1. At a Glance – The Landlord Who Forgot to Build a Business
This company feels like that one rich uncle in every Indian family who owns prime land in Delhi, collects rent, earns dividends, occasionally generates hydro power like it’s a hobby, and somehow still reports negative operating margins. Welcome to Texmaco Infrastructure & Holdings — a company where ₹1,500+ crore worth of investments quietly sit on the balance sheet while the actual business struggles to generate even ₹4 crore quarterly revenue. It’s like owning a Lamborghini but choosing to drive a scooty to save petrol.
You’re not investing in a business here — you’re basically renting a seat at a Birla-era asset party where income comes from rent, dividends, and “other income” magic. The real question is: are you buying a cash-flowing machine or just admiring a museum of old wealth?
2. Introduction – The Case of the Vanishing Business
Let’s set the scene.
Founded in 1939, this company has seen India pre-independence, post-independence, license raj, liberalisation… and somehow still hasn’t figured out how to grow revenue.
Over time, it demerged its core engineering business into Texmaco Rail. What remained here?
- Real estate rentals
- Investment income
- A tiny hydro power plant
- And a business model that screams: “Beta, passive income hi future hai.”
Now, in theory, this sounds great. Rental income + dividends = stability.
In reality?
- Sales barely ₹16 Cr annually
- Operating margins deeply negative (-40% OPM)
- ROE literally negative
So what’s going on?
The company survives not because its business is strong — but because its balance sheet is loaded with investments and assets.
Think about it — if your salary was ₹10,000/month but you owned 3 houses in South Delhi, would you care about your job?
Exactly.
But as an investor… should YOU care?
3. Business Model – WTF Do They Even Do?
Let’s decode this “business”.
1. Rental Income (The Only Stable Guy in the Room)
- Properties in Gurugram & Delhi
- 100% occupancy achieved in May 2025
- Lease:
- 9 years
- 15% escalation every 3 years
- 3-year lock-in
- Collection efficiency ~100%
Basically, this is the “sarkari tenant” level stability.
Even CARE Ratings confirms:
- Rental income escrowed and directly used to service debt
So rental side = stable.
2. Investment Income (The Real Hero)
Revenue breakup:
- Interest & Dividend → 47%
- Rental → 36%
- Hydro + others → 17%
Meaning:
👉 The company earns more from investments than actual business.
Balance sheet reveals:
- ₹1,171 Cr equity investments
- ₹230 Cr mutual funds
- ₹79 Cr land/property
- Market value ~₹1,481 Cr
This is basically a mini holding company disguised as a real estate firm.
3. Hydro Power (Side Hustle Energy)
- 3 MW plant in Kalimpong
- Generates ~8 mU annually
- PPA at ₹3.60/unit till April 2026
Translation:
Nice, predictable, but tiny contribution.
4. Real Estate Development (The Big Hope)
Two major JDAs:
- Delhi (10 acres, Kamla Nagar)
- Partner: Hines + Conscient
- Revenue share:
- Kolkata (Entally project)
Important twist:
👉 Company invests ZERO money in development.
Developers
