Metrics raised 3
- FY27 consolidated EBITDA margin guided to 20–21% (from FY26 actual 17.3%; subsidiaries add ~100 bps over standalone)
- FY28 capacity utilization target raised to 80–85% (from current Changodar 27% and Moraiya 57–65%; Odhav 100%)
- Backward integration margin benefit guided at +200–300 bps from FY28 (as facilities scale from CTC, pressboard, bushings and fabrication)
Metrics cut 2
- FY29 revenue target reframed/cut to ₹7,000–8,000 crore (from $1 billion/~₹9,600 crore) due to rupee depreciation
- Working capital days target reduced to 120–130 days (from ~170 days)
Event Participants
Executives
2
Mehul Shah (CFO), Satyen Mamtora (MD & CEO)
Analysts
20
Abhijeet Singh (Systematix), Arun (ABDS Capital), Avikshit Vijay (Global Consilient Research), Balasubramanian (Arihant Capital), Basant Bansal (NBG Investment), Bhavya Dedhia (KRIIS PMS), Darshil Jhaveri (Crown Capital), Gaurav Khemka (Mars Ventures), Gaurav Shukla (Finvestors), Jainam Vora (Saltoro Investment Advisors), Prathamesh (Motilal Oswal), Pratham Modi (HPMG Shares and Securities), Rahul Chandak (Alpha Plus Capital), Rahulkumar Mishra (Antique Stock Broking), Shivam Singh (Capital Arc), Shrinarayan Mishra (Baroda BNP Paribas AMC), Subhadip Mitra (Nuvama), Vaibhav Mishra (Finvestors), Viren Sameer Deshpande (Alphapeak Investment), Yash Gupta (Asit Koticha Family Office)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Standalone Revenue (Q1 FY27) | ₹559 crores | +10% YoY; sequential moderation due to lower capacity utilization at Changodar amid ongoing expansion activities |
| Consolidated Revenue (Q1 FY27) | ₹572 crores | Includes subsidiary contribution; integrated operations support higher margin profile |
| Unexecuted Order Book (Jun 30, 2026) | ₹6,630 crores | +26% YoY; executable over next 18-24 months |
| Order Inflow (Q1 FY27) | ₹2,114 crores | +218% YoY over low base; led by PGCIL ultra mega order (>₹1,000 cr), GETCO (₹228 cr), RRVPNL (₹175 cr) and US export order from PDC AK LPIV LLC (₹150 cr) |
| Standalone EBITDA | ₹87 crores | Margin 15.6%; consistent with FY26 levels despite Changodar disruption |
| Consolidated EBITDA | ₹110 crores | Margin 19.2%; reflects benefit of integrated operations and subsidiary contribution |
| Standalone PAT | ₹50 crores | PAT margin 8.9% |
| Consolidated PAT | ₹64 crores | — |
| Standalone Total Debt (FY26-end) | ₹424 crores | D/E at 0.3x, Debt/EBITDA at 1.1x; increase linked to working capital and growth investments |
| Tangible Net Worth (FY26-end) | ₹1,410 crores | — |
| Cash & Bank Balance (FY26-end) | ₹139 crores | Plus ~₹145 crores unutilized QIP proceeds earmarked for backward integration |
| Inventory (FY26-end) | ₹561 crores | ~85 days; deliberately elevated to hedge raw material supply till December 2026 |
| Receivables (FY26-end) | ₹1,057 crores | ~130 days; management confirmed reduction as of June 30, 2026 |
| Net Working Capital | ~170 days | Target of 120-130 days as execution normalizes |
| Manufacturing Capacity | 75,000 MVA+ | Moraiya 40,000, Changodar 35,000, Odhav 22,000 MVA; utilization at 57%, 27% and 100% respectively |
| ROCE (FY26) | 19.1% | Improved from 11.1% in FY21 |
| ROE (FY26) | 15.7% | Improved from 2.1% in FY21 |
| 5-Year CAGR (Standalone FY21-FY26) | Revenue 27%, EBITDA 38%, PAT 101% | Reflects operating leverage and improved profitability across the cycle |
Geographic & Segment Commentary
Power Transformers (33 kV–1,200 kV): Q1 FY27 revenue mix was heavy on the 220 kV, 400 kV and 765 kV classes because Changodar — which handles lower ratings — was under expansion; management expects a fair spread across all ratings from Q3 FY27. The order book is evenly distributed from 66 kV to 765 kV. Competitive landscape is tiered: small local manufacturers at 33 kV, Baroda-based players at 132–220 kV, and multinationals for EHV/UHV transformers.
Export Markets (US, Americas, Australia): Received a ~₹150 crores export order from PDC AK LPIV LLC (USA) in Q1. TARIL positions itself as a major supplier up to 765 kV in the US with a 20+ year track record, competing on quality, production capability and price. Export business is deliberately capped at 10–15% of revenue, with ~30% order inflow growth targeted in both domestic and export markets.
HVDC Systems: Full HVDC manufacturing capability is ~15–16 months away; ~9 months of repair work remains, after which PGCIL will empanel TARIL for its first trial HVDC order. The company is pursuing hybrid system designs and does not require incremental R&D capex currently.
Company-Specific & Strategic Commentary
Backward Integration Program: ₹900–1,000 crores investment across CTC conductors (8,000→24,000 MTPA), pressboard/insulation (5,000→10,000 MTPA), RIP bushings (3,000→6,000 units p.a.) and fabrication (25,000→50,000 MTPA); CRGO processing already commissioned. Will cover ~80–85% of raw material requirement in-house; long-term output is 60–65% captive, with third-party sales potential of ₹800–1,000 crores.
Changodar Expansion: ₹150 crores capex, completion targeted by August 2026. Delays attributed to extreme monsoon conditions, construction labor availability and engineering enhancements across product lines and testing infrastructure; execution has been placed on fast track.
Capacity Strategy: No further transformer capacity additions planned beyond the existing 75,000 MVA+; immediate priority is maximizing utilization (target 80–85% from FY28), improving throughput and operational efficiency.
Supply Chain Hedging: Raw material inventory stocked through December 2026 to insulate execution from geopolitical disruptions; inventory levels to gradually normalize as backward integration facilities commission.
Investor Relations: Appointed Ernst & Young to support and strengthen IR initiatives for timely, transparent investor engagement.
Technical Milestone: Successfully completed dynamic short-circuit testing of 4 transformer units in line with stringent international standards, validating product robustness under fault conditions.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Revenue Growth (FY27) | 25% YoY | Underpinned by ₹6,630 crores order book and capacity ramp-up from Q3 FY27 |
| EBITDA Margin (FY27, Standalone) | 16% | Includes other income; protected by order book pricing and price variation clauses |
| PAT Margin (FY27, Standalone) | 9–10% | — |
| Consolidated EBITDA Margin (FY27) | 20–21% | Subsidiaries add ~100 bps over standalone; ahead of FY26 consolidated margin of 17.3% |
| Capacity Utilization (FY28) | 80–85% | Up from current 27% (Changodar) and 57–65% (Moraiya); Odhav at 100% |
| Order Inflow Growth (FY27) | ~30% domestic and export | Backed by ₹23,000 crores inquiry pipeline with historical 10–15% win ratio |
| Working Capital Days | 120–130 days target | Down from ~170 days; receivables already reduced in Q1 |
| Export Share | 10–15% of revenue | Deliberately capped; focused on Americas and Australia |
| Backward Integration Margin Benefit | +200–300 bps from FY28 | Gradual as facilities scale: CTC Q2 FY27, pressboard Q3 FY27, bushings Q4 FY27, fabrication Q1 FY28 |
| Revenue Target (FY29) | ₹7,000–8,000 crores | Reframed from $1 billion due to rupee depreciation; ₹5,000–6,000 cr from transformer capacity + ₹800–1,000 cr backward integration third-party sales; formal FY28 guidance in Q4 FY27 |
Risks & Constraints
| Risk | Context |
|---|---|
| Changodar Commissioning Delays | Expansion delayed by extreme monsoon, labor shortages and engineering modifications; Changodar utilization at 27% and Moraiya at 57% while peers run near full capacity. Management expects recovery from Q3 FY27, but further slippage would threaten the 25% growth guidance |
| Geopolitical / Raw Material Supply | Raw materials procured only through December 2026; any extended geopolitical disruption beyond this window could impact execution if backward integration facilities slip from revised timelines |
| CRGO Anti-Dumping Investigation | DGTR investigation into CRGO steel imports could lead to provisional anti-dumping duty, raising key input costs. Management declined to comment, citing the ongoing investigation and adequate inventory cover till December |
| Working Capital & Interest Cost Pressure | NWC at ~170 days with elevated inventory (₹561 cr) and receivables (₹1,057 cr); deliberate stocking raises interest costs and cash flow pressure until inventory normalizes from Q4 FY27/FY28 |
| Competitive Execution Gap | Peers reported 50–60% revenue growth while TARIL grew 10% YoY due to plant-level constraints; management attributes this purely to temporary, project-related factors at Changodar |
Q&A Highlights
Revenue Slowdown & Capacity Utilization
- Question: Was the Q1 revenue moderation due to supply chain/geopolitical issues, and how should we read Q2/H2? (Abhijeet Singh - Systematix)
- Answer: The moderation is purely from lower capacity utilization at Changodar; new facilities commence from August 2026 and stabilize from Q3. Raw materials are procured through December 2026, so geopolitical factors are not impacting execution. Inventory is deliberately high as protection. (Mehul Shah - CFO)
- Question: Why did Moraiya run at only 57% utilization when Odhav was at 100%? (Arun - ABDS Capital)
- Answer: Geopolitical issues constrained the past quarter; raw materials are now protected until December, so capacity utilization will improve from this quarter, with 80–85% at Moraiya "not far-fetched." (Satyen Mamtora - CEO)
FY27 Guidance Confirmation
- Question: Confirm the FY27 guidance of 25% revenue growth and 16% EBITDA margin? (Subhadip Mitra - Nuvama)
- Answer: Yes — 25% revenue growth, 16% EBITDA margin and 10% PAT margin; the $1 billion revenue target remains on track for FY28–29, with formal FY28 guidance to be provided in Q4 FY27. (Mehul Shah - CFO, Satyen Mamtora - CEO)
PGCIL Ultra Mega Order
- Question: What drove the >₹1,000 crore PGCIL order, and will such mega orders continue? (Jainam Vora - Saltoro Investment Advisors)
- Answer: All Indian tenders are quoted on L1 basis; PGCIL has multiple more inquiries under negotiation from the ₹23,000 crore pipeline, and more ultra mega orders can be expected. The 30-month delivery timeline for this order is an exception — most orders remain 18–24 months. (Satyen Mamtora - CEO)
Backward Integration & Margin Accretion
- Question: What margin benefit flows through from FY28 as backward integration facilities come online? (Darshil Jhaveri - Crown Capital)
- Answer: 200–300 bps margin improvement starting from FY28, gradually as facilities scale. CTC commissions by Q2 FY27, pressboard by Q3 FY27 and bushing by Q4 FY27; depreciation hits once capitalization completes. (Mehul Shah - CFO, Satyen Mamtora - CEO)
Debt & Capex Funding
- Question: How will debt evolve with ₹424 crores existing debt, ₹1,000 crores capex and a ₹6,600 crores order book? (Yash Gupta - Asit Koticha Family Office)
- Answer: No planned increase in debt; capex funded through QIP proceeds (
₹145 crores unutilized), leasing arrangements (₹500 crores of the ₹1,000 crores program) and internal accruals. Working capital cycle compression will fund order book execution. (Mehul Shah - CFO)
HVDC Progress
- Question: What is the HVDC timeline and when can we expect revenue? (Avikshit Vijay - Global Consilient Research)
- Answer: Full HVDC manufacturing is ~15–16 months away; ~9 months of repair work remains, after which PGCIL will empanel TARIL for the first trial HVDC order. (Satyen Mamtora - CEO)
Revenue Target Reconciliation
- Question: How does 25% growth reconcile with the $1 billion (~₹9,600 crores) target by FY29? (Basant Bansal - NBG Investment)
- Answer: The rupee has depreciated since the original target was set; the goal is now ~₹8,000 crores by FY29 — ₹5,000–6,000 crores from transformer capacity plus ₹800–1,000 crores from third-party backward integration sales. (Mehul Shah - CFO)
Margin Guidance: Standalone vs Consolidated
- Question: Is the 16% EBITDA guidance standalone, and what is the consolidated view? (Vaibhav Mishra - Finvestors, Viren Sameer Deshpande - Alphapeak Investment)
- Answer: 16% is standalone including other income; subsidiaries add ~100 bps, implying ~20–21% consolidated EBITDA margin, higher than FY26's 17.3%. (Mehul Shah - CFO, Satyen Mamtora - CEO)
CRGO Anti-Dumping Investigation
- Question: What is the impact of DGTR's CRGO steel anti-dumping investigation on raw material costs? (Pratham Modi - HPMG Shares and Securities)
- Answer: Investigation is ongoing and the company declined to comment; raw material requirements are protected until December 2026, and management expects the situation to resolve. (Satyen Mamtora - CEO)
US Market & Export Strategy
- Question: How is TARIL competing in the US market, and what is the revenue expectation? (Bhavya Dedhia - KRIIS PMS)
- Answer: TARIL is a major supplier up to 765 kV in the US with a 20+ year track record, competing on quality, production capability and price; exports will be maintained at 10–15% of revenue through the year. (Satyen Mamtora - CEO)
Key Takeaway
Transformers and Rectifiers (India) Limited reported Q1 FY27 standalone revenue of ₹559 crores (+10% YoY) with EBITDA margin at 15.6% and PAT margin at 8.9%, as Changodar expansion constrained throughput. Order inflows surged 218% YoY to ₹2,114 crores — led by a >₹1,000 crore PGCIL ultra mega order — lifting the unexecuted order book to ₹6,630 crores (+26% YoY). Management reaffirmed FY27 guidance of 25% revenue growth, 16% standalone EBITDA margin and 9–10% PAT margin, with consolidated margins at 20–21% and utilization recovering from Q3 FY27 as Changodar completes by August 2026. The ₹900–1,000 crore backward integration program (CTC, pressboard, bushings, fabrication, CRGO) targets 200–300 bps margin accretion from FY28 and supports a ~₹8,000 crore revenue goal by FY29. Key watch items include Changodar commissioning, the CRGO anti-dumping investigation outcome, geopolitical raw material exposure and working capital normalization.