T R I L

Transformers and Rectifiers (India) Limited delivered an exceptional Q3 FY26, marking a clear inflection point in operational momentum. Consolidated revenue stood at ₹737 crores, a significant increase from ₹460 crores in Q2 FY26, representing a QoQ growth of 60.2%. Consolidated EBITDA reached ₹129 crores, with a margin of 17.5%, and Profit After Tax (PAT) was ₹76 crores. Standalone figures also showed strong performance with revenues of ₹704.21 crores and EBITDA of ₹114 crores, achieving a 16.19% margin.

The company is strategically managing its order book, aiming to limit it to an 18-month execution window, down from the current 24-28 months, to avoid past issues with longer backlogs. Despite this, management expects to close FY26 with an order book of around ₹8,000 crores. They anticipate strong order inflow in Q4 FY26, projecting approximately ₹3,500 crores, driven by traditional PSU requirements and advanced negotiations from a pipeline of ₹16,000 crores in tenders.

TARIL is aggressively expanding its manufacturing footprint and pursuing backward integration for long-term competitiveness. Current capacity across Moraiya, Changodar, and Odhav plants totals around 40,200 MVA. New capacity additions include 15,000 MVA at Changodar by Q1 FY27 and 22,000 MVA at Moraiya by Q2 FY27. Backward integration facilities, including a CTC plant (Q1 FY27), Press Board facility (Q3 FY27), and RIP bushing plant (Q4 FY27), are progressing, with the bushing plant targeting 7,000 units up to 245 KV in its first year.

For the full financial year FY26, the company is confident of achieving revenues of approximately ₹2,600 crores, representing at least 25% growth over FY25, with an EBITDA margin of around 16%. Looking further ahead, TARIL targets $1 billion or ₹8,000 crores in revenue by FY28-29, implying a 45-50% CAGR from current levels. Gross margins are expected to reach 35% by FY28 and potentially expand to 40% with further backward integration, contributing to an overall margin growth of about 2%.

A significant milestone was the receipt of an HVDC repair order from PowerGrid, making TARIL the first Indian origin company to secure such an order. This strategically important achievement underscores the company's technological capabilities and opens new long-term opportunities in the HVDC ecosystem. Management expects to qualify for manufacturing its own indigenously made HVDC transformers post-successful commissioning of this repair, with orders anticipated post-FY27.

The company is focused on improving working capital efficiency, aiming to reduce working capital days to near 120 days by FY26 end. Management also reiterated its goal to become net debt-free within the next 18 to 24 months, primarily through internal resources. This disciplined financial management is expected to strengthen the company's balance sheet and support its growth ambitions.

The Indian transformer industry is projected to grow at a robust 15% rate. Management addressed concerns regarding potential competition from Chinese manufacturers, stating that any new foreign players would need to establish local manufacturing in India and obtain product approvals, which is a time-consuming process. Existing Chinese manufacturers are already fully booked, mitigating immediate competitive threats.