Transformers and Rectifiers (India) (532928) Q2 26/27 earnings summary

Executive summary

• Q2FY27 standalone revenue rose 66% YoY to ₹709.04 crore; EBITDA increased 205% to ₹113.90 crore, supported by improved utilization and operating leverage.

• Unexecuted order book was ₹7,237 crore, up 32% YoY; H1 order inflow reached ₹3,283 crore, up 161% YoY.

• FY27 guidance was maintained at 25% revenue growth, 16% EBITDA margin and 9%–10% PAT margin.

Financial highlights

• Standalone Q2FY27 revenue was ₹709.04 crore (+66% YoY); H1 revenue was ₹1,268.32 crore (+35%).

• Standalone Q2 EBITDA was ₹113.90 crore (+205%), with a 16.1% margin versus 8.7%; H1 EBITDA was ₹185.14 crore (+47%), with a 14.6% margin versus 13.4%. Margins include other operating income.

• Standalone net profit was ₹75.01 crore in Q2 and ₹124.88 crore in H1; consolidated net profit was ₹81.38 crore in Q2 and ₹145.67 crore in H1.

• Consolidated Q2 revenue was ₹739.44 crore and EBITDA ₹128.77 crore; H1 revenue was ₹1,311.78 crore and EBITDA ₹220.28 crore.

• Management attributed 7%–8% of Q2 revenue growth to price variation, incorporated into quarterly billing rather than applied as a one-time price increase.

Outlook and guidance

• FY27 guidance remains 25% revenue growth, 16% EBITDA margin and 9%–10% PAT margin.

• The ₹7,237 crore unexecuted order book is expected to be executable over 18–24 months; the inquiry pipeline under negotiation was ₹21,000 crore.

• Expanded transformer capacity supports potential revenue of ₹5,000–₹6,000 crore; commercial production was expected by Diwali, with backward-integration facilities targeted for commissioning by Q1FY28.

• Backward integration is expected to support 100–300 bps of margin expansion, starting gradually in FY28 and reaching full effect by FY29; no additional funding is required for the stated growth plan.

• The $1 billion revenue target is planned for late FY29 or early FY30, including transformer and ancillary sales.