T R I L — Q3 FY26 earnings call

Call held 8 Jan 2026

Management summary

T R I L reported a strong Q3 FY26, with standalone revenue of ₹704.21 crores and EBITDA margin of 16.19%, marking an inflection point in operational momentum. The company secured a significant HVDC repair order and is progressing with backward integration and capacity expansion projects. Management reiterated FY26 revenue guidance of ~₹2,600 crores with 16-17% EBITDA margin and aims to be net debt-free within 18 months, despite a deliberate moderation in order intake to manage execution timelines.

Highlights

  • Strong Q3 FY26 performance with standalone revenue of ₹704.21 crores and consolidated revenue of ₹737 crores, showing significant sequential growth of 64.53% and 60.22% respectively over Q2 FY26.

  • Standalone EBITDA margin expanded to 16.19%, driven by improved execution, operating leverage, and cost optimization.

  • Secured a strategic HVDC repair order from PowerGrid, marking TARIL as the first Indian company to achieve this, underscoring technological capabilities and opening new long-term opportunities.

  • Confident of achieving FY26 revenue of approximately ₹2,600 crores and an EBITDA margin of 16-17%, supported by strong execution visibility and a healthier order mix.

  • Progressing on six backward integration facilities and core manufacturing footprint expansion, with Changodar and Moraiya expansions expected to be operational by Q1 and Q2 FY27 respectively, enhancing in-house value addition and cost efficiency.

Concerns

  • Approximately ₹40-45 crores of revenue could not be recognized in Q3 due to issues, similar to ₹70-72 crores in Q2, indicating ongoing operational challenges in revenue recognition.

  • The order pipeline declined from ₹22,000 crores in Q4 FY25 to ₹16,500 crores, representing an 18.4% YTD decline, though management states this is a deliberate strategy to limit order book to 18 months.

  • The World Bank queries, while not a debarment, required a reply by January 12th, creating a minor overhang until resolved, with resolution expected in 2-3 weeks.

Key financials

  1. Standalone Revenue ₹704.21 Cr +64.5%QoQ
  2. Standalone EBITDA ₹114 Cr
  3. Standalone EBITDA Margin 16.2%
  4. Standalone PAT ₹71 Cr
  5. Consolidated Revenue ₹737 Cr +60.2%QoQ
  6. Consolidated EBITDA ₹129 Cr
  7. Consolidated PAT ₹76 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

₹5,500 Cr

as of 2025-12-31 quantified

Inflow this quarter

₹665 Cr

Execution

lag time is close to between 24 and to 28 months, aiming to bring down to 18 months

Pipeline

other

Order pipeline

Cancellations & deferrals

  • deferred: Revenue of approximately INR40-45 crores could not be taken this quarter due to issues similar to Q2
Management is deliberately pacing order intake to limit the order book to 18 months for better execution and higher margins, aiming for an INR8,000 crores order book by year-end.

Source: Prepared remarks · Q&A

Capital allocation

high confidence
  • Capex Capex disclosed
    • Backward integration - CTC plant commissioning
    • Backward integration - Press Board facility commissioning
    • Backward integration - RIP bushing plant commissioning
    • Backward integration - First phase of fabrication facility
    • Core manufacturing footprint expansion - Changodar facility
    • Core manufacturing footprint expansion - Moraiya facility
    We have planned six backward integration facilities and execution is progressing as per schedule. The CTC plant is targeted for commissioning in FY '26-27, followed by Press Board facility in Q3 FY '26-27 and RIP bushing plant in Q4 FY '26-27, along with the first phase of our fabrication facility during the same period. ... Our Changodar facility expansion is on track and completion on Q1 FY '26-27, while Moraiya is expected to be operational in Q2 FY '26-'27.
  • Liquidity Cash ₹275 Cr Cash flow positive at this moment, around INR30-35 crores positive.
    we are in the cash flow positive at this moment. Right? I don't have the right figure right now to give you, but yes, around INR30 crores to INR35 crores is on the, we are on positive. Apart from that, we have around INR275 crores of the cash deposits with the bankers.

Guidance & targets

Revenue

  • FY26 Revenue Revenue · FY26 · High confidence ₹2,600 crores
    We are targeting revenues of approximately INR2,600 crores along with EBITDA margin of around 16%.

    — Satyen Mamtora

  • FY26 Revenue Growth Revenue · FY26 · High confidence at least 25%
    For the full financial year, we remain confident of delivering at least 25% revenue growth over FY '25.

    — Satyen Mamtora

  • Long-term Revenue Revenue · FY28-29 · High confidence $1 billion or ₹8,000 crores
    Look, Vijay, we have been guiding about $1 billion or INR8,000 crores revenue for FY '28-'29.

    — Chanchal Rajora

Margin

  • FY26 EBITDA Margin Margin · FY26 · High confidence 16-17%
    We are targeting revenues of approximately INR2,600 crores along with EBITDA margin of around 16%. ... along with EBITDA margin of around 16% to 17%.

    — Satyen Mamtora

  • Long-term Gross Margin Margin · FY28 · High confidence 35%
    Can we take the '27 -- FY '27 as the year with the 35% gross margin? It is FY '28.

    — Chanchal Rajora

  • Long-term Gross Margin (with further backward integration) Margin · Medium confidence 40%
    And will it provide further room for expansion to 40% with the further backward integrals? Definitely.

    — Chanchal Rajora

Order Book

  • FY26 Order Book Order Book · FY26 · High confidence ₹8,000 crores
    by close of this year, we will be having around INR8,000 crores of Order Book hand.

    — Satyen Mamtora

Debt

  • Net Debt Status Debt · next 18 months · High confidence Net debt free
    Our goal is to be net debt free in the next 18 months to 24 months? Yes, I said that is intact. We are working on that. We will be net debt free in the next 18 months' time.

    — Chanchal Rajora

Working Capital

  • Working Capital Days Working Capital · by year-end · Medium confidence near 120 days
    Though our goal is to reach 200 days level, but we will see that how do we reach into that level. But yes, so we will be keeping by this year end, we should be near to 120 days levels.

    — Chanchal Rajora

Capacity

  • New Bushing Facility Utilization Capacity · second year of operation · Medium confidence 60-80%
    By second year of operation, we should be at 60% to 70% to 80% of capacity utilization.

    — Satyen Mamtora

  • Overall Plant Utilization Capacity · next year end · High confidence 85%
    No, our plant utilization will reach around 85%. Plant utilization is what we said that it will reach 85%. ... By next year end? Yes, by next year end.

    — Satyen Mamtora

  • Overall Capacity Capacity · High confidence 75,000 MVA

    From 40,000 MVA today

    Sir, my current capacity is around 40,000 and with the new expansion we will reach to the 75,000 MVA.

    — Chanchal Rajora

Capex

  • Backward Integration Completion Capex · next year-end (FY27) · High confidence All projects completed
    So next year ending almost all the things will be completed. So FY'27, FY'28 will be the final year. Yes, all our projects will be completed.

    — Satyen Mamtora

What to watch in Q4 FY26

World Bank Query Resolution

Next quarter
Current Reply filed by January 12th, resolution expected in 2-3 weeks
Target Clear resolution from World Bank

Why it matters

Removes potential reputational overhang and uncertainty regarding the company's standing.

World Bank has given us the timeline to reply the work queries by 12th of January. We are filing our reply in this particular week. Probably today only we are filing the reply. And we hope that in next 2 to 3 weeks' time this will be settled.

Risks & concerns

  • Order Pipeline Decline

    medium

    The order pipeline declined from ₹22,000 crores in Q4 FY25 to ₹16,500 crores, an 18.4% YTD decline, though management attributes this to a deliberate strategy to limit order book to 18 months.

    Analyst acknowledged

  • Revenue Deferral/Recognition Issues

    medium

    Approximately ₹40-45 crores of revenue could not be recognized in Q3 due to issues, similar to ₹70-72 crores in Q2, indicating ongoing operational challenges in revenue recognition.

    Analyst acknowledged

  • World Bank Queries

    low

    The company had to respond to World Bank queries by January 12th, with resolution expected in 2-3 weeks, creating a minor reputational overhang until clarified.

    Analyst acknowledged

Q&A highlights

8 direct
Order Book Mismatch and Strategic Order Pacing Direct
This is not a mistake in mathematics. Basically, when we do the order book, we have, there are certain price variation factors also there, and there are certain, the bought out items there, which generally does not reflect into the order books. that is why this difference comes. ... we are taking a deliberate decision that we shall pace ourselves in taking, in inflow of orders, so that we do not have our order book beyond 18 months.

Clarifies the discrepancy in order book calculations and explains the strategic rationale behind moderating order intake to optimize execution and margins.

Asked by Manish Ostwal

HVDC Technology and Future Opportunities Direct
It will be our own HVDC, indigenously made HVDC. So, currently we are repairing this transformer. Once we have to pre-qualify for any tender that comes in the future. So, once we repair this transformer and it has successfully been commissioned, we shall qualify for our own technology of HVDC.

Reveals the company's strategy to leverage the current HVDC repair order to qualify for future indigenous HVDC projects, indicating a move into advanced technology segments.

Asked by Samarth Khandelwal

Current and Planned Manufacturing Capacity Direct
at present, we have the capacity in our Moraiya plant is around 27,000 MVA. Changodar is around 12,000 MVA and Odhav is around 1,200 MVA. So, that is our capacity at this moment. And the capacity new which we are going to add up in the next financial year is 15,000 MVA in Changodar in quarter one and 22,000 MVA in Moraiya in quarter two.

Provides specific figures for existing and upcoming capacity expansions, crucial for assessing future revenue potential and execution capabilities.

Asked by Samarth Khandelwal

World Bank Debarment Status Direct
first of all, I would like to tell you that there is no debarment from the World Bank as of now on us. Second point is that World Bank has given us the timeline to reply the work queries by 12th of January. We are filing our reply in this particular week. Probably today only we are filing the reply. And we hope that in next 2 to 3 weeks' time this will be settled.

Clarifies the status of a significant concern, reassuring investors that there is no debarment and a resolution is expected soon.

Asked by Venkatesha R.J.

Impact of Chinese Competition in Power Sector Direct
Akash, from what I have read, the Chinese companies will still have to manufacture in India. So, there is only one Chinese manufacturer by the name of TBA who is operating in India in the transformer industry. And they are pretty much booked themselves with orders from Adani and Reliance and other companies, other EPCs. So, I don't see there much effecting us in the long term or in the short term.

Addresses concerns about potential Chinese competition, providing context that minimizes the perceived threat due to local manufacturing requirements and existing market dynamics.

Asked by Akash

Cash Flow and Net Debt Free Target Direct
Sandeep, we are in the cash flow positive at this moment. Right? I don't have the right figure right now to give you, but yes, around INR30 crores to INR35 crores is on the, we are on positive. Apart from that, we have around INR275 crores of the cash deposits with the bankers. So, that way we are quite okay in that way. ... We will be net debt free in the next 18 months' time.

Provides an update on the company's liquidity position and reiterates the commitment to becoming net debt-free, addressing financial health concerns.

Asked by Sandeep Agarwal

Long-term Gross Margin Improvement from Backward Integration Direct
Can we take the '27 -- FY '27 as the year with the 35% gross margin? It is FY '28. ... And will it provide further room for expansion to 40% with the further backward integrals? Definitely.

Offers specific long-term margin targets linked to backward integration, providing a clear roadmap for profitability enhancement.

Asked by Tushar Pendharkar

Confidence in Q4 Order Inflow to Meet FY26 Target Direct
Yes, that would be a fair assumption. ... Yes, it is absolutely achievable. ... We have quoted in many tenders, close to about INR16,000 crores tenders. And most of these are on the verge of finalization. And the other thing is, they are also thinking that beyond 18 months, they also do not want to expose themselves. So they are also trying to control, pace themselves in placing the orders.

Reassures investors about the achievability of the ambitious FY26 order book target, citing a strong pipeline and strategic pacing by customers.

Asked by Deepak Poddar

3 min read 6 chapters

Detailed narrative

Strong Q3 Performance and Operational Momentum

T R I L reported a robust Q3 FY26, with standalone revenues reaching INR704.21 crores and consolidated revenues at INR737 crores, marking a significant sequential growth of 64.53% and 60.22% respectively over Q2 FY26. Standalone EBITDA stood at INR114 crores with a margin of 16.19%, driven by improved execution, enhanced capacity utilization, and tighter cost controls. This performance indicates a clear inflection point in the company's operational momentum, positioning it well to achieve stated revenue and profitability objectives for the year.

Strategic HVDC Order and Long-term Growth Drivers

A key highlight of the quarter was securing an exceptional HVDC repair order from PowerGrid, making TARIL the first Indian company to receive such an order. This achievement reinforces the company's technological capabilities in high-voltage and advanced transformer segments and opens new long-term opportunities in the HVDC ecosystem. Management outlined a long-term revenue target of $1 billion or INR8,000 crores by FY28-29, to be driven by both organic transformer business growth and contributions from backward integration facilities.

Backward Integration and Capacity Expansion Initiatives

The company is actively pursuing six backward integration facilities, with the CTC plant targeted for commissioning in FY26-27, Press Board facility in Q3 FY27, RIP bushing plant in Q4 FY27, and the first phase of fabrication facility in the same period. Concurrently, core manufacturing capacity is being expanded, with Changodar facility completion expected in Q1 FY27 (adding 15,000 MVA) and Moraiya in Q2 FY27 (adding 22,000 MVA). These expansions aim for an overall capacity of 75,000 MVA and 85% utilization by next year-end, enhancing in-house value addition and cost efficiency.

FY26 Guidance and Financial Discipline

T R I L reiterated its FY26 guidance, targeting approximately INR2,600 crores in revenue, representing at least 25% growth over FY25, and an EBITDA margin of 16-17%. The company aims to be net debt-free within the next 18 months and improve working capital days to near 120 by year-end. This financial discipline is supported by current cash flow positive operations, with around INR30-35 crores positive cash flow and INR275 crores in cash deposits with bankers.

Deliberate Order Book Management and Pipeline

Management disclosed a deliberate strategy to moderate fresh order intake in H1 FY26 and limit the order book to an 18-month execution timeline, citing past issues with longer timelines. Despite a decline in the order pipeline from ₹22,000 crores in Q4 FY25 to ₹16,500 crores, the company is confident of achieving an INR8,000 crores order book by FY26 year-end. This confidence is underpinned by a robust pipeline of INR16,000 crores in tenders nearing finalization and the historical trend of Q4 being the strongest for PSU orders.

Margin Sustainability and Long-term Industry Outlook

The company expects margins to remain stable at 15-16% in the short term, with potential for a 200 basis points improvement from operational efficiency and leverage. Long-term gross margins are targeted to reach 35% by FY28 and potentially 40% with further backward integration. Management expressed confidence in sustained demand for the next 7-8 years, driven by India's power sector growth (15% industry growth), EV demand, replacement market, and emerging green hydrogen applications, despite increasing industry capacity.

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