarwal: Right. Yeah, that, right.
Prashant Rishi: Okay. Considering that we are focusing on heavier equipment, and we will focus on those in the near future.
Himanshu Aggarwal: Absolutely.
Prashant Rishi: Okay. All right. One more question. You mentioned that specialized services revenue this quarter was INR 17 crores. What was the figure in Q1?
Himanshu Aggarwal: Q1, it was about INR 13.2 or INR 13.3 odd crores.
Prashant Rishi: INR 13.3 odd crores. So, in the H1, we are saying that core construction equipment rentals have given us around close to INR 78 odd crores.
Himanshu Aggarwal: That is correct, yes.
Prashant Rishi: of rental. Understood. Understood. One more question. What is the volume run rate that one can expect from the steel warehousing segment? What is the volume run rate we can expect going forward?
Himanshu Aggarwal: Yeah, usually we do see about 15% to 20% increase in volume in the H2, because the activity picks up significantly. That is where I would put that number with regards to volume of steel handle is what I understand you are asking for.
Prashant Rishi: Yeah.
Himanshu Aggarwal: That is where we would see that kind of uptake should be there in Q3 and Q4.
Prashant Rishi: Okay. All right. Thanks. Thank you.
Himanshu Aggarwal: Thank you for the questions.
Operator: Thank you. Next question is from the line of Manish Kela, an individual investor. Please go ahead.
[Analyst]: Hi, Himanshu. I have a couple of questions. One was, what is your current update pipeline? If I can get details on that.
Operator: I am sorry to interrupt you, Mr. Manish, but we are unable to hear you, sir. Your voice is sounding very.
[Analyst]: Audible now, ma'am?
Operator: Yes, please go ahead.
[Analyst]: Hello? Yeah. Himanshu, what is our current bid pipeline at this moment?
Himanshu Aggarwal: What is the current order pipeline?
[Analyst]: Yeah.
Himanshu Aggarwal: Is that the question?
[Analyst]: Yes.
Himanshu Aggarwal: Right. Thank you for the question, sir. The pipeline numbers, I will not be able to give out as such, because we have certain discussions ongoing with the clients at the advanced stages. But as I had answered an earlier question, we do have the visibility. If I talk about the current financial year itself, where we got executable order book of INR 163 odd crores in hand, and sufficient room and visibility to be able to reach our targets for the year with regards to the revenue growth that we are looking at.
[Analyst]: Okay. I was asking this question because on the previous occasions, we have given details on the bid pipeline. That was the intent. And second is, this INR 163 crore order book, right? You clarified that this is something which has to be executed within this year. So, what would be the consolidated order book, which has to be, say, executed over FY28 and so on?
Himanshu Aggarwal: Traditionally, we have not given out those numbers where we talk about order books of subsequent years. But we do, as we have been saying that we are focusing and targeting a 20% to 25% annual growth. That is based on certain pipeline as well as certain visibility that we have on the order books. And that is where I would be able to. Those are the details that I can give out as of now, but not the exact numbers on the years ahead.
[Analyst]: Got you. Got it. My second question is, are you also looking at any opportunities outside of India, especially, say, Middle East, wherein quite a few competitors of yours are looking at countries like Saudi, where there is so much of development happening. Just wanted to know your thoughts on that.
Himanshu Aggarwal: Okay. Yes, sir, thank you for the question again, but we are not focused on opportunities beyond India as of now, because we have sufficient bandwidth, we believe, to work on opportunities here. If something does come up and we do realize, we do feel that there is good opportunity to scale beyond the country, we will look at that. But at present, we are not looking at them.
[Analyst]: Okay. Thank you so much.
Himanshu Aggarwal: Thank you.
Operator: Thank you. Participants to ask a question, please press star and one. Next question is from the line of Rohan Mehta from FICOM Family Office. Please go ahead.
Rohan Mehta: Yeah. Thank you for the follow-up. My question is on specialized services. Please correct me if I am wrong anywhere. in Q4, you had guided FY27 to be upwards of INR 50 crores in revenue. in Q1, you had executed about another INR 13 crores. within that small itself, you had mentioned that another INR 50 crores is to be executed in FY27. So, which basically takes me near to close to INR 60 crores. Is that understanding correct?
Himanshu Aggarwal: Yes. Those are your numbers and the understanding is correct. We are looking at about anywhere between INR 55 to 60 odd crores of revenue from specialized services for the full financial year.
Rohan Mehta: Got it. My next question is slightly on the strategy side. While I believe the current specialized services margins would be in the range of 17% to 18% for the current year, what essentially needs to happen for this segment to start generating margins above 20%? Also, by when can we achieve them, given the capabilities you have been building over the last two in this segment?
Himanshu Aggarwal: Right. So, Mr. Rohan, for that to happen, we do see opportunity that it could, but still we, to be practically optimistic, we would say that 20% odd would be the metric where this kind of the services that we are in would stabilize at. Beyond 20% could be in certain cases we would be able to push for it, but it would not necessarily be sustainable. The opportunities here are primarily driven by our resources already owned by the company, and we are executing certain specialized services for our client as part of our bouquet of services beyond just rentals. We are targeting that we continue to push for this as a line of opportunity within the equipment rental segment, as it provides incremental revenues with already available resources as far as equipment are concerned.
Himanshu Aggarwal: That is where we continue to push towards ensuring that the margins, as you asked, beyond 20% odd. I do not see there being opportunities for us to get beyond 20% on a sustainable basis.
Rohan Mehta: Got it. In terms of your receivables, by when do you expect a big part of the collection to happen? Also, what is the status on RINL?
Himanshu Aggarwal: Right. A big part of the receivables that stand as of 30 September 2026 will naturally come into Q3 and Q4, where the kind of timelines that we are seeing, and usually we have seen also monsoons tend to also bring down the collections because of the kind of activity that hampers overall across our client sites. Those get better going forward. Visakhapatnam partial recovery has been done, and we have commitment on the balance towards in Q3 and Q4. We do see that the pending dues from RINL Visakhapatnam should be closed out by the end of this financial year as well.
Rohan Mehta: Right. And as a target receivable number of days, what is your target for this year?
Himanshu Aggarwal: Earlier, we did target 80. That remains our hard target. However, given the current state, the situation, we do see that 90 is realistically achievable by the end of this year, and we are looking to ensure that we do that.
Rohan Mehta: Got it. And just last question on your yields. Could you just break down what were your gross yields and net yields for this quarter, and what was it for last quarter?
Himanshu Aggarwal: We have not done the net yield numbers. I will have to get back to you on that. Just drop in a mail or something, and we will send out the details.
Rohan Mehta: Perfect. Great. Thank you so much for the opportunity, and wishing you all the best for the H2.
Himanshu Aggarwal: Thank you, Rahul. Thank you.
Operator: Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Himanshu Aggarwal for closing comments.
Himanshu Aggarwal: Thank you. So, we at Tara Chand always appreciate the opportunity to interact with all of you. Thank you once again for taking the time to be a part of our earnings call for Q2 and H1 FY27. I hope I have been able to do justice to your questions. Should you have any further questions, please do write to us, and we shall respond as best we can. We look forward to continuing this journey with you in the quarters and years ahead. Thank you once again.
Operator: Thank you. On behalf of Tara Chand Infralogistic Solutions Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.
