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

Executive summary

• Q1 FY27 revenue grew 10% YoY to ₹559.3 crore, with order inflow up 218% and order book rising 26% YoY to ₹6,630 crore, providing strong medium-term visibility.

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

• Capacity utilization was temporarily impacted by Changodar expansion, expected to normalize from Q3 FY27 as new facilities stabilize.

• Backward integration projects are underway to secure 80%-85% of raw material needs in-house, enhancing supply chain resilience and margins.

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

Financial highlights

• Standalone Q1 FY27 revenue: ₹559.3 crore (+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 at ₹424 crore (FY26), debt-to-equity 0.3x, debt/EBITDA 1.1x.

• Cash and bank balance at FY26: ₹139 crore; ₹145 crore QIP proceeds earmarked for integration projects.

Outlook and guidance

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

• Consolidated EBITDA margin expected at 20%-21% for FY27.

• $1 billion revenue target by FY29, with ₹8,000 crore as the revised rupee equivalent.

• Backward integration to add 200-300 bps to margins from FY28 as new facilities come online.

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