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    T R I L

    TARILGood
    Capital Goods·1 Aug 2025
    Management Summary

    T R I L delivered a strong Q1 FY26 performance with significant year-on-year growth in revenue, EBITDA, and PAT, driven by robust order inflows and improved operational efficiencies. The company secured a landmark export order and is progressing with capacity expansion at its Moraiya facility. Management expressed confidence in achieving its USD1 billion revenue target by FY28 and becoming net debt-free, while maintaining sustainable margins.

    Highlights

    8

    • Revenue from operations stood at ₹510 crores, marking a 64% year-on-year growth.

    • EBITDA reached ₹97 crores, showing a 127% year-on-year increase.

    • Profit after tax (PAT) was ₹60 crore, a significant 227% year-on-year growth.

    • Total order inflow for Q1 FY26 was ₹665 crores.

    • Unexecuted order book as of June 30, 2025, stood at ₹5,246 crores, providing 15-18 months of revenue visibility.

    • Secured a single largest export order in company's history valued at USD16.6 million from Botswana.

    • Current ratio improved to 2.25 as of June 30, 2025, with trade receivables at 72 days (excluding retention money).

    • Targeting USD1 billion in revenue over the next 3 financial years and aiming to be net debt-free in 18-24 months.

    What Changed1

    vs Q3 FY26

    Guidance items28 → 11 (-17)

    Key financials

    Single quarter

    06 metrics
    1. 01Revenue from Operations₹510 Cr+64%YoY
    2. 02EBITDA₹97 Cr+127%YoY
    3. 03PAT₹60 Cr+2.3%YoY
    4. 04Order Inflow₹665 Cr
    5. 05Unexecuted Order Book₹5,246 Cr

    Guidance & targets

    11
    CategoryTargetPriority
    Revenue
    Revenue Visibility Period
    15-18 months
    		High
    Revenue
    Annual Revenue
    USD1 billion
    		High
    Revenue
    Turnover from Order Book
    INR3,500 crores
    		High
    Debt
    Net Debt Status
    Net debt-free
    		High
    Order Book
    Unexecuted Order Book
    INR5,000 crores
    		High
    Profitability
    PAT Margin
    17-18%
    		High
    Capacity
    New Manufacturing Capacity Operational
    Moraiya plant
    		High
    Capacity
    Capacity Utilization
    85-90%
    		High
    Export
    Export Revenue Contribution
    10%
    		High
    New Product
    Green Hydrogen Transformers Revenue Potential
    INR500-550 crores
    		Medium
    Competition
    Time for New Competitors to Qualify
    at least 18 months
    		High

    Risks & concerns

    3
    RiskSeverity

    Increased competition from new players entering the market

    Management acknowledged new players but stated it would take at least 18 months for them to meet pre-qualification requirements, limiting immediate impact. — Analyst acknowledged

    medium

    Fluctuations in order inflow and potential slowdown

    Management clarified that order inflow is lumpy due to long gestation periods of projects and Q1/Q2 are historically slower, not indicative of a slowdown. — Analyst downplayed

    low

    Impact of US tariffs on future export vision

    Management stated they currently have no inquiries from the U.S. and are wary of them, implying no direct impact on their current targets. — Analyst not addressed

    low

    Q&A highlights

    3

    “Manish these are the noncurrent nature receivables, which includes the retention money, which we are going to get from the utilities in 1 to 1.5 year time and also it includes the revenue debtors which are not immediately due for the payments. So this classification has been done by our auditors on their advice to understand better the exact trade receivable cycle what company is having.”

    Clarified the nature and recovery period of a significant non-current asset, impacting the understanding of working capital and cash flow.

    asked by Manish Ostwal

    2 min read6 chapters

    Detailed Narrative

    01

    Strong Q1 FY26 Financial Performance

    T R I L reported a robust Q1 FY26, with revenue from operations growing 64% year-on-year to ₹510 crores. This strong top-line growth translated into significant profitability improvements, with EBITDA increasing by 127% year-on-year to ₹97 crores and Profit After Tax (PAT) surging by 227% year-on-year to ₹60 crore. The company attributes this performance to scale benefits and improved cost efficiencies, reflecting strong operational discipline.

    02

    Robust Order Book and Strategic Export Win

    The company recorded a total order inflow of ₹665 crores in Q1 FY26, contributing to an unexecuted order book of ₹5,246 crores as of June 30, 2025. This provides strong revenue visibility for the next 15 to 18 months. A key highlight was securing the single largest export order in the company's history, valued at USD16.6 million, from an energy EPC in Botswana, underscoring its growing international presence.

    03

    Capacity Expansion and Backward Integration

    T R I L is actively pursuing capacity expansion and backward integration. Construction of a new 22,000 MVA manufacturing capacity at the Moraiya facility has commenced and is expected to be operational by the end of Q2 FY26. Additionally, expansion of the CRGO processing unit and new backward integration units are underway to enhance quality control and support self-reliance, aligning with the ambition to become a global force in the transformer industry.

    04

    Profitability and Working Capital Management

    The company's EBITDA and PAT margins have expanded meaningfully, with management stating that PAT margins of 17-18% are sustainable. Operational efficiency and process optimization are key drivers. Working capital management also improved, with trade receivables (excluding retention money) at 72 days, contributing to a current ratio of 2.25 as of June 30, 2025. The company aims to become net debt-free within the next 18 to 24 months.

    05

    Strategic Order Selection and Market Outlook

    Management clarified that while Q1 order inflow might appear lower than some peers, it reflects a strategic shift to 'pick and choose' high-margin orders with favorable delivery times. The company currently has over ₹18,000 crores in inquiries under negotiation and targets an unexecuted order book of ₹5,000 crores by April 1, 2026, expecting ₹3,500 crores in turnover from this for FY26. They anticipate the strong demand environment to persist for 5-7 years, with new competitors requiring at least 18 months to meet pre-qualification criteria.

    06

    New Product Development: Green Hydrogen Transformers

    T R I L is actively engaged in the R&D stage for green hydrogen transformers, which are expected to be large-scale units. While still in development, the company estimates a potential revenue contribution of ₹500-550 crores from this segment in the future, contingent on financial viability. This initiative aligns with the company's long-term vision and India's evolving energy landscape.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.