Tarachand reports Rs 8.57 cr Q4 profit as capex weighs on PAT
The standalone quarter generated a 34.74% operating margin, while the company expanded its steel and metal-processing platforms.
Filed 31 Jul 2026, 16:21 IST · after market close · TARACHAND (TARACHAND)
Key takeaways
- Standalone Q4FY26 revenue was Rs 89.55 cr, with operating profit of Rs 31.10 cr and a 34.74% operating margin.
- Depreciation of Rs 17.10 cr was the largest charge below operating profit, while net profit was Rs 8.57 cr.
- Management said the company deployed Rs 290 cr of capex across FY25 and FY26, moderating PAT growth.
Operating profit held up, but depreciation narrowed earnings conversion
Tarachand reported standalone Q4FY26 revenue of Rs 89.55 cr and operating profit of Rs 31.10 cr, implying a 34.74% operating margin. Profit before tax was Rs 11.61 cr after interest of Rs 2.88 cr and depreciation of Rs 17.10 cr, showing the sizeable effect of the asset base below operating profit. Net profit was Rs 8.57 cr after tax at a 26.18% rate.
Capex and steel volumes define the current operating profile
The presentation said the company deployed Rs 290 cr of capex in FY25 and FY26, and attributed moderated PAT growth to that investment. Management said steel volumes handled reached 2.14 million MT in Q4FY26 and 11.56 million MT for FY26. The presentation also reported a 59% standalone margin for Equipment Rentals in Q4FY26.
New metal platform sits alongside pressure in steel processing
The presentation said Tarachand Metallix was incorporated as a 100% wholly owned subsidiary on January 6, 2026, and is being built as a metal-processing and manufacturing platform. It also reported a negative 16% CAGR for Steel Processing & Distribution from FY23 to FY26, indicating that the expansion is taking place alongside weakness in that business. The results were filed after market close, so there is no post-results market reaction to assess yet.
Q4FY26 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q4FY26 |
|---|---|
| Revenue | ₹90 cr |
| Other income | ₹0 cr |
| Expenses | ₹58 cr |
| Operating profit | ₹31 cr |
| Operating margin (%) | 34.74% |
| Interest | ₹3 cr |
| Depreciation | ₹17 cr |
| Profit before tax | ₹12 cr |
| Tax | ₹3 cr |
| Net profit | ₹9 cr |
| EPS (₹) | ₹1.09 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Steel volumes handled were 2.14 million MT in Q4FY26 and 11.56 million MT for FY26.
- Standalone Equipment Rentals achieved a 59% margin in Q4FY26.
Expansion
- The company deployed ₹290 crore of capex in FY25 and FY26.
- Tarachand Metallix Limited was incorporated as a 100% wholly owned subsidiary on January 6, 2026.
New initiatives
- Tarachand Metallix is being built as a metal processing and manufacturing platform.
Problems & risks
- PAT growth was moderated by ₹290 crore of capex deployed in FY25 and FY26.
- Steel Processing & Distribution recorded a negative 16% CAGR from FY23 to FY26.
What to watch
- Whether quarterly steel volumes remain near the 2.14 million MT reported for Q4FY26.
- Whether Equipment Rentals sustains its 59% standalone margin.
- How the Rs 290 cr of FY25-FY26 capex affects depreciation and PAT conversion.