T R I L — Q4 FY26 earnings call

Call held 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

  • 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

  • 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

2 periods

Q4 FY26

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

FY26

  • 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%

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

₹5,000 Cr

as of 2026-03-31 range

Execution

ensuring clear revenue visibility for the next 18 months

Composition

Mix 3 client types
  • Utilities 55%
  • EPC Contractors 20%
  • Private Customers 25%

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

medium confidence
  • Capex Capex disclosed
    • Capacity expansion at Changodar and Moraiya In progress ETA Changodar from Q2 FY27, Moraiya by Q3 FY27
    • Ramping up testing facility In progress
    • Backward integration (site readiness, plant & machinery orders for long lead items) In progress ETA Impact will start from next financial year
    • CRGO processing unit Commissioning ETA started getting CRGO

    Timeline: Changodar plant up and running from Q2 FY27; Moraiya plant after this year's monsoon (by Q3 FY27).

    Apart from our capacity expansion at Changodar and Moraiya, we are also ramping up our testing facility to cope up with the higher number of transformers at those plants. As you are well aware that we have tested a record number of transformers during FY '26, both in terms of MVA and in total units, underscoring our internal capabilities of streamlined operations. The backward integration journey is well on course. Site readiness is progressing well and the plant and machinery orders for the long lead items have already been placed.
  • 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.
    Yes. See, compared to our financial year '25 numbers, definitely the receivable number and inventory numbers are high. On the receivable side, I think due to this last minute, say, March numbers, we have missed certain collections. So in the in the first, say, first 15 to 16 days' time, we almost collected around INR 200-odd crores. So there are some delays as far as the utilities is concerned because their budgets, etcetera, has gone away by March. So they have released the payments in the new financial year.

Guidance & targets

Profitability

  • Margin profile increase from backward integration Profitability · future · Medium confidence 150-200 bps
    These steps will further increase our margin profile by 150 bps to 200 bps.

    — Satyen Mamtora

  • Gross margin target Profitability · future · Medium confidence ~35%

    From 30-31% today

    So that's how we are looking at around, say, 35% margins.

    — Mehul Shah

  • Backward integration additional margin Profitability · next financial year · High confidence 200-300 bps
    plus the backward integration plans, which will start from the next financial year, which will also give us some, say 200 bps to 300 bps of additional margin.

    — Mehul Shah

  • EBITDA Margin range Profitability · future · High confidence 15-17%
    Yes. See, as we are saying that the margins will remain in the range of, say, 15% to 17% as currently.

    — Mehul Shah

Revenue

  • Long-term revenue target Revenue · next few years · Low confidence 1 billion revenue company
    Our long-term vision to become 1 billion revenue company within next few years remains intact.

    — Satyen Mamtora

  • FY27 Revenue target Revenue · FY27 · High confidence INR 3,250 crores
    what we can -- what we can say is around INR3,250 crores is what we are looking at currently.

    — Mehul Shah

  • FY27 Revenue growth Revenue · FY27 · High confidence 35-40%
    It would be roughly around, say, 35%, 40% growth in terms of revenue.

    — Mehul Shah

Capacity

  • Total MVA capacity Capacity · after Moraiya plant expansion · High confidence 75,000 MVA

    From 40,000 MVA today

    So after these 2 plants, the capacity would be, say, from 40,000, it will go up to 75,000.

    — Mehul Shah

  • Changodar plant capacity utilization Capacity · next financial year · High confidence 75-80%
    But from the, say, next financial year, it would be running at around 75%, 80% capacity.

    — Mehul Shah

  • Current capacity utilization Capacity · this year · High confidence ~95%

    From ~75% today

    So we are currently running at around 75% capacity, which should go -- this year, we should go at around 95% capacity.

    — Satyen Mamtora

What to watch in Q1 FY27

Changodar Plant Commissioning & Utilization

Q2 FY27
Current Delayed, expected Q2 FY27
Target Commercial 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.

Risks & concerns

  • Raw material price volatility and supply chain disruptions

    medium

    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

  • Elevated working capital and receivables

    medium

    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

  • World Bank issue resolution

    medium

    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

  • Project execution delays for capacity expansion

    low

    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

Q&A highlights

7 direct
HVDC Competitive Landscape and Market Opportunity Direct
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

Order Book Guidance and Management Strategy Direct
So see we are deliberately not taking orders currently because, as we have previously told that we want to limit our exposure to not more than 18 to 24 months. And we want to be very selective in which orders we take in terms of delivery and in terms of the price that we quote.

Clarifies management's rationale for the current order book being lower than previous guidance, emphasizing a strategic shift towards selective, profitable orders with shorter execution timelines.

Asked by Yash Rathi

Backward Integration and Margin Impact Direct
plus the backward integration plans, which will start from the next financial year, which will also give us some, say 200 bps to 300 bps of additional margin. So that's how we are looking at around, say, 35% margins.

Provides specific quantification of the expected margin benefits from backward integration, crucial for understanding future profitability drivers.

Asked by Balasubramanian

Capex Project Delays and Timelines Direct
Yes. So extended monsoons was one of the biggest reasons in terms of delay in the usefulness of the plant. ... Moraiya plant, we are planning after this year's monsoon. ... So by end of quarter 3, we should be almost at 80% capacity in Changodar plant.

Explains the reasons for delays in key capacity expansion projects (Changodar, Moraiya) and provides updated timelines, impacting near-term growth expectations.

Asked by Deepak Poddar

HVDC Component Share in Project Cost Direct
Because HVDC transformer is going to be the largest equipment and the most expensive equipment in the project. So around 40% should be our cost.

Quantifies TARIL's potential revenue share within a larger HVDC project, indicating the significant value contribution of their specialized products.

Asked by Abhijeet Singh

Discrepancy in Margins Compared to Peers Partial
Yes, sir, that's the reason why we have stopped. We are very selective in terms of taking orders, etcetera, going forward. So as you must have seen these orders, we must be executing, which we have taken, say, 12 months, 15 months back.

Analyst challenges management on why TARIL's margins are lower than peers despite higher kV focus and upcoming BI, prompting management to reiterate their selective order strategy and the impact of executing older, less profitable orders.

Asked by Aditya Vora

Working Capital and Receivables Status Direct
Yes. See, compared to our financial year '25 numbers, definitely the receivable number and inventory numbers are high. ... we almost collected around INR 200-odd crores. So there are some delays as far as the utilities is concerned because their budgets, etcetera, has gone away by March.

Highlights a key concern regarding elevated working capital and receivables, attributing it to year-end collection delays from government utilities, which could impact cash flow.

Asked by Karan Gupta

PGCIL Approval for HVDC Product Direct
So once we've successfully repaired this transformer and given back to PGCIL, after 6 months of working in satisfactory condition, PGCIL will start the process of approving us as one of the HVDC manufacturers in the country.

Provides a clear timeline and condition for TARIL to gain PGCIL approval as an HVDC manufacturer, which is critical for future HVDC order wins.

Asked by Abhijeet Singh

3 min read 7 chapters

Detailed narrative

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.

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.

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.

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.

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.

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.

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.

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