Texmaco Infrastructure & Holdings Ltd Q2FY26 – When Real Estate Meets Hydro Power, and a ₹1,481 Cr Investment Portfolio Decides to Nap in Style
1. At a Glance
Texmaco Infrastructure & Holdings Ltd (TEXINFRA) – the 86-year-old Adventz Group gem that owns plush real estate, dabbles in mini-hydropower, and trades goods occasionally when bored – just reported a spicy Q2FY26. With a market cap of ₹1,284 crore and a current price of ₹101, this old-school conglomerate looks less like a business and more like a museum of diversified curiosities.
The company’s sales stood at ₹5.22 crore, up 9.21% QoQ, while PAT surged 126% to ₹5.95 crore. Wait, ₹5.95 crore profit on ₹5.22 crore revenue? Yes, welcome to the magical world of “Other Income” – the corporate version of cheat codes.
Despite its 0.53% ROCE and -0.51% ROE, investors still hang around, probably attracted by its book value of ₹113, strong promoter holding of 65.8%, and the 0.92x P/B ratio. The company is almost debt-free (Debt ₹28.9 crore) and still flaunts a 0.14% dividend yield—a sweet lollipop for loyal long-termers.
With rent collections near 100%, occupancy at its Gurugram and Delhi properties hitting 100% in May 2025, and the newly inked joint development deal with Hines and Conscient Group for the Delhi Kamla Nagar land, the old Texmaco engine may just be revving again.
Still, the OPM at -5.17% screams “expenses ate my lunch.” But when you have ₹1,481 crore worth of equity investments and ₹230 crore in mutual funds sitting quietly, who needs lunch?
2. Introduction – A Veteran Trying to Be a Venture Capitalist
Texmaco Infrastructure & Holdings is that elder relative in every business family – old, experienced, respectable, and somehow still relevant because of ancestral land. Born in 1939, it has seen independence, liberalization, demonetization, and multiple “Make in India” slogans. Today, it makes something rarer—rental income.
Part of the Adventz Group (erstwhile K.K. Birla Empire), this company used to make heavy engineering goods until it demerged those operations into Texmaco Rail & Engineering Ltd. Post that, it pivoted toward what every smart uncle does with old properties—rent them out.
Its modern-day portfolio is a khichdi of real estate leases, hydro power, financial investments, and a little trading for nostalgia’s sake. The charm? It runs a 3 MW mini-hydro plant in Kalimpong, sells power to WBSEDCL under a fixed-rate PPA of ₹3.60/kWh, and has two lucrative land development deals—one in Delhi’s Kamla Nagar and another in Kolkata’s Entally.
Yet, despite all this, its five-year sales CAGR of -3.31% feels like someone forgot to switch the business back on after lockdown. But hey, the land is appreciating, the rent cheques are clearing, and the power plant still spins.
If this sounds like a business model built for Sunday brunches, that’s because it is.
3. Business Model – WTF Do They Even Do?
If Texmaco Infrastructure had to explain its business in a Tinder bio, it would say: “I own land, rent it, make hydropower, and invest in things that earn dividends. Swipe right for passive income.”
Here’s how the circus works:
1. Real Estate Leasing (≈36% of FY25 revenue): The crown jewel is the Global Business Park in Gurugram and Delhi, fully occupied as of May 2025. Rent escalates 15% every three years—basically, a SIP plan in real estate. Collection efficiency? 100%. Rent cover ratio? 1.11x of EMIs. CFOs dream of numbers like these.
2. Power Generation (≈17% of FY25 revenue): The 3-MW mini-hydro project in Kalimpong supplies 8.03 million units annually to WBSEDCL, secured under a 10-year PPA till April 2026. It’s tiny, stable, and boring—just like your fixed deposit. And equally predictable.
3. Interest, Dividend & Investments (≈47% of FY25 revenue): The company’s ₹1,171 crore in equity instruments, ₹230 crore in mutual funds, and ₹79 crore in land holdings do all the heavy lifting. Most of the profits flow in from dividends and market gains rather than active operations.
4. Joint Development Agreements (JDAs): a) Kamla Nagar, Delhi: A swanky project with Oro Bloom Developments (JV of Hines + Conscient)—Texmaco gets 44% of base revenue and 62% of incremental. b) Entally, Kolkata: A deal with PS Group for Jade Grove Phase II—Texmaco contributes land, PS does the work. Minimal effort, maximum potential upside.
So yes, Texmaco doesn’t make things—it makes money from things that exist.
4. Financials Overview
Metric
Latest Qtr (Sep’25)
YoY Qtr (Sep’24)
Prev Qtr (Jun’25)
YoY %
QoQ %
Revenue (₹ Cr)
5.22
4.78
4.05
9.2%
28.9%
EBITDA (₹ Cr)
-0.27
-2.72
-0.45
90.1%
40.0%
PAT (₹ Cr)
6.01
2.64
3.40
127.6%
76.8%
EPS (₹)
0.47
0.21
0.26
124%
81%
Annualized EPS = 0.47 × 4 = ₹1.88, giving a P/E not meaningful (since trailing EPS is negative).
Commentary: The profit jump looks dramatic until you realize it’s powered by a ₹9.35 crore “Other Income” line item. Without it, operations would still be gasping. This is not EBITDA growth; it’s Excel magic.
5. Valuation Discussion – The Fair Value Mirage
Let’s play fair value roulette using three lenses:
(a) P/E Method Annualized EPS = ₹1.88 Industry P/E = 22.8 → Fair Value Range = ₹42.8 to ₹51.8
(b) EV/EBITDA Method EV = ₹1,309 Cr EBITDA (TTM) = -₹4.69 Cr (loss), so EV/EBITDA = meaningless. Let’s use normalized EBITDA from FY24 = ₹-2.19 Cr → still red zone. Skip the maths; this one’s a negative buffet.
(c) DCF (Simplified) Assuming cash flow of ₹25 Cr/year from rent + investments with 3% growth and 10% discount rate: PV ≈ ₹280–₹320 Cr (core business). Add market value of investments: ₹1,481 Cr → Total value ≈ ₹1,760–₹1,800 Cr.
→ Fair Value Range (Educational only): ₹140–₹155/share.
(This fair value range is for educational purposes only and not investment advice.)
6. What’s Cooking – News, Triggers, Drama
November 2025 brought some real corporate masala:
New MD Alert! The Board appointed Anish Choudhury as Managing Director for three years starting 11 November 2025. New sheriffs bring new Excel sheets.
New Company Secretary: Rajat Arora joined as CS and Compliance Officer – hopefully someone who actually reads SEBI’s circulars before deadlines.
Board Shake-up: A director resigned (because why not, it’s that time of
