At a Glance
TRF Ltd, the TATA Steel-backed material handling veteran, posted a Q1 FY26 profit of ₹3.5 Cr on revenue of just ₹23.4 Cr. Sales fell 37.7% YoY, profits dived 29.7% QoQ, and yet the company is clinging to its 21.8% ROCE like a badge of honour. The stock trades at ₹348, down 33% from its highs, while its book value is a negative ₹323—yes, you read that right.
Introduction
Imagine an old crane still lifting weights in the gym—slow, rusty, but occasionally shows a bicep. That’s TRF Ltd, a once-mighty EPC player now running on low sales but somehow eking out profits. Market cap ₹383 Cr, P/E 15.8, and Tata Steel’s 34% stake keep it on life support.
Business Model (WTF Do They Even Do?)
TRF builds bulk material handling equipment and takes turnkey contracts for infrastructure projects. Services include:
- Electromechanical jobs
- Industrial structure & fabrication
- Life Cycle Services
Think of them as the backstage crew at a mining concert—necessary, but no one buys tickets to see them.
Financials Overview
- Revenue (Q1 FY26): ₹23.4 Cr (-37.7% YoY)
- Net Profit: ₹3.5 Cr (-29.7% QoQ)
- OPM: 13.7% (down from 23%)
- ROCE: 21.8%
Verdict: The profit exists, but not much else does.
Valuation
- P/E: 15.8× (fair, considering the struggles)
- EV/EBITDA: ~8× (estimated)
- Fair Value Range: ₹250–₹400
DCF mumbles ₹250, while market holds at ₹348—probably because it’s a TATA name.
What’s Cooking – News, Triggers, Drama
- Q1 results: profit halved QoQ, sales continue falling.
- Leadership changes in July 2025 with new Chief-Safety appointment.
- No major order wins disclosed recently.
- Debt stable, but legacy liabilities keep haunting.
Corporate vibe: Old warrior, new injuries.
Balance Sheet
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Assets | 314 | 310 | 339 |
| Liabilities | 726 | 693 | 721 |
| Net Worth | -412 | -395 | -367 |
| Borrowings | 507 | 542 | 554 |
Commentary: Negative net worth—balance sheet looks like a horror show.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 83 | 34 | 94 |
| Investing | -50 | 15 | -111 |
| Financing | -30 | 0 | -1 |
Punchline: Ops cash is breathing; investing cashflow is an abyss.
Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE % | NA | NA | NA |
| ROCE % | 188% | 38% | 22% |
| P/E | 18× | 16× | 15.8× |
| PAT Margin % | 50% | 21% | 22% |
| D/E | 1.5 | 1.4 | 1.5 |
Verdict: ROCE impressive, but debt and negative equity kill the vibe.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 177 | 140 | 121 |
| EBITDA | 58 | 36 | 29 |
| PAT | 89 | 35 | 26 |
Commentary: Topline is in free fall, profits shrinking—classic Tata underdog story.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Kaynes Tech | 2,722 | 293 | 126× |
| Honeywell Auto | 4,190 | 524 | 65× |
| Jyoti CNC Auto | 1,818 | 323 | 72× |
| Tega Industries | 1,639 | 200 | 62× |
| TRF | 107 | 24 | 15.8× |
Humour: The smallest kid in a room full of bodybuilders.
Miscellaneous – Shareholding, Promoters
- Promoter Holding (TATA Steel): 34.1%
- FIIs: 0.67%
- Public: 65.2%
TATA’s presence gives comfort, but they haven’t been writing big cheques lately.
EduInvesting Verdict™
TRF is a turnaround play on paper but continues bleeding on sales. Negative net worth, high debt, and shrinking orders make it a high-risk bet. Profits exist only because of other income and cost cuts.
Final Word: A TATA badge on a struggling crane—approach only if you like pain trades.
Written by EduInvesting Team | 28 July 2025
SEO Tags: TRF Ltd, Tata Steel Subsidiary, Material Handling Equipment, Turnaround Stocks
