Transformers and Rectifiers (India) (532928) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 achieved 10% YoY revenue growth, with order inflow up 218% and order book rising 26% YoY to ₹6,630 crore, providing strong revenue visibility for 18-24 months.

• Major orders included a landmark ₹1,000+ crore PGCIL order, significant domestic and export wins, and a healthy pipeline of ₹23,000 crore in inquiries under negotiation.

• Expansion and backward integration projects are progressing, with Changodar expansion expected to complete by August 2026 after earlier delays.

• Focus remains on maximizing capacity utilization, operational efficiency, and timely execution, with no immediate plans for further capacity addition.

• Board approved unaudited standalone and consolidated financial results for Q1 FY27, with auditors finding no material misstatements.

Financial highlights

• Standalone Q1 FY27 revenue: ₹559.3 crore (up 10% YoY); EBITDA: ₹87.4 crore (15.6% margin); PAT: ₹49.9 crore (8.9% margin).

• Consolidated Q1 FY27 revenue: ₹572.34 crore (up 8% YoY); EBITDA: ₹109.7 crore (19.2% margin); PAT: ₹64.29 crore.

• Five-year standalone CAGR: Revenue 27%, EBITDA 38%, PAT 101%.

• Standalone debt: ₹424 crore; debt-to-equity: 0.3x; debt/EBITDA: 1.1x.

• Inventory and receivables remain elevated, with net working capital days at 170.

Outlook and guidance

• FY27 guidance: 25% revenue growth, 16% EBITDA margin, 9-10% PAT margin.

• Targeting $1 billion (₹8,000 crore) revenue by FY29, with backward integration and capacity expansions supporting growth.

• Project expansion and backward integration to be completed by Q1 FY28, supporting future growth.

• Expecting 30% order book growth and 30% growth in both domestic and export markets for FY27.

• Margin improvement of 200-300 bps anticipated from backward integration starting FY28.