Trishakti Electronics & Industries Ltd (NSE: TRISHAKT) Q1 2026 Earnings Call dated Jul. 24, 2025
Corporate Participants:
Dhruv Jhanwar — Chief Executive Officer
Analysts:
Rajnish Mishra — Analyst
Jayesh Shah — Analyst
Ishit Desai — Analyst
Sarthak Awasthi — Analyst
Rahul Singhania — Analyst
Manish Jaiswal — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Trishecti Industries Limited Q1FY’s 26th results conference call hosted by Venstra Securities Limited. 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 start and then zero on your touchstone home.
Please note that this conference is being recorded. Before we begin, I would like to point out that this conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements do not guarantee the future performance of the company and it may involve risks and uncertainties that are difficult to predict. I would now like to hand over the floor to Mr. Rajneesh Mishra from Kanji. Confidedly Partners. Thank you. And over to you, sir.
Rajnish Mishra — Analyst
Yeah. Thank you and good day. Ladies and gentlemen, myself Praginish Mishra from Confidedly Partners. We represent the investor relation and public relation for three Shakti investor. On behalf of Ventura Security and Confided partners I warmly welcome you all to 3 Chakti Industries Limited Q1FY 26 Arnie Conference Call. The company is today represented by Mr. Bhru Janwar, the CEO of the company. I would now like to hand over the call to Mr. Dhruv for his opening remarks. Thank you. And over to you, sir.
Dhruv Jhanwar — Chief Executive Officer
Thank you, Rajesh. Good afternoon everyone. It’s a pleasure to welcome you all to Krishakti Industries Q1FY26 earnings conference call. Thank you for joining us today. So this first quarter of FY26 has been a critical 1 in 330’s transformation journey both operationally and strategically. We delivered a strong top line of 4.08 crores marking an 86% sequential growth while EBITDA surged by 131% to 2.7 crores driving by robust asset utilization, improved operating leverage and continued discipline in cost management.
Our heavy equipment hiring segment, our core growth engine witnessed a remarkable scale up generating 3.6 crores in FY26 Q1 compared to just 9 lakhs in Q1 FY25. Year on year this is 382 times the growth reflects the success of our repositioning efforts over the past 18 months and rapid equipment deployment across sectors like steel, renewable energy and civil infrastructure. We have also crossed 50 crores in rental assets based in FY26 Q1 and with strong demand visibility we remain committed to our 400 crore capex plan projected for FY28.
Notably, 50 plus crores have already been spent in targeting another 100 crores of capex from FY26 alone to strengthen our fleet and expand into high growth verticals such as Metro, rail and industrial capex. In line with this scale up I am pleased to share that during the quarter we successfully completed a 27.89 crore capital raise through preferential allotment of equity shares and warrants. This fundraise is significant as it includes both promoter inclusion and participation from marquee public investors including our first major domestic institution investor. The capital will directly support our fleet expansion. Working capital. Going forward, we aim to and capture a larger share of the equipment hiring business in India and deliver sustainable growth in revenue and EBITDA as well. We remain focused on creating value for all our stakeholders through profitability, scale and efficiency. This is just the beginning of an exciting journey for 350 Industries Limited and we are confident in our ability to achieve significant growth in our business alongside playing a key role in India’s infrastructure growth story. Thank you for your continued support and trust in Limited So with that I conclude my remarks and open the floor for questions. Thank you.
Questions and Answers:
Operator
Thank you sir. Ladies and gentlemen, we will now begin the question and answer session. If you have a question, please press Star and one on your telephone keypad and wait for your turn to ask the question. If you would like to withdraw your request, you may do so by pressing Star and one again. Ladies and gentlemen, if you have any question please press Star and one on a telephone keypad. First question comes from Zayesh Shah from Shah Investment. Please go ahead.
Jayesh Shah
Okay, so hi, my first question is how will like around 28 crores of fundraise be deployed? As in what’s the expected impact on leverage or cash flows?
Dhruv Jhanwar
Yeah, so basically this fundraise will be used for mostly buying new machines and also to repay some debt taken at a higher interest rate at the very beginning of our journey like the 400 crores expansion journey which we have. So for that this will be a growth catalyst for us. This particular capital will be helping us to purchase machines more aggressively in the upcoming few quarters.
Jayesh Shah
Okay, fair enough. And one more question is like there has been a drop in your profit after tax and spike like your strong top line growth and your EBITDA first quarter. So any like particular reason?
Dhruv Jhanwar
Yeah, so if you see it very carefully on our Q4. Four results is basically an adjusting quarter. Right. Because it’s audited financial. So all the provisions are actually audited fully and some balancing figures are there. So in Q4 what had happened is that most of our machines which we bought earlier in like four, five months from today. So in those particular machines the depreciation and all those claims on a four month basis that is. But in income tax we got 15% depreciation because we use SLM method. Right. So because of that there was a deferred tax reversal. So because of that, this particular reason, although PBT last quarter was around 1.2 crores, our PAT skyrocketed last quarter because it was a baseline adjustment.
Jayesh Shah
Okay. And one more thing is like will your current margins be sustainable moving forward?
Dhruv Jhanwar
Yes. So basically right now all our machines are brand new. It is all 2024 and 2025 machines. So for the first five years the machines don’t really need a lot of maintenance. So we enjoy 65 to 70, 71 margins, EBITDA margins. But eventually when five years down the line when the machines will start some maintenance and all, then obviously the margin will drop down to 60 to 65. But it won’t take a big hit because every eight, nine years we tend to buy newer machines so that we are relevant with the new advanced machineries which are coming into the market every year.
Jayesh Shah
Okay, fair enough. Then one more thing is. Yeah. So like what’s your vision and for the 2030 in terms of capabilities?
Dhruv Jhanwar
Yeah, so we jumping to a lot of questions. So. Yeah, so basically the vision for 2030 is that we want to become India’s biggest equipment hiring company. So we want to have the biggest fleet in India and we also aspire to bring the new generation electrical and hybrid equipment which is currently running in the global market. But India has not seen that shift till now. But I’m hoping that maybe four years down the line we are having enough cash flows so that we can get those equipment into India as well because at the end of the day also growing at a very high pace.
So we eventually have to shift to electrical equipment and hybrid machines. So those machines are very costly also. So we’ll do in capex over there will be a bigger thing for us because the ticket size increases a lot but the operational efficiency is absolutely amazing. So by FY 2030, we hope to get so much cash flow that we can invest into these machines and get it into India. So want to go for higher ticket size machines. So right now we are dealing with machines from 2 crores to 15 crores of value. But eventually in FY 2030, it’s not that we will stop expanding, right? We want to keep on growing every year even if it is 2040. So for that we will have to increase our ticket size per machine. So for that we will have to go for higher tunnel machines, new age electrical machines whose cost is a lot. So this is our vision.
Jayesh Shah
Thank you. That said, from my side, all the best to you guys.
Dhruv Jhanwar
Thank you. Thank you.
Operator
Thank you. The next question comes from Ishit Desai from Ford family office. Please go ahead.
Ishit Desai
Thank you for the opportunity, sir. Congratulations on good setup numbers. My first question is on the industry side, sir. I believe a lot of players in this industry of late, over last one one and a half years have been doing a lot of capex in the equipment dental sector. And I mean if you could give us some sense on what is changing at the industry level, are there some issues with larger players? Also demand is increasing meaningfully. Is there any change in terms of ownership to rental shift? So any of those trends which are helping some of these guys to do a lot of capex?
Dhruv Jhanwar
Yeah, yeah. So see we also started our journey around 18 months back. So of course we saw a massive surge in the demand side. So if you technically see in FY25 and FY26, many of these steel companies have started their capacity expansion as I mentioned in the previous phone call, also that the steel industry is having massive expansion. Everyone is going for 200, 300. Some companies are going for 500% capacity expansion which takes four to five years.
That is one big reason why the equipment engineering business is going up. The demand is going up like anything. Now if you see from a larger perspective that companies like L and T and all, they are doing major projects, bullet train projects are coming up, Metro projects are coming up, water based projects are coming up. So all these things have actually started in FY25 or FY26. And these projects are actually something which takes a lot of time to. It takes a lot of time to finish up.
So that is the reason why at this particular time the demand is going up because just phase one is ending, phase two, three and four are all like already left. For all these companies to be done. So I don’t see that there is a slowdown going to happen at least for the next six, seven years.
Ishit Desai
Could you just give us a breakup of your end use sector to current deployment of machines, whatever machines you have. What would be the breakup in terms of end user industry?
Dhruv Jhanwar
Yeah, right. So we got a big plants we are running in Gujarat side, Odisha side is very big. Chennai is a big hub where most of our machines are. Then we have very well spread pan India business. So right now many renewable energy projects are also coming up which require high tonnage machine. So which is coming up in the south. So we are also planning to give machines and expand into that geographical area as well.
So this is the overall aspect and use industry.
Ishit Desai
End use industry.
Dhruv Jhanwar
Yeah, yeah. So we are dealing mostly into steel industry right now because we are seeing a good upside over there in demand. Then Metro projects are also something which the railways and all that. We are giving machines on a continuous basis. Then another the one thing which is a very surprising thing that many power plants are coming up in India. So like many blue chip companies they are having a capacity expansion and they are getting six to seven new power plants made.
So we are also working with them when we are ports we are working with PARS limited as well. So we are very well diversified into more for the sectors. So and recently we won an order from Reliance also. So over there it’s a renewable energy product. So now we have entered into the renewable energy sector as well.
Ishit Desai
What would be the tenure of this typical contract when you’re deploying? 6, 8 months or a longer tenure.
Dhruv Jhanwar
So what happens is that we generally only get 6 to 12 months of contracts. Nobody gives more than 12 months contract except the government companies like OEDC and all. The reason being that every company has a quarterly budget. Right. So with respect to that budget only they give US contracts for six months or 12 months. So but generally what happens is that before entering into a contract we always send our team of people to do a full survey of the project.
So if we feel that the machines that the project actually lasts for two, three years or so minimum then only we try to build like bigger machines for these projects. Because if we have confidence with our. Experience that the machine will stay there for two, three years then it actually makes sense for us to send machines in bulk.
Ishit Desai
Yeah. And what is the make of this machine typically these are what China machines, Europe machines,
Dhruv Jhanwar
It’s all Chinese machines in India. Those urban machines also being sold brand new in India because for example I’ll tell you Chinese companies like Semi X, AMG and all they have got 95% of the market share in India. In India there is no such company who actually manufactures manufactures high tunnel machines till now And European machines are too expensive for India right now to buy firsthand. So a second hand European machine will cost the same as a brand new machine in India right now our market is not ready for that kind of capex targets.
Ishit Desai
Are you have given how are we planning to fund that? Because that is not the amount of cash flow definitely at this case we want to generate so we will be raising more capital as we move forward both equity debt.
Dhruv Jhanwar
See if I be very honest with you then we are very much depending on our internal and we already have some cash in the bank as well to fund the future capex also and we have got really nice cash flows as of today so. And plus we have also closed a preferential round very recently so once all these funds are also run it will be a challenge to deploy more machines aggressively. It’s just that you have to time yourself properly. If you’re getting long term contract then it is very easier for us to do capex.
Like if I’m getting suppose three months, four months contract. So many people in our industry, what they do is that they only work with 3, 4 months contract because the renting is slightly higher over there Then if you’re churning is so much in the machines then obviously for you to buy a new machine and keep on deploying it it is not very much possible. Right.
Ishit Desai
And last question on the working capital center what are the terms with some of the customers on receivable side and also the payment period for the Chinese machine to supplier?
Dhruv Jhanwar
Yes, so we get around 45 days to 60 days. So for us right now the market is good, there’s no cash front in the market, we are getting paid timely, that’s not an issue. So we are very much shorted in our working capital and honestly it’s a very proud thing for us to say that we actually last full financial year we didn’t have any short term borrowings with me. So this. This financial year we have taken the first short term borrowing limit for us and we’ve been growing organically since the past 18 months. So honestly I don’t see any issues we are facing right now
Ishit Desai
On the suppliers credit on the machines. You get some credit there as well.
Dhruv Jhanwar
We price it in the machine only. So that is something which is different for all the different clients. That is something we won’t be able to discuss on call.
Ishit Desai
Okay, thank you so much.
Operator
Thank you. The next question comes from Sadak Avasi from C Funds India Private Limited. Please go ahead.
Sarthak Awasthi
Hi. Congratulations for a good set of number. I was having a couple of questions that we have a very low entry driver to our industry. So currently the demand is good, so many new players can come in. So what’s your take on increasing competition the next five years that you have? So how you’re going to tackle the competition?
Dhruv Jhanwar
I’ll be very honest with you. When you started this business again in our company the first thing we thought of was the entry barrier. So we have very boldly said this in all our concord and immersive presentations that we do not tend to work in the lower tunnel machines. So when it comes to the lower tunnel machines like 16 ton, 20 ton machines and all, so those are extremely cheap and it is very easier for any person to buy hundreds of those machines and penetrate the market.
So. So we only tend to work in the higher turning machines where the entry bag is a lot. Like I told you recently that our machine cost is anywhere between 2 crores to 15 crores and average will be spent around 4 to 5 crores on all our machines. So in India right now there are not many players in the higher D machines. We are Planning to get 500 ton, 800 ton metric machines also in future in this financial year. So if you are only focusing on the lower tunnel machines then there are.
Then the market is flooded like anything. So that is the reason why we have already decided when we started this that like at the start of our journey that we will be only working the higher turning machines.
Sarthak Awasthi
Okay. And for example if you see that.
Dhruv Jhanwar
Yeah, for one thing, for example if you see we recently in quarter four I purchased the largest OEM data. There’s only 12 to 15 such units in India. So we are always trying to be in that exclusive range where. We want to purchase those kind of machines. Not very easy to purchase for someone else. Right.
Sarthak Awasthi
Okay. And my second question is on your long term vision for the company and for five years there’s a good government. We are having the change in what for the long term and they’re not provisioned at all. What you were
Dhruv Jhanwar
So sorry. Yeah. Please complete your question. I think you must say one more thing I asked.
Sarthak Awasthi
Yeah. My question was that the five years currently there’s good performance, we are having a good tailwind. But for the long term what’s the vision, how you want to and where you want to diversify. Because we are very much focused on the government category private company. So what’s what other things that you can do.
Dhruv Jhanwar
Yeah. So see I’ll be getting honest with you. India’s market is huge. It is huge. The equipment hiring market Itself is a 4.1 billion dollar market in India. So the thing is that even if we do a 400, 500 crore capex for us it is not that the market will be saturated. But yeah, if you’re buying 1000 crores worth of machines in a very like only one particular type of machine then you can. Then it is a problem. We are what our planning is that by FY30, FY 2030 we don’t really want to stick to cranes.
We are getting into hydraulic truck mounted cranes. We have crawler cranes, we also have magnets. Soon we’ll be entering into reed trackers. Electrical reed trackers, scissors. We want to create a full portfolio of different types of products so that even if there is an industry slowdown five, six, seven, eight years down the line, it should not affect us a lot if you have got a good set of products. The only problem is that if you only stick to one or two or three products then you can be victim to an industry slowdown.
And honestly right now India is not having many hybrid machines, not many electrical machines. But in FY26 only all our OEMs are launching electrical machines as well. So slowly and steadily the market is also shifting towards electrical machines and all. So eventually those machine cost you. It is more costlier than the diesel machines right now. That is why to do more and more capex is not an issue. It’s just that you have to make sure that you’re doing capex in the right products.
Sarthak Awasthi
Yes. One last question. Recently government is quite focused on rare earth metal explosion. So are you seeing any tailwind on that side?
Dhruv Jhanwar
Honestly we have not done our research on that segment right now because right now we have been getting too many orders recently. So obviously we have not done any such or like deep thinking into this particular topic. For sure. I would love to talk to you about it once we have done our research.
Sarthak Awasthi
Thanks.
Operator
Thank you ladies and gentlemen, if you have any question please press star and one on a telephone keypad. Next question comes from Rahul Singhania, an individual investor. Please go ahead.
Rahul Singhania
Congratulations on the good side of Mumbai. First of all can you share the promoter holding post the recent potential issue, Is there any dilution confirmed?
Dhruv Jhanwar
No, we didn’t have any major dilution although in this particular round of around 28 crores, 16 crores were put in from the promoter account only. But the only thing is that we hold 70% right now and we have done 60% of the round. So naturally there was a small dilution of around 1.2, 1.3% but not much.
Rahul Singhania
And how will the 27 crore funders be deployed like that? And what’s the expected impact on leverage or cash flow?
Dhruv Jhanwar
Yeah so we only this 27,28 crore of fund will be used for to fuel our future capex only. And I feel that the more machines we purchase our cash flows will keep improving a lot. And also when it comes to leverage then we won’t be taking a lot of leverage. Because I’ll tell you one thing that in this particular industry the financing period, the tenure is anywhere between three years to four years. In an ideal side people do go for five years, six years but like in our company we only do three to four years of financing.
So my monthly repayment is also extremely high. It goes from 2% to 3% per month. So that is the reason why even if we start the year with having 10% of equity in the machine by the end of the financial year it will automatically come to anywhere between 25 to 30% equity in the machines. This is one more reason why the debt to equity is something over which be it on quarter like you have to see it on the year on year basis rather than the quarter on quarter basis.
Rahul Singhania
Regarding CFX, we’ve committed 400,000. So how much has been deployed till date and what’s the schedule for the day?
Dhruv Jhanwar
Yeah. So in Q1 FY26 we built 55 crores of capex till date. So from FY25 till now we have done 55 crores of capex. Which one? We recently won a big order from Reliant where we have deployed another 20 crore of machines. So this year cumulative capex what we have achieved is 25 crores. We have a lot of more orders coming up in our pipeline as well once the monsoon ends. So once the monsoon ends, newer products will also open and we hope that more and more machines we can deploy a net of 75 crores of machines we have already deployed in the cumulative.
Rahul Singhania
Yeah. Lastly, any revenue and margin dragon over the next two to three quarters?
Dhruv Jhanwar
Yeah. So over the next two or three quarters we are expecting really good revenues and ebitda. As I told you just now in your previous session that we have won the biggest order in our company 50 from Reliance Industries with this deal and many more to come in the future. We extended what EBITDAs we did we last year on an annualized term. On an annualized basis we shall be reaching 70 to 80% of that yearly. Analyzed EBITDA by Q3 Q4 on a quarterly basis.
Like hypothetically if we did 5 crores of EBITDA last year then I personally feel that with the demand going up by Q3 and Q4 or Q4 we can easily reach 3 and a half 4 crores of EBITDA on a quarterly basis if the demand supports us. Right. Like if you see technically last year we did 4.75 crores or something of EBITDA. In Q1 itself we have done 2.7 crores of EBITDA. So we have done 50% more than 50% of the EBITDA of the last year in Q1 itself.
Rahul Singhania
Thanks.
Operator
Thank you. The next question comes from Manish Deshwal, an individual investor. Please go ahead.
Manish Jaiswal
Hello sir, I want to know the pack margin for the FY26 and further for FY27. Like any guidance,
Dhruv Jhanwar
See pack margins. This quarter we had 22% pack margin. But in future we are expecting a package to go up even further because we are rapidly repaying our debt as well. So with that interest cost will eventually come down as well. And the repo rate has also gone down by 1%. So in future we are expecting good amount of. Pat margins it can range anywhere between 25% to 35%. Also it all depends, all depends on your time. Ideal pad margins in our business should be 30 35%. But it also depends on if there is a lot of demand and we’ll have to take more debt then obviously the interest cost will be more so our pat falls. But on an EBITDA basis like if you calculate it on EBITDA basis, 65 to 70% of the margin and pad basis we should be generating around 30 35% of that.
Manish Jaiswal
Thank you sir. Thank you Data. Thank you.
Operator
Thank you. Ladies and gentlemen, if you have any question please press star and one on a telephone keypad. I repeat ladies and gentlemen, if you have any question please press star and one on a telephone keypad. We have a follow up question from J. Shah from Shah Investment. Please go ahead.
Jayesh Shah
Yeah, so few more questions like how frequently, how frequent are the owners from blue chips clients like your from like the Tata Steam, Adani, LNT etc.
Dhruv Jhanwar
So the orders are quite frequent because Tata Steel, LNT and all they’ve got too many sites. So it’s not that they are doubling down on only one particular geographical area. So they’ve got sites all over India. So we keep on getting inquiries from all these companies on a daily basis. So the frequency of the orders are quite high. It’s just that some of these orders are on an immediate basis. Sometimes we don’t have the machines with us to deliver it maybe in two weeks or so.
So we have to miss out on those orders. But the frequency of the orders is quite fast. Right now the capex the companies are doing is immense. Tata Field is coming up with a new plant in Kalinga Nagar. So they are doubling down on their current 1700 acre plant in Kalinganagar itself. So for these kind of capex being done by these big players we also expect that we’ll be getting even more inquiries from them in future.
Jayesh Shah
Okay, fair enough. And one more thing is how, what are your plans to differentiate yourself against the unorganized player?
Dhruv Jhanwar
Yeah, so we differentiate ourselves from unorganized players in the way of higher tonnage machines. Unorganized players only have got picked up. Can carry 20 ton 30 ton cranes and we operate anywhere between 80 tons to 260 ton machines. Then we are getting 500 ton machines. So these are more over the USP which we have that all our machines are brand new. So this gives us a competitive and operational edge as well.
Jayesh Shah
Do you have any plans for inorganic growth post FY28?
Dhruv Jhanwar
We cannot comment on inorganic growth right now. But we hope that in future the amount of cash flows we will be generating it will all depend on that. But yes, we are open to inorganic growth as well. So it all depends on the kind of value we are getting in something so that we can think about it. But yes, we are open to more kind of.
Jayesh Shah
Okay, thank you.
Operator
Thank you. We have a follow up question from Sardag Avasti from C Funds India Private Limited. Please go ahead.
Sarthak Awasthi
Follow up on that. How many players are there in the industry who operate on high tonic machines?
Dhruv Jhanwar
So according to the recent data we have, it can be double digits. If you go for machines which is about 260 tons then it is solid in the double digits. But it’s not in the higher double digits. Because this is a very big data is something which is not possible for us to give the exact number because it’s already unorganized market. If this market would have been very much organized then we could have commented the exact.
But when we see our tenders which we build and the other people getting involved, so we generally always see a few similar companies building with us. If the higher tenant machines had a lot of owners, like if there were many companies dealing in higher ton, then in every tender we build or every order we get, we should be seeing different, different kinds of companies, right? But most of our site we are seeing that mostly 15, 20 companies are there who are dealing in higher ton machines. So even we are dealing with them on side on ground we are not seeing like a very vast number of companies.
Sarthak Awasthi
Thanks.
Operator
Thank you. There are no further questions. Now I hand over the floor to Mr. Duruk Jabar for closing comments.
Dhruv Jhanwar
So thank you everyone for joining our Q1 fat moneyhead phone call. It’s been a pleasure talking to you all for the third time, just like in the past three quarters. And I really hope that you all stay connected with us. If there is anything you all want to talk to me directly or shoot some more questions about the industry and all, I would really love to chat with you. Maybe you can connect to confide me partner there and I are so they will connect you with me. Thank you so much guys. It’s been a pleasure talking to you.
Operator
Thank you sir. Ladies and gentlemen, this concludes the conference call for today. Thank you for your participation. You may disconnect your lines now. Thank you and have a good day.