Transrail Light

Transrail Lighting Limited reported its best-ever performance in FY26, achieving a record revenue of ₹6,880 crores, marking a 30% year-on-year growth. EBITDA grew by 21% to ₹820 crores, resulting in an EBITDA margin of 11.92%, while Profit After Tax increased by 28% to ₹421 crores. Although Q4 FY26 saw some revenue de-growth due to the completion of approximately 20 projects in December and new projects entering startup phases, compounded by global supply chain disruptions in February and March, the company still exceeded its revised annual growth guidance of 27% (initially 25%).

The company's order inflows for FY26 stood at ₹8,520 crores. As of March 31, 2026, the unexecuted order book, including L1 bids, reached ₹16,361 crores, an increase from ₹14,551 crores last year, providing over two years of revenue visibility. For FY27, management targets new order inflows of ₹10,000-11,000 crores. The bidding pipeline remains strong, with potential opportunities of ₹80,000-1,00,000 crores in India and ₹50,000 crores internationally, indicating sustained demand in the sector.

Transrail has significantly enhanced its manufacturing capabilities, more than doubling its installed tower manufacturing capacity. The company expects to increase tower capacity to 196,000 metric tons by Q2 FY27 and double its conductor capacity by Q2 or Q3 FY27, funded by earlier approved capex. An additional capex of ₹203 crores was approved on May 26, 2026, specifically for improving construction productivity and acquiring new equipment, demonstrating a commitment to operational efficiency and future growth.

The company made significant progress in strengthening its financial position, with working capital days improving to 81 days in FY26 from 91 days in FY25, and a target to further reduce this to sub-80 days. Operating cash flow more than doubled to ₹817 crores in FY26. Net debt was substantially reduced by ₹80 crores (a 30% year-on-year reduction) to ₹274.16 crores, reflecting efficient capital allocation and a healthy balance sheet.

For FY27, Transrail has provided a revenue growth guidance of 20-22% and an EBITDA margin outlook of approximately 11%. This conservative margin guidance is a prudent approach, considering the prevailing geopolitical environment, the situation in the Gulf, and global cost escalations, including fuel and shipment costs. Management believes this guidance is realistic and allows for potential upside if global conditions stabilize, while maintaining a strong profitability profile compared to industry peers.

The company acknowledged challenges such as increased competition from new entrants and labour availability issues due to the infrastructure boom. However, management highlighted its competitive advantages, including being a top 3-4 EPC player with strong pre-qualifications, integrated manufacturing, and own conductors. They also noted that 30-35% of their contracts include price variation clauses, providing a hedge against raw material price volatility and cost escalations, ensuring margin protection.

Transrail successfully completed seven 765 kV transmission projects in India, supplying over 150,000 metric tons of towers and 4,000 kilometres of conductors. Internationally, Phase 1 of the Bangladesh river-crossing transmission line was completed, with Phase 2 expected to finish in 3-4 months, and the overall project within 6 months. The company also expanded its global footprint into new markets such as Abu Dhabi, Tunisia, Djibouti, and Botswana, demonstrating its ability to execute large-scale and complex projects across diverse geographies.