Tara Chand Infralogistic Solutions Ltd (NSE: TARACHAND) Q3 2026 Earnings Call dated Jan. 30, 2026
Corporate Participants:
Ankit Jain — Investor Relations
Himanshu Aggarwal — Whole-Time Director and Chief Financial Officer
Analysts:
Unidentified Participant
Rohan Mehta — Analyst
Rehan Syed — Analyst
Jiten Parmar — Analyst
Ankur Kumar — Analyst
Presentation:
operator
Ladies and Gentlemen, good day and welcome to the quarter three and nine months FY26 earnings conference call for Sarachand Infra Logistics Solutions Ltd. 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 Pen zero on your touchstone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ankit Jain from Stellar Investor Relations. Thank you. And over to you Mr. Jain.
Ankit Jain — Investor Relations
Thank you Michelle. Good afternoon everyone and thank you for joining us today to discuss Q3 and 9 months FY26 business performance. We have with our senior management team represented by Mr. Himanshu Agarwal, full 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 risk and uncertainty. The company also undertakes no obligation to update any forward looking statements to reflect developments that occur after the statement is made. Documents related to the Company’s financial performance including investor presentation have been uploaded on the Stock Exchange and company’s website.
I now invite Mr. Mantu of the one share his initial remarks on the Company’s performance and then we will open the floor for Q and A. Thank you and over to you sir.
Himanshu Aggarwal — Whole-Time Director and Chief Financial Officer
Thank you for the introduction. Ankit Good afternoon ladies and gentlemen. I, Himanshu Agarwal, the whole time director and CFO of Taraj and Intra Logistics Solutions Ltd. Welcome you and thank you to be a part of the earnings call for the quarter and nine months ended 31st December 2025. I hope you all have had the opportunity to look at the presentation that was posted on the NSE website yesterday.
The company has continued with steady growth in Q3 FY26 and achieved its highest ever revenue for the nine month period ended December 25th. Most importantly, the company has recorded its highest ever EBITDA margins for the quarter or nine month period. Due to the nature of our business activities in both our key segments I.e. equipment rentals and steel warehousing and transportation, it is more prudent in our case to do yearly comparisons for any period rather than doing a QoQ1. On the financial front, our total revenue surged to 69.27 crore in Q3FY26 registering an 8% annual growth.
Importantly, we achieved this while growing our EBITDA by 24% to 25.74 crores with the margin rising by 478 basis points to 37.16%. The pack margin stood at 8% impacted by the 32% increase in depreciation and 63% increase in the finance cost for this period. However, cash PAT grew steadily by 22% and touched rupees 21 crores for the quarter for nine months ended 31st December 2025, our total revenue surged by 15% year on year to 198.11 crores with the revenue from operations registering a 17.5% year on year growth at 195.30 crores. The EBITDA for this period rose by 28% to 75.16 crores with the EBITDA margin rising by 390 basis points.
Profit after tax rose by 13% 25.6 crores despite a sharp rise of 39% in depreciation for the set period, the company had executed its highest ever annual capital expenditure of 145 crores in equipment in FY25. Our focus on meaningful capex continued in the FY26 as well with a total of 121.34 crore investment in equipment this year. We have surpassed our total planned CAPEX for the current FY which was 100 crores and we anticipate that this will contribute meaningfully to Q4 FY26 and subsequent periods. Our company operates across the length and breadth of India through three key verticals segments or verticals Segment A equipment rentals and infrastructure works which contributes about 55% of the overall revenue segment B warehousing and handling and transportation which contributes around 45% over of the overall revenue and Segment C which is steel processing and distribution and it has a very currently very negligible contribution towards the overall revenue.
For nine months FY26 the equipment rental vertical clocked a total revenue of 112.69 crores which was a 23% year on year increase and this included a revenue of rupees 18.14 crores from the specialized service contracts. The overall EBITDA for the segment stood at 55% for the period while the standalone EBITDA for equipment rentals was at 62% among the major sectors served by us in the equipment rental segment there was a jump in contribution for metals and minerals compared to this is compared to last year so metals and minerals now is at 32%, cement is at 29% and renewable energy has gone up to 11% while rural and urban infra sector contribution was reduced to 19%.
The warehousing and transportation which is Segment b registered a 22% year on year growth with a revenue of 80.03 crores. The EBITDA for this segment stood at 16%. In Q3, the company completed its contract with RINL at the Vizag Steel plant and began operations at the newly won Dankuni Stockyard of Steel Authority of India in November 2025. This change led to a drop in revenue for Segment B, but the same has already stabilized and we expect significant growth in this segment for Q4, FY26 and subsequent periods. In Segment A, which is equipment rentals, the company derived benefits from its CAPEX drive and registered a 23% growth in annual revenue.
However, it only executed 6.75 crores of specialized services contracts in segment A as compared to 10.9 crores for the same period last year. This was primarily due to one of the contracts getting delayed at the client side and the same has begun operations in January 2026. In the equipment rental segment, the average gross monthly rental yield for 9 months FY26, remained consistent at 3.05%. The capacity utilization for the period was at about 82%. The company completed a CAPEX of 121.36 crores. As mentioned earlier, with this the company has added a total of 35 machines in the equipment rental segment in this financial year and as of 31st December 25th, the company’s fleet size stood at 403 machines, aggregating to a gross block of 536.10 crores.
As of January 2026, our order book stands at 96.90 crores which is entirely executable in the current FY itself. Of this, 34% is from warehousing and transportation segment and 66% is from the equipment rental segment. As already highlighted in the investor presentation, the company remains focused on 20 to 25% of annual growth while maintaining strong margins. As evident from the results, the company has been consciously reducing its focus on the low margin segment of steel processing and distribution, although it is leading to a hit on the revenue growth in the short term, but we are confident of achieving our Long term goals.
With our focus on better margin driven opportunities especially in the equipment rental and specialized services projects. The company has executed meticulous capex in 9 month FY26 with a view to expand its footprint in the renewable energy sector which is expected to contribute more than 10% of the equipment rental revenues for FY26. As we notice it has already touched 11% for the nine month period. FY26 we are witnessing the demand across all segments and sectors that we operate in. We have long term visibility from a majority of our clients and a very healthy order book. It is giving us immense confidence that we shall continue to grow aggressively while maintaining healthy profitability.
The company is targeting to close Q4FY26 with 100 crore plus top line making it the first ever in its history. And the promoters and management continue to show strong conviction in the growth story of the company and the country and hence have increased their stake to 71.14% from 69.6% a year earlier. In the last quarter we have also incorporated a new wholly owned subsidiary by the name of Tarachan Metallics Limited. The purpose of the new entity is that we are looking to expand on metal processing and manufacturing activities. This is based on the land that the company had procured in Nagpur in the previous year year and this entity is supposed to take up operations and we anticipate it will start operations in the next financial year.
More details about the same will be given out when we give more when we get more clarity on it. But the details about it are there in the presentation as well. With that I now hand it back to the moderator for the Q and A session. Thank you.
Questions and Answers:
operator
Thank you very much, sir. Ladies and gentlemen, we will now begin with a question and answer session. Anyone who wishes to ask questions may press Star and one on the Touchstone form. If you wish to withdraw yourself from the question queue, you may Press Star and 2. Participants are requested to use only handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue ascends. The first question is from the line of Rohan Mehta from FICOM Family office. Please go ahead.
Rohan Mehta
Hi. Am I audible?
operator
Yes sir. Please proceed.
Rohan Mehta
Perfect. Thank you so much for the opportunity. So, a couple of questions. When it comes to the Q3 revenue growth on a YoY basis, that’s about 8%. So in your opening remarks you had mentioned that on the Specialized DPC front the execution has been about 6.75 crores versus 10.9 crores in the same Period last year. So when it comes to execution going forward for specialized dpc, are we expecting it to pick up? And also when it comes to the orders from specialized dpc, what is your outlook on that? And I also wanted to just clarify the revenue which you know, got pushed for specialized EPC in the next, in the next quarter. So this is the primarily one off along with the warehousing and transportation segment which saw muted growth on a yoy basis. Right.
Himanshu Aggarwal
Okay. So thank you Mr. Rohan for the questions. Yeah. To answer that, regarding the one off contracts, that was a one off case for the specialized services contract. The execution could not happen in Q3 or could not begin in Q3 and it got pushed to Q4 and the entire contract is to be executed in Q4 itself. So the revenue realization will happen in Q4 for that specific contract. Overall, on the specialized services contract we are looking, as per the current order book, we are looking at about 25 crores from specialized services in Q4, FY26 itself.
And with regards to warehousing and transportation, as you asked. Yes, it was also a one off because one contract ended and a new one started. So the time that lapsed during that period and as a new contract starts, it takes time for it to stabilize which has stabilized now. So we will see the uptick on that in Q4 as well as further periods as well.
Rohan Mehta
Okay. And when it comes to your utilization level, so currently you’re at about 83%. So I wanted to understand the rationale for accelerating the capex to 121 crore above your 100 crore plan despite the utilization at about 83%. So how are you thinking about ROCs on the new fleet edition? Incremental ROCs and what sort of utilization levels are you expecting for FY27?
Himanshu Aggarwal
Right. So the CAPEX that got increased in the last quarter in Q3 we did CapEx which was done the month of December mostly. And that CAPEX will come into play. The revenues from that capex will mostly come into play in the current quarter and the subsequent periods. The idea for going beyond our 100 crore guideline for the CAPEX is because of opportunities that came up which were not there initially when we had given a guideline for 100 crores and we see that opportunity because usually Q4 tends to be the best quarter for the company and there is demand across all sectors for the equipment rental segment.
So it was more, it made more sense for us to take up the CAPEX in a period that it can give us the best outputs and we are looking at now we’ve been at 80 to 83% on the occupancy side and which will go up to for the quarter for Q4, we anticipate that it can breach 86, 87% levels because of the demand levels that we are seeing here.
Rohan Mehta
Okay, okay. And on the Tarachan Metallics, I wanted to understand what is the strategic rationale for entering the metal processing and high frequency beam manufacturing. So is this intended to be largely captive for existing clients or a standalone external revenue stream? And also if you could just quantify what sort of revenue are you targeting and what sort of EBITDA margin range can we expect from this business segment?
Himanshu Aggarwal
So from a strategic point, yes, we have opportunities that are being discussed with existing as well as new clients with regards to processing of metal. And we’ve been in the metal industry for more than four decades. So there is a lot of understanding on how that works. Specifically if we talk about steel, that remains our focus area going forward as well, with Clara Ch Metallics as the first core focus area. And the idea is to expand on the services that we are able to provide. And because these are services that we’re talking about and I’m not able to give more much detail about it because it will be out once we are able to put pen to paper with regards to what we are doing with the clients.
But these services that we are looking to expand on are services that are being sought after in the market and they are good revenue visibility and good margin visibility as well. But with regards to numbers on the revenue side, it can become a good revenue driver as an independent entity. And that is why we have taken it up as a wholly owned subsidiary rather than forming another segment within the current company. Because it can drive revenues upwards of hundreds of crores when we started out. And once we have more clarity on it, other numbers with regards to profitability, EBITDAs, we can talk about that.
Rohan Mehta
Sure, sure. And just before I get back in the queue, my final question is what is your outlook for FY27 when it comes to revenue growth along with the capex as well as on consolidated EBITDA margins and gross yields? If you could quantify a range, that would be good.
Himanshu Aggarwal
Sure. So with regards to growth, our target remains to continue to grow in the, as we point pointed out in the presentation also and in my opening remarks, that 20 to 25% is where the company still is looking at aggressively growing as far as EBITDA margins are concerned, as you would see and we’ve talked about it consistently in all our calls, our focus remains on ensuring that the margins keep improving or they remain steady in the range of about 37 38%. So that would be the focus going forward as well that we maintain our margins.
EBITDA margins are steady because this being our business being capex driven so the pat margins get impacted because of the depreciation that comes into play. But if we look at the cash pat as well as the EBITDA margins, that is where the real numbers growth can be understood. So the EBITDA is at around 37 odd percent of 37 plus. So we are looking to continue with that kind of EBITDA margins and rather improve it further because of the capex that has already been done. And finally as you asked also about the capex for next year, we haven’t taken a call on that yet.
We will be able to give more clarity on it in the next quarter once we have more visibility and clarity from our clients. However, we do see that on an average anywhere around 60 to 70 crores would still be done next year given that that is the kind of growth that we are pushing for overall as well.
Rohan Mehta
Right. And on the gross yield if that you could quantify.
Himanshu Aggarwal
The idea is to again like we remain consistently above 3 or at 3% that that will be the focus to continue with that.
Rohan Mehta
Perfect, perfect. Thank you so much. I’ll get back in the queue.
Himanshu Aggarwal
Thank you.
operator
Thank you. Thank you. We’ll take the next question from the line of Rehan Sayas from 3 Mitra Asset Manager. Go ahead.
Rehan Syed
Oh yeah, good afternoon to the team and thanks for taking my question. Oh like my couple of questions are already answered. So I have left two questions. So like I want to understanding regarding your average cross monthly rental rate that remain stable at 3.05% this quarter, what factors will meaningfully move the yield higher like pricing power equipment for project duration. Couldn’t please just help you understand the.
Himanshu Aggarwal
So sorry for what I understood is you’re trying to ask how can the yield go grow further or it can we can get a higher yield. Yeah like okay so yeah so for a higher Yield See currently 3 odd percent is from our understanding it is already at about industry best standards and anything above this would mean which would which is kind of difficult to sustain because the pricing complexity that goes into equipment rentals it’s difficult to manage on ensuring that we get best prices or the highest prices consistently over a 12 months to or a 2 year period.
So the idea of growing the yield would be through better pricing from the clients. But where we already are at 3 odd percentage, we believe that is the best standards and it is the sustainable standard.
Rehan Syed
Okay, so you are saying that you, you are sustaining this gain percentage for going forward,
Himanshu Aggarwal
right?
Rehan Syed
Is it a parent assumption?
Himanshu Aggarwal
Yes.
Rehan Syed
Yeah. Okay. And yeah, and the second question is around your Pan India presence that you have, you have seen that you have Pan India presence across 21 states. So are there specific regional sectors like renewables, railways, cement or metals, where inquiry momentum in the last six months that you have seen?
Himanshu Aggarwal
So yeah, to answer that question, in my opening remarks I talked about how our share in renewable energy has, from our revenue in equipment rental, it has gone to 11%. We had started out with 5% in the last financial year. So the reason for that is there is a momentum in inquiries and, you know, requirements in the renewable energy space. Apart from that in metals and minerals and cement also we have been steadily growing because of continuous demand in those sectors, because of the growth that we are envisaging across the various clients and we are working with all the major clients in those industries. So yes, there has been a good momentum recently. We’ve seen now momentum picking up also in the power sector and that augurs well overall.
Rehan Syed
Okay, okay, fair enough. And last one question, just a bookkeeping question that we have seen 37, 38% EBITDA margin this quarter. So like I want to understand, is it a sustainable margin we can extend for next quarter or next year?
Himanshu Aggarwal
Yes. To answer that, as I answered an earlier question, the focus is that we will continue to focus on ensuring that the EBITDA margins, the margin expansion happens, which has been happening for the last in this financial year compared to last year. Because last year we did see a lot of top line growth, but we took a hit on the EBITDA margins because of new contracts and new services. Yes, we had came into the new services that we introduced. So this year we are stabilizing that and these levels of 37 to 38% definitely look as sustainable going forward.
Rehan Syed
Thank you.
Himanshu Aggarwal
Thank you, sir.
operator
Thank you. The next question is from the line of Bhavya Sonawala from Samasa Capital. Please go ahead.
Unidentified Participant
Yeah, thank you for the opportunity. Am I audible?
operator
Yes, you are.
Unidentified Participant
Yeah, yeah. So few of my questions have been answered, but just to reconfirm, I think you spoke to the first participant for the revenue saying there was some deferment of revenue to the next quarter. Is that something I heard right?
Himanshu Aggarwal
Yes, that’s correct. So from Q3 we’ve seen some revenue especially from our specialized services coming into Q4 of this financial year.
Unidentified Participant
Okay, understood. And in terms of the new capex that we have done, is there a gestation time until they’re inducted into our fleet or you know, how does, how does that work?
Himanshu Aggarwal
Usually the machines, especially the larger machines, they take about a month’s time before the revenue starts coming into play. And so the capex like in the last quarter that we have done, the total capex is 121 odd crores of which about 40 odd crores has been done in the December quarter, in quarter three. So that also has happened primarily in December. So that the impact of that, the results, the revenues from it would start coming into Q4 and the subsequent periods.
Unidentified Participant
Okay, understood. And just one more question on the yield, just trying to understand when as we go higher in terms of lifting capacity, do the yields also increase or is it based on project? Different projects have different yields.
Himanshu Aggarwal
Yeah. So to answer that the yields are as you kind of answered your own question. Yes. It depends on project to project specific requirements. The, the quantum of requirement as in the longevity of the contracts, as to how, sorry, the duration of the contracts. So that, that all decides on the pricing side and the pricing is where the yields are driven from. So the higher the tonnage of the machine, the yields would be slightly lower because they are at higher cost. But you know, substantially. We do not get the same kind of rental yield across from the new higher capacity cranes, but over a period of time it stabilizes.
And that is why on an average, with the mix of equipment that we have, we are able to sustain the 3% plus gross rental yields as of now.
Unidentified Participant
Okay, understood. Or just a last question on the new subsidy that we have formed. Have we kind of penned down any kind of investment in the next, let’s say three, four quarters for this new company that we have floated.
Himanshu Aggarwal
So for the new company, the investment plans are still being worked out. We haven’t yet finalized on the plans because we are trying to figure out whether. Because it’s going to be a backward kind of decision making on, based on what we are deciding with our clients on to the services, the kind of services we are going to take up accordingly, the investments would be put into place. So that will come. We’ll have More clarity in Q4 probably when we have the earnings call for Q4, then we’ll be able to give more details on that.
Unidentified Participant
Just a last question. If I can squeeze in the kind of capex that we have done and probably what we’re planning for the next year is it fair to believe that the next leg of growth will also come from equipment rentals and probably the warehouse and transportation business will be more of a steady growth.
Himanshu Aggarwal
Yes. So we are like you would see with warehousing and transportation. We have seen a year on year 20, 20 odd percent growth on the top line if I compare the nine month period. So that kind of growth will continue in warehousing and transportation because of the kind of orders we have, the kind of contracts we have, these are tracks and the volumes that we are seeing, the steel volumes that are being handled by us so that, that we are very confident that that growth, a steady growth in warehousing and transportation will happen. But yes, predominantly the main growth will come from the equipment rental segment because of the capex that we are doing there and also the specialized services contracts adding to the kitty there.
Unidentified Participant
Okay, look, so basically where I’m coming from is the kind of capex we’re doing and you know the growth rate of 20, 25%. Are we being conservative or is this, what is the capability even after, you know the kind of capex that we’re going ahead with?
Himanshu Aggarwal
Yes. So see with capex it is ultimately rentals. So at the end of the day there is only so much that the rentals can push on the growth side. So it is a combination of factors where rentals as well as, as I talked about specialized services contracts as well, those combines together we are looking at. And when you say conservative if you really look at it or base is also steadily growing. Right. If this year we’re talking about 100 crores of Q4 that would be somewhere around 300 crores of top line for the entire financial year and 20 to 25% growth on that would be anywhere around 70 odd crores in the next financial year.
So looking at those numbers because the base is steadily growing so we are making sure that we don’t over commit and we see that this is the kind of growth we want to commit to while ensuring that the margins don’t get hampered. So that is why we are being very rational about the growth that we are focusing on.
Unidentified Participant
Okay, that was helpful. I’ll join back. Thank you.
Himanshu Aggarwal
Thank you for the questions.
operator
Thank you. The next question is from the line of Jiteen Parmar from Aurum Capital. Please go ahead.
Jiten Parmar
Hi, can you hear me?
Himanshu Aggarwal
Yes sir.
Jiten Parmar
Okay, perfect. Thank you so much. Quite a few of my questions have been answered but I have a couple of observations and then a few questions. One is one good thing is that you know our fixed assets Are growing and cash flows are positive. Now coming back to a few more balance sheet questions and so on that obviously has increased because we are increasing, we are buying this time. My question is when will we start seeing that reduction or is it still going to go higher? I mean what will be the peak debt and what is the trajectory for you know basically the debt component in our company over the next two, three years?
Himanshu Aggarwal
Okay, so to answer that sir, this being our business being capex heavy, so we are trying to work out our debt in a way where our debt remains steady. I would rather say instead of the absolute debt numbers it is more pertinent to note the debt equity to ratio numbers where we are able to maintain them below one. That is where the target of the company is. Currently we are at about 0.8. So because debt it is hard to predict right now whether we will start bringing down to debt the absolute numbers of debt. So if you look at it we are at about 110 odd crores of debt as on the books as of now.
And the way we manage our purchases is we brought suppliers credit into play and so the entire focus remains on taking up only that kind of debt which is immediately required for the company to continue its growth trajectory and at the same time ensuring that our purchasing power and purchasing system remains in play where the debt component remains such that our next debt to equity remains below that one ratio.
Jiten Parmar
Perfect. And my next question is on basically receivables we have a potentially high, you know, receivables over six months ago. Can you let us know what is the reason and are there any chances of, you know, some of them not coming as cash? Because I see on this thing that you know, I think, I don’t know I have the number for this quarter but previous quarter it was 60 crores if you can throw some light on that.
Himanshu Aggarwal
Right. So with regards to the receivable days we have brought it down. The last time we were at about 80, 80 to 83 days. This time it has slightly gone up to about 90 odd days. One primary reason for that is as I talked about in our warehousing segment one closed and new has started. So the contract that has closed. We are in the process of completing the closure procedures and there is a substantial amount that is going to be released after all those procedures are completed which we anticipate should be done in this quarter itself.
So the receivable days will stabilize again. And our target remains to have the receivable days within the 80 odd days which is considered very Good. Considering the industries that we are working in, ideally our sectors because the way the billing works, the receivable days tend to be on the higher side. But we have still been able to over the last two years with the meticulous planning of the industries we are working with, the clients that we’ve chosen and the financial discipline that we brought in. So that has helped us to bring down our receivable days.
And by the end of this financial year we remain focused on bringing it and keeping it within the 80 odd days. This.
Jiten Parmar
Okay, perfect. Now this metallic subsidiary, you did mention in an answer to previous question that you see potential of deriving from that over the years. And so I want to know, I mean is there. You did mention that you are still on the drawing board, but still, you. Know. Will it still fall under the parameters of one is to one debt equity? Because if we are talking about hundreds of crores of revenue, what will be the CAPEX required for that and will we still stick to on a company level, on a consolidated level of debt?
Himanshu Aggarwal
Right. So with regards to debt to equity for the new company, again it’s a little too soon. But yes, once we do start, because it’s going to be a new activity initially the debt equity ratios could be even at about two or two and a half just going, you know, this is just that I’m saying without any real numbers in front of me. But we would definitely want that for that company. Also the way it is plan, it will be planned out, it will be within the one ratio because that remains the company’s overarching target that regardless of it being a subsidiary, the ultimate focus there, the focus is not going to be primarily on capex. It is going to be more on driving the top line. So ensuring that we have better top line numbers without having to pump in capex.
Jiten Parmar
Perfect. That’s all from my side. Thank you so much and wish you all the best.
Himanshu Aggarwal
Thank you sir.
operator
Thank you. The next question is from the line of Ishit Desai from PODS Family office. Please go ahead.
Unidentified Participant
Yeah, thank you for the opportunity. My first question, Himanshu is on the equipment rental side. Now typically what we notice historically is that on Q3 and Q4 we typically are able to maintain our EBITDA margins or improve on that. So any specific reason for a drop in ebitda margin in Q3? I mean was it on account of lower utilization, more competitive intensity? Because I believe you mentioned on the last call as well that one of the largest machines got deployed towards September end in the renewable space and that typically has a higher margin. So one would expect the margin profile to improve.
So just to understand, I mean is it specific to a quarter, do we expect it to stabilize Q4 onwards? I mean just to understand, if you could help us understand.
Himanshu Aggarwal
Thank you for the question, Sreshit. So yes, with regards to Q3, what we notice is that we did see certain equipment, larger equipment, completing their contracts and then moving to new contracts which led to higher idling. And that is why the occupancy levels were not in line with what we would expect in Q3. With the movement happening, there were additional costs of transportation which have gone into the costing side and we’ve taken a hit on the ebitda, a very minor hit. But still it is not as you pointed out with EBITDA margin that you would expect in Q3.
So yeah, that is again a one off scenario we saw there and what that would stabilize and we’re already seeing it stabilizing in Q4 and going forward as well. We don’t see any challenge there.
Unidentified Participant
Yeah, sure. I mean broadly, just to summarize that, I mean more of Q3 impact. So again we should come back to a normalized run rate, Q4 onwards. Right?
Himanshu Aggarwal
Right, right, absolutely.
Unidentified Participant
So and with the current capex we have done so far, Himanshu, just to get a sense of what kind of offline we can do. I mean if we were to utilize on an optimal basis, I mean broadly, what kind of annualized revenue with the current fleet we can do just to get a ballpark number in terms of capacity.
Himanshu Aggarwal
In terms of capacity, I think best case scenario you can look at, I would say 130, 140 odd crores. Just purely. If I talk about equipment rental, that’s just something the top of my head, I’m saying with the kind of capex that we have executed. So that that is where those are the numbers we see coming into play with regards to purely equipment rental.
Unidentified Participant
Yeah, yeah, but I mean if I look at the order book FY26 numbers, we are already likely to achieve about 130, 335 kilo. Right. So I mean are we saying that we may not. I mean given that some of the equipment have still come during the year. So are we trying to be little conservative on the estimate? I mean can still do.
Himanshu Aggarwal
Yes, I would say that is where. Because I just want to give you a conservative estimate that this is what we wish to minimum. This should be the minimum number that we achieve. And then obviously there is always room for us to grow there and ensure that we hit those targets. And as we have talked about this segment driving the growth. So if you’re looking at 20 to 25% on an annual growth basis, we definitely see this number also going up with larger growth coming from the equipment rental segment itself.
Unidentified Participant
And second point on the steel logistics and transportation business, I mean, you mentioned about one specific impact regarding drop in revenue. So I mean just to understand, and given that we were adding Dakuna warehouse during the quarter, one would expect the revenue and given that it was a warehousing contract, we would have expected margins also to improve. So if you could help kind of elaborate a bit on what exactly that impact was during Q3 and moving forward, I mean whatever the order book we are seeing, are we likely to stabilize around those levels? Because in this business we have seen lesser Q1, I mean rather Q1Q volatility. Right. So was this one off?
Himanshu Aggarwal
Yeah. So with the, with the new warehouse, whenever the new, new warehouse comes into play. So there is a lot of initial setup cost that goes into because it’s not really a capex cost. It is all operational cost of setting up at the new warehouse when you’re taking up a new project. And at the same time, this was not just a new contract that we took up, there was another contract that came to a close. So we had dual activity that impacted Q3 numbers on the expenses side for this specific segment. And with the new warehouse that comes into play, it takes about a month or so at least for it to stabilize.
So we started operations in the first week of November at Dankuni and all of November kind of went into stabilizing it. And then eventually December is where the revenue kind of started coming into play. And January is where we are seeing that it is now the operations have stabilized and we’ve got in the cost of operations as well. So we would see, we should see that as definitely a one off in Q3 for that segment. And better revenue recognition and EBITDA margins will be evident in Q4 and the periods ahead.
Unidentified Participant
Regarding the closure of the contract, I just wanted to understand was it on the transportation side, warehousing side and was it warehousing side? It was. Was it voluntary at our end or we were not able to kind of win it on the bid side and renew it.
Himanshu Aggarwal
So we were at the completion of the contract and then there was a renewal coming up. And in the renewal in the tendering phase, the rate, because the rates that were going into the new tender were much below the operational ease that we expect and as I talked about earlier, we are looking to only take up contracts where we believe that we will be able to sustain margins and we’re not looking to just push for top line growth. So that is why we let go instead of continuing with the contract or pushing for a new contract with much lower than manageable margin.
Unidentified Participant
Sure. Because I can see the volume of steel handle also kind of dropped by almost 1/3 as compared to last quarter. So I mean this was a reasonably large contract. Any such further contracts coming in renewal in next one year or so?
Himanshu Aggarwal
Yes, we. So we’ve got instead of renewals rather Dankuni came into play which was a completely new contract. And there are new contracts apart from the ones that are currently running. None of them are due for renewal right now. So there are new contracts that we are working on like Dankuni that we are looking to add to the overall scheme of things.
Unidentified Participant
So I mean at least from FY27 perspective, we should expect then the order book of Q4. 26 probably that number should stabilize in FY27 at least. Right. And then some growth.
Himanshu Aggarwal
Sure, definitely. Yes, that should.
Unidentified Participant
And Imanju, there was a mention of some 17 million events. Reversal of doubtful debt. So what which segment this was pertaining to and what exactly it is for?
Himanshu Aggarwal
Yeah, so that 1.7 odd crores of doubtful debt is primarily from the equipment rental segment. And it pertains to previous financial years where we saw that the revenue we are pushing for it and we’ve also initiated the legal action for entities who are not paying up or who have not been paying up or not responding to the payment requests. So there we have considered it under doubtful debts and reduced it from the revenue from Q3. So that is why the Q3 revenue numbers are also impacted. And also with that the profitability for Q3 and the nine month period both are impacted.
So these doubtful debts will be taken up back into the books once and how much ever of it is recovered. So we will then take it up in our books accordingly.
Unidentified Participant
So the standalone rental margins then is. I mean if adjusted for this would be higher by a 200 basis point or so.
Himanshu Aggarwal
Yes, yes, absolutely. So yeah, to answer an earlier question now that you pointed out, that reminds me. Yes. So the there is a suppression on the EBITDA margins because of the impact of 1.7 crores of the doubtful debts that has come into place specifically for this quarter and also impacting the whole nine months.
Unidentified Participant
Sure, understood. And one more question on the Karach and metallics side. Himanshu, I Tried to share whatever best you can. I mean but just to understand more from a strategy perspective, I mean historically we have moved out of low margin, low roce businesses and then try to focus on better cash flow, better roce businesses. So I mean is that a fair assumption that we are all, I mean this is also online of same thought process and then we’ll continue to work on those lines or are we trying to push a little more on top line growth?
Himanshu Aggarwal
So to answer that, no. So the idea is that we will not, as we always keep emphasizing, the idea is to push towards growth with good margins. So that is what Tarachan Metallics will also be looking at. And once the operations are set up and stabilized, the idea there again is to have margins that we currently already are operating at. So that is the kind of diversification we want to do to add to top line while also ensuring high or the sustainable EBITDA margins like we currently are at about the 37, 38%.
Unidentified Participant
Understood. And I mean you, since you’ve already mentioned a revenue potential that could be 100 crores. I mean so the opportunity size you see is reasonably large. Right. And for us to really for this to make up a reasonably large segment for the company, is that what we are looking at? That there’s a longer Runway for us to look at much larger revenue contribution?
Himanshu Aggarwal
Yes, yes, that is the target. There is a much larger revenue target that the company envisages given the kind of opportunity that is there in the market with the kind of initial discussions and the detailed analysis that we have done. So we will be able to give, as I talked about, more clarity on it. But yes, there is a good Runway that the company sees there on revenue front as well.
Unidentified Participant
And on the client side this would be mix of public and private.
Himanshu Aggarwal
Yes, definitely. Yeah.
Unidentified Participant
So this is not like our warehousing transportation. This may not be heavily tilted towards public sector.
Himanshu Aggarwal
Not at all. It is going to be a combination of private and public and the discussions are on with both sectors.
Unidentified Participant
Understood. And I mean when you say we’re looking to do something on FY27, are we looking at any sort of commercial operations to begin during that timeline or it more on a concrete plan?
Himanshu Aggarwal
It would be more on concrete plan and starting out the activity to set this up. Probably I would say on the operational front, anywhere towards the end of FY27 or early FY28 is when we would see operations coming into play for this company.
Unidentified Participant
Sure, sure. Thank you. And I’ll turn back the green case of any question.
Himanshu Aggarwal
Thank You.
operator
Thank you. The next question is from the line of Kaustubh Shah from Walford pms. Go ahead.
Unidentified Participant
Hi. Hi Manju. Thanks for the opportunity. Almost all your questions have been answered. One or two things. So the order book we have mentioned is 97 crores and everything is executable in Q4 for the subsequent quarters. Has we built any further autobiography boo
Himanshu Aggarwal
ok? Yes, we have a larger order book but traditionally we’ve given out the order book numbers that are executable in the current FY itself.
Unidentified Participant
Okay. And one more thing on the high frequency beam business just wanted to understand that. So these basically these beams your end customers would be got your prefab guys or they will be real estate concepts and guys or so just understand where this will be the end use of this product.
Himanshu Aggarwal
Yeah. So the end use of the products that we are envisaging there or the services both is going to be as you pointed out, prefab industries as well as industrial plants and infra groups as well. Real estate is not the focus and I do not see real estate playing a big part there. But yes, the prefab guys and that could be also as an extension in the real estate but not directly is real estate is not a direct focus for us. So prefab, infra and industrial plants is where we see this.
Unidentified Participant
Okay. And lastly in terms of how we’ll be looking approaching this business. So this will be just in terms of top 10. This will be just a value addition commission that will be or it is a complete no product. So no raw material procured and then processed and then sold. Is that how the business will be in terms of the top line?
Himanshu Aggarwal
So yes, it has a combination of both those aspects. One is the services part, the service center which is more about doing services from a metal, metal servicing side. There are multiple services that come into play there and then there is also the product side which we are working on.
Where it will be as you pointed out, procurement of raw material production or something and then sold out as a product. So that is where we are trying to get the right mix in play. And I will have more details shortly on that.
Unidentified Participant
Perfect. Great. All of it. And thanks for the question. Thank you.
operator
Thank you. The next question is from the line of Ankur Kumar from Alpha Capital. Please go ahead.
Ankur Kumar
Sir, thank you for taking my question on this. Q3 you said there is some revenue got pushed. So any chance this similar kind of. Push can happen from Q4 into next year also or are we confident of this 97, 200 crore of booking in Q4.
Himanshu Aggarwal
Thank you for the question Sankur. As of now we are pretty confident because of the activity that is already executed and already started at the ground level. So we do not see a challenge with regards to revenue being pushed into the next quarter as things stand to be.
Ankur Kumar
And sir, you also talked about some capex already being completed in December. So what kind of depreciation increase we will we see in going forward.
Himanshu Aggarwal
So the capex that has already been done in December, the depreciation impact has already come into the books for that and similarly it will be there for Q4 any new capex which is not currently planned as of now at least.
But if any new capex happens in the current quarter, only then there will be any depreciation decrease. But I think it should remain similar to what we have seen in Q3.
Ankur Kumar
Got it sir. Last question would be can you talk about on the demand environment in the overall economy for us for the next year also?
Himanshu Aggarwal
Yeah, so in my opening remarks when I closed out I did mention that we’re already seeing good visibility across all segments and across clients in those segments. That is very robust demand at least in the services that we are in. If I talk about equipment rentals and the specialized services we are seeing good demand and that is where and even in warehousing and transportation as we are adding new warehouses and looking at also expanding on the transportation services. So that is what is giving us the confidence to push for 20 to 25% or growth on an annual basis. So on the demand side we are seeing a good visibility. Please.
Ankur Kumar
Thank you and all. Thank you.
operator
Thank you. The next question is from the line of Manan Bandu from Walford pms. Yes.
Unidentified Participant
Yeah, can, can you hear me?
operator
Yes, I can hear you.
Unidentified Participant
Yeah. Yeah. Thank you so much for the opportunity. So my first question was that if you could quantify how much revenue was deferred it would be really helpful from Q3 to Q4 in that specialized place.
Himanshu Aggarwal
Okay, so for Q3 the quantum would be around 4 odd crores was deferred specific to a certain contract.
Unidentified Participant
Okay, that was helpful. Thank you. And so second question was that the is the metallics business inclusive of the 20 to 25% or the metallics will drive over and above the 20 to 25% growth.
Himanshu Aggarwal
Okay, thank you for the question. Yes, so the Taras and Metallics, whatever revenue that comes from it would be independent of the 2020 5% growth that we are talking about. We’re talking currently only about the company as is today. Once tariffs and metallic starts operations Then we will be looking at the growth at a different number and then we’ll let you know, we’ll obviously get that out as well.
Unidentified Participant
Okay, that was also very helpful. And when you for one of the participants you mentioned that metallics division can bring hundreds of crores. So it would be quite helpful if you could, you know, elaborate a little bit on this because hundreds of crores is a big number.
Himanshu Aggarwal
When I say hundreds of crores, the idea is as I answered an earlier question that we are looking at a combination of services as well as production. So that is where with a lot of product sales that we envisage and steel being a high priced commodity. So there will be a high value of transaction happening there. So those are the reasons for which behind the answer that I gave. But to give more clarity, as I already stated that it will be more prudent to do so in Q4 once we have more clarity on what we have finalized and how we are going forward with the tartan metallics activity.
Unidentified Participant
Perfect, that was helpful. And just one last thing is that in this metallics business if you could you know say like what, what might be happening or that also you sent.
operator
You there is a lot of background noise from your end. We can’t hear you clearly.
Unidentified Participant
Sorry, sorry. Just one last question was that, that even in this metallics business if you could say a little bit what is what is going to happen or even that you will send Q4.
Himanshu Aggarwal
Sir, I have tried to explain the basics as we have put out in the investor presentation and answer the multiple questions on that. So. But yeah, more details about it. It would be as I said more prudent to give those details once we have more CL and we have set pen on paper with regards to how we are going forward with it. So yeah, Q4 earnings call would be a better time to give out those details.
Unidentified Participant
Okay, that was very helpful. Thank you so much. That’s it for him.
Himanshu Aggarwal
Thank you for the questions.
operator
Thank you. The next question is from the line of Sandesh. An individual investor. Please go ahead.
Unidentified Participant
Hi Himanshu, can you hear me?
operator
Yes sir.
Unidentified Participant
Yeah, thanks for the opportunity. Like my question is like earlier we used to buy Zoom Leon cranes like as you have. We used to get good supply credit and 20 to 25% cheaper compared to Fanny and European cranes. Now we are looking like we are buying Fanny and XCMG cranes of 800 ton. I believe zoomed in crawler crane of 800 can handle up to 3 megawatt or up to the height of 150 meter. Like my question is that if cheaper crane can do the same job, why we are buying from IndexCMG? Are our clients preferring those type of claims?
Himanshu Aggarwal
Okay, so to answer that sir, I’m not aware of the source of your information. With regards to the cost of purchase, we’ve got our own pricing and purchase terms with all the three OEMs, I.e. senex, CMG and Zoomline. We do annual purchase plans with these companies and based on that pricing policies and terms are finalized. So. So it is not possible for me to comment on the question with regards to whether which one is expensive or which one is less expensive. But with regards to our client preference, there is no preference from their side as long as the cranes are able to execute the jobs. With regards to the activity that has to be done, be it a windmill or be it an industrial plant or a power plant, we are going ahead with our purchases considering that we should be able to use our cranes across sectors and across different clients. So that has never been a challenge for us in that sense.
Unidentified Participant
Yeah, I believe like we plan like 40 crore in specialized service. Like is it for this year, is it still we can do 40 crore?
Himanshu Aggarwal
Yes sir. As I’d answered an earlier question, we are looking at about 25 watt crores of specialized services revenue in Q4 itself and we had clocked at about 18 odd crores as of Q3 for this financial year as for the nine month period. So we’re looking to surpass the 40 crore that we initially planned.
Unidentified Participant
Okay, so my last question is like are we private capacity? I can see like domestic, recent, recent domestic construction equipment sales slowdown in Q3, does it indicate slowdown in private capacities?
Himanshu Aggarwal
There could be at a macro level if there is any slowdown on the CAPEX side. But with the kind of services that we are involved clients, even if you know there is a slowdown, let’s say from 100 it has come down to 80, but for us there is still a larger chunk within that 80 that we do not see. We do not see a challenge. As far as our association or our plans are concerned.
Unidentified Participant
Can we handle a 3 megawatt installation at the height of 180 meter or up to 150 we can handle with other equipments.
Himanshu Aggarwal
The kind of equipment we have right now we are equipped to handle up to 150 meters and once the requirements come up and the new CapEx that you would plan going forward would be based on what our clients require and where we see a long term visibility also the capex will be done Accordingly.
Unidentified Participant
Okay, thanks. Thanks.
Himanshu Aggarwal
Thank you, sir.
operator
Thank you. The next question is from the line of Rohan Mehta from FICOM family office. Please go ahead.
Rohan Mehta
Hi. Thank you for the opportunity again. So I wanted a clarification on the EBITDA margin front. So wasn’t the margins high in the particular quarter because of the deferment of specialized services along with lower revenue in the segment B which is your warehousing and transportations? So once those segments start reporting numbers again, won’t the margins normalize back to more 30 to 34% consolidated basis?
Himanshu Aggarwal
Okay, so to answer that, Mr. Rohan, see, we do now when we had started out with specialized services in the previous financial year, it was a new area for us. So that took us time to stabilize and the EBITDA margins were on the lower side. But now the services, specialized services contracts that we’ve picked up there, we envisage that the EBITDA margins would be slightly higher. And also we are driving our revenue growth on the equipment rental side, which is driven by the capex that we have done. And with the warehousing and transportation, with higher revenue coming in, you’ve seen that the EBITDA margins were lower last quarter for the reason that we, as I explained in an earlier answer, that we had dual activity of closing out a contract and starting a new contract which led to higher expenses, but the revenue could not be realized against the same.
Whereas that situation will not be there in Q4. So going forward, as we talked about 37 to 38% of of EBITDA margin stabilization that that should remain, it would not be dropping. And as we did last year, there was a drop in EBITDA margin because of a sudden increase in revenue from specialized services.
Rohan Mehta
Got it, Got it. And in terms of the payment terms for the machines you buy, are these machines on a sale and leaseback module?
Himanshu Aggarwal
No, we are not doing a sale and leaseback model.
Rohan Mehta
Okay. Okay. And one of the listed competitors, they mentioned that in the renewables etc space, the EBITDA margins could, you know, normalize to about 10 to 12% levels from the current 18 to 20% that they’re able to generate. So given our, you know, increase least focus towards wind and the broad renewables segment, along with our focus on specialized EPCs, should we expect this consolidation in margins as well? Margins being diluted over the next 12 to 14 months or how is your take on this segment?
Himanshu Aggarwal
Okay, so with regards to that, we are not doing specialized services or EPC in the renewable space and that is not the intent of the company. Going forward as well, at least in the near future. So we do not see any challenge similar challenge with us on that front.
Rohan Mehta
Okay. And last question for from my side would be given you have a very historical track record at the Jamnagar site, specifically with the J3 project. So given the massive scale of the new Reliance Green Energy complex, is Tara Chand currently involved in the lifting and installation phase of this project? And if so, how do you see the revenue resuming here?
Himanshu Aggarwal
Okay, so yeah, we are very much involved with the Reliance Industries new plants that are coming up in Jamnagar and we have a substantial amount of equipment deployed there. But for strategic reasons and business reasons, I’ll not be able to give you revenue details or visibility. But we have substantial equipment working there and we have new orders coming in from there as well. So.
Rohan Mehta
Thank you. Thank you so much.
Himanshu Aggarwal
Thank you sir.
operator
Thank you. The next question is from the line of Ishit Desai from Ford’s family office. Please go ahead.
Unidentified Participant
Yeah, thank you for the now. So Himanshu, based on the numbers on the equipment rental and project business and the revenue and whatever breakup you have given, I mean given the deferment of revenues, I can see there is hardly any EBITDA contribution from services side for this quarter. So fair to assume that Q4 will be lumpy on that side as well. And then overall on FY26 basis, are we comfortable maintaining that 20% EBITDA guidance for the year?
Himanshu Aggarwal
Yes. So in this quarter because we saw the revenues being pushed out, but certain expenses were incurred in the last quarter itself with regards to the specialized services. So that led to some margin erosion there. But in this quarter we would see, as I answered the previous question, that our focus Is on the 37 to 38% EBITDA margin maintenance that would be there despite we are seeing around 25 odd crores of revenue from the specialized services.
Unidentified Participant
So on that 43, 44 crore watches which is to be recognized during the year, 20% EBITDA margin on an annualized basis we should make. Right, that should be.
Himanshu Aggarwal
Yes, anywhere between 18 to 28%.
Unidentified Participant
And second question on the Tarachal metallics mentioned. So I understand on the business side a lot of things are getting finalized, but if you could give us some sense on the industry side, who are the existing players, the competitive intensity and what gives us an edge as compared. I mean what was the rationale of getting into this business? What differentiates us from some of the other players? Given that it’s a pure manufacturing and processing business, why should we have an edge By a customer should then work with us as compared to our competitors. If you could just give us a sense on that part.
Himanshu Aggarwal
Yeah. So see from the edge perspective what I can say is being in the steel industry for four decades, being in metals for four decades, at least one of the main metals being steel there it has given us a lot of insight about the industry. There is a legacy and there is a lot of association that we have with the end user clients where we. Because a lot of the end user clients1 are already there as our client base in our warehousing division or transportation division as well as there are certain client base that we are looking at which are part of our equipment rental division as well.
Like some people like if I talk about on the industrial side, be it the cement plant, steel plants or there is BHEL and other certain clients, I’m not going to give specific names as of now. So they’ve got that kind of traction already and that network of clientele as well as the network of backend when it comes to the resources of the raw materials that we would require. So all of that gives us that confidence and understanding that we brought a good amount of edge or at least we are well placed when getting into this kind of activity with regards to competitors or who else is there in the industry.
There are certain players who are got independent activities but we haven’t yet come across somebody who’s got a combined activity of what we are looking at doing. So as I said because once we have it more formalized it will be easier to give more details around what the competition really looks like and the target audience as well and the market size according to that.
Unidentified Participant
Sure. Understood Mahesho. Thank you.
Himanshu Aggarwal
Thank you.
operator
Thank you. The next question is from the line of Kaushikrishna, an individual investor. Please go ahead.
Unidentified Participant
Welcome sir.
operator
I’m sorry sir, your audio is not clear. May I request you to use your handset please?
Unidentified Participant
Hi, good afternoon sir. Am I audible?
operator
Yes.
Unidentified Participant
Yeah. Hi Sir. Sir, in Q2 you have mentioned our growth guidance has 20 to 30% and now it reduced to 20 to 25%. So are you just being conservative or the expecting a lower growth?
Himanshu Aggarwal
Thank you for the question sir. So we clarified this in Q2 that we are looking at 20 to 25% primarily because we’ve got a high base on which we are working on. If you will look at it last year we grew at about 45% year on year. So we had overshot our growth target because of certain opportunities that came up especially in Q3 and Q4 of last year and taking a cue from that we did our understanding and rationalization of the growth that we envisaged for this year and the years ahead. So 20 to 25 watt percent looks like the scenario where we would be able to, we would like to maintain the growth and not see our margins getting handled.
Unidentified Participant
Right, Right sir, thanks. And what is the current cost of capital? Sir.
Himanshu Aggarwal
At the current cost of capital it is at about 8, 8 odd percent. 8 or 8.2 I think.
Unidentified Participant
Yeah. As you mentioned there’s no plan for the debt reduction for this year or next. Right.
Himanshu Aggarwal
So debt reduction is happening on a regular basis because as if we, we are paying out on the debt as well but with new play with regards to the credit suppliers. Credit that gets exhausted and it gets converted into term loan or debt on our books. So on the steady, we are looking at maintaining that steady 110 odd crores of debt on book. And rather more importantly, as I answered an earlier question, the debt equity ratio would remain below one.
Unidentified Participant
Okay sir, thank you. And one more thing sir, one thing in terms of market perspective, this is the only quarter in last many quarters our growth has been muted. So market also punished our share price yesterday. So can you comment anything on this or just for the conference of the shareholders or just can comment anything on this?
Himanshu Aggarwal
See traditionally and otherwise. Also it is not my place to comment on market, how it performs. We continue to focus on performing the best we can. And as we talked about growth being muted. So there are multiple factors that led to the muted growth. One of them being our warehousing and transportation seeing some changes, some revenue from our specialized services getting pushed into the current quarter as well as 1.7 crores of revenue that we had to consider as doubtful debts pertaining to previous financial year. So all of those factors once taken into consideration they can give more clarity on how the company is performing. And Q4, as I already mentioned in the opening remarks, we are looking at 100 crore plus quarter for the first time ever in the history of the company.
So those as far as the company is concerned, we see good demand, good opportunity out there and we are focused on ensuring that we continue to deliver the best we can at the company level. And we hope that we keep delivering good value for all the stakeholders.
Unidentified Participant
Yes sir.Are you prone to much cyclicality with. This tyrosine metallics division? Don’t you think so?
Himanshu Aggarwal
I’m sorry sir, I didn’t understand the question.
Unidentified Participant
Are we prone to much cyclicality in our business? With our new business Taurus and Metallics,
Himanshu Aggarwal
sir. With Taurus and metallics, once the nuances of the business are clear and what we exactly finalize on, I’d be in a better position to answer that question. But on an overall basis, steel industry works or the metal industry works in a certain cycle, we would be in the same cycle. And Q3 and Q4, traditionally, as you would see in the current business are best quarters otherwise. But it’s too soon to say anything about direction metallics on the cyclical side per se.
Unidentified Participant
Thank you. Thank you, sir. I’m a great fan of you. And thanks for the clarifying everything, sir. Thank you.
Himanshu Aggarwal
Thank you, sir.
operator
Thank you. As there are no further questions from the participants, I now hand the conference over to Mr. Himanshu Agarwal for closing comments. Thank you. And over to you, sir.
Himanshu Aggarwal
Thank you. We at Tarachand always appreciate the opportunity to interact with all of you. Thank you once again for taking out the time to be a part of our earnings call for Q3 and 9 months FY26. I hope I was able to do justice to your questions. And if you have further questions or doubts, please feel free to write to us and we shall try to respond as best possible. We always look forward to continue celebrating our journey with you in the quarters and years ahead. Thank you once again.
operator
Again, thank you, sir. On behalf of Tarajan Intra Logistics Solutions Ltd. That concludes this conference. We thank you for joining us and you may now disconnect your lines. Thank you.