TAURIAN - Taurian MPS

📊 NSE: TAURIAN 🏢 Industrial Products 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total income for H1 FY26 stood at INR 32.29 Cr. The company has revised its full-year FY26 revenue guidance downward from INR 140-150 Cr to a range of INR 100-110 Cr. For FY27, management expects a growth rate of 40% to 50% on a conservative basis, with potential for 60% to 70% growth as new machinery from IPO funds becomes fully operational.

Geographic Revenue Split

While specific percentage splits are not provided, the company is expanding from its domestic base into the South India market (previously difficult to penetrate), the Middle East (Saudi Arabia and Oman), and South America (confirmed INR 10 Cr export order). US market orders were recently postponed or cancelled due to changes in the duty structure.

Profitability Margins

Net profit margins (PAT) for FY26 are projected at 15% to 16%. For the second half (H2) of FY26, margins are expected to be higher at 16% to 18% due to lower procurement costs and a better export mix. FY27 margins are expected to improve by an additional 1% to 2% as internal manufacturing efficiencies increase.

EBITDA Margin

Not explicitly disclosed as a standalone percentage, but net margins are targeted at 15-16% for FY26. Management noted that gross margins are steadily improving despite a temporary dip in net profit during H1 FY26 caused by increased manpower costs for market expansion.

Capital Expenditure

The company raised INR 42 Cr through an IPO. As of November 2025, INR 7 Cr was spent on IPO expenses and INR 13-14 Cr on working capital. Approximately INR 21 Cr remains. Funds are being used to add new machinery to the Uttarakhand facility to reduce job-work charges and improve quality control.

⚙️ Operational Drivers

Raw Materials

Steel and engineering components (implied by equipment manufacturing). Raw material procurement costs have decreased by 3% to 4% following the IPO due to better negotiation power and bulk discounts with vendors.

Import Sources

Domestic vendors in India; specific international sources not named, though the company mentioned improved response from 'all vendors' post-funding.

Capacity Expansion

The current manufacturing facility in Uttarakhand has an installed capacity capable of supporting a turnover of INR 250 Cr. Planned expansion involves adding specialized machinery (already ordered) to bring more processes in-house, expected to be fully effective by Q1 FY27.

Raw Material Costs

Raw material costs have seen a 3% to 4% reduction in H2 FY26. This improvement is a primary driver for the projected increase in net margins from 11% in H1 to 16-18% in H2.

Manufacturing Efficiency

At 90% capacity utilization, the company can generate INR 18 Cr to INR 20 Cr in revenue per month. Current H1 utilization was lower due to seasonal monsoon impacts.

Logistics & Distribution

The company plans to dispatch INR 15 Cr worth of equipment directly from the EXCON exhibition site to customers in South and West India to save on freight charges.

📈 Strategic Growth

Expected Growth Rate

40-50%

Growth Strategy

Growth will be driven by aggressive penetration into the South Indian market, leveraging the hire of a former sales head from competitor Propel who previously scaled revenues from INR 300 Cr to INR 1,500 Cr. Additionally, the company is targeting the Middle East and South American markets and utilizing EXCON exhibition leads (INR 34.02 Cr in confirmed orders) to build the order book.

Products & Services

End-to-end solutions in crushing, screening, and washing equipment for the minerals and aggregate sector; spare parts; Cyclowash equipment.

Brand Portfolio

Taurian, Taurian MPS.

New Products/Services

Expanded product range in crushing and screening to match or exceed major competitors like Propel. Management is now shifting focus from R&D to market penetration of these existing new products.

Market Expansion

Targeting South India, Saudi Arabia, Oman, and South America. Breakthrough orders have already been dispatched to Hyderabad.

Market Share & Ranking

Management notes that Indian players are currently gaining market share from multinational corporations (MNCs) like Terex and Aztec in the domestic market.

🌍 External Factors

Industry Trends

The industry is seeing a shift where Indian manufacturers are becoming sizable enough to compete directly with MNCs. The sector typically sees 30-35% average growth, which Taurian aims to outperform. Technology is shifting toward integrated 'pick-to-port' solutions.

Competitive Landscape

Key competitors include Propel, Plana, and international players like Terex and Aztec.

Competitive Moat

Moat is built on a wide product range (wider than some larger competitors), an engineering-led team, and a lower cost base post-IPO. The durability of equipment (10-15 year lifespan) creates a long-term recurring revenue stream through spare parts, which eventually account for 15-20% of machine value.

Macro Economic Sensitivity

Highly sensitive to infrastructure spending and the construction cycle in India and the Middle East.

Consumer Behavior

Customers in the aggregate sector are increasingly looking for end-to-end washing and screening solutions like the Cyclowash to meet environmental or quality standards.

Geopolitical Risks

Trade barriers and duty structures in the US have already caused order delays. Competition with China remains a factor, though management claims no current special disadvantage compared to Chinese peers.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to import/export duty structures, particularly in the US market, which directly influenced the H1 FY26 order book.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the conversion of the INR 35 Cr pipeline into confirmed orders and the execution of the INR 34.02 Cr EXCON orders within the current financial year. Seasonality (monsoon) remains a recurring risk to H1 performance.