Tara Chand Infralogistic Solutions Ltd Management Discussions

Compounding describes what FY26 is. Forty-fiveyears of operating discipline created the foundation; the inputs we have deployed across FY25 and FY26 (Rs. 290 Crore of capital expenditure, 127 new machines, three new growth sectors, a wholly-owned subsidiary, broader institutional ownership) are now beginning to compound. This Report sets out how, and what we expect to follow.

Basis of Preparation: This Management Discussion and Analysis Report has been prepared on a Standalone basis. The Companys wholly-owned subsidiary, Tarachand Metallix Limited (incorporated 6 January 2026), was in pre-operational stage as at 31 March 2026, with total assets of Rs. 23.5 Lakhs and a net loss of Rs. 1.79 Lakhs. Consolidated financial position is therefore materially identical to Standalone for FY26; comparison data is on a Standalone basis since the Company had no subsidiary prior to FY26.

1. Business Overview

Tara Chand InfraLogistic Solutions Limited (the Company or TCISL) is a four decades old integrated infrastructure-logistics platform serving Indias heavy industry, capital projects and steel supply chain. The Company operates across four business segments through the standalone entity and one wholly-owned subsidiary, Tarachand Metallix Limited, incorporated during FY26.

Equipment Hiring & Projects is the largest segment, contributing 60% of revenue in FY26

(FY25: 56%). The Company deploys a fleet of 427 machines (FY25: 368), including all-terrain and crawler cranes up to 900 MT, hydraulic piling rigs, aerial working platforms up to 68 metres, trailers, pullers and concrete equipment, on long-tenure rental and turnkey infrastructure execution contracts. The Company is, to its knowledge, the only private operator in India owning and deploying Rubber Tyre Gantry (RTG) cranes and the tallest aerial working platforms in the country.

Warehousing & Transportation contributed 37% of revenue. The Company operates five steel stockyards, manages over 11.56 million metric tonnes of steel handling annually, and serves the long-term stockyard, central despatch and rake movement requirements of Steel Authority of India Limited (SAIL), Rashtriya Ispat Nigam Limited (RINL) and other large steel producers. demand for heavy-tonnage

Steel Processing & Distribution contributed 3% of revenue and provides cut-to-size steel solutions to existing end-use clients.

Tarachand Metallix Limited (Wholly Owned Subsidiary) was incorporated on 6 January 2026 with initial capital of Rs. 25 Lakhs, to develop a metal processing and manufacturing platform focused on high frequency beams, fabrication and value-added metal solutions. This represents the

Companys first forward-integrated step beyond logistics and rental services.

The Company is headquartered in Chandigarh, with corporate office in Navi Mumbai and operations across 21 States and Union Territories of India. The Company migrated from NSE Emerge (SME platform) to the NSE Main Board on 16 April

2024, making FY26 the first full financial year as a

Main Board listed entity.

2. Industry Structure and Developments

2.1 Macro-economic backdrop

Indias real GDP is estimated to have grown at 6.5-7.0% in FY26, supported by sustained domestic demand, public capital expenditure and the early-stage acceleration of private capex. The Union Budget for FY26 retained the multi-year infrastructure-led growth strategy, with Rs. 11.21 Lakh Crore allocated to central capital expenditure and an additional Rs. 1.5 Lakh Crore long-tenure interest-free loans to State governments for infrastructure development. The PM Gati Shakti National Master Plan, the National Infrastructure Pipeline and the multimodal logistics park (MMLP) framework provide a multi-year tailwind for the sectors in which the Company operates.

2.2 Construction equipment rental and heavy lifting

The Indian construction equipment market continued to expand in FY26, with structural growth drivers (sustained public infra spend, accelerating renewable energy capacity addition, brownfield expansion in cement and steel, refinery modernisation, and the Mumbai-Ahmedabad High Speed Rail and metro rail projects) translating into piling rigs firm and aerial working platforms.

Three structural shifts are reshaping the industry:

• Rental over ownership: End-use clients are increasingly opting to hire specialised equipment rather than own it, on grounds of capital efficiency, faster project mobilisation, and avoidance of maintenance and operator-cost overheads. This favours organised, large-fleet players such as the Company.

Formalisation and safety differentiation: Public-sector clients and large private clients are increasingly insisting on safety compliance, trained operator certification, equipment age limits and audit trails. This raises entry barriers for unorganised players and consolidates demand toward organised rental operators with structured HSE systems.

• Specialised high-capacity equipment: Demand for cranes above 500 MT, advanced piling rigs and high-reach aerial platforms is rising disproportionately on the back of renewable energy projects (wind tower erection), refinery shutdowns, metro rail viaduct construction and high-speed rail. The Companys investment in 800 MT and 900 MT cranes and the 68-metre aerial working platform positions it in this premium segment.

2.3 Steel logistics and warehousing

Indian steel demand is projected to grow at approximately 8-9% in calendar year 2026, underpinned by public infrastructure construction, residential and commercial real estate, and downstream manufacturing. Brownfield and greenfield capacity additions across SAIL, RINL,

Tata Steel, JSW Steel, AM/NS and JSPL create sustained, multi-year demand for steel handling, stockyard operations, central despatch yard management and inbound/outbound logistics. The Companys four-decade institutional relationship with SAIL and RINL, combined with its ownership of specialised equipment (RTG cranes, magnet attachments), gives it a defensible position in this segment.

2.4 Renewable energy — emerging high-growth vertical Renewable energy capacity additions exceeded 28 GW in calendar 2025, with the pipeline indicating continued acceleration into FY27 and beyond. The Governments target of 500 GW of installed non-fossil capacity by 2030 implies sustained, multi-year demand for heavy-lift cranes deployed in wind tower erection, solar EPC, energy storage and transmission balance-of-plant. The Companys exposure to this vertical has expanded from approximately 5% of equipment rental revenue in FY25 to 15% in FY26.

The compounding logic at the industry level: each capex deployment by our end-use clients creates rental demand of multi-year duration, which is met by patient, asset-heavy operators. The Companys fleet, built across four decades and accelerated through the FY25 and FY26 investment cycle, is now positioned at the centre of that compounding demand.

3. Opportunities and Threats 3.1 Opportunities

• Sustained infrastructure capex visibility: Central and State capex commitments for FY26 and beyond create a multi-year demand environment for the Companys core service lines.

• Renewable energy acceleration: The Companys installed capability, particularly its 800 MT and 900 MT cranes, is well suited to wind tower erection and large solar balance-of-plant requirements. This vertical is positioned to compound from its current 15% share of equipment rental revenue.

Refinery capex cycle: Indias refining capacity expansion plans imply sustained shutdown, expansion and turnaround work across the planning horizon, where the Company has demonstrated capability (notably the Guru Gobind Singh Refinery turnaround executed with 19 cranes).

• Steel capacity expansion: Domestic steel capacity is expected to expand significantly under the

National Steel Policy. The Companys incumbency in SAIL and RINL stockyards positions it well to participate in scope expansion as new capacity comes on stream.

Operating leverage on existing fleet: Rs. 290

Crore of capex deployed across FY25 and FY26 will continue to deliver incremental revenue with limited additional fixed cost, expanding operating margins as utilisation matures.

• Forward integration into manufacturing: Tarachand Metallix Limited provides an optional growth path into value-added metal processing, leveraging the existing client network.

3.2 Threats and Concerns

• Project execution timing risk: Public capex deployment, while structurally robust, is subject to cyclical timing risk arising from electoral cycles, monsoon and statutory approvals. FY26 revenue grew at 14.9%, below the Companys medium-term band of 20-25%, partly on account of project execution deferrals into Q1 FY27.

• Working capital sensitivity: Receivable days extended in FY26 (further discussed in Section 7). Sustained acceleration in receivable cycles could pressure operating cash flow.

• Equipment price volatility: A meaningful portion of fleet additions are sourced from international suppliers (predominantly China). Currency depreciation, customs duties or supply disruptions could affect the acquisition cost of new equipment.

• Competitive intensity in commoditised tonnage: Below 200 MT crane segment is competitive. The Company has consciously deprioritised this segment in favour of specialised, high-tonnage and high-reach equipment where pricing discipline is stronger.

• Interest rate environment: Capex-intensive business models are sensitive to interest costs. The Company maintains a long-term banking relationship and disciplined leverage stance, but a sustained rise in interest rates would compress capex returns.

4. Strategic Priorities — Scale. Specialise. Sustain.

The Companys medium-term strategic framework rests on three pillars articulated to investors in the Q4 FY26 results communication.

4.1 Scale — Fleet and Capex Expansion

Rs. 290 Crore of cumulative capital expenditure has been deployed across FY25 (Rs. 145 Cr) and FY26 (Rs. 143 Cr), the largest two-year investment cycle in the Companys history. Fleet size has expanded from 300 machines at the end of FY24 to 427 at the end of FY26, a 42% increase in two years. FY27 capex is planned at Rs. 80-100 Crore, calibrated to client demand visibility and order book pipeline, rather than open-ended expansion.

4.2 Specialise High-tonnage and High-reach Leadership

Capital deployment has been concentrated in equipment categories where supply is constrained and pricing discipline is stronger. FY26 additions included a 900 MT all-terrain crane (the largest in the Companys fleet and among the largest in

India), two 800 MT crawler cranes, additional aerial working platforms, hydraulic piling rigs and heavy modular transport equipment. The Company is the only private operator in India deploying RTG cranes for steel logistics and continues to operate aerial working platforms at 68 metres.

4.3 Sustain Specialised Service Contracts and Margin Discipline

The Company has consciously focused on specialised service contracts across Equipment Rentals and Warehousing & Logistics segments and has deliberately stayed away from generic EPC project work. This focus has supported margin expansion: reported EBITDA margin expanded by 394 basis points to 37.0% in FY26, and standalone Equipment Rentals EBITDA margin expanded from 55% in FY25 to 62% in FY26.

Each of the three pillars is built around compounding. Scale compounds the asset base. Specialise compounds the yield per asset. Sustain compounds the trust embedded in long-tenure client relationships. None of these are one-year levers; all three are structural inputs whose value accumulates over the planning horizon.

5. Segment-wise Performance

5.1 Segment Revenue and Profitability

Segment (Rs. Crore)	FY24	FY25	FY26	YoY %
Equipment Hiring & Projects
	75.6	137.7	170.0	+23.5%
Revenue
EBITDA Margin (reported)	51%	47%	52%	+500 bps
Standalone Equipment Rentals
	\u2014	55%	62%	+700 bps
EBITDA %
Warehousing & Transportation
	82.6	97.4	106.5	+9.3%
Revenue
EBITDA Margin	23%	16%	16%	\u2014
Steel Processing & Distribution
	13.8	12.8	8.4	(34.4%)
Revenue
EBITDA Margin	7%	4%	2%	(200 bps)
Total Revenue from Operations	172.0	247.8	284.8	+14.9%

5.2 Equipment Hiring & Projects

Segment revenue grew 23.5% year-on-year to Rs. 170.0 Crore, contributing 60% of revenue (FY25: 56%). The mix shift toward Equipment Rentals is structurally positive. Rentals carry higher margins and longer-tenure contracts than the EPC-style Infra Works component.

expanded from 55% in FY25 to 62% in FY26, driven by three factors: deployment of new high-tonnage cranes (800 MT and 900 MT capacity) which command premium yields; higher fleet utilisation ax

(approximately 83% on an average basis); and a sustained Gross Monthly Rental Yield of 3.05%. The sector mix within Equipment Rentals also shifted favourably during the year:

Standalone Equipment Rentals EBITDA margin

End-Use Sector	FY25 Share	FY26 Share
Cement	32%	30%
Metals & Minerals	27%	25%
Rural & Urban Infrastructure	21%	20%
Renewable Energy	5%	15%
Power	10%	9%
Others (Oil & Gas, Petrochem, Defence)	5%	1%

Renewable Energy expanded its share of Equipment Rental revenue from approximately

5% to 15%, reflecting the Companys growing participation in wind tower erection and renewable balance-of-plant. The Cement, Metals

& Minerals and Rural & Urban Infrastructure segments together continued to provide a stable demand base.

5.3 Warehousing & Transportation

Segment revenue grew 9.3% year-on-year to Rs. 106.5 Crore. The Company handled 11.56 million metric tonnes of steel during FY26 across its five operational stockyards. The Company commenced operations at the SAIL Stockyard, Dankuni (West

Bengal), in FY26, its first stockyard in eastern India and a strategic geographic expansion. Segment EBITDA margin remained stable at approximately 16%.

5.4 Steel Processing & Distribution

Segment revenue declined to Rs. 8.4 Crore from

Rs. 12.8 Crore in FY25, reflecting a deliberate scaling back of the lower-margin distribution book. Segment EBITDA margin was 2%. The Companys strategy for this segment is being recalibrated, with the future development of value-added processing capability now planned through Tarachand Metallix Limited.

5.5 Tarachand Metallix Limited (Wholly Owned Subsidiary)

Tarachand Metallix Limited was incorporated on 6 January 2026, with initial capital of Rs. 25 Lakhs, as a 100% wholly owned subsidiary of the Company. The subsidiary is being established as a platform for metal processing and manufacturing, focused on high frequency beams, fabrication and cutting, and value-added metal solutions. The entity is in pre-operational stage as at 31 March 2026, with total assets of Rs. 23.5 Lakhs and a marginal net loss of Rs. 1.79 Lakhs reflecting incorporation and set-up costs. Detailed operational and financial plans for Metallix will be communicated to stakeholders in coming quarters.

6. Discussion on Financial Performance

6.1 Three-year Financial Highlights (Standalone)

Particulars (Rs. Crore)			FY24			FY25			FY26		YoY %
Revenue from Operations			172.0			247.8			284.8		+14.9%
Other Income	2.8	6.2			3.3			(46.5%)
Total Income	174.9	254.0			288.1			+13.4%
EBITDA	58.2	84.2			106.7			+26.8%
EBITDA Margin (%)	33.3%	33.1%			37.0%			+394 bps
Finance Cost	7.1	7.2			10.3			+43.1%
Depreciation & Amortisation				29.4			43.7			59.2		+35.5%
Profit Before Tax				21.7			33.3			37.2		+11.8%
Profit After				16.1			24.9			27.88		+11.4%
PAT Margin (%)				9.2%			9.8%			9.7%		(10 bps)
Cash PAT (PAT + Depreciation)				45.5			68.5			87.07		+27.0%
EPS \u2014 Basic (Rs.)				2.13			3.15			3.54		+12.1%

6.2 Revenue performance

Revenue from operations grew 14.9% year-on-year to Rs. 284.85 Crore (FY25: Rs. 247.82 Crore). Total Income, including other income, grew 13.4% to Rs. 288.13 Crore. Growth came in below the Companys medium-term band of 20-25%. The shortfall is attributable principally to project execution timing: a portion of Q4 FY26 revenue was deferred into Q1 FY27 on account of client scheduling. The Company expects to realise this deferred revenue in early FY27 and the underlying multi-year growth trajectory remains intact, as reflected in the order book and FY27 guidance discussed in Sections 8 and 9.

Quarterly trajectory: Q4 FY26 revenue of Rs. 89.5 Crore was 10% higher than Q4 FY25 (Rs. 81.6 Crore) but below internal expectations on account of the project deferral. Q4 EBITDA stood at Rs. 31.6 Crore (Q4 FY25: Rs. 25.6 Crore), a 23% YoY growth, with margin at 35.1% (Q4 FY25: 31.2%).

6.3 Cost structure and operating expenses

The Companys operating cost structure is summarised below, broken out by nature of expense, with each line shown as a percentage of revenue for FY26 and a year-on-year comparison.

Expense Head (Rs. Crore)	FY24	FY25	FY26	% of Rev	YoY %
Manpower Cost	23.8	29.7	37.7	13.2%	+27.0%
Repair & Maintenance	11.7	19.4	19.0	6.7%	(2.1%)
Power & Fuel	16.4	22.2	25.3	8.9%	+14.0%
Transportation & Handling	28.9	51.0	56.0	19.7%	+9.8%
Other Expenses	35.8	47.6	43.3	15.2%	(9.0%)
Total Operating Expenses	116.6	169.9	181.3	63.7%	+6.7%

Several observations emerge from the cost structure:

• Manpower cost grew 27.0% year-on-year to Rs. 37.7 Crore, ahead of revenue growth of 14.9%.

The increase reflects continued investment in trained operator and engineering talent required to deploy the expanded fleet. As a percentage of revenue, manpower stands at 13.2% (FY25: 12.0%).

• Repair & Maintenance was nearly flatyear-on-year at Rs. 19.0 Crore (-2.1%), notwithstanding the larger fleet. This reflects the youth of the fleet

(average age approximately 6-7 years) and the warranty coverage on newly inducted machines.

• Power & Fuel grew 14.0% year-on-year to Rs. 25.3 Crore, broadly in line with operating activity.

• Transportation & Handling grew 9.8% to Rs. 56.0 Crore, marginally below revenue growth, reflecting improved routing and logistics planning across stockyards.

• Other Expenses declined 9.0% year-on-year in absolute terms to Rs. 43.3 Crore. This reflects deliberate cost discipline across overheads, vendor consolidation, and the scale-back of the lower-margin Steel Processing & Distribution book.

Net effect: Total Operating Expenses grew 6.7% against revenue growth of 14.9%, producing the 394 basis points of EBITDA margin expansion observed in FY26.

6.4 EBITDA and operating margins

EBITDA grew 26.8% year-on-year to Rs. 106.7 Crore, with EBITDA margin expanding by 394 basis points to 37.0% (FY25: 33.1%). The margin expansion was driven by three factors:

• Mix shift toward Equipment Rentals: Rentals expanded from 56% to 60% of revenue, with the standalone Rentals EBITDA margin improving from 55% to 62% on the back of high-tonnage fleet deployment.

• Operating leverage on the fleet : New machine additions commenced earning revenue without proportionateincreasesin

• Tight cost discipline: Other Expenses declined in absolute terms, notwithstanding higher revenue (see Section 6.3 above). Repair & Maintenance costs were nearly flat year-on-year, indicating the youth of the fleet.

The 37.0% EBITDA margin is at the upper end of listed peers in the construction equipment rental and steel logistics services space.

6.5 Finance cost and depreciation

Finance cost grew 43.1% to Rs. 10.3 Crore (FY25:

Rs. 7.2 Crore), reflectingthe financing of the capex deployed across FY25 and FY26. Depreciation and amortisation grew 35.5% to Rs. 59.2 Crore (FY25:

Rs. 43.7 Crore), as new fleet additions came on stream and accumulated depreciation reflected the larger asset base. These two cost lines together compressed Profit Before Tax growth to 11.8% versus the EBITDA growth of 26.8%, an expected outcome in a capex-monetisation year.

Cash PAT, defined

Depreciation, and considered by management to be the truest measure of earning power for the Companys asset-heavy business model, grew 27.0% year-on-year to Rs. 87.0 Crore (FY25: Rs. 68.5 Crore). This metric, when compared with the 11.4% growth in reported PAT, captures the actual cash-generating capability of the business after isolating the timing-driven impact of accelerated depreciation on newly inducted fleet.

6.6 Balance sheet

Particulars (Rs. Crore)	FY25	FY26	Change
ASSETS
Fixed Assets (Gross Block)	419.8	558.1	+33.0%
Fixed Assets (Net Block)	272.8	355.0	+30.1%
Other Non-Current Assets	23.1	19.8	(14.3%)
Trade Receivables	60.0	92.8	+54.7%
Cash & Cash Equivalents	19.8	26.8	+35.4%
Other Current Assets	13.6	21.0	+54.4%
Total Assets	390.9	516.5	+32.1%
EQUITY AND LIABILITIES
Shareholders Funds (Net Worth)	121.4	149.2	+23.0%
Long-term Borrowings (Secured)	70.1	83.8	+19.5%
Other Financial Liabilities (incl. Lease Liabilities)	129.3	190.0	+46.9%
Other Non-Current Liabilities	8.6	11.1	+29.1%
Short-term Borrowings	42.0	54.6	+30.1%
Trade Payables	6.2	8.9	+44.1%
Other Current Liabilities	13.4	18.9	+40.6%
Total Liabilities (excl. Equity)	269.6	367.3	+36.2%
Total Equity and Liabilities	390.9	516.5	+32.1%

Total Assets grew 32.1% to Rs. 516.5 Crore, driven principally by the expansion of the fleet (Gross Block grew 33.0% to Rs. 558.1 Crore). The asset base growth was financed through a balanced mix of internal accruals (Net Worth grew 23.0% from Rs. 121.4 Crore to Rs. 149.2 Crore) and incremental borrowing (Secured Term Loans grew from Rs. 70.1 Cr to Rs. 83.8 Cr; Short-term Borrowings grew from Rs. 42.0 Cr to Rs. 54.6 Cr).

Other Financial Liabilities grew from Rs. 129.3

Crore to Rs. 190.0 Crore, reflecting principally capex creditors on account of suppliers credit for purchase of machinery. These are matched against the corresponding Property, Plant and Equipment additions on the asset side.

Total Liabilities (excluding Equity) grew 36.2% to Rs. 367.3 Crore. The Equity-to-Total-Assets ratio stands at 28.9% (FY25: 31.1%), a modest compression on account of lease accounting under Ind AS 116. On a like-for-like basis (excluding lease liabilities), the underlying capital structure has remained stable. Trade Receivables grew 54.7% to Rs. 92.8 Crore, an outcome of revenue scale-up combined with project-timing-related collection delays. Receivable days extended from 75 days at the end of FY25 to 93 days at the end of FY26, discussed further in Section 7. as Profit After Tax plus

6.7 Cash flow

Operating Cash Flow grew 23.3% to Rs. 69.3 Crore (FY25: Rs. 56.2 Crore), notwithstanding higher working capital deployment (working capital absorbed Rs. 23.9 Crore of cash, principally on account of higher trade receivables). Investing

Cash Outflow was Rs. 78.3 Crore (FY25: Rs. 57.7

Crore), reflecting the FY26 capex programme. Financing Cash Inflow was Rs. 16.0 Crore (FY25: Rs.

21.2 Crore), comprising net borrowing of Rs. 27.0

Crore offset by finance cost and debt repayments.

Cash and Cash Equivalents stood at Rs. 26.8 Crore at year-end (FY25: Rs. 19.8 Crore).

6.8 Credit rating

The Company received a credit rating upgrade from CARE Ratings during FY26, reflecting the strengthened balance sheet, sustained operating margin and growing scale. The upgrade is expected to translate into incrementally lower cost of borrowing over the next two financial years.

7. Key Financial Ratios and Significant Changes

In accordance with the requirements of Schedule V of the SEBI (Listing Obligations and Disclosure

Requirements) Regulations, 2015, the Companys key financial ratios are set out below. Material changes

(greater than 25% year-on-year) are explained in the discussion that follows.

Key Ratio	FY24	FY25	FY26	Change
Debtors Turnover (days)	98	75	93	+24%
Inventory Turnover (days)	4	2	1	(50%)
Interest Coverage Ratio (x)	8.2x	11.6x	10.3x	(11.2%)
Current Ratio (x)	1.23	1.55	1.72	+11.0%
Debt-Equity Ratio (Net) (x)	0.90	0.92	0.93	+1.1%
Operating Profit Margin (%)	33.3%	33.1%	37.0%	+11.8%
Net Profit Margin (%)	9.2%	9.8%	9.7%	(1.0%)
Return on Net Worth (%)	18.6%	22.6%	20.5%	(9.3%)
Return on Capital Employed (%)	17.5%	17.3%	16.5%	(4.6%)
Asset Turnover (Revenue/Avg Gross
	0.65	0.69	0.58	(15.9%)
Block) (x)

7.1 Material changes explanations

(a) Operating Profit Margin: +394 basis points (33.1% to 37.0%)

Margin expansion reflects: (i) revenue mix shift toward higher-margin Equipment Rentals (60% in FY26 vs 56% in FY25); (ii) operating leverage from new fleet additions; (iii)

Other Expenses despite revenue growth; (iv) the standalone Equipment Rentals EBITDA margin expanding from 55% to 62%.

(b) Debtors Turnover: +24% (75 days to 93 days)

Receivable days extended on account of project execution timing deferrals in the latter part of FY26. Approximately Rs. 10-12 Crore of revenue originally scheduled for Q4 FY26 was deferred into Q1 FY27, with the associated invoicing and collection cycles extending into FY27. The Company expects receivable days to normalise toward the FY25 level of 75-80 days over the course of FY27 as the deferred revenue is realised and collected.

(c) Inventory Turnover: improvement of 50% (2 days to 1 day)

Reflects the deliberate scale-back of the Steel absolute Processing & Distribution segment and improvedreduction in inventory management.

(d) Asset Turnover (Revenue / Average Gross Block): 0.69x to 0.58x

Asset Turnover compressed from 0.69x in FY25 to 0.58x in FY26 on account of the front-loaded nature of capex deployment: the Rs. 143 Crore of FY26 capex enters the Gross Block immediately, while the corresponding revenue ramps progressively. This ratio is expected to recover toward 0.70x as the FY25 and FY26 capex cohorts achieve full utilisation through FY27 and FY28.

7.2 Return on Net Worth

Return on Net Worth declined modestly from 22.6% in FY25 to 20.5% in FY26, a year-on-year change of 9.3%. The decline reflects the FY26 capital deployment cycle: incremental capex translates into depreciation and finance cost on

Day 1, while utilisation revenue and earnings ramp through the year and into the next. The reported FY26 RoNW remains at the upper end of the range observed for listed capital-equipment rental peers, and the Company expects the metric to recover as the FY25 and FY26 capex cohorts achieve mature utilisation through FY27.

8. Outlook

8.1 Order Book Executable in FY27

Segment	Order Book (Rs. Cr)	Share
Equipment Hiring & Projects	135.5	64%
Warehousing & Transportation	76.2	36%
Total Order Book Executable in FY27	211.7	100%

The Company entered FY27 with a confirmed order book of Rs. 211.7 Crore executable within the year. This represents approximately three quarters of FY26 revenue and provides visibility into FY27. The order book composition (64% in Equipment Hiring & Projects, 36% in Warehousing & Transportation) is broadly aligned with current revenue mix.

Order book quality: Approximately 80% of the order book is from clients with whom the Company has had a relationship of more than three years. Public sector and large corporate clients (SAIL, RINL, large cement and refinery groups, marquee renewable energy developers) account for the majority of the book, supporting strong underlying credit quality. capex has been

8.2 FY27 Guidance

Metric	FY26 Actual	FY27 Guidance
Revenue Growth	+14.9%	20% 25%
EBITDA Margin	37.0%	37% 38%
Capex	Rs. 143 Cr	Rs. 80 100 Cr
Net Debt-Equity Ratio	0.93x	Within 1.0x ceiling

The Company is targeting revenue growth of 20-25% in FY27, with EBITDA margins held in the 37-38% range. Capex is planned at Rs. 80-100 Crore, a deliberate moderation from the Rs. 145 Crore deployed in each of FY25 and FY26, reflecting managements view that the current capex cycle has largely positioned the fleet for the next phase of revenue ramp. Net Debt-to-Equity will be maintained within the Companys internal ceiling of 1.0x. These guidance parameters are subject to the cautionary note set out in Section 12.

8.3 Sectoral outlook

• Equipment Hiring & Projects: Demand visibility remains strong across cement, metals & minerals, rural & urban infrastructure and renewable energy. The renewable energy vertical is expected to continue expanding its share of equipment rental revenue.

• Warehousing & Transportation: The recent commencement at SAIL Dankuni, alongside continued operations at existing SAIL and RINL stockyards, supports steady growth. Steel capacity expansion among major producers provides multi-year scope expansion opportunity.

• Tarachand Metallix Limited: The subsidiary will commence detailed planning for its services & manufacturing footprint in Nagpur during FY27.

Operational and financial milestones will be disclosed to stakeholders as they are achieved.

The arithmetic of compounding requires inputs deployed consistently over time. FY25 and FY26 representtheCompanyslargesttwo-yeardeployment in its history. FY27 begins the realisation phase.

Order book visibility, balance sheet headroom, fleet readiness and end-market demand are all aligned. The Company believes the next phase of revenue growth, with margins held in the 37-38% band, is what compounding looks like in practice.

9. Risks and Concerns

The Company has in place a structured risk management framework. The principal risks identified by management and their mitigation approach are summarised below.

(a) Working capital and receivable cycle risk

FY26 saw an extension of receivable days from 75 to 93 days. While the Company expects normalisation in FY27, sustained receivable elongation could affect operating cash flow Mitigants include: client diversification across public sector and large-corporate end-users; structured contractual milestone-billing in long-tenure infra contracts; and active monitoring of receivable ageing at the project level.

(b) Project execution and timing risk

The Companys revenue is partly tied to client project execution schedules, which can be deferred on account of statutory approvals, monsoon, electoral cycles or client-side operational reasons.

Mitigants include: maintaining a diversified book across sectors and geographies; deploying fleet across multiple concurrent projects to reduce single-project concentration; and active redeployment of equipment across sites.

(c) Capital expenditure and asset utilisation risk

Significant

FY25 and FY26. Sustained shortfall in utilisation could affect returns on this capital deployment.

Mitigants include: capex calibrated to client demand visibility; concentration of capex on differentiated high-tonnage and high-reach equipment where competition is structurally limited; maintenance of an in-house service and operator team to ensure equipment uptime.

(d) Interest rate and leverage risk

The Company operates a capital-intensive business model with a portion of capex funded through term debt. The Company maintains a long-standing banking relationship and a self-imposed Debt-to-Equity ceiling of 1.0x. The credit rating upgrade received during FY26 is expected to incrementally reduce cost of borrowing in coming periods.

(e) Equipment sourcing and currency risk

A meaningful portion of the Companys high-tonnage and high-reach equipment is sourced from international vendors. Mitigants include: established vendor relationships with multiple suppliers; active monitoring of customs and currency exposures; forward planning of capex deployment to allow for vendor selection across geographies.

(f) Talent and operator availability risk

Specialised equipment operation requires trained and certified operators. The Company addresses this through its long-standing partnership with Industrial Training Institutes in Haryana and its in-house operator training programmes.

(g) Cyber-security and data integrity risk

As operations digitise across equipment tracking, project planning and finance systems, exposure . to cyber-security incidents and data integrity events increases. The Company has implemented baseline cyber-security controls including access management, periodic penetration testing of critical systems, secure backup of financial and operational data, and employee awareness programmes. The Company also maintains a cyber-incident response protocol overseen by the IT function under the supervision of senior management.

(h) Regulatory and compliance risk

As a listed entity on the NSE Main Board, the Company is subject to SEBI LODR Regulations, Companies Act 2013 and other applicable laws. The Company maintains a structured compliance framework under the Company Secretarys office, with periodic review by the Boards Audit

Committee.

10. Internal Control Systems and Their Adequacy

The Company has established internal control systems commensurate with the size, scale and complexity of its operations. The internal control framework is designed to ensure: (i) accurate recording of transactions and authorised use of assets; (ii) compliance with applicable laws and regulations; (iii) safeguarding of the Companys assets and prevention of unauthorised transactions; and (iv) the reliability of financial reporting.

The Internal Auditor, Ms. Nitika Mahajan, Chartered Accountant, has been re-appointed for

FY27. The Internal Auditors findings are reviewed periodically by the Audit Committee, which then makes recommendations to the Board for any corrective action required. The Audit Committee, in turn, oversees the implementation of internal financial controls.

The Statutory Auditor, M/s Sangeet Kumar & Associates, Chartered Accountants, has expressed an unmodified opinion on the Standalone and

Consolidated Financial Results for FY26, signed on 7 May 2026. The Auditors Report contains no qualifications, reservations or adverse remarks.

During FY26, the Company strengthened its compliance and disclosure framework in alignment with the expectations applicable to NSE Main Board listed entities.

11. Material Developments in Human Resources and Industrial Relations

The Companys people philosophy is built around four decades of operational continuity, technical apprenticeship and long-tenure employment. The Company maintained a total employee headcount of approximately 1036 as at 31 March 2026. Employee Stock Option Scheme ESOS 2025: The Company implemented the Employee Stock Option Scheme 2025 (ESOS 2025) during FY26 following shareholder approval at the 13th Annual General Meeting held on 11 September 2025. ESOS 2025 represents the Companys first formal employee stock-based participation programme and is intended to align the long-term interests of senior management and key contributors with those of shareholders. The implementation of ESOS 2025 is a structural step in the Companys transition from a promoter-family-led organisation to a broader-based professional management model, while continuing to retain the deep promoter family commitment that has been the foundation of the business for over four decades.

Skill development and CSR engagement: The Company continues to support the Department of Skill Development and Industrial Training, Haryana, through its CSR programme. Engineering and non-engineering trade courses at adopted ITIs provide a direct pipeline of trained operator-technicians into the Companys pan-India operations. The Company also continues its long-standing support to badminton (through the

Haryana Badminton Association) and shooting (through the Lakshya Shooting Academy, Panvel) under the leadership of Dronyacharya awardee Smt. Suma Shirur.

Industrial relations: The Company maintained cordial industrial relations throughout FY26 across all locations of operation. There were no material employee disputes or industrial actions during the year.

12. Cautionary Statement

Statements in this Management Discussion and Analysis Report that describe the Companys objectives, projections, estimates, expectations or predictions may be forward-looking statements within the meaning of applicable securities laws and regulations. These statements are based on certain assumptions and expectations of future events. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Companys operations include economic conditions affecting demand and supply, price conditions in the domestic and overseas markets in which the Company operates, changes in Government regulations, tax laws, statutes and other incidental factors.

The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments, information or events.