TARA CHAND INFRALOGISTIC SOLUTIONS Q2 CONCALL: EXPECTS 20% FY27 REVENUE GROWTH & 35% EBITDA MARGIN; ₹163.7 CR ORDER BOOK, ₹106.6 CR H1 CAPEX, ₹55–60 CR SPECIALIZED SERVICES REVENUE TARGET & 90-DAY RECEIVABLES TARGET BY FY27-END

• FY27 Revenue Growth Guidance: Management expects revenue growth near the lower end of its earlier 20–25% target, indicating approximately 20% growth for FY27. • FY27 EBITDA Margin Guidance: Management expects consolidated EBITDA margins of approximately 35%, below its earlier higher-margin expectations due to weaker Q1 performance and specialized project execution challenges. • H2 FY27 Revenue Outlook: Management expects stronger revenue generation during H2, supported by improved equipment deployment, specialized services execution and higher steel handling volumes. • H2 Revenue Seasonality: Management indicated that Q3 and Q4 historically contribute approximately 60% of annual revenue. • H2 EBITDA Margin Outlook: Management expects margins to improve as newly acquired equipment begins generating revenue and specialized services profitability normalizes. • FY27 Guidance Confidence: Management expressed confidence in achieving approximately 20% annual growth based on the executable order book, existing contracts and additional business opportunities. • Medium-Term Revenue Growth Outlook: Management continues targeting approximately 20–25% annual growth, supported by construction equipment rentals and specialized services. • FY27 Specialized Services Revenue Guidance: Management expects approximately ₹55–60 Cr of revenue from specialized services during FY27. • Specialized Services EBITDA Margin Outlook: Management expects specialized services margins to stabilize around 20% over time. • Specialized Services Margin Sustainability: Management indicated that margins above 20% may be achievable on selected projects but are unlikely to be sustainable across the overall business. • Equipment Rental EBITDA Margin Outlook: Management indicated that owned equipment rental operations can sustain EBITDA margins of approximately 58–60%. • Blended Equipment Rental Margin: Including externally hired equipment, the rental business is operating at approximately 55–57% EBITDA margins. • Rental Margin Recovery: Management expects deployment of newly purchased machinery and improved operating efficiency to support rental profitability during H2. • FY27 Rental Yield Outlook: Management expects gross monthly equipment rental yields to stabilize around 2.7–2.8%, compared with approximately 3% in earlier periods. • Rental Yield Explanation: The increasing contribution of larger and more expensive cranes has reduced percentage rental yields despite generating higher absolute rental income. • FY27 Capex: Company invested ₹106.6 Cr in equipment during H1 FY27, exceeding its earlier full-year capex plan of ₹80–100 Cr. • Capex Strategy: Management brought forward equipment purchases after securing demand visibility and customer commitments in the power and renewable energy sectors. • H2 FY27 Capex Outlook: Management has not announced a firm additional capex plan for H2 and will evaluate new purchases based on confirmed orders and financing capacity. • Future Capex Funding: Management may use internal accruals, bank financing and equipment vendor credit for additional machinery investments. • Additional Capex Conditions: Management intends to prioritize machinery purchases backed by customer commitments rather than undertake speculative fleet expansion. • New Equipment Additions: Company acquired nine machines during H1 FY27. • High-Tonnage Crane Additions: Major purchases included two 900-ton crawler cranes, two 800-ton crawler cranes, a 700-ton all-terrain crane and a 500-ton crawler crane. • New Fleet Deployment: Management expects most newly purchased machines to be commissioned and deployed during Q3 FY27. • New Equipment Contracts: Management confirmed that customer contracts are already secured for the newly acquired machines, although some deployments await site readiness. • New Equipment Revenue Contribution: Management expects the additional cranes to contribute incrementally during Q3 and Q4 FY27. • Equipment Fleet: Company's fleet stood at 436 machines as of September 2026. • Equipment Gross Block: The fleet's gross block stood at approximately ₹662 Cr. • Equipment Utilization: Management reported approximately 82% fleet utilization during H1 FY27. • Equipment Rental Yield: Average gross monthly rental yield stood at approximately 2.83% during H1 FY27. • Equipment Rental Strategy: Company is expanding its high-tonnage crane fleet to participate in large power, renewable energy and industrial construction projects. • Equipment Differentiation: Management highlighted 900-ton cranes, 68-meter aerial platforms and specialized equipment as differentiating capabilities. • Equipment Sourcing Model: Management occasionally hires cranes from associate operators when its own fleet cannot meet project location or deployment requirements. • Cross-Hired Equipment Margins: Externally hired equipment generates lower EBITDA margins than owned machinery and has affected the blended rental profitability. • Order Book: Executable order book stood at approximately ₹163.7 Cr as of October 2026. • Order Book Execution Timeline: Management clarified that the ₹163.7 Cr order book represents business executable within the remaining part of FY27. • Order Book Composition: Equipment Hiring and Projects account for approximately 74% of the executable order book. • Warehousing Order Book: Warehousing and Transportation account for approximately 26% of the executable order book. • Additional Order Requirement: Management expects incremental contracts during H2 to bridge the remaining revenue needed for its full-year growth target. • Order Pipeline Disclosure: Management did not disclose a numerical value for its broader bid pipeline, citing ongoing advanced customer discussions. • Order Book Beyond FY27: Management did not disclose the value of contracts executable in FY28 and later years. • Power Sector Outlook: Management expects sustained demand for high-tonnage cranes from new thermal power capacity and industrial infrastructure projects. • Power Project Opportunities: Management highlighted activity around 3 × 800 MW thermal power projects across multiple Indian states. • Renewable Energy Outlook: Management expects renewable equipment rental revenue to increase during Q3 and Q4 as contracted machinery is deployed. • Renewable Revenue Mix: Renewable energy contributed approximately 20% of equipment rental revenue during H1 FY27. • Power & Renewable Contribution: Conventional power and renewable energy together accounted for approximately 53% of equipment rental revenue during H1. • Renewable Revenue Fluctuation: Management clarified that the lower renewable revenue share in Q2 reflected increased power-sector contribution rather than a material slowdown in renewable demand. • Specialized Services Revenue Mix: Q2 specialized services revenue came entirely from power-sector projects. • Equipment Rental Contract Tenure: Power and renewable equipment rental contracts generally extend for one year or longer. • Specialized Services Contract Tenure: Specialized services projects generally have execution periods of approximately four to six months. • Specialized Services Q2 Revenue: Revenue stood at approximately ₹17.03 Cr, compared with approximately ₹13.2–13.3 Cr in Q1. • Specialized Services Q2 EBITDA Margin: Margin stood at approximately 12%, affected by heavy monsoon conditions and lower project output. • Specialized Services Recovery: Management indicated that execution efficiency at the newer project began improving in October 2026. • Previous Specialized Project Settlement: Management is negotiating settlement with a customer over a project affected by changes in scope and mobilization requirements. • Settlement Timeline: Management expects greater clarity on the pending project settlement toward Q4 FY27-end. • Specialized Services Risk Management: Company has introduced contractual variation clauses to address changes in project scope. • Project Mobilization Strategy: Management is implementing phased mobilization of equipment and manpower to reduce the risk of excessive upfront resource deployment. • Specialized Services Expansion: Management intends to grow the segment by using its existing equipment fleet to provide additional project execution services. • EPC Business Strategy: Management does not intend to pursue conventional EPC contracts that fail to meet its profitability and return requirements. • Warehousing & Transportation Outlook: Management expects continued recovery during H2, supported by improved transportation execution and higher steel handling volumes. • H2 Steel Volume Guidance: Management expects steel handling volumes to increase approximately 15–20% during H2, reflecting historical seasonal demand. • Warehousing Q2 Recovery: The segment returned to profitability after operational disruptions during Q1. • Warehousing & Transportation Q2 Revenue: Revenue stood at approximately ₹23.3 Cr, up 24% QoQ. • Warehousing & Transportation Q2 Margin: Segment EBITDA margin recovered to approximately 16% from a marginal loss in Q1. • Warehousing Revenue YoY: Segment revenue declined approximately 15% YoY, partly due to the conclusion of the RINL Visakhapatnam contract. • Steel Handling Volume: Management reported approximately 1.95 million metric tonnes handled during Q2 FY27. • Dankuni Stockyard Ramp-Up: Management expects the new Dankuni stockyard operations in West Bengal to contribute more significantly as utilization improves. • Transportation Business Recovery: Management indicated that transportation operations recovered during Q2 after execution challenges in Q1. • Warehousing Growth Drivers: Management expects higher handling volumes from existing facilities and the Dankuni contract during Q3 and Q4. • RINL Visakhapatnam Dues: Management confirmed that part of the outstanding payments has been recovered. • RINL Payment Recovery Timeline: Management expects the remaining RINL Visakhapatnam receivables to be collected by FY27-end. • Fuel Cost Protection: Warehousing and transportation contracts contain fuel escalation provisions that help offset diesel price increases. • Equipment Rental Fuel Costs: Management indicated that diesel expenses for equipment rental contracts are generally borne by customers. • Specialized Services Fuel Costs: Shorter project tenures allow management to incorporate expected diesel costs into contract pricing. • Processing & Distribution Strategy: Company is consciously reducing exposure to the lower-priority Processing and Distribution business. • Processing & Distribution Contribution: The segment contributed only approximately 0.2% of H1 FY27 revenue. • Working Capital Target: Management continues to target approximately 80 receivable days over time. • FY27-End Receivable Guidance: Management now considers approximately 90 receivable days a realistic target by March 2027. • Current Receivable Cycle: Receivables stood slightly above 100 days as of September 2026. • Receivable Collection Outlook: Management expects improvement in collections during Q3 and Q4 as customer project activity normalizes after the monsoon. • Renewable Sector Receivables: Management indicated that collection periods from certain renewable energy customers have lengthened. • Working Capital Strategy: Management is working with customers to improve payment timelines and reduce cash tied up in receivables. • Leverage Target: Management intends to maintain net debt-to-equity around or below 1x as an internal financial discipline benchmark. • Leverage Flexibility: Management indicated that a temporary increase above 1x could be considered for an attractive confirmed opportunity after evaluating repayment capacity and available financing. • Vendor Credit Treatment: Management clarified that certain equipment supplier financing is classified under other financial liabilities rather than included in its stated debt-to-equity calculation. • Borrowing Cost: Average annualized cost of borrowing stood at approximately 6.26%. • FY27 Depreciation Estimate: Management indicated full-year depreciation could be approximately ₹60–62 Cr based on the H1 run rate. • FY27 Interest Cost Estimate: Management indicated interest expenses could be approximately ₹10.5–11 Cr for FY27, based on the prevailing financing structure. • Net Worth: Company's net worth stood at approximately ₹158 Cr as of September 2026. • H1 Operating Cash Flow: Net cash generated from operating activities stood at approximately ₹30.3 Cr, below the previous-year period due primarily to working capital requirements. • Q2 Revenue from Operations: Revenue increased approximately 27% YoY and 23% QoQ to ₹83.11 Cr. • Q2 Total Revenue: Total revenue increased approximately 25% YoY to ₹84.03 Cr. • Q2 EBITDA: EBITDA increased approximately 11% YoY to ₹29.16 Cr. • Q2 EBITDA Margin: Margin stood at approximately 34.7%, improving around 400 bps QoQ but remaining below approximately 39% in Q2 FY26. • Q2 Net Profit: PAT increased approximately 21% YoY to ₹9.05 Cr, the company's highest quarterly profit at the time of the call. • Q2 PAT Margin: Margin stood at approximately 11%. • Q2 Cash PAT: Cash PAT increased approximately 8% YoY to ₹23.3 Cr. • Q2 Earnings Per Share: EPS increased to ₹1.15 from ₹0.95 YoY. • Q2 Equipment Hiring & Projects Revenue: Segment revenue increased approximately 57% YoY to ₹59.55 Cr. • Q2 Equipment Hiring & Projects EBITDA Margin: Reported segment margin, including specialized services, stood at approximately 44%. • Q2 Standalone Equipment Rental EBITDA Margin: Equipment rental margin stood at approximately 55%. • H1 Revenue from Operations: Revenue increased approximately 19% YoY to ₹150.74 Cr. • H1 Total Revenue: Total revenue increased approximately 18% YoY to ₹152.46 Cr. • H1 EBITDA: EBITDA stood at approximately ₹50.18 Cr, marginally above the previous-year period. • H1 EBITDA Margin: Margin stood at approximately 32.9%. • H1 Cash PAT: Cash PAT stood at approximately ₹40.9 Cr. • H1 Equipment Hiring & Projects Revenue: Segment revenue increased approximately 56% YoY to ₹108.43 Cr. • H1 Standalone Equipment Rental EBITDA Margin: Rental EBITDA margin stood at approximately 56%. • H1 Revenue Mix: Equipment Hiring and Projects contributed approximately 72%, while Warehousing and Transportation contributed approximately 28%. • International Expansion: Management confirmed that it is currently focused on domestic opportunities and is not actively pursuing overseas expansion. • Key Challenges: Working capital pressure from renewable energy customers, specialized project execution risks, lower blended rental yields from high-value cranes, seasonal monsoon disruptions, debt discipline and timely deployment of newly acquired equipment remain important factors.

TARA CHAND INFRA SOLN LTD

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