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    T R I L

    TARIL
    Capital Goods·21 Jul 2026
    Management Summary

    Transformers and Rectifiers (India) Limited (TARIL) reported a mixed Q1 FY27, with strong consolidated margins and robust order book growth, driven by significant order inflows. However, standalone revenue growth was impacted by temporary capacity utilization issues at the Changodar plant due to ongoing expansion. The company remains confident in its full-year guidance, supported by backward integration initiatives and a healthy inquiry pipeline, aiming for substantial revenue and margin growth in FY27 and beyond.

    Highlights

    5

    • Consolidated revenue from operations stood at INR572 crores, with a healthy consolidated EBITDA margin of 19.2%.

    • Unexecuted Order Book of INR6,630 crores provides strong revenue visibility, growing 26% year-on-year.

    • Q1 FY27 saw a healthy order inflow of INR2,114 crores, marking a 218% year-on-year growth.

    • Company is confident of achieving $1 billion top line by FY28-29.

    • Backward integration projects (CTC, Pressboard, Bushings) are progressing, expected to enhance margins and reduce dependency.

    Concerns

    3

    • Q1 FY27 standalone revenue growth was moderated to 10% YoY due to lower capacity utilization at Changodar plant.

    • Working capital days increased to around 170 days (inventory 85 days, receivables 130 days) as of FY26.

    • Delays in commissioning additional facilities at Changodar plant attributed to extreme monsoon conditions, labor constraints, and engineering enhancements.

    Key financials

    Single quarter

    09 metrics
    1. 01Standalone Revenue from Operations₹559 Cr+10%YoY
    2. 02Standalone EBITDA₹87 Cr
    3. 03Standalone EBITDA Margin15.6%
    4. 04Standalone PAT₹50 Cr
    5. 05Standalone PAT Margin8.9%

    Order Book

    high confidence

    Total Value

    ₹ 6,630 crores

    as of 2026-06-30

    quantified
    26.0% YoY

    Inflow this qtr

    ₹ 2,114 crores

    Execution

    executable over the next 18 to 24 months

    Composition

    Mix2 geographys
    • domestic80.0%
    • export20.0%

    Share of order book by geography

    Pipeline

    qualified rfp

    Inquiries under negotiation

    "The company has a strong unexecuted order book providing good revenue visibility and a healthy pipeline of inquiries with a historical win ratio of 10-15%."

    Source:
    Prepared remarks

    Capital allocation

    3
    high confidence
    CategoryHeadline
    Capex

    ₹1,000 crores

    disciplined mix of QIP proceeds, leasing arrangement, internal accruals and debt if required

    Debt

    Gross ₹424 crores · 1.1x EBITDA

    Liquidity

    Cash ₹139 crores

    Company ended FY26 with a standalone cash and bank balance of approximately INR139 crores. In addition, around INR145 crores of unutilized proceeds from the QIP remains earmarked for backward integration initiatives, providing additional funding flexibility.

    Guidance & targets

    12
    CategoryTargetPriority
    Revenue
    Revenue Growth
    25%
    		High
    Revenue
    Total Revenue
    $1 billion
    		High
    Revenue
    Total Revenue (INR equivalent)
    INR8,000 crores
    		High
    Profitability
    EBITDA Margin
    16%
    		High
    Profitability
    PAT Margin
    9% to 10%
    		High
    Profitability
    Consolidated EBITDA Margin
    20-21%
    		Medium
    Order Inflow
    Order Inflow Growth Rate
    30%
    		High
    Working Capital
    Working Capital Days
    120-130 days
    		High
    Capacity Utilization
    Changodar Capacity Utilization
    60-65%
    		High
    Capacity Utilization
    Changodar Capacity Utilization
    80-85%
    		High
    Backward Integration
    Margin Benefit from Backward Integration
    200-300 bps
    		High
    Backward Integration
    Additional Revenue from Backward Integration
    INR800-1,000 crores
    		Medium

    What to watch in Q2 FY27

    5

    Changodar facility utilization

    Q3 FY27 onwards
    CurrentLower capacity utilization, around 27% in Q1 FY27
    TargetImprovement to 60-65% in FY27, 80-85% in FY28

    Why it matters

    Improved utilization is key to revenue growth and operational efficiency, especially after expansion delays.

    During Q1FY27, TARIL delivered 10% year-on-year growth in revenue. However, on a sequential basis, revenue growth was impacted comparatively lower capacity utilization at Changodar facility where ongoing expansion and modernization activities are temporarily affecting the operational throughput. Importantly this does not reflect any weakness in demand or order inflow or execution capability. ... So in this year, the capacity utilization will still be at 60%-65%. And from next year, we will be ramping up the capacity utilization to 80%-85%.

    Risks & concerns

    4
    RiskSeverity

    Project execution delays at Changodar facility

    Delays attributed to extreme monsoon conditions, construction labor availability constraints, and engineering enhancements, temporarily affecting operational throughput. — Management acknowledged

    medium

    Increased working capital requirements

    Working capital days increased to ~170 days (inventory 85 days, receivables 130 days) as of FY26 due to long manufacturing cycles and project-linked approvals. — Management acknowledged

    medium

    Geopolitical situation impacting raw material sourcing

    Management states they have covered raw material needs until December 2026, by which time backward integration facilities will be operational, mitigating this risk. — Management downplayed

    low

    CRGO steel anti-dumping duty investigation

    Investigation initiated into CRGO steel imports, potentially leading to anti-dumping duty, but management declined to comment on ongoing investigation. — Analyst not addressed

    medium

    Q&A highlights

    8

    “Okay. So as far as the revenue is concerned, that is mainly on account of the lower capacity utilization at the Changodar plant. So we have enough orders on hand. Only thing is that new facilities are yet to commence, and that will be commenced from August '26. And mainly, it will be stabilized from Q3. And as far as the second question is related to the availability of the raw material. So mostly, we have covered ourselves by procuring this material, say, up to December 2026 till the time our backward integration facilities are up and running. So till that time, we are well covered. So majorly, the geopolitical reason is not affecting much as far as the raw material is concerned.”

    Clarifies that revenue moderation is due to internal capacity issues, not demand or supply chain, and raw material is covered.

    asked by Abhijeet Singh

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 FY27 Financial Performance Overview

    For Q1 FY27, TARIL reported standalone revenue from operations of INR559 crores, a 10% year-on-year growth, with an EBITDA of INR87 crores (15.6% margin) and PAT of INR50 crores (8.9% margin). On a consolidated basis, revenue stood at INR572 crores, EBITDA at INR110 crores, and a healthy EBITDA margin of 19.2%, leading to a consolidated PAT of INR64 crores. The standalone revenue growth was impacted by lower capacity utilization at the Changodar plant due to ongoing expansion activities.

    02

    Robust Order Book and Inflow Dynamics

    As of June 30, 2026, the unexecuted order book stood at INR6,630 crores, representing a 26% year-on-year growth and providing 18-24 months of revenue visibility. The company secured a healthy order inflow of INR2,114 crores in Q1 FY27, a significant 218% year-on-year increase. Major orders included over INR1,000 crores from PGCIL, INR228 crores from GETCO, INR175 crores from RRVPNL, and an export order of INR150 crores from the USA. TARIL also has INR23,000 crores of inquiries under negotiation, with a historical win ratio of 10-15%.

    03

    Capacity Expansion and Backward Integration Initiatives

    TARIL's current transformer manufacturing capacity is 75,000 MVA+ across all plants. The company is undertaking significant backward integration projects, including a CTC facility (24,000 MTPA), a Pressboard and insulation facility (10,000 MTPA), and an RIP bushings facility. These initiatives, with a total investment of INR900-1,000 crores, aim to cater to 80-85% of raw material requirements in-house, enhancing margins and supply chain reliability. Commissioning for these facilities is targeted between Q2 FY27 and Q4 FY27.

    04

    Strategic Outlook and Growth Targets

    For FY27, TARIL is targeting 25% revenue growth, a 16% standalone EBITDA margin, and a 9-10% PAT margin. The company aims to maintain a 30% growth rate in order inflow for both domestic and export markets. Management expressed confidence in achieving a $1 billion (INR8,000 crores) top line by FY28-29, supported by expanding manufacturing capabilities and a sustainable demand outlook in the power transmission and distribution sector.

    05

    Working Capital Management and Liquidity

    As of FY26, standalone total debt was INR424 crores against a tangible net worth of INR1,410 crores, resulting in a comfortable debt-to-equity ratio of 0.3x and debt-to-EBITDA of 1.1x. Working capital days increased to around 170 days, driven by inventory buildup (85 days) and receivables (130 days). The company aims to reduce working capital days to an average of 120-130 days. Liquidity is supported by INR139 crores in cash and bank balances and INR145 crores of unutilized QIP proceeds earmarked for backward integration.

    06

    HVDC and Export Market Focus

    TARIL is actively pursuing opportunities in the HVDC segment, with full manufacturing capability expected in 15-16 months after completing repair work and PGCIL empanelment. The company expects to maintain its export business at 10-15% of total business, focusing on markets like the Americas (North and South America) and Australia. The HVDC design strategy will involve hybrid systems, with no immediate R&D capex required.

    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.