T R I L — Q1 FY27 earnings call

Call held 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

  • 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

  • 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

  1. Standalone Revenue from Operations ₹559 Cr +10%YoY
  2. Standalone EBITDA ₹87 Cr
  3. Standalone EBITDA Margin 15.6%
  4. Standalone PAT ₹50 Cr
  5. Standalone PAT Margin 8.9%
  6. Consolidated Revenue from Operations ₹572 Cr
  7. Consolidated EBITDA ₹110 Cr
  8. Consolidated EBITDA Margin 19.2%
  9. Consolidated PAT ₹64 Cr

What they filed

Q1 FY27: revenue up 8.1%, net profit down 4.5% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue462 559 676 529 460 −0%737 +32%783 +16%572 +8%
EBITDA69 85 131 88 52 −25%125 +47%118 −10%93 +6%
Net profit46 55 94 67 37 −20%76 +38%91 −3%64 −4%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Order book

high confidence

Total value

₹6,630 Cr

as of 2026-06-30 quantified

26% YoY

Inflow this quarter

₹2,114 Cr

Execution

executable over the next 18 to 24 months

Composition

Mix 2 geographies
  • domestic 80%
  • export 20%

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

high confidence
  • Capex ₹1,000 Cr disciplined mix of QIP proceeds, leasing arrangement, internal accruals and debt if required
    • Changodar expansion ₹150 Cr
    • Backward integration initiatives ₹900 Cr
    Changodar expansion involving investment of approximately INR150 crores and backward integration initiatives entailing a total investment of INR900 crores to INR1,000 crores remain key strategic priorities, and we are confident that these facilities will be commissioned as per the timelines outlined. We intend to fund this through a disciplined mix of QIP proceeds, leasing arrangement, internal accruals and debt if required.
  • Debt Gross ₹424 Cr · 1.1× EBITDA
    On a stand-alone basis, total debt stood at around INR424 crores as of FY26 against a tangible net worth of approximately INR1,410 crores, translating into a debt-to-equity ratio of around 0.3x. Our debt-to-EBITDA stood at around 1.1x, which remains well within a prudent range for our manufacturing business of our size and growth profile.
  • Liquidity Cash ₹139 Cr 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.
    We 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. This provides us with additional funding flexibility as we execute our planned capex program.

Guidance & targets

Revenue

  • Revenue Growth Revenue · FY27 · High confidence 25%
    At TARIL we remain confident of our growth trajectory and are targeting 25% revenue growth in FY27 along with EBITDA margin of 16% and PAT margin of 9% to 10%.

    — Satyen Mamtora

  • Total Revenue Revenue · FY28, FY29 · High confidence $1 billion
    So the company is constantly working and progressing towards 1 billion by FY'28, FY'29. So we are constantly working on that. We are very confident that we should be able to reach $1 billion by '28, '29.

    — Satyen Mamtora

  • Total Revenue (INR equivalent) Revenue · FY29 · High confidence INR8,000 crores

    Previously INR9,600 crores (implied from $1 billion) → INR8,000 crores

    So there is no confusion as such. So when we said about $1 billion at that particular point of time, the rupee rate, was low. So we are targeting, say, INR8,000 crores revenue. As we have given in our presentation, through this expansion at Changodar and Moraiya, we will be able to easily achieve around say, INR5,000 crores to INR6,000 crores. And with this backward integration, additional, say, INR800 crores to INR1,000 crores. So that gives us the up to say, INR7,000 crores to INR8,000 crores by FY'29. So instead of INR9,600 crores, you can look at around INR8,000 crores.

    — Mehul Shah

Profitability

  • EBITDA Margin Profitability · FY27 · High confidence 16%
    At TARIL we remain confident of our growth trajectory and are targeting 25% revenue growth in FY27 along with EBITDA margin of 16% and PAT margin of 9% to 10%.

    — Satyen Mamtora

  • PAT Margin Profitability · FY27 · High confidence 9% to 10%

    — Satyen Mamtora

  • Consolidated EBITDA Margin Profitability · FY27 · Medium confidence 20-21%
    I think a couple of percent more. 20%, 21% or beyond that.

    — Mehul Shah

Order Inflow

  • Order Inflow Growth Rate Order Inflow · FY27 · High confidence 30%
    So we would be maintaining about 30% growth rate in both domestic and export market.

    — Satyen Mamtora

Working Capital

  • Working Capital Days Working Capital · average · High confidence 120-130 days

    Previously 170 days → 120-130 days

    So we are targeting on an average, say, 120 days to 130 days.

    — Mehul Shah

Capacity Utilization

  • Changodar Capacity Utilization Capacity Utilization · FY27 · High confidence 60-65%

    Previously 27% → 60-65%

    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%.

    — Satyen Mamtora

  • Changodar Capacity Utilization Capacity Utilization · next year (FY28) · High confidence 80-85%

    Previously 60-65% → 80-85%

    — Satyen Mamtora

Backward Integration

  • Margin Benefit from Backward Integration Backward Integration · starting FY28 · High confidence 200-300 bps
    Yes, it will be basically between 200 basis points to 300 basis points. But see, these facilities will come up in Q1 FY28. So starting from FY28, we will see gradual increase in the margin.

    — Mehul Shah

  • Additional Revenue from Backward Integration Backward Integration · second phase · Medium confidence INR800-1,000 crores
    In the first phase, this will be entirely for the TARIL. And in the second phase, we will look to see into the market. There is a third-party sale. So that will roughly give us additional, say, around INR800 crores to INR1,000 crores additional revenue from this.

    — Satyen Mamtora

What to watch in Q2 FY27

Changodar facility utilization

Q3 FY27 onwards
Current Lower capacity utilization, around 27% in Q1 FY27
Target Improvement 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

  • Project execution delays at Changodar facility

    medium

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

    Management acknowledged

  • Increased working capital requirements

    medium

    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

  • CRGO steel anti-dumping duty investigation

    medium

    Investigation initiated into CRGO steel imports, potentially leading to anti-dumping duty, but management declined to comment on ongoing investigation.

    Analyst not addressed

  • Geopolitical situation impacting raw material sourcing

    low

    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

Q&A highlights

6 direct
Reasons for Q1 revenue moderation and potential supply chain issues Direct
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

Long-term revenue and EBITDA margin sustainability, $1 billion target Direct
So the company is constantly working and progressing towards 1 billion by FY'28, FY'29. So we are constantly working on that. We are very confident that we should be able to reach $1 billion by '28, '29.

Reaffirms the ambitious $1 billion revenue target and timeline, providing long-term growth visibility.

Asked by Subhadip Mitra

PGCIL Ultra Mega Order and future large orders Direct
So this order, like we said that we have about INR23,000 crores in our order pipeline with inquiries under negotiation. This was one of them and which finalized in the first quarter. We have many more about INR23,000 crores worth in pipeline. So our win ratio is about 10% to 15%. So we should be winning those inquiries. ... So yes, all the tenders that we quote in India are on L1 basis. And I think as far as we have multiple more inquiries with PGCIL, which are under negotiation. So they will take some time.

Highlights the significance of the PGCIL order and indicates potential for similar large orders from PGCIL in the future, reinforcing pipeline strength.

Asked by Jainam Vora

HVDC project update and revenue timeline Direct
So HVDC front, I think it will take another 15 to 16 months to get fully into manufacturing HVDC. We still have 9 months to complete our repair work of HVDC. So once we completed our repair of HVDC, then PGCIL will empanel us for the first trial order of HVDC.

Provides a clear timeline for the company's entry into HVDC manufacturing and potential revenue generation.

Asked by Avikshit Vijay

CRGO steel anti-dumping duty investigation and impact on raw material cost Partial
This investigation is currently going on, and we would not like to comment on that right now. But with the requirement that India has in terms of the growth of Indian electricity demands, they may have to relook at what can be done. ... We are currently just waiting and seeing what the results are. Plus we have already protected ourselves in terms of whatever raw materials that we require. So we are pretty much sure that things will get sorted out by then.

Addresses a potential risk to raw material costs, with management indicating they are protected and awaiting resolution, but not providing specific mitigation strategies.

Asked by Pratham Modi

Moraiya plant utilization and comparison with competitors Partial
So here also, there was a slowdown. So that's what we should understand. Even in more than 220 kV at Moraiya, the execution was slower? ... No. It is as per the last quarter only, it is around roughly 60%-65% capacity utilization. ... There is no major reason as such.

Raises questions about underutilization at Moraiya despite strong order book and competitor performance, with management not providing a clear specific reason beyond general slowdown.

Asked by Shrinarayan Mishra

Impact of Changodar on margins and future margin trajectory Direct
No, there is no possibility. We are pretty much protected in terms of the orders that we have. So there is no possibility that it will go down.

Clarifies that margins are protected despite the Changodar impact and will not decline, reassuring investors about profitability.

Asked by Shrinarayan Mishra

Consolidated EBITDA margin guidance for FY27 Direct
Yes, 16%. Yes. ... Subsidiary may be given an additional 100 basis points. So that will be there. ... Yes, that is correct.

Confirms that the 16% EBITDA margin guidance is for standalone, and consolidated margins are expected to be higher (around 17.3% last year, potentially more with subsidiary contribution).

Asked by Viren Deshpande

2 min read 6 chapters

Detailed narrative

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.

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%.

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.

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.

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.

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.

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