Highlights
- Tarmat Ltd rallied 19.99% to ₹64.89, locking into upper circuit amid favourable buying demand.
- Q3 FY26 revenue rose to ₹27.31 crore, reflecting steady year-on-year growth.
- Operating profit surged to ₹1.74 crore in Q3 FY26, with margins expanding to 6.37% from 2.18%.
- Net profit more than tripled to ₹1.13 crore, while EPS improved to ₹0.45.
- Infrastructure spending acceleration and order book expansion under the National Infrastructure Pipeline act as growth catalysts.
- Technical breakout above consolidation signals potential medium-term trend reversal, with resistance seen near ₹65–70.
Tarmat Ltd (NSE:TARMAT) emerged as the session’s top gainer, rallying 19.99% to ₹64.89, gaining ₹10.81 in a single trading session. The stock effectively locked into upper circuit territory, reflecting aggressive buying demand and limited supply at higher levels.
Such a sharp move typically signals early-stage accumulation or a thematic trigger within cyclical infrastructure counters
Financial Overview
In Q3 FY26 (December 2025), the company reported sales of ₹27.31 crore, compared with ₹26.14 crore in Q3 FY25 (December 2024), reflecting steady year-on-year growth. Operating profit rose sharply to ₹1.74 crore from ₹0.57 crore, with operating margin expanding to 6.37% versus 2.18%, indicating improved cost efficiency. Profit before tax increased to ₹1.05 crore from ₹0.29 crore in the corresponding quarter last year. Net profit strengthened to ₹1.13 crore compared with ₹0.34 crore, while EPS advanced to ₹0.45 from ₹0.14, highlighting a significant improvement in overall profitability.
Growth Catalysts
- Acceleration in government infrastructure spending
- Order book expansion under National Infrastructure Pipeline
- Improved project execution and margin expansion
- Working capital cycle optimization
Infrastructure players often benefit disproportionately during early capex revival phases due to operating leverage.
Technical Outlook
The 20% breakout suggests a strong demand-supply imbalance. The stock likely cleared a multi-week consolidation range, and RSI may be in overbought territory (>75).
Support: ₹54–56
Resistance: ₹65–70
A sustained move above ₹65 would confirm medium-term trend reversal.
Risks
- High working capital dependency
• Elevated debt servicing risk
• Execution delays and project overruns
• Margin pressure from raw material inflation
Frequently Asked Questions (FAQs)
- Why did Tarmat Ltd shares surge 19.99%?
The rally reflects strong buying momentum, improved quarterly profitability, and optimism around infrastructure sector tailwinds.
- How did Tarmat perform in Q3 FY26?
The company reported ₹27.31 crore in revenue, ₹1.74 crore operating profit, and ₹1.13 crore net profit, with significant margin expansion year-on-year.
- What are the key risks for investors?
Risks include high working capital requirements, debt servicing exposure, potential execution delays, and margin pressure from rising raw material costs.