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    T R I L

    TARIL
    Capital Goods·21 Apr 2026
    Management Summary

    T R I L reported a strong Q4 and full year FY26, with consolidated revenue reaching ₹2,509 crores and EBITDA at ₹444 crores. The company achieved record production and maintained a healthy order book of over ₹5,000 crores, ensuring 18 months of revenue visibility. Strategic backward integration and capacity expansion are on track, expected to enhance margins and operational efficiency, despite some project delays and elevated working capital.

    Highlights

    5
    • FY26 Consolidated Revenue grew to ₹2,509 crores from ₹2,019 crores in FY25, demonstrating strong growth.

    • Achieved highest ever production of 33,763 MVA in FY26, up from 29,118 MVA in FY25.

    • Robust unexecuted order book of ₹5,000+ crores provides clear revenue visibility for the next 18 months.

    • Backward integration journey is on track, with CRGO processing unit already started, expected to boost margin profile by 150-200 bps.

    • Received HVDC transformer repair order from PGCIL, marking TARIL as the first Indian company for such an order and paving way for HVDC sector entry.

    Concerns

    4
    • Q4 FY26 Standalone EBITDA margin slightly down to 15.5% due to additional employee costs from ESOPs.

    • Receivables and inventory are high compared to FY25, with ~₹200 crores collected in early April, indicating payment delays from utilities.

    • Changodar plant commissioning was delayed due to extended monsoons, now expected to be up and running from Q2 FY27.

    • Management acknowledged missing previous order book guidance (₹8,000 crores vs actual ₹5,000+ crores) due to selective order taking.

    Key financials

    Metrics

    9

    Periods

    2

    Q4 FY26

    4
    • Consolidated Revenue
      ₹783 Cr
      YoY+6.2%
    • Consolidated EBITDA
      ₹141 Cr
    • Consolidated PAT
      ₹91 Cr
    • Standalone EBITDA Margin
      15.5%

    FY26

    5
    • Consolidated Revenue
      ₹2,509 Cr
      YoY+24.2%
    • Consolidated EBITDA
      ₹444 Cr
    • Consolidated PAT
      ₹272 Cr
    • Standalone Revenue
      ₹2,395 Cr
      YoY+22.8%
    • Standalone EBITDA Margin
      15.4%

    Order Book

    high confidence

    Total Value

    ₹ 5,000 crores

    as of 2026-03-31

    range

    Execution

    ensuring clear revenue visibility for the next 18 months

    Composition

    Mix3 client types
    • Utilities55.0%
    • EPC Contractors20.0%
    • Private Customers25.0%

    Share of order book by client type

    Pipeline

    other

    MVA order inquiry

    "Management is deliberately selective in taking new orders, limiting exposure to 18-24 months, and focusing on profitability and payment terms."

    Source:
    Prepared remarks

    Capital allocation

    2
    medium confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Liquidity

    Liquidity disclosed

    Receivables and inventory are high compared to FY25. Approximately ₹200 crores were collected in the first 15 days of April, with delays from utilities due to budget issues.

    Guidance & targets

    10
    CategoryTargetPriority
    Profitability
    Margin profile increase from backward integration
    150-200 bps
    Medium
    Profitability
    Gross margin target
    ~35%
    Medium
    Profitability
    Backward integration additional margin
    200-300 bps
    High
    Profitability
    EBITDA Margin range
    15-17%
    High
    Revenue
    Long-term revenue target
    1 billion revenue company
    Low
    Revenue
    FY27 Revenue target
    INR 3,250 crores
    High
    Revenue
    FY27 Revenue growth
    35-40%
    High
    Capacity
    Total MVA capacity
    75,000 MVA
    High
    Capacity
    Changodar plant capacity utilization
    75-80%
    High
    Capacity
    Current capacity utilization
    ~95%
    High

    Changodar Plant Commissioning & Utilization

    Q2 FY27
    CurrentDelayed, expected Q2 FY27
    TargetCommercial operations, 75-80% utilization

    Why it matters

    Key for capacity expansion and revenue growth, contributing to the FY27 revenue target.

    Yes. So extended monsoons was one of the biggest reasons in terms of delay in the usefulness of the plant. ... But from the, say, next financial year, it would be running at around 75%, 80% capacity.

    How to verify

    capital_allocation.capex.purposes[description='Capacity expansion at Changodar and Moraiya'].status

    Risks & concerns

    4
    RiskSeverity

    Raw material price volatility and supply chain disruptions

    Copper price surge due to Hormuz disruption, issues with ancillary parts due to overbooking, and gas availability for porcelain kilns are causing slight disturbances, though management states it's 'not very much'.Management acknowledged

    medium

    Elevated working capital and receivables

    Receivables and inventory are high compared to FY25, with payment delays from utilities due to budget issues, although ~₹200 crores were collected in early April.Management acknowledged

    medium

    Project execution delays for capacity expansion

    The Changodar plant commissioning was delayed due to extended monsoons, now expected by Q2 FY27, while the Moraiya plant is already at 75% utilization.Management acknowledged

    low

    World Bank issue resolution

    The company has filed a reply to the World Bank and requested an in-person hearing, expecting a resolution within 45 days, but the outcome is pending.Management acknowledged

    medium

    Q&A highlights

    8

    “HVDC is a very highly technical product. And because of the limited number of players in this HVDC side, the margins are also better in HVDC. ... So yes, currently, there are only about 1 to 2 tenders of HVDC. But going further, the number of tenders that are going to be in pipeline should be around 10 to 12.”

    Highlights TARIL's strategic entry into a high-margin, less competitive HVDC segment with a growing future pipeline, indicating significant growth potential.

    asked by Avikshit Vijay

    3 min read7 chapters

    Detailed Narrative

    01

    Robust FY26 Performance and Record Production

    T R I L delivered a strong financial performance in FY26, marking its second consecutive year of record-breaking revenue and profitability. Consolidated revenue for FY26 reached ₹2,509 crores, a significant increase from ₹2,019 crores in FY25. The company also achieved its highest ever production, manufacturing 33,763 MVA, up from 29,118 MVA in FY25, demonstrating strong operational capabilities. Consolidated EBITDA for FY26 stood at ₹444 crores, with PAT at ₹272 crores.

    02

    Strategic Order Book Management and Visibility

    The company adopted a deliberate strategy of selective order intake in FY26, focusing on more lucrative orders with favorable payment and delivery terms. This approach led to an order inflow of ₹2,374 crores in FY26. As of March 31, 2026, the unexecuted order book stood at over ₹5,000 crores, providing clear revenue visibility for the next 18 months. Management explicitly stated they are not taking orders beyond a 24-month delivery horizon.

    03

    Backward Integration and Margin Enhancement Initiatives

    T R I L's backward integration journey is well on track, with site readiness progressing and orders placed for long-lead plant and machinery items. The newly acquired CRGO processing unit has already commenced operations, contributing to in-house capabilities. These initiatives, along with technological tie-ups, are expected to enhance cost efficiency, reduce external dependency, and improve the margin profile by an additional 150-200 bps, with some estimates suggesting 200-300 bps from next financial year, aiming for ~35% gross margins.

    04

    Capacity Expansion and Project Timelines

    The company is actively pursuing capacity expansion at its Changodar and Moraiya plants. The Changodar facility, initially delayed due to extended monsoons, is now expected to be operational from Q2 FY27, targeting 75-80% utilization by the next financial year. The Moraiya plant expansion is planned after this year's monsoon, likely by Q3 FY27. The existing Moraiya plant is currently operating at approximately 75% utilization, which the company aims to maximize.

    05

    Entry into HVDC Sector and PGCIL Approvals

    T R I L has secured an HVDC transformer repair order from PGCIL, making it the first Indian company to undertake such a project. This entry is strategic, as HVDC is a highly technical segment with limited competition and better margins. The company expects PGCIL approval as an HVDC manufacturer after 6 months of satisfactory operation of the repaired transformer. Additionally, the fully automated radiator facility has received PGCIL approval, and the process for tank manufacturing facility approval is underway.

    06

    FY27 Outlook and Growth Targets

    Looking ahead to FY27, T R I L has set a revenue target of approximately ₹3,250 crores, representing a significant growth of 35-40% over FY26. The management is confident in maintaining improved margins, with EBITDA margins expected to remain in the 15-17% range. The company's long-term vision is to become a '1 billion revenue company' within the next few years, driven by strong order book execution, expanded capacity, and continuous operational efficiency improvements.

    07

    Working Capital Management and Receivables

    The company noted that receivables and inventory levels were higher in FY26 compared to FY25. This was primarily attributed to last-minute collections in March, with approximately ₹200 crores collected in the first 15 days of April. Delays in payments from government utilities due to budget-related issues were cited as a contributing factor. Management is actively mitigating these working capital pressures.

    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.