Tara Chand Infralogistic Solutions Ltd Management Discussions

Indian Economy Outlook Overview

The Indian economy, with its resilience and dynamic growth patterns, continues to be a focal point in the global economic landscape. As we progress through FY25, the outlook remains optimistic, bolstered by a series of structural reforms, robust macroeconomic fundamentals, and the governments commitment to driving economic growth. This annual report delves into the various facets of the

Indian Economy Outlook

India delivered steady growth in FY 2024-25, with real GDP expanding by 6.5% (nominal 9.8%), underscoring sustained domestic demand and a healthy services engine. Momentum held into Q4, which printed 7.4% real growth. Fiscal policy remains supportive, with the Union Budget 2025-26 earmarking 11.21 lakh crore (=3.1% of GDP) for central capital expenditure and an additional 1.5 lakh crore in long-tenor, interest-free support to states for capex, reinforcing multi-year infrastructure creation. Inflation stayed manageable and the external position remained comfortable, providing a constructive backdrop for private investment to revive through FY 2025-26.

Sectoral Analysis

Manufacturing and Industrial Growth

Industrial activity was mixed through the year: monthly prints were volatile, but the broader trend showed gradual improvement in manufacturing. The Index of Industrial Production (IIP) reported year-on-year gains in late FY25/early FY26 readings, led by manufacturing, even as certain use-based categories remained uneven- consistent with a normalization from the post-pandemic rebound. Purchasing Managers Index (PMI) readings also pointed to expansionary conditions into Q1 FY26. For capital goods suppliers and project-linked manufacturers, elevated public capex and pipeline ordering should sustain utilization and order inflows through FY 2025-26.

Services Sector

Services remained the principal growth engine. Survey evidence shows services activity stayed firmly in expansion territory through the end of FY25 and accelerated again in July 2025 (PMI 60.5 ), supported by finance, insurance and robust export orders. Services exports also held up well into mid-2025, cushioning the goods trade gap. This strength underpins revenue visibility for logistics, financial, professional, and technology-enabled services in FY 2025-26.

Agriculture

Agriculture navigated an uneven weather cycle but benefited from overall adequate rainfall in 2024 at an all- India level, alongside supportive procurement and input availability. The Second Advance Estimates (Mar 2025) projected foodgrain output at robust levels across kharif and rabi, with notable prints in soybean and groundnut; sugarcane output also remained high-helpful for allied agro-logistics and processing. Monitoring of 2025 monsoon progression indicates localized variability, reinforcing the need for irrigation, storage, and crop-diversification investments.

Infrastructure and Construction

Construction was a standout contributor in FY25, reflecting execution of transport, urban, and energy corridors. National accounts attribute 9.4% real growth to the construction sector in FY25; budgeted central capex plus state capex support, asset monetization plans, and power-grid augmentation programmes together suggest sustained multi-year demand for EPC, construction equipment, materials handling, and heavy-lift logistics. For companies serving steel, cement, petrochemical, and urban infra, this translates into healthy project pipelines and equipment utilization in FY 2025-26.

Renewable Energy

Indias clean-energy buildout accelerated: total installed renewable energy (RE) capacity reached ~220 GW by

March 31, 2025, with record annual additions and rising shares of solar and wind in the mix; by June 2025, RE accounted for nearly half of installed power capacity. Grid integration and storage remain priorities as coal still anchors generation, but policy signals and pipeline additions point to continued growth in RE-linked logistics, heavy lifts, and balance-of-plant services in FY 2025-26.

External Sector

Despite global headwinds, Indias current account deficit (CAD) was contained at 0.6% of GDP in FY 2024-25, aided by a sizeable services surplus and remittances. On trade, total exports (merchandise + services) were estimated at US$ 820.9 bn in FY25, a 5.5% rise over FY24, with merchandise exports broadly flat and services expanding. These trends, alongside resilient capital flows and adequate reserves, provide a stable external footing for investment and import-intensive infrastructure spends in FY 2025-26.

Employment and Workforce Development

Labour indicators show gradual improvement on a multiyear basis, though near-term monthly data flagged

pockets of stress. The PLFS Annual Report (Jul 2023- Jun 2024) recorded the all-India unemployment rate (usual status, 15+) at 3.2%, with rising female labour force participation. More recent monthly PLFS (CWS) prints showed unemployment at 5.6% in May-June 2025 amid heat-related disruptions, underscoring the need for continued skilling, manufacturing job creation, and urban services absorption. For industry, this translates into an emphasis on safety, upskilling of operators/riggers/ drivers, and technology-enabled productivity.

Challenges and Risks

Key watch-items for FY 2025-26 include: (i) global demand and tariff uncertainty, which could affect exports and imported input costs; (ii) execution bottlenecks in project clearances, land, and logistics nodes; (iii) energy transition frictions-integration of high RE shares while coal capacity still anchors baseload; (iv) weather variability impacting farm output and rural demand; and (v) tight financial conditions in select segments. The policy stance (capex thrust, power-sector reforms, and support to states) helps mitigate several of these risks, but managements should maintain conservative leverage, disciplined working-capital cycles, and diversified order books.

Conclusion

FY 2024-25 reaffirmed Indias structural growth momentum, powered by services resilience, accelerating infrastructure creation, and a step-up in renewable energy capacity. With a stable macro framework (contained CAD, supportive capex, and steady growth), FY 2025-26 opens with a constructive outlook for industries dependent on construction, heavy logistics, and energy-provided firms stay disciplined on execution, safety, and cash flows. For Tara Chand InfraLogistic Solutions Ltd., this environment translates into healthy demand visibility across steel, cement, petrochemical, urban infrastructure, railways and renewable energy value chains, with the companys focus on fleet productivity, project execution excellence, and risk management positioning it well for sustainable value creation.

Sources

• Ministry of Statistics & Programme Implementation (MoSPI): Provisional GDP Estimates FY 2024-25; Construction GVA growth; Q4 FY25 GDP. (Statistical Ministry, Press Information Bureau)

• Union Budget 2025-26: Capex outlays; support to states; reforms. (India Government Portal, India Budget)

• IIP and PMI trends: MoSPI IIP releases (June/July 2025); S&P Global/HSBC PMI updates. (Press Information Bureau, Statistical Ministry, PMI S&P Global, Reuters)

• External sector: RBI/PIB-CAD at 0.6% of GDP (FY25); Commerce/PIB-FY25 exports. (Reuters, Press Information Bureau)

• Agriculture: Second Advance Estimates of foodgrains/ oilseeds (Mar 2025); monsoon performance references. (Press Information Bureau, Desagri)

• Renewable energy: MNRE-RE capacity at ~220 GW as of Mar 31, 2025; market share updates into June 2025. (Press Information Bureau, Mercomindia.com)

• Labour market: PLFS Annual Report (Jul 2023-Jun 2024); PLFS Monthly Bulletins (May-June 2025). (Press Information Bureau)

Overview and Growth Outlook of the Construction Equipment Sector in India

Indias mining and construction equipment (MCE) cycle cooled in FY25 after two high-growth years: ICRA estimates volumes were broadly flat to slightly up (~3% YoY for 11M FY25) due to slower project awards during elections and a prolonged monsoon. Even so, the medium-term outlook remains stable, anchored by public capex, the renewal of highway and rail programs, and pre-buying around new emission norms. As execution normalizes in FY26 and beyond, demand should revive across earthmoving, material handling, and road machinery; rental penetration is also expected to deepen as contractors prefer asset- light models to manage cash flows. For Tara Chand InfraLogistic Solutions Ltd., this implies healthy utilization for cranes, lifting solutions and site logistics as deferred projects restart and fresh awards ramp up.

Equipment Rental Industry

Construction equipment rental in India continues to formalize and grow as contractors avoid heavy upfront capex, hedge technology/obsolescence risk, and focus on execution. Market researchers expect steady growth over the next five years (mid-single digit CAGR), supported by infrastructure and industrial capex, with large organized players benefiting from compliance, safety and uptime advantages. As pricing remains disciplined and fleet mix shifts toward higher-tonnage cranes and specialized equipment, scale players with strong maintenance and pan-India mobility should gain share. This favors our model of specialized services, heavy lifts, and project- based deployment across steel, cement, petrochemicals, renewables, and urban infrastructure.

Sectoral Overview and Outlook

1) Infrastructure

Public infrastructure stays the backbone of Indias capex cycle. The Union Budget 2025-26 provides 11.21 lakh crore of central capex and 1.5 lakh crore of 50- year interest-free loans to states, while a new asset- monetization plan targets recycling 10 lakh crore into fresh projects. Highways are set for renewed acceleration, with targets for large awards through FY26, and rail continues to see record budgetary support. Together, this points to sustained multiyear demand for EPC, heavy equipment, and logistics services.

2) Steel

India remains the worlds #2 steel producer and consumer, with policy-led infrastructure and manufacturing demand underpinning medium-term growth. Official trend reports project Indian steel demand to grow around 8.5% in 2025, while capacity continues to expand. For Tara Chand, this means continued movement of heavy coils, plates, and project cargo, plus lifting solutions for mill debottlenecking and expansions. (jpcindiansteel.nic.in, Steel Ministry)

3) Cement

Cement demand moderated in FY25 but is expected to improve in FY26, with agencies projecting single- to mid-single-digit growth as infrastructure and housing pipelines support volumes. Industry capacity remains large (India is #2 globally), with consolidation and efficiency capex ongoing; profitability will hinge on pricing discipline and fuel costs. Logistics needs for clinker, cement, and raw materials should remain steady with regional variations.

4) Railways

Indian Railways is in an expansion and modernization phase. The Union Budget 2025-26 provides 2.52 lakh crore of gross budgetary support for the second consecutive year, alongside announcements such as 200 new Vande Bharat trains. Medium-term planning via the National Rail Plan and allied policy work envisages capacity additions, freight competitiveness, and safety upgrades-benefiting contractors, fabrication, OHE works, and heavy-lift logistics for bridges, stations, and corridor packages.

5) Power

Electricity demand and peak load have risen sharply in recent years; analyses note peaks above 230 GW in May 2025 (after a 250 GW record in 2024) and continued growth ahead. Planning studies foresee a much larger system by 2029-30 with a rising non-fossil share, implying sustained investments in generation, transmission, storage and grid modernization. This supports long-cycle demand for heavy logistics, erection, and balance-of-plant services.

6) Renewable Energy

India added a record ~29.5 GW of renewables in FY25, taking total installed RE capacity to about 220 GW as of March 31, 2025; by mid-2025, renewables contributed roughly the high-40s percent of installed power capacity. The near-term pipeline remains strong (utility-scale solar, wind repowering, hybrids, and PSPs), creating continued need for heavy lifts (turbines), specialized transport (blades, nacelles, transformers), and site services.

7) Oil & Gas Refining

Indias refining system, among the worlds largest, now exceeds 250 MMTPA of capacity and is a major products exporter. PPAC data shows continued throughput and consumption growth alongside periodic maintenance/upgrade cycles and brownfield expansions. For logistics, this translates into steady demand for over-dimensional cargo movement, turnarounds, and debottlenecking projects across refineries and petrochemical complexes.

8) Metals & Minerals

After record output in FY25, early FY26 data shows mineral production holding up; iron ore production reached ~289 MMT in FY25, and policy attention is intensifying on critical minerals to de-risk supply chains. Expanding mining, beneficiation, and materials handling will support sustained demand for bulk logistics, mine-site equipment, and maintenance services.

9) Residential and Commercial Real Estate

Residential sales remained strong on a multi-year view·4.59 lakh units in 2024 across top cities-even as momentum rotated toward premium housing and select micro-markets saw affordability pressures. Commercial office rebounded sharply: H1-2025 saw record absorption and new supply, led by GCCs and large domestic corporates, with multiple trackers reporting all-time-high January-June leasing. This keeps demand healthy for urban infrastructure works, building materials logistics, and fit-out-linked services.

Notes on Sources

• Infrastructure/capex: Govt. portals and press releases on Union Budget 2025-26 and state-support schemes. (India Government Portal, Press Information Bureau)

• Construction equipment/MCE: ICRA research on FY25 trends and outlook. (ICRA Limited)

• Steel: Joint Plant Committee/Ministry of Steel trend reports and annual report. (jpcindiansteel.nic.in, Steel Ministry)

• Cement: India Ratings sector outlook; industry body overview. (India Ratings, BusinessWorld, CMA India)

• Railways: PIB on Gross Budgetary Support;

independent budget analyses. (Press Information Bureau, PRS Legislative Research)

• Power/Renewables: MNRE capacity update; market trackers on RE share; demand/peak studies. (Press Information Bureau, Mercomindia.com, IEEFA)

• Oil & Gas: PIB overview of refining capacity; PPAC monthly "Snapshot". (Press Information Bureau, Petroleum Planning & Analysis Cell)

• Metals & Minerals: Ministry of Mines press release on production. (Press Information Bureau)

• Real Estate: ANAROCK residential annual update;

CBRE/Knight Frank office market H1-2025. (Website Media, CBRE, Knight Frank)

Company Overview

Tara Chand InfraLogistic Solutions Ltd. is a diversified logistics and infrastructure solutions provider serving a wide spectrum of industries, including steel, cement, petrochemicals, urban infrastructure, railways, power, renewable energy, and oil & gas. As a listed company with a strong national presence, we specialize in end-to- end heavy-lift logistics, construction equipment rentals, warehousing, and project cargo handling. Our fleet comprises a wide range of advanced lifting, hauling, and construction machinery, enabling us to execute complex projects with high precision and efficiency. With a customer-centric approach and emphasis on operational excellence, the Company has consistently built long-term relationships with leading public and private sector clients. In FY 2024-25, we continued to enhance our capabilities through targeted capital expenditure, technology integration, and workforce skill development, positioning ourselves for sustainable growth in a competitive market.

Opportunities

Indias infrastructure push, supported by record government capital expenditure and private sector investments, provides a strong demand pipeline for specialized logistics and equipment rental services. Expansion in renewable energy, modernization of railways, large-scale steel capacity additions, and continued urban development offer multi-year growth prospects. Increasing adoption of the rental model for construction and lifting equipment presents an opportunity to expand our market share, while advancements in digital fleet management, safety systems, and predictive maintenance allow us to deliver higher uptime and cost efficiency to clients. The Company is also well placed to serve emerging opportunities in critical minerals handling, port connectivity, and specialized logistics for high-value industrial components.

Threats

Our business operates in a competitive and cyclical industry where demand can be influenced by policy changes, economic slowdowns, or delays in project execution. Aggressive pricing by unorganized players in the equipment rental segment and volatility in fuel and operational costs can impact margins. Additionally, global trade disruptions, foreign exchange volatility, and shifts in import/export policy may affect project timelines and equipment procurement. Weather disruptions, particularly prolonged monsoons or extreme heat, can also delay onground execution.

Risks and Concerns

While the Company remains confident in its growth trajectory, certain risks require constant monitoring and proactive mitigation:

• Project Execution Delays: Regulatory clearances, land acquisition issues, and client-side delays can defer revenue realization.

• Economic Cyclicality: Slowdown in infrastructure spending or private capex can temporarily impact demand.

• Cost Volatility: Fluctuations in diesel prices, spare parts, and imported equipment costs can affect profitability.

• Competitive Pressure: Price undercutting by smaller, unorganized players may impact margins in certain geographies.

• Safety and Compliance Risks: Operational hazards in heavy-lift and construction environments require continuous training and strict adherence to safety norms.

• Weather-Related Disruptions: Seasonal and climate- related factors can delay execution schedules, particularly in monsoon-heavy regions.

Internal Controls and their Adequacy

The Company has established a robust system of internal controls designed to safeguard assets, ensure accuracy and reliability of financial reporting, and maintain compliance with applicable laws and regulations. These controls encompass well-defined policies, delegated authority matrices, and regular internal audits carried out by independent teams. The Audit Committee of the Board reviews internal audit findings and monitors the implementation of corrective actions. Digital tools for fleet tracking, preventive maintenance scheduling, and cost monitoring are integrated into operational processes, providing real-time oversight. Periodic training for operational and finance teams ensures adherence to standard operating procedures. Management believes that the internal control framework is commensurate with the scale and complexity of the Companys operations and adequate to address current business risks.

Financial Performance Review

During the year under review, total revenue from operations including the other income was Rs. 25404.92 Lakhs against Rs. 17485.56 Lakhs in the previous year. The company has earned net profit of Rs.2485.72 Lakhs in the preceding FY. 2024-25 against Rs. 1613.29 Lakhs in FY2023-24.

Key Financial Retios:

Note 1: Debtors Turnover Ratio improved by 38.81%

I In the Financial Year 2024-25, the company continued its conscious shift away from its heavy concentration in the infrastructure projects to distribute its revenue from the equipment rental segment in the sectors of steel, cement and petrochemicals. The shift in revenue mix coupled with better controls on receivables and adherence to credit guidelines have led to a drastic improvement in the debtors turnover of the company

Note 2: Interest Coverage Ratio improved by 38.37%

The company achieved its best ever revenues and profitability in FY25 while maintaining finance costs below the industry average, which has led to a phenomenal increase in its interest coverage ratio.

Material Developments in Human Relations / Industrial Relations

During FY 2024-25, the Company continued to strengthen its human capital by focusing on employee engagement, safety, and skill enhancement. With operations spread across multiple locations and project sites, we placed special emphasis on standardizing work practices, improving communication channels, and fostering a culture of accountability. Structured training programmes were conducted for crane operators, riggers, drivers, and project supervisors to enhance technical proficiency and reinforce safety protocols. The Company also expanded its leadership development initiatives to groom high-potential employees for future managerial roles. Industrial relations remained cordial throughout the year, with proactive engagement between management and workforce representatives ensuring prompt resolution of issues. We maintained full compliance with applicable labour laws and statutory requirements, resulting in a stable and productive work environment that supported uninterrupted operations across all sites.

Risk Management and Governance

The Company has a well-defined risk management

framework integrated into its strategic and operational planning. Risks are identified, assessed, and monitored across categories such as operational, financial, compliance, environmental, and reputational. Each business unit is responsible for implementing mitigation strategies, while the Board and its committees provide oversight. The framework also includes contingency planning for project execution delays, cost escalations, and disruptions arising from geopolitical or macroeconomic events. On governance, the Company adheres to the highest standards of corporate conduct, ensuring transparency, fairness, and accountability in all dealings. Our governance structure includes a professional Board with a balanced mix of executive and independent directors, supported by committees such as Audit, Nomination & Remuneration, and Stakeholders Relationship Committees. Regular policy reviews, internal audits, and compliance monitoring ensure adherence to statutory requirements and best practices. The combined focus on risk management and governance enables the Company to navigate uncertainties effectively while safeguarding stakeholder interests and driving sustainable growth.

Cautionary statement

The statements made in the Management Discussion and Analysis describing the Companys objectives, projections, estimates, expectations may be "forward-looking statements" within the meaning of applicable securities laws & regulations. Actual results could differ from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand, supply and price conditions in the domestic & overseas markets in which the Company operates, changes in the government regulations, tax laws & other statutes & other incidental factors. The Company assumes no obligation to revise or update any forwardlooking statements whether as a result of new information, future events or otherwise.