Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Trishakti Electronics & Industries Ltd (NSE: TRISHAKT) Q4 2026 Earnings Call dated Apr. 28, 2026
Corporate Participants:
Dhruv Jhanwar — Chief Executive Officer
Analysts:
Rajnish Mishra — Analyst
Ravinder — Analyst
Yash Junjunwala — Analyst
Rahul Singhania — Analyst
Unidentified Participant
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Trishakti Industries Limited Q4 and FY26 results conference call. As a reminder, all participants line will be in lesser learning 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 and then zero on your touchstone phone. 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.
The statements do not guarantee the future performance of the company. It may involve risks and uncertainties that are difficult to predict. I would now like to hand over the floor to Mr. Rajneesh from confidedly Partner. Thank you. And over to you sir.
Rajnish Mishra — Analyst
Thank you. Good day. Ladies and gentlemen, myself Rajesh Mishra from Confide Leap Partners. We represent the investor relation and public relations for three Shakti Industries Limited. On behalf of Confelli Partners I warmly welcome you all to 3 Shakti Industries Limited Q4F526 earning conference call. The company is today represented by Mr. Dhruv 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. So thank you and good evening everyone. I am Dhruv Jhavar. Chief Executive Officer of Sri Shakti Industries Limited. It is a pleasure to speak with you today as we close out what has unquestionably been the most transformative year in Sakti’s recent history. Before I take you through our numbers. I want to spend a moment on the larger context because understanding where Trishakti sits within India’s economic landscape is essential to understanding why this business is built the way it is and why we believe the best is still ahead of us.
Over the past two years Krishakti has undergone a complete strategic transformation with new management coming into play. What was once a diversified legacy business is today a focused pure play infrastructure equipment rental platform built around owning critical assets and deploying them into long term execution linked opportunities. This shift is not incidental, it is directly aligned with what is happening in India today. We are in the middle of a structural multi decade infrastructure build out across roads, railways, renewable energy, urban infrastructure and industrial capacity.
Execution is accelerating at unprecedented scale at the ground level. All of this requires only one critical enabler which is heavy machineries. Behind every expressway pier, every refinery column and every wind turbine tower there is a crane and increasingly that crane belongs to Sakti. Today we operate a pure rental model deploying our own fleet across marquee tier one clients including LNT Reliance, Tata Shields, RVNL NCC and many more others. Our performance in FY26 reflects this alignment. Revenue grew approximately 90% year on year to 32.44 crores.
EBITDA grew over 220% to 20 crores, 20 crores and 21 lakhs with margins of 62%. Patch stood at 7.66 crores with margins of 25%. At the same time we scaled our fleet from just 8 machines in FY25 in FY24 to over 140 machines today with near full utilization. I would like to highlight one important point regarding our profitability. Our reported EBITDA includes 4.58 crores of subvention income classified under other income. However, we view this as operating in nature as it directly reduces our financing cost and is integral to our business model.
Even on an adjusted basis our margins remain structurally strong. Q4 FY26 was our strongest quarter to date with revenue growing over three times year on year giving us a strong exit momentum into FY27. We also significantly outperformed our CapEx guidance of 100 crores in FY26 by deploying 210 crores of fresh CapEx during this year resulting in a sharp expansion in our asset base and rental run rate. Our unit economics remain robust with approximately 3% monthly gross yields at low cost of borrowing and targeted ROC of 22 to 25%.
With our strategy to continued scale up looking ahead, we remain confident in sustaining strong growth driven by continued fleet expansion on client relationships and increasing participation in high growth sectors such as renewable energy and core infrastructure. Before we move to the Q and A, I would like to thank all our investors, partners and stakeholders for their continued support. With this, I would now like to 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 a 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 questions please press Star and one on your telephone keypad. The first question comes from the line of Mr. Rohan Mehta from Figcom Family. Please go ahead.
Rajnish Mishra
Hi, am I audible?
Dhruv Jhanwar
Yeah, you’re audible.
Rajnish Mishra
Perfect, perfect. Great. So thank you for the opportunity and couple of questions. So first on the industry side I wanted to understand how do you see the overall industry for cranes as well as heavy equipment rental evolving over the next two to three years across your key verticals where you operate such as renewables, metro rail, steel and also the industrial capex? And are there any verticals currently where you’re seeing early signs of either acceleration or slowdown or moderation in order activity and how is that shaping your fleet procurement decisions going forward?
Dhruv Jhanwar
Yeah, yeah. So see for the next two to three years we are seeing the demand to be really nice in today’s time. Also we are continuously every single day getting new RFUs for machines from 500 tons, sorry for machines up to 50 ton to 750 ton as well. So currently the capex cycle is going really well for us right now we just feel that how much more machines we can purchase at what rate is the major thing for us. The demand side is not the issue for us it’s just that the availability of the machines will be an issue for us in future when it comes to more than 500 tons of machine.
But honestly speaking, my target for the first 400 crores of capex which we are going to do, which we are doing this the capex journey we are on, we would like to be into the 50 to 250 ton machine category only because we feel that the more and more demand on an industry basis, not only on certain sector basis, is way easier to keep your fleet utilization above 95. When it comes to 50 to 250 ton machines, as in when you keep going above in the tonnage then obviously the ticket size was significantly higher but the Demand is absolutely cyclic in those kind of machines.
So this is your, this is like this answers your first question. Can you please repeat your second question for me?
Rajnish Mishra
Yes. The second question is any particular signs of slowdown or moderation? Are you seeing in particular sectors? Is that anything you’re observing on that front?
Dhruv Jhanwar
Actually I personally don’t see any kind of slowdown right now because new projects, like for example, let me give an example. In Reliance Industries last agm they had announced that they’ll be expanding into touch with 5 and a half lakh acres expansion into renewable energy. So those projects which have been started last year, all the civil work is already done now and maximum in the next two to three months the cranes and mandate requirements will also start coming. So when these kind of like, these kind of requirements are going to be generated this year, then we don’t see any slowdown in demand.
Rather we feel that the demand should skyrocket some year even further.
Rajnish Mishra
Got it, Got it. And when it comes to receivable, I just wanted to check with you for FY26, your receivable days are I think above 200 days if I’m not wrong. And previously you spoke about that this should get normalized in FY27. So you know, given, you know, Q4 has ended, where do you see this number settling in that? And also given the fact that, yeah, so also given the fact that you work with blue chip clients, are you finding it difficult to receive payment or time and any change does that represent in our billing cycle, tier one clients?
Dhruv Jhanwar
Answering to your question, I feel that currently though the fact that we only tend to work with the tier one blue chip clients, that gives us a significant advantage in terms of the receivable days because when it comes to companies like Tata, General, Reliance and all, so it becomes very easy for me to get the payments on time because all these bigger clients, they follow a very strict path when it comes to payment cycles. The second thing is that when you go for tier 2 tier 3 companies which are local EPC contractors, then that is the real problem over there because over there your payment cycle will not be below five months or so, which we have seen on ground.
So that is the only reason why we tend to only work with the tier one blue chip clients because of the, because of this reason. And maybe if sometime, maybe 10, 15 days there is a delay, then when it comes to these kind of clients we can go to any bank and get the bills discounted as well. So cash flow for us is not an issue when it comes to these clients. Now if I go and discount some random local subcontractors bill, then first of all the bank will not let me discount those bills. So this is also one aspect.
Rajnish Mishra
Right, right. My question was specifically with respect to that, given that you work with tier one clients, so why are we still seeing a receivable day cycle?
Dhruv Jhanwar
Right. So see, answering to your first question, the thing is that the only reason why our trade receivable cycle is about 200 days is because there is a very small amount of family settlement which we had when we were taking over the company in 2023. So that amount is not much even in this year’s balance sheet. If you see we have written off 1 crore worth of trade receivables from that was an inter transaction happening between us. That is the only reason why the trade receivables are about 200 days.
But when you open the balance sheet properly and then you see the under 6 months trade receivables very carefully. If you see then you won’t find a big amount over a big trade cycle over there. If you deep dive just a little bit more then you’ll get a better picture. I feel.
Rajnish Mishra
Okay. Okay, Got it. And yeah, but in FY27
Dhruv Jhanwar
It will be, it will be normalized from that I can assure you.
Rajnish Mishra
Okay. Okay. And any particular deal that you want to guide for FY27,
Dhruv Jhanwar
It will be done during FY27. I cannot exactly tell you a date because the settlement is supposed to be done in FY27. But I can guarantee you that we are trying our best to get it done asap. But it’s not that big an amount. So. Yeah. Oh yeah, yeah. It’s under 60 days, you can see. Yeah, yeah, yeah, yeah, yeah.
Rajnish Mishra
And just one final question before I get back in the queue on the unbilled revenue side. So I saw that on a six month basis it jumped from about two crores to about four and a half crores. So I just wanted to understand what is exactly causing this. Any delay in formal invoicing or what Exactly.
Dhruv Jhanwar
That’s a really good question. See first of all we need to understand one thing very clearly, that from H1 to H2, if you compare our balance sheet you will see that our fleet size has doubled. Hence our unbuilt amount has also been doubled simultaneously. Right. We have got 125 crores worth of machines included on taxes in H1 and now it has gone up to 200, 250 odd crores. Right. So because of this reason the unbilled amount has gone up. Now what happens is that we tend to give results as soon as possible on a quarterly basis.
And because of that reason, in the first, it takes us approximately 20 days to submit the bills as well to our clients. Because when you are working with all of the blue chip clients, all tier one clients, they have a lot of compliances. For example, in JSSL and general stimulus, they are very. They have got seven layers of compliances which we have to follow before we submit the bills. We have to do the overtime calculation and there are many such compliance issues. So because of that, we take 20 to 22 days in order to submit the bills.
So if I’m say I’m giving you all the results in the first three weeks or in the first four weeks, then we have to take out the number from our log sheets, which is on the hourly basis that how much are we getting paid on this very day? So that becomes really difficult for us. But we still do it. And we have to add it to the unbilled amount so that we can give a clear picture. So whatever the unbilled amount is there, it is actually a calculation of our hourly rates into the hours machines have already worked in those very days.
So it will always be there. I cannot tell you that the unbilled amount will just vanish away from the balance sheet. It will be here in H1 also, H2 also always.
Rajnish Mishra
Got it, got it. So there is no foreseeable risk of any bad debt right off. You just wanted to confirm on that?
Dhruv Jhanwar
No, no. Absolutely, absolutely.
Rajnish Mishra
Okay, okay. Got it, got it. I’ll get back in the queue for more questions. Thank you.
Dhruv Jhanwar
Sure, sure.
Operator
Thank you. Sir, the next question comes from the line of Rishi Maheshwari from Aksa Capital. Please go ahead, sir.
Rajnish Mishra
Thanks so much and congratulations. Dhruv and your team. Good set of numbers. I have two, three questions. One is to understand that you mentioned that feed utilization is at 100%. Is this because of considering only one usage in a day or using double shift? Will you consider double shift and then reached at 100%?
Dhruv Jhanwar
No, no. If our machines are. See whatever the contract is. If we ideally sign contracts for single shift only. So our machines are always at 100 utilization. Only 100 utilization can be in a single shift also and in a double shift scenario also. So that is not relevant to the use of the machines. If it is a double shift job which we are doing, we’ll be paid more. But the utilization will be the same.
Rajnish Mishra
If you have. Okay, so if you Use the machine for twice a day. Wouldn’t effective annual net yield increase merely by using twice a day?
Dhruv Jhanwar
Absolutely, absolutely. If you’re getting poured, if you’re getting paid more than it will probably like the payback period for the machines will become even faster. But that’s a seasonal thing. Generally in the big, when we are doing jobs which are going to be like the contract, tenure is going to be two, three, four years. When the GIGA projects are being made, then some, mostly during the monsoon times, the numbers, the machines go into single shift and post monsoon the machine is going to double shift.
But this is not a confirmed thing. It’s a very variable factor.
Rajnish Mishra
Obviously depends on the requirement of the client at that point in time. I understand.
Dhruv Jhanwar
The
Rajnish Mishra
Second part was to understand this, the nature of the subvention income. What is this? Can you explain what it is exactly? You mentioned on the slide 17 that this is linked to equipment financing.
Dhruv Jhanwar
Yeah, yeah, yeah. So see, maybe I can just tell you for now that it’s a quite complicated structure. I can say that it’s a financing arrangement between the OEM banks and NBFCs we are working with. If you want more detail about it, you can probably get on a call or I can write an email to you regarding this maybe after the phone call.
Rajnish Mishra
I see, I see, I see. Okay, okay, okay. Now I realize. Okay, I’ll. I’ll connect with you later on this one. Third question was to understand there’s a defer tax liability that has been created. It’s largely created as a difference of the tax taxes that you have to and because of the depreciation that you use over in accounting books as well as on payment statement. Is that always anything else to that?
Dhruv Jhanwar
That only. And I’m really feeling happy that somebody has asked me this question. If you technically see the 1.7 crores of deferred tax liabilities to see how is it done? I’ll tell you. So in income tax, if we have got hypothetically 20 crores worth of depreciation, right? And in the books, in the P and L, we have got 12 crores worth of depreciation. So whatever my income tax lab is going to be, it will be the, it will be 20 -12. So 8 crores will be the amount which is a taxable amount. But when it is deferred tax, since in the income tax we are getting more depreciation which is going to be carried over to the next year.
So on that amount we. It’s just an accounting entry. If you see, technically we don’t have to pay that tax. But according to company law we have to mention that in the P l. Hence our PBT goes down, our path comes down. But this 1.7 crores is not to be paid to the government. That’s the whole point.
Rajnish Mishra
Got it. I heard. So just want to clarify perfectly. You know there’s on slide 15. Is this the projection that you’ve given for FY27 28 crane hiring. Revenue growth in rupees lakhs 62 and a half crores and then 90 point crores in FY28.
Dhruv Jhanwar
Yeah, yeah, yeah, absolutely. This is the. Your
Rajnish Mishra
Assumption is 400 crores of capex deployed by FY27. With which you would be at yield of about 2.2, 2.3% net yield, sorry, gross yield up to 3.2%. Am I right on this?
Dhruv Jhanwar
Yes. Now see, see there is a change in this thing. If you go to our Q3 presentation. Q2 presentation, Q1 presentation. Sorry, can I ask you to
Rajnish Mishra
Come closer to the speaker so that it will become even more audible?
Dhruv Jhanwar
Yeah, sorry. Am I audible now? Better.
Rajnish Mishra
Yes, better.
Dhruv Jhanwar
Yeah. So see over here in this graph, if you actually see properly, FY26 is 33 crores. Right. But if you see the previous presentations which we have given since FY25 we have always given that FY26 we would have done a net top line of 20 to 22 crores. Now since we have already reached FY26 and the numbers have come in so we have outperformed that by almost 50 to 60%. So that is the reason why this particular number we have changed and put it as the actual number which we have already achieved. Now coming to the FY27 numbers.
This 62 crores which we are talking about currently our ARR from. From the last month is approximately 5 crores. So 5 crores per month billings actually reflect to a 16 to 162 crores billing for FY27 even if we stop expanding here. So by that we mean to say that whatever figures we have given as in the future forecasting is all the guidance we have. But till FY27, the 33 crores which we have written is actually the amount which we have already done. So you’ll have to actually see the previous quarters, the previous quarters investor presentation to understand this better.
Rajnish Mishra
Okay? Okay. Okay. Got
Dhruv Jhanwar
It.
Rajnish Mishra
Fair enough. Thank you so much. I. I’ll reconnect with you if there’s any more questions. Thank you so much. Absolutely. Absolutely.
Operator
Thank you sir. Ladies and gentlemen, if you have any questions please press star and one on a telephone keypad. I repeat if you have any questions please press star and one on a telephone keypad. The next question comes from the line of Mr. Raghavendra Singh and indigenous. Please go ahead sir.
Rajnish Mishra
Yeah, you’re audible. Yeah. Hi bro. Congratulations on good set of members. So I most of the questions are already answered. So I just wanted to know more about the 4.58 crores of this your convention income, what is the nature of that and how it is like you mentioned 4.58 crores in the other income and in the PPT you have mentioned that it is in the nature of your regular revenue from operation. So just if you can clarify on that part that will be great.
Dhruv Jhanwar
Yeah, absolutely. So see the. I can tell you in a summarized way that this is basically an accounting transaction which we have, we do with the OEMs, NBS and bankers which we are getting the machines financed from. So over there we do get some kind of benefits in terms of interest rates and all which the bankers pass it back to us in terms of submission. So this is the reason why this entry has come on 31st March because the first three quarters are all unaudited financials so we have to take some provisions but in Q4 when we receive all this amount at once so that sums up completely and is balloon together.
So that is the reason why this amount seems bigger but this is actually part of our core hiring business itself.
Rajnish Mishra
Okay, so out of that thank you for answering that. And one more question on the feed size. So currently you mentioned that you have around 143plus feed size and how like how many like what size of fleet you have commissioned in the last three four months and this underutilized or not put into the project yet.
Dhruv Jhanwar
Yeah, see if I be very honest with you all then since in the last from H1 to H2 we have bought almost 150 crores worth of machines which we have almost doubled our capex in from H1 to H2. So that is the reason why the costs and all are suddenly gone up. But of course when you see our balance sheet the net asset base has become 290 crores now. So as and when all these machines come out from CWIP like for example we have got some machines in CWIP also around 27 crores worth of machines. So all these machines have just now been installed.
So now in the upcoming quarters you’ll see a very different picture altogether when it comes to top line and all because when we are doing when we are at a hyper Capex expansion plan then whenever you do Capex then the revenue takes little bit time to come because there’s a lead time of one one and a half months. Because we have to do after purchasing the machine we have to do a lot of compliances, we have to transport the machine. The TPI happens then there are many such things. So because of that there is a general one to one and a half month delay in the revenue.
So whatever Capex and all has been done in FY26 the real fruits will be seen in FY27 numbers. Whatever CAPEX will be doing this year will technically you’ll have a 12 month run rate for in FY28. So you can see the change in our balance sheet which is happening. We have gone from 36 crores of assets to 260 crores of assets. So that’s a very big jump because of that. The cost and all is very difficult to get the exact numbers right now. But now from Q1 cashier 27 everything will be streamlined again.
Rajnish Mishra
Okay, one last question from my side. So on your order book, so in the recent you have made a few disclosures. So if you can quantify the amount, what size of order book are you currently at and like how much is executable over the next six to one six months to one year.
Dhruv Jhanwar
Yeah. Our FY27 order book is currently standing at 62 odd crores and whatever, sorry, whatever overtime we will be generating will be added to this. Since it’s a variable factor I cannot comment on that. But currently our order book is 60 crores and above for FY27 financial year.
Rajnish Mishra
Okay. Okay, thanks. Thank you very much. I’ll call back in with you.
Dhruv Jhanwar
Sure.
Operator
Thank you so much sir. Ladies and gentlemen, if you have any questions please press star and one on your telephone keypad. I repeat, if you have any questions please press Star N1 on a telephone keypad. The next question comes from the line of Mr. Ravinder from Dwarak Kamai capital. Please go ahead sir.
Ravinder
Yeah, thank you. Good evening. The management thank you for giving me this opportunity. So the first question I have is. Hello, Am I audible?
Dhruv Jhanwar
Yeah, you’re audible.
Ravinder
Thank you. The first question I have, yeah, I’ve seen that in this quarter our margins have been dipped quite significantly from the 60% benchmark we have said. So do you have any comments on it?
Dhruv Jhanwar
Yeah, actually we have given guidance and clarification on that that the other income is actually part of our core hiring business itself and to prove that you can actually just turn the first page
Yash Junjunwala
And
Dhruv Jhanwar
See in the second page that in the segmental revenue our core hiring business has that income. But according to company law we, our auditors have to mention that as other income. So that is why we have given a clarification on that. Yeah. So technically the market. Can you.
Ravinder
Okay.
Dhruv Jhanwar
Yeah.
Ravinder
Okay. Can you quickly explain like you know to a, to a non accounting guy what, what, what A subvention income is specific to our line of business.
Dhruv Jhanwar
Yeah. So. So when you work on a very higher capex model then you get some benefits from the OEMs and the bankers as well, where the interest payments, when there are some waivers on the interesting interest you are paying to the banker. So those waivers are actually called subvention. You can google it out also it will say the same thing. So in our industry also in our PNL also like this is the perfect explanation of what this is.
Ravinder
Okay.
Dhruv Jhanwar
Yeah.
Ravinder
So does that correlate anything with the increase in payables that we see? Like you know, which currently stands at around 159 or crores?
Dhruv Jhanwar
Yeah. So see when we are going on expanding in a very high spree then what happens is that first of all I would like to say that the demand on ground is too much right now. And in the last two quarters we have doubled our fleet. So when you are buying 150, 200 crores of machines in a few months then you need support from the banking system, the OEMs also in order to make sure that those machines can be delivered on site properly ahead of time and the operations smoothly done. Yeah. So that is the reason why this particular figure of 159crores you can see right now.
But eventually it will be blended to the. Just a second. Eventually it will be blended to the cash from financing activities. So it’s just that we are waiting.
Ravinder
I’m talking from balance sheet where we have like under the other current liabilities we have posted 150 crores. Right?
Dhruv Jhanwar
Yeah, yeah, yeah, yeah, yeah. Please, please complete your question.
Ravinder
No, no, go ahead. I was specific to that.
Dhruv Jhanwar
Yeah, so see when, when, whenever we are going through a very big expansion phase, then this, there is a. We have to work as a team. The bankers, the OEMs and us as the contractors as well. So in this case what happens is that some machines have been delivered on site today, some will be delivered in a few days. So the funding and all takes a lot of time. So this particular time which is being taken, those machines will stay in our trade Payables but eventually it will come to our asset, it will eventually come to our borrowings.
The liability side. Okay, it’s just a matter of.
Ravinder
Got it, got it. So currently our debt to equity is already, you know, above 1, right. Our non borrowings at 65. So when this gets translated, so what by the by FY27, what, what debt levels can we assume? Because you know, even that would, if that number would have given it would have been very good along with our capex program and everything.
Dhruv Jhanwar
Yeah, so see every month of a few, like every month this is getting like rooted out already. So by FY27 you will see a significant chunk. Right now it is very difficult for me to give you the exact figures. Maybe after the call we can discuss properly where I can actually give you every single exact figure as well.
Ravinder
My intention was on a broad basis like you know, it’s a 400 crore capex program. So. Yeah,
Dhruv Jhanwar
What,
Ravinder
What numbers are you. Eventually,
Dhruv Jhanwar
Eventually in the next 12 to 18 months this whole thing will move out to the other side of the balance sheet. This I can tell you because we are, it’s not that we are not going to buy any machine now. Right. We are still purchasing machines on a weekly basis. So as and when we keep adding more machines, some amount will go from left to right, then again it will be added to left and then again it will go to the other side of the balance sheet. So that is the reason it’s almost impossible for me to give you the correct definition, the correct answer for it right now.
Maybe once we start, once we start to slow down in terms of the capex we are doing then I can give you a better understanding. But right now it’s next to impossible.
Ravinder
Okay, okay.
Dhruv Jhanwar
But
Ravinder
Right now we are at 65 crores. I’m correct.
Dhruv Jhanwar
Yeah, it will say like that. Okay.
Ravinder
Okay. What is our average, you know, cost of borrowing?
Dhruv Jhanwar
It’s approximately anywhere in the range of 4 to 6% depending on this is a flat rate. So it’s, it’s anywhere in the range of 5% plus minus 0.5%.
Ravinder
Got it. So I see that we have a plan of increasing fleet size towards north of 200. Can we map it like you know, to a hundred crore deployment?
Dhruv Jhanwar
Absolutely. More than that because now see expanded into the under ton machines, we have bought a good amount of machines. So now we are trying to focus on the 150, 160, 200, 220 and 260 ton machines as and when we start going for these machines like 10 of these machines will cost me a good 40, 50 crores.
Ravinder
Understood?
Dhruv Jhanwar
Yeah.
Ravinder
My last question is I see that we have given ROC guidance of 20, north of 20%. Right. But also in the same slide we are stating that our EBITDA expected. EBITDA is 60%. Right. On a revenue guidance of hundred crores. So I think both are not in sync. Right? Like you know, if we see a RoC of 22% on a 400 crore asset base, right. It’s north of 80 crores. Whereas if you’re targeting. Yeah,
Dhruv Jhanwar
Yeah. See now what the thing is that, that when you actually it’s not that that we are going to complete the 400 crores expansion in the month of May. Right? So when, if for example we complete the 400 crore plan in the month of May then you can expect the ROC and all the numbers will change in the guidance. But that’s not practical. Right? So I already know that when the season comes, H2 comes, we will be more aggressive that time. So that time you will not get a full blend of the year. Right. So that is the reason why our projections are very conservative on the terms of those not being full year.
Full year. What do you say? Expectations? If I would have completed the full 400 crore capex in this very month then of course we would have given different guidances. We would have changed everything. The whole PPD would have been changed.
Ravinder
Right. If, if you may, I have one last question. That’s it.
Dhruv Jhanwar
Yeah, sure. Yeah.
Ravinder
So I’ve gone through our past like, like the boom cycle of infrastructure from 2000, you know, in the, in the earlier decade. And I’ve seen the same strategy being taken by different equipment rental companies out there. You know, leveraging hide and then increasing all their capex and everything. But I think a significant downturn has occurred after that for nearly more than six to seven years. Getting caught up with one industry or one customer concentration. So how do you read that? And you know what, what, what, what are we trying to do different in the next three to four years strategically to ensure we just in longer time frame.
Dhruv Jhanwar
Yeah, yeah. So you’re right to a certain point. The whole point of this particular thing is that we want to do something very differently. Right. But the point is that our logic is that we only enter those contracts where the contract term is longer in terms of tenure. So if I’m getting a contract for two years or three years and I know that my equipment payback period is under four years so that gives me a massive amount of safety. Right. And according to our we have got more than 30 years of experience in this industry.
So when we see a site we can actually understand that what is the kind of requirement the site needs and how long will it actually take. Now if you see if suppose the piling work has just ended in the site, the civil work is already done. So now I know that if the site is a very big site, for example Reliance Data LND and all, wherever they enter, it takes three to four years for them to build a blast furnace plant or anything like that. So we have to enter in a very sustainable way and we have to make sure that we enter at the right time.
To do capex is not a very difficult thing. You can just buy a machine left, right and center and keep giving it to different sites. But the actual art is to actually give in those particular moments when the first phase has just started. Now for example Reliance is coming up with a 5.5 lakh acre expansion in guts that is going to take 10 to 12 years to be built. So of course our first target will be to do as much capex over there as possible. So you have to make sure that when you are entering and where you are entering.
So this is what we are trying to do different, that we enter those sites in which we can at least give 15, 20 machines at the bare minimum. So the site is in our control. This is the kind of practice which we are trying to do.
Ravinder
But will we slow down on the leverage post 2027, 2028?
Dhruv Jhanwar
Yeah, I don’t see the demand going down. If the demand goes down then obviously we don’t have any option. But we have to slow down right now. If you are getting good projects out of good or timing then why not enter it? That’s the whole point for me I am looking at from that perspective. If I’m getting a good entry point then why not enter? That’s the thing. And we are not working with government bodies also. So government spending is also not very directly linked to us. We are trying to keep most of our exposure in the private sectors only what the private capex is being done.
But I know that the private capex is also in a way related to the government spending. But whatever projects have been started, it cannot be solved midway because those are all giga projects.
Ravinder
Got it. So, so if in other way around like you know, even if we see FY27 or FY28 which is 62 crores or 100 crores, you know what would our industry grouping would be for that revenue scale?
Dhruv Jhanwar
We are trying to keep most of our machines into a very good diversified field. Currently the renewable energy space is growing like anything and the chemical space is also growing like anything. So we are trying to be as diversified as possible. Probably in a few more months. New metro projects are also coming. So currently we have got very less exposure in metros. Eventually we can add any numbers
Ravinder
To the. Can you add percentages like to, you know, for the FY26
Dhruv Jhanwar
Out of the whole 250 crore fleet we have given. Just a second. I shall tell you the exact slide number as well. You can see on the 10th slide of our PPT you will be able to see the exact breakdown of every single aspect, every single industry.
Ravinder
Okay, thank you for that.
Dhruv Jhanwar
Yeah,
Ravinder
Yeah, I think that’s it from my side. Thank you. Thanks a lot.
Rajnish Mishra
Thank you.
Operator
Thank you so much. Ladies and gentlemen, if you have any questions please press star and one on a telephone keypad. The next question comes from the line of Mr. Rahul Singhanya, an individual investor. Please go ahead sir.
Rahul Singhania
Hi Dhruv. First of all, congratulations. I think the company is at a good juncture. Current growth yields are roughly 3% monthly. My question is that how sustainable are these yields at the fleet scales and the competition potentially increases over the next couple of years.
Dhruv Jhanwar
Yeah, see these rental rates are very much sustainable. I can say that with good confidence. It’s just that the 3% mark is mostly for the machines below 100 tons. When you go above 100 tons then your margins increases and your top line decreases. So this happens only when you go way above 100 ton machines where the yields are low but the margins are high. So these yields are. When you see the net blended yield then you will be able to see that it’s very much sustainable. Like I can say that.
Rahul Singhania
Understood. And one more general purpose question I had is in the coming two, three years, what do you see the challenges that we can potentially face? And apart from our core business, do you see any scope for diversification into other segments as well?
Dhruv Jhanwar
Yeah. So see what we are trying to do is that we want to have a very good, very good diversification of our fleet. It’s not that we only want to have crawler cranes or truck mounted trains or only manufacturer lifters or only all terrain cranes. So we are trying to make sure that we have got a very good diversification in the fleet size in the fleet type. So when we have got around 7, 8 or maybe 10 product portfolio products in our portfolio then that helps us to make sure that our utilization rate always remains higher.
Than our competitors. So we are currently, we are focusing on this aspect only challenges. I can only say that they can be operational challenges because at the end of the day all these are heavy machineries. There are breakdowns, there are downtimes. Currently we should not, we should not face these things because all our fleets are extremely brand new. All the fleets are less than 2 years old. So that is the reason why I personally feel that for the next two to three years we should not have a lot of operational challenges.
Unidentified Participant
Understood? Yeah, that’s it. From my side. Congratulations and best of luck for the future.
Rajnish Mishra
Thank you so much.
Operator
Thank you so much sir. Ladies and gentlemen, if you have any questions please press star and one on your telephone keypad. I repeat, if you have any questions please press star and one on your telephone keypad. We have a follow up question from Mr. Rohan Mehta from Figcom family office. Please go ahead sir.
Rajnish Mishra
Thanks for the follow up. So just couple of bookkeeping questions. I wanted to know what your gross block and mid block is as of the closing year.
Dhruv Jhanwar
Yeah, so our gross block for this year is approximately 258 crores. This is inclusive of GST because GST is a very big amount for us. Approximately 33 crores of our money is stuck in GST right now which is getting recovered every month. So currently inclusive of taxes it is 258 crores net block. I’ll have to calculate and I’ll tell you, I don’t have the exact data but since all our machines are extremely brand new, you can just do a basic seven and a half percent dissounding on that.
Rajnish Mishra
Got it, got it. And couple of clarifications. So in your results what I noticed was that firstly if you take a look at employee cost, so the employee cost that has jumped quite significantly along with other expenses. This I’m calculating money quarter on quarter basis because the base is very low on a yoy basis. And even if, let’s say I take the interest subvention income and I add it to revenue, so your EBITDA comes to somewhere around 58%. So generally 58% was the margin that you did somewhere around September quarter, which is, you know, usually the monsoon quarter where the demand or the workflow is a bit on the weaker side and Q4 is generally slightly stronger.
I just wanted to understand, is there anything particularly this quarter that impacted the workflow?
Dhruv Jhanwar
Yeah, see when it comes to Q2 numbers then you can check the transcript on that phone call. Also we had clearly mentioned that we have bought approximately 7580 crores worth of machines in a very short period of time and we had to get the labors approximately 20 to 25 days in advance on the site. Again the same thing has happened in this quarter also. We have bought approximately, in this quarter itself we have bought 60 to 65 rows of machines. So again the same thing has happened that we have to pay for 20, 25 days extra labor cost where we have to station the people before.
So as soon as you station the people for companies like Reliance and General and Tata Steel as well, it takes approximately three to seven days just to generate the gate pass of the operators and the helpers. So that additional three to seven days I have to pay the employees also. Right. Because they have already started working for me. So when we are doing a lot of capex then these kind of things will keep happening. The exact same thing which had happened in Q2 has again happened in Q4 because we have bought so many machines at once
Rajnish Mishra
In Q2 also if
Dhruv Jhanwar
You see these, the exact two line items had become significantly higher. So again it’s the same thing that again these two line items have become significantly higher.
Rajnish Mishra
Right, right. And on your cost of borrowing you had mentioned 5% plus and minus 50 basis points. So that is inclusive of interest I mentioned. Right?
Dhruv Jhanwar
No, that is not inclusive because if it would have been then my finance cost would have been like. It would have been like. There would not be any finance course on the pnl. Right. If that would have been included.
Rajnish Mishra
Okay, okay,
Dhruv Jhanwar
Yeah, we can talk about it, post the call because it’s a very, it’s such a topic where I have to give you the exact percentages, exact numbers and allow to explain it to you in a very deeper way.
Rajnish Mishra
Sure. So I’ll reach out to you. My final question would be, you know, you spoke about the fact that you don’t see any particular demand issue but I just wanted to understand company specific as well as industry wide any two to three key risks that you see at this particular stage which could sort of, you know, slow down the growth momentum.
Dhruv Jhanwar
See the. Currently, currently I’m talking about that the only issue which we can face is operational challenges. But for now all our contracts have been extended to 31st December. Over the next eight, nine months. We don’t have any problem with the order book. There are many contracts which will be extended. From my experience I can tell you this, that all these contracts will again be extended for another 12 months. But currently on paper we just have it till 31st December. So in the short Term, we don’t have an issue with the demand side and any challenges.
The only issue which can happen is operational issues. So this is what I can tell you right now.
Rajnish Mishra
The demand is going up
Dhruv Jhanwar
Every day. This I can tell you for sure.
Rajnish Mishra
Right. Right. Thank you. Thank you so much. That’s all from my end.
Dhruv Jhanwar
Thank you.
Operator
Thank you so much. The last question is coming from the line of Mr. Yash Junjunwala, individual investor. Please go ahead, sir.
Yash Junjunwala
Hi. Am I audible?
Dhruv Jhanwar
Yeah, you’re audible.
Yash Junjunwala
Hi. Firstly, thanks for the opportunity. I actually just wanted to understand. You just explained to the previous participant why your employee cost was higher. But can I know why your other expenses also shot up drastically?
Dhruv Jhanwar
Yeah. So when we purchase machines along with the machines, we have to purchase many other things for the machines now for example, a few spare parts and all these things for the machines we had purchased in FY24. So those spare parts and all also we have to. Now the focs for those machines are getting over. So because of that these, the other expenses have gone up slightly. But eventually when our top line also goes up in the next quarters, in the upcoming quarters, then you will be able to see that it’s immediate.
It’s. It blends in then because currently 2728 crores of machines are going to CW IPS which is now being started. So currently we are at zero CWIP. So all these machines also when start generating revenue then all these numbers will still be the same but the top line will go up. So that time you will be able to see that it has been blended in a very nice way.
Yash Junjunwala
Okay, Got it. Okay, my next question is on the receivables end like because on paper right now your receivables look pretty high at about 205 days. What are your payment terms with these, with these clients, how soon do they pay?
Dhruv Jhanwar
See on paper we have got. We have signed the contract with 45 days of payment with everyone. But there are a few clients who pay in 30 days. Also there is a. There are a few clients who pay in 45 days also. Sometimes when it comes to quarter ending, especially March 31, everyone wants to carry cash in their book. So that is the reason why they pay after 10, 15 days, which is fine. But overall if you see our payment cycle currently under six months is around 45 days.
Yash Junjunwala
So on average your payment terms are set at 45 days.
Dhruv Jhanwar
Yeah. Yeah.
Yash Junjunwala
And will we see this receivable days come down as you. Because right now I think you’re there. There is some. Is there some Receivables built in which are not related to the crane rental business.
Dhruv Jhanwar
Yeah, absolutely. That’s a family settlement issue which we have. It’s. It’s not a very big amount. So in FY27 that small amount will also be coming to us. So once that happens, then that trade receivable above six months will become zero. So then you will be able to see that not above six months, above 60 days will become zero. So then my whole trade receivable cycle will come down. So it’s an internal adjustment which was done during the restructuring of the company which we cannot help right now.
But if you want to actually understand our core businesses data cycle, you have to see under 60 days aging which will come in the end.
Yash Junjunwala
Got it. Okay. And my last question was actually connected to some previous participant was trying to understand, just I wanted to understand like I. You were saying that you are comfortable taking on debt as long as there is demand visibility. But is there any internal, I mean benchmark you have in mind where you have capped debt to equity. Currently your debt to equity is close to two is to one. So is there any internal benchmark that you’ve kept that. Okay. Regardless of demand for balance sheet health, you will not take on more leverage
Dhruv Jhanwar
The balance sheet we will always be in this particular range only until means we are expanding, going on expanding. The thing is that all our trade tables if you see also. Sorry, all our repayments are also quite fast. We pay approximately 2 1/2% per month back to the bankers. So because our tenure of the. Yeah, that’s per month. So all. When you see from a quarter a month on month perspective, every quarter we are approximately paying 7.5% of the loan book. So that’s very high because in our industry this is how it works.
People take a four year funding. So you ideally pay two and a half percent every month. But we take, we have taken many two years and three years funding as well because our internal approvals are very nice right now. So eventually when you see as and when we are going on paying of our loans, we will be adding more. But this debt to equity of around 1.5, eventually we will blend it out to be 1.5. Because with our current order book, our this year’s FY27 predictions are very strong. So our debt repayment will also be significantly higher and we expect really good financial stability also in the company.
So when you actually see at the end of the year when we are paid 40, 45 crores worth of debt, then approximately we can borrow at least 100 more crores. Right? Because the debt repayment is extremely fast.
Yash Junjunwala
Got it. So you. You will try to maintain your debt below 2 times equity.
Dhruv Jhanwar
Yes. You can say it in that aspect. Absolutely.
Yash Junjunwala
Got it. Okay, thanks. That’s all from my side.
Operator
Thank you so much, sir. In the interest of time, that will be our last question for the day. Now I hand over the floor to the management for closing comments.
Dhruv Jhanwar
I would like to thank everyone for joining our call today. It was really nice chatting with you all. And we will keep doing it quarter on quarter. We are really. I really appreciate everyone giving a good one hour time to listen to us. To have good conversation. So I would like to thank everyone. Yeah. Thank you.
Operator
Thank you so much, sir. Ladies and gentlemen, this concludes your conference for today. Thank you for your participation. I’m using DO Sabha’s conference call services. You may disconnect your lines now. Thank you and have a pleasant day.