Trishakti Industries' Strategic Expansion and Revenue Catalyst with Tata Steel Order

Trishakti Industries, a micro-cap player in India’s capital goods sector, has recently secured a transformative work order from Tata Steel, signaling a pivotal moment in its strategic expansion. The contract, valued at over ₹65 lakh and spanning 12 months, involves deploying advanced hydraulic truck-mounted cranes and skilled manpower at one of Tata Steel’s flagship project sites [1]. This order, coupled with a recent ₹90 million contract from KEC International for heavy machinery supply [5], positions Trishakti to capitalize on India’s surging infrastructure and industrial demand.

Capital Expenditure and Operational Resilience

Trishakti’s commitment to this order is underscored by a ₹2 crore capital expenditure, with cumulative capex for FY 25-26 reaching ₹41 crores [2]. This investment aligns with the company’s strategy to build a high-capacity fleet for marquee clients like Tata Steel, which is itself expanding its domestic steel production capacity to 40 million tonnes per annum (MnTPA) by 2030 [4]. While Q2 2025 sales fell 58% YoY to ₹4.08 crore, EBITDA surged 41% to ₹2.70 crore, reflecting margin resilience amid revenue volatility [2]. The Tata Steel order is expected to stabilize near-term cash flows and improve profitability, particularly as the company’s fleet utilization rates rise.

Long-Term Earnings Catalysts

The broader infrastructure sector offers a compelling backdrop for Trishakti’s growth. India’s hydraulic crane market is projected to grow at a CAGR of 6.79% from 2025 to 2030, reaching ₹2.06 billion, driven by government-led projects like the National Infrastructure Pipeline and urbanization in Tier II/III cities [2]. Tata Steel’s green steel initiatives, including low-CO₂ production technologies, further align with Trishakti’s focus on high-capacity equipment [3]. Additionally, the rental-first model in construction projects is boosting demand for specialized machinery, a segment Trishakti is well-positioned to serve [2].

Risks and Considerations

Despite these positives, investors must weigh near-term risks. Trishakti’s Q3 2025 results showed a 44.8% revenue decline to ₹1.57 crore and a 97.9% drop in net income to ₹0.02 crore [1]. While the Tata Steel and KEC contracts provide immediate revenue visibility, the 12-month contract duration lacks explicit renewal terms [1]. Moreover, the company’s reliance on large clients like Tata Steel exposes it to project-specific risks. However, the broader industry tailwinds—such as AI-integrated crane adoption and autonomous technology trends—could enhance Trishakti’s competitive edge if it invests in R&D [6].

Conclusion

For micro-cap investors, Trishakti Industries represents a high-conviction play on India’s infrastructure boom. The Tata Steel order, combined with its recent KEC contract, offers a tangible revenue catalyst. While financial volatility persists, the company’s capex-driven fleet expansion and alignment with sectoral growth trends position it to capture long-term value. Investors should monitor quarterly performance and contract renewals but remain cognizant of the sector’s structural growth drivers.

Source:
[1] Trishakti Industries Secures Work Order From Tata Steel [https://www.marketscreener.com/news/trishakti-industries-secures-work-order-from-tata-steel-ce7c50dddb89f123]
[2] Microcap Stock in Focus After Securing Order from Tata Steel [https://tradebrains.in/microcap-stock-in-focus-after-securing-order-from-tata-steel/]
[3] Tata Steel advances low CO2 steelmaking plans [https://www.tatasteeluk.com/corporate/news/tata-steel-advances-green-steelmaking-plans]
[4] Shaping the Future of the Global Steel Industry | Tata DigECA [https://digeca.tatasteel.com/blogs/tata-steel-shaping-global-steel-future]
[5] Trishakti Industries secures ₹90 Million contract from KEC [https://financesaathi.com/news_details/trishakti-industries-secures-%E2%82%B990-million-contract-from-kec-international]