Tarmat Ltd. (TARMAT) AI Stock Analysis

• Market Cap: ₹1.27B
• Dividend Yield: N/A
• Average Volume (3M): 12.89K
• Price to Earnings (P/E): 27.6
• Beta (1Y): 1.20
• Revenue Growth: 38.17%
• EPS Growth: N/A
• Country: IN
• Employees: 110
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Engineering & Construction
• EPS (TTM): 0.46
• Shares Outstanding: 25,064,255
• 10 Day Avg. Volume: 9,896
• 30 Day Avg. Volume: 12,887
• PEG Ratio: -0.21
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 1.08
• P/FCF Ratio: -2.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: ₹53.00 ▲(2.95% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is held back primarily by mixed financial performance—especially weak/volatile cash flows and declining revenue—despite balance-sheet stability. Technicals are supportive with strong bullish momentum, but valuation is a headwind due to a high P/E and no dividend yield provided.

Positive Factors

Balance-sheet strength

A high equity ratio and improved leverage give Tarmat durable financial stability, lowering refinancing and solvency risks. This structural strength supports sustained access to capital for project-backed working capital and bidding on large infrastructure contracts over the next several quarters.

Stable revenue channels via long-term contracts

Ongoing government and contractor partnerships create recurring demand for asphalt and bitumen, anchoring sales even during cyclical periods. Long-term contracts also improve revenue visibility and support planning for production capacity and procurement of oil-linked inputs.

Recent recovery in profitability

An identifiable improvement in net margin indicates management can restore profitability through pricing, cost control or mix optimization. If sustained, this structural improvement can rebuild retained earnings and support investment without increasing leverage.

Negative Factors

Weak and volatile cash generation

Persistent negative operating and free cash flow undermine the company's ability to self-fund capex and working capital, forcing reliance on external financing. This reduces financial flexibility and raises risk during industry slowdowns or rising input costs over coming quarters.

Declining revenue trend

A multi-year revenue decline signals potential market share erosion or lower project activity. Without a clear reversal, weaker topline limits operating leverage, constrains margin recovery and reduces long-term return prospects despite episodic profitability improvements.

Margin pressure and low operational efficiency

Shrinking gross margins and modest EBITDA indicate structural cost pressures—raw material, energy or inefficiencies—that compress cash generation. If not addressed by process improvements or pricing power, margin pressure will hinder sustainable earnings and reinvestment capacity.

Tarmat Ltd. Business Overview & Revenue Model

Company Description

Tarmat Limited operates as an infrastructure company in India. It undertakes various construction works, including airport runway, highways, and railways; and develops infrastructure projects, such as ports, industrial area developments, refineries, etc. The company also develops real estate properties. The company was formerly known as Roman Tarmat Limited and changed its name to Tarmat Limited in September 2012. Tarmat Limited was incorporated in 1986 and is based in Mumbai, India.

How the Company Makes Money

Tarmat Ltd. Financial Statement Overview

Summary

Mixed fundamentals: stable balance sheet (strong equity base and improved leverage) supports stability, but profitability is uneven, revenue has been declining, and cash generation is weak with volatile/negative operating and free cash flow.

Income Statement

Tarmat Ltd. has shown a mixed performance in its income statement. The gross profit margin has decreased over the years, indicating pressure on cost management. The net profit margin has fluctuated, with a significant improvement in the latest year, showing recovery potential. However, revenue has been declining over the past few years, which is a concern for growth prospects. The EBIT and EBITDA margins are relatively low, suggesting limited operational efficiency.

Balance Sheet

The balance sheet of Tarmat Ltd. reflects a strong equity base with a high equity ratio, indicating financial stability. The debt-to-equity ratio has improved, showing better leverage management. However, the return on equity has been inconsistent, reflecting challenges in generating returns from equity. Overall, the balance sheet is stable but shows room for improvement in profitability metrics.

Cash Flow

Cash flow analysis reveals significant volatility, with negative free cash flow in recent years, indicating potential liquidity challenges. The operating cash flow has been negative, suggesting issues in core business cash generation. The free cash flow to net income ratio is unfavorable, highlighting inefficiencies in converting earnings to cash. Despite these challenges, the company has managed financing activities effectively to support operations.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	1.04B	1.01B	893.53M	1.44B	1.81B	1.96B
Gross Profit	155.12M	69.02M	134.40M	177.02M	214.69M	184.81M
EBITDA	40.75M	38.38M	24.84M	21.58M	77.13M	84.60M
Net Income	20.10M	18.69M	-11.32M	74.15M	45.77M	51.47M
Balance Sheet
Total Assets	0.00	2.36B	1.98B	2.13B	2.20B	2.33B
Cash, Cash Equivalents and Short-Term Investments	98.27M	98.27M	57.06M	50.41M	44.42M	146.79M
Total Debt	0.00	95.38M	104.67M	59.52M	433.60M	894.71M
Total Liabilities	-1.73B	625.90M	684.02M	823.15M	1.26B	1.71B
Stockholders Equity	1.73B	1.73B	1.30B	1.31B	935.75M	612.92M
Cash Flow
Free Cash Flow	0.00	-373.13M	-32.48M	878.09K	199.89M	238.35M
Operating Cash Flow	0.00	-95.96M	-32.01M	955.60K	202.54M	264.19M
Investing Cash Flow	0.00	-271.68M	136.00K	-8.45M	179.16M	-19.35M
Financing Cash Flow	0.00	408.83M	38.53M	-80.10M	-209.89M	-238.74M

Tarmat Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 51.48
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TARMAT, the sentiment is Negative. The current price of 51.48 is below the 20-day moving average (MA) of 58.13, below the 50-day MA of 54.08, and below the 200-day MA of 53.96, indicating a bearish trend. The MACD of 0.70 indicates Positive momentum. The RSI at 39.71 is Neutral, neither overbought nor oversold. The STOCH value of 1.09 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TARMAT.

Tarmat Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FIBERWEB	74 Outperform	₹1.06B	6.65	―	―	19.37%	40.55%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
TARMAT	58 Neutral	₹1.27B	27.61	―	―	38.17%	―
SALSTEEL	57 Neutral	₹4.39B	15.95	―	―	0.19%	-2962.74%
MADHUCON	38 Underperform	₹346.84M	-0.11	―	―	-52.19%	-3109.52%

Tarmat Ltd. Corporate Events

Tarmat Closes Trading Window Ahead of Q3 FY2026 Results

Tarmat Limited has announced the closure of its trading window for designated persons and their immediate relatives from 1 January 2026 until 48 hours after the board meeting that will consider the unaudited standalone and consolidated financial results for the quarter ended 31 December 2025. The move, in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s own code of conduct, is a routine governance measure intended to prevent insider trading ahead of key financial disclosures, and the exact date of the board meeting will be communicated separately.