Trishakti Industries Limited Q1 FY27 Earnings Call Summary

Revenue

Margin

Demand

Guidance

Tone

Metrics cut 1

FY28 estimates: deferred to the December quarter call (prior FY28 guidance not specified)

Event Participants

Executives

2 Dhruv Jhanwar, Karan Ajmera

Analysts

9 Anshul Sharma, Chaitanya Pujara, Chintan Patel, Het Dedhia, Raghav Srivatsav, Riya Shah, Rohan Mehta, Satya Mehta, Yash Jhunjhunwala

Financials & KPIs

Metric	Reported	Commentary
Total Income	₹1,680 lakhs	Up ~310% YoY; record quarter driven by fleet expansion from FY26 CapEx and 100% utilization
EBITDA	₹1,087 lakhs	~4x YoY growth; strongest quarterly EBITDA in company history
EBITDA Margin	~65%	Operating leverage from new 2024-2027 make fleet; expected to normalize to 58-62% as maintenance costs emerge post-warranty
PBT	₹538 lakhs	Record quarterly profit before tax
PAT	₹430 lakhs	Record quarterly profit after tax; management guided 25-30% PAT margins on current order book
Fleet Size	155-158 machines	All recent make (2024-2027) vs competitors' average 12-15-year-old fleet; more machines under construction
Fleet Utilization	100%	Contracts signed for full FY27; management expects utilization to stay above 98-99%
Order Book (FY27 executable)	₹70-72 crores	Anchors FY27 revenue; new machines to add to annual recurring revenue as deployed (1.5-5 month lead time)
Cumulative CapEx	~₹270 crores (₹235-240 crores ex-GST)	Against ₹400 crore plan; ~~70% of remaining balance (~~₹100 crores) already ordered
Borrowings	₹80-85 crores	LTV ~60%; average interest cost 8.5-8.75%, trending down as 9.75% legacy loans are repaid
Debtor Days	~200 days reported; core business <60-90 days	Management expects streamlining to 60-70 days during FY27

Geographic & Segment Commentary

India – Core Heavy Equipment Rental: Sustained 100% fleet utilization across 155-158 machines serving marquee clients in renewable energy, infrastructure, railways, steel, oil & gas, and industrial projects (including L&T, KEC, Afcon, Reliance). FY27 executable order book of ₹70-72 crores anchors revenue; management expects utilization to remain 98-99%+ through the year and debtor days to compress to 60-70 days. Indian demand remains strong with mega projects (Reliance Kutch expansion, Dholera) opening post-monsoon.
Wind Energy Equipment Rental (New Segment): Strategic entry into 900-ton crane rentals for 5.2 MW wind turbines, as the industry shifts from 800-ton cranes used for 3.3 MW projects; first 900-ton units arrive in India in October, giving first-mover advantage. Machines ordered with ~4-5 month lead time; revenue contribution expected Q3/Q4 FY27. Yields similar to existing fleet, but ₹25-30 crore ticket size per machine creates an entry barrier for smaller players.
UAE & KSA (New Geography): Expansion driven by existing Indian EPC clients (L&T, Afcon, KEC) extending operations to the region; RFQs already received. Monthly yields ~4% vs 2.5% in India, with KSA EBITDA margins estimated at 50-52%. Initial entry via renewable energy (95% of Indian EPC contracts in the region); deployment expected in next 2-3 quarters, funded through internal accruals.
EV Machinery: First EV machines ordered for two clients, delivery expected Q2 FY27; ~5% costlier than diesel machines but eliminates fuel/maintenance OpEx over time, supporting higher margins as part of fleet diversification.

Company-Specific & Strategic Commentary

₹400 Crore CapEx Programme: ₹270 crores deployed (₹235-240 crores ex-GST), funded through ~₹40 crores net equity raise, ~₹80-90 crores debt at ~60% LTV, internal accruals, and GST input credits. Remaining ₹130-140 crores to be deployed in FY27, with ~70% (₹100 crores) already placed; FY26 CapEx came in at ₹210 crores vs ₹100 crore guidance.
Entry into Tower Cranes: New, not-yet-announced segment - 80-ton tower cranes ordered specifically for data center construction, addressing a major market shortage.
OEM Supply Constraints as a Moat: 900-ton crane OEMs (global leaders) can manufacture only ~2 machines/month each, max 4-5 machines/month collectively; machine availability itself is the entry barrier. Trishakti has already placed orders.
Management & Talent: Hired HODs with 20-25 years of wind energy segment experience to lead the new vertical; existing management team to drive UAE/KSA expansion.
Capital Allocation: India remains the top priority for capital; UAE/KSA expansion will be funded through internal accruals within a defined budget. Machines become debt-free by 2028, generating reinvestable cash flows.
Business Model: Pure-play rental model with no OEM dealership tie-ups; clients bear diesel cost while company bears operator, helper, and accommodation costs; banks (HDFC, Axis, ICICI) now fund ~100% of machine cost given track record.

Guidance & Outlook

Metric	Guidance / Outlook	Commentary
Revenue / Order Book	₹70-72 crores executable in FY27	Signed contracts supporting 100% utilization through FY27; new machines to add to ARR post-deployment
EBITDA Margin	60-65% (India order book); 50-52% (KSA)	Long-term India normalization to 58-62% as 4-5% maintenance OpEx emerges post-OEM warranty
PAT Margin	25-30%	Guided on current FY27 executable order book
Debtor Days	<60-70 days by FY27-end	Core business already collecting under 60-90 days; legacy receivables being streamlined this year
Wind Energy Contribution	Q3/Q4 FY27	900-ton machines ordered; 4-5 month manufacturing + transport lead time; OEM capacity constrained
UAE/KSA Operations	Deployment in next 2-3 quarters; FY27 start	Company incorporation underway; RFQs being evaluated; ~4% monthly yields expected
CapEx	Remaining ₹130-140 crores deployed in FY27	~70% ordered; includes wind cranes (900-ton), tower cranes (80-ton), and demand-driven additions
Fleet Utilization	98-99%+ through FY27	Contracts signed till financial year-end; new machines get LOIs quickly given supply shortage

Risks & Constraints

Risk	Context
OEM supply constraints / lead times	900-ton wind cranes have 4-5 month lead times with global OEM capacity limited to 4-5 machines/month collectively; manufacturing delays push revenue recognition. Management deferred FY28 estimates to the December quarter call.
Margin normalization	~65% EBITDA margin is partly elevated by new fleet under OEM warranty; management expects decline to 58-62% as 4-5% maintenance OpEx emerges post-warranty, even as D&A-serviced machines turn cash flow positive in 2027-28.
Debtor days	Reported at ~200 days; management attributes to legacy receivables (core business collects under 60-90 days) and expects FY27 streamlining to 60-70 days - collection risk remains if not executed.
Middle East execution risk	KSA demand saw a complete halt over the past six months; UAE opportunity is partly tied to war-related reconstruction, which set the market back two years. Approvals, incorporation, and paperwork pending; contracts not yet signed.
Borrowing profile	Earlier machines were financed on 3-year tenure (vs industry 4-5 years) at up to 9.75% interest; near-term repayment pressure exists until machines become operating cash flow positive in 2027-28.

Q&A Highlights

Fleet Size and Wind Energy Entry

Question: What is the current fleet size, and what returns, investment, and client base does the new wind energy rental segment offer? (Chaitanya Pujara, Arihant Capital)
Answer: Fleet is ~155-158 machines, with more under construction. Wind energy is shifting from 800-ton cranes for 3.3 MW turbines to 900-ton cranes for 5 MW turbines; the first 900-ton units arrive in India in October. Management is in talks with India's largest wind EPCs; yields are similar to the existing fleet but long-term projects make high-ticket CapEx attractive and keep utilization above 95%. (Dhruv Jhanwar)

CapEx Deployment and Wind Energy Allocation

Question: Does this year's CapEx plan include wind energy, and how much of the ₹400 crore plan is deployed? (Chaitanya Pujara)
Answer: ~₹270 crores of the ₹400 crore plan is done (₹235-240 crores ex-GST). The remaining ₹130-140 crores could be absorbed by just 4-5 units of 900-ton machines, but allocation remains demand-driven across machine types (AWP, 80-ton, 400-ton, wind cranes). (Dhruv Jhanwar)

Borrowings and FY27 Run Rate

Question: What is the borrowing prepayment status and expected run rate? (Chaitanya Pujara)
Answer: Borrowings are at ₹80-85 crores; FY26 machines funded on 3-year finance (vs industry 4-5 years) will turn operating cash flow positive in 2027-28, boosting free cash flow. FY26 CapEx was ₹210 crores vs ₹100 crore guidance. FY27 executable order book of ₹70-72 crores should deliver 60-65% EBITDA and 25-30% PAT margins. (Dhruv Jhanwar)

CapEx Funding Model

Question: How is crane purchase funding structured? How much upfront payment is needed? (Yash Jhunjhunwala, Individual Investor)
Answer: With ~₹40 crores net equity raised and debt at ~60% LTV, banks (HDFC, Axis, ICICI) now fund ~100% of machine cost - only transportation and insurance are paid upfront via line financing. Average borrowing cost is 8.5-8.75%, down from 9.75% on legacy loans, and will decline further as old debt is repaid. (Dhruv Jhanwar)

UAE/KSA Expansion - Rationale and Yields

Question: What is the exact plan, reason, expected margins, utilization, and existing leads for UAE expansion? (Chaitanya Pujara)
Answer: Strong leads exist from existing clients (L&T, Afcon, KEC) who have expanded EPC work to UAE/KSA. Monthly yields in the region are ~4% vs 2.5% in India. The war has set the market back two years, creating a fresh entry window; KSA/UAE sector expected to grow ~12% annually. Contracts not yet signed - paperwork in progress. (Dhruv Jhanwar)

KSA Competitive Positioning vs Large Peers

Question: How will Trishakti differentiate against established KSA players like Sanghvi, who have scale and pricing leverage? (Rohan Mehta, Ficome Advisory)
Answer: The market is too large for any single player to serve, and supply is constrained for everyone. Trishakti will focus on a specific set of Indian EPC clientele, deploying machines from its own balance sheet rather than fragmenting across many customers; groundwork indicates 50-52% EBITDA margins in KSA are achievable. (Dhruv Jhanwar)

Utilization and Margin Outperformance vs Industry

Question: Why are utilization and EBITDA much better than the industry? (Satya Mehta, Individual Investor)
Answer: Competitors' machines average 12-15 years old, while Trishakti's entire fleet is 2024-2027 make, with OEMs covering maintenance for the first three years. Margins will eventually drop to 58-62% as maintenance OpEx of 4-5% emerges post-warranty - this was a known and guided trajectory. (Dhruv Jhanwar)

Wind Energy Competitive Positioning and Timing

Question: How competitive is the wind energy rental market, and when will it contribute meaningfully? (Riya Shah, RK Securities)
Answer: The industry shift from 3.3 MW to 5.2 MW turbines requires 900-ton cranes; first units entering India create a first-mover window. OEM capacity is max 4-5 machines/month collectively, so machine availability itself is the entry barrier - and Trishakti has already ordered. Contribution expected Q3/Q4 FY27; margins similar to the existing fleet, slightly higher. (Dhruv Jhanwar)

CapEx Order Placement and Tower Cranes

Question: How much of the remaining ₹130 crore CapEx is placed or in production? (Chaitanya Pujara, follow-up)
Answer: ~~70% of the remaining CapEx (~~₹100 crores) is already ordered. Includes a new unannounced entry into 80-ton tower cranes for data center construction, where there is a major market shortage. Total lead time from order to deployment is ~5 months; demand is not the issue - supply is. (Dhruv Jhanwar)

Seasonality and Q2 Outlook

Question: Is Q2 softer because of monsoons? (Satya Mehta, follow-up)
Answer: New CapEx deployment is difficult in Q2 because demand typically kicks in only from October-November; however, signed contracts at 100% utilization protect both top line and bottom line through the quarter. (Dhruv Jhanwar)

Key Takeaway

Trishakti Industries delivered a record Q1 FY27, with total income surging 310% YoY to ₹1,680 lakhs, EBITDA up ~4x YoY to ₹1,087 lakhs at ~65% margins, and PAT of ₹430 lakhs - the strongest quarter in company history. Results reflect execution of the ₹400 crore CapEx programme (₹270 crores deployed), 100% fleet utilization across 155-158 machines serving clients like L&T, KEC, Afcon and Reliance, and an FY27 executable order book of ₹70-72 crores anchoring 60-65% EBITDA and 25-30% PAT margins. Strategically, management is entering wind energy equipment rental (900-ton cranes for 5.2 MW turbines) with machines ordered for Q3/Q4 FY27 contribution, planning UAE/KSA deployment in the next 2-3 quarters at ~4% monthly yields and 50-52% KSA EBITDA margins, and adding 80-ton tower cranes for data center projects. Key watch points include OEM supply constraints (4-5 machines/month globally), EBITDA margin normalization to 58-62% as maintenance costs emerge, debtor day reduction to 60-70 days, and Middle East execution risk; management deferred FY28 guidance to the December quarter call.