Transformers and Rectifiers (India) Ltd (TARIL) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day, and welcome to the Transformers and Rectifiers India Limited Q2 and H1 FY '27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference call over to Ms. Krishna Patel from E&Y. Thank you, and over to you, ma'am.
Krishna Patel (Ernst & Young): Thank you, Akira, and good evening, everyone. A warm welcome to all participants joining the Q2 FY '27 and H1 FY '27 earnings conference call of Transformers and Rectifiers India Limited. Joining us today from the management team are Mr. Satyen Mamtora, the Managing Director and CEO, and Mr. Mehul Shah, the Chief Financial Officer, who will discuss the company's operational, financial performance for the quarter and half year and address your questions thereafter. Before we begin, I would like to remind you that certain statements made during this call may constitute forward-looking statements. These statements are based on management's current expectations and are subject to risks and uncertainties that could cause actual results to differ from those expressed or implied. With that, I would like to hand over the call to Mr. Satyen Mamtora, Managing Director, CEO, for his opening remarks. Over to you, sir.
Satyen Mamtora (Transformers and Rectifiers (India) Ltd): Thank you, Krishna. Good evening, everyone, and thank you for joining us today to discuss the performance of Transformers and Rectifiers India Limited for the second quarter, first half, FY '27. TRIL's Q2 FY '27 performance reflects better execution, improved capacity utilization, and operating leverage across manufacturing facilities. As 30, as of 30th September 2026, our unexecuted order book stood at 7,237 crores, up by 20, 32% year-on-year, providing strong revenue visibility over the medium term. The order book is executable over the next 18 to 24 months.
Satyen Mamtora (Transformers and Rectifiers (India) Ltd): inflow of 1,169 crore, 97% year-on-year growth over low low base of last year this time. Major orders received during this quarter were first ever order of nuclear power sector supplying generator transformers to for NPCIL Kaiga Units 5 and 6, marking the strategic entry into high-level infrastructure and high-value infrastructure segment. Received large transformer order from Megha Engineering & Infrastructures Limited in August 2026 with execution scheduled over next 35 months. Received LOI from APTRANSCO in August 2026 for power transformers manufacturing with deliveries planned within next 13 months. Won a large order from Damodar Valley Corporation in October 2026 for manufacturing and supplying 500 MVA and 200 MVA transformers, to be executed in next 15 to 28 months. Secured a large order from GETCO in October 2026 for 80 MVAr reactors and 125 MVAr reactors, and 500 MVA autotransformers with the delivery schedule of next 24 to the 30 months. This win demonstrates demonstrates the breadth of our capabilities across large power transformers, autotransformers and shunt reactors. We shall currently we we currently have 21,000 crores of inquiries under negotiation of which bidding for 18 80% is domestic orders and 20% export orders, with an equal mix between the government and private customers, with utilities and industrial customers. Other quarter updates, during the quarter we successfully completed dynamic short circuit on three transformers, a significant technical milestone that values our products, our abil- ability to withstand extreme electrical and mechanical stresses under fault conditions in accordance with the stringent international standards. Our ongoing transformer manufacturing expansion at Changodar is near completion within with with the commercial production expected to commence around Diwali. The additional capacity will further strengthen our capability to execute our growing order book and support the next phase of the revenue growth. Backward integra- integrated- tion projects are progressing as per timeline. In September 2026, we established a subsidiary in UK to strengthen our customer support and expand our presence in the UK and European markets. Over time, we plan to develop a local assembly and sales capabilities within with the potential to evolve this operation into manufacturing base serving the region. Following our Q2 performance, we remain confident of achieving FY '27 guidance and continue to remain on track with our growth plans for the full year. Our focus for the reminder of the year of FY '27 will be on clear priorities, accelerating execution of the our existing order book and ramping up expanded manufacturing capaci- capacities, progressing our backward integration initiatives and maintaining discipline and sustainable sorry from ramping up our and progressing our backward integration initiatives while maintaining discipline and sustainable profitable growth. From an industry perspective, the underlying demand enviroment environment continues to remain supportive. India is witnessing a significant investments across power generation, transmission infrastructure. Renewable energy integration and grid modernization, emerging areas such as data centers, railway electrification, EV EV infra- infrastructure and energy transition projects are creating additional sources of electricity demand and consequently opportunities for for the transformers industry. With our broad product portfolio, manufacturing capabilities, established customer relationship and presence across more than 40 countries, TARIL is well-posi- positioned to participate in the multi-year opportunity across domestic as well as international markets. With this, I hand over Piyush Shah, our CFO, to run our past financial performance. Thank you and regards and have Diwali greetings.
Mehul Shah (Transformers and Rectifiers (India) Ltd): Thank you, sir. Good evening, everyone. I will take you through the financial performance of Transformers and Rectifiers Limited for the second quarter and the first half of financial year '27. Let me begin with the our stand-alone performance for the quarter. During Q2 FY '27, revenue from operations stood at 709 crore, 66
Mehul Shah (Transformers and Rectifiers (India) Ltd): and year-on-year growth and 27% quarter-on-quarter growth. Revenue growth during the quarter was supported by improved capacity utilization and execution. EBITDA for the quarter stood at 114 crores, a two 203% YoY and 53% quarter-on-quarter growth. EBITDA margin improved to 16.1% compared to 8.8% in Q2 FY26 and 13.3% in Q1 FY27. This reflects the benefit of higher operating leverage and improved utilization level during the quarter. Moving on our performance for the first half of the year, for H1 FY27 revenue from operations stood at 1,268 crore, a growth of 35% year-on-year. EBITDA stood at 185 crore, 47% year-on-year growth, with the EBITDA margin improving to 14.6% from 13.4% in H1 FY26. Coming to the balance sheet, our leverage profile remained comfortable as of 30th September 20th 26. On a standalone basis total debt stood at approximately 575 crore, comprising long-term borrowings of around 125 crore and short-term borrowings around 449 crore. The debt-to-equity ratio stood at approximately 0.35x, reflecting a manageable leverage position as we scale operation and invest in future growth. Standalone cash and cash equivalent stood at approximately 77 crore as of 30th September 2026. In addition, the company continues to have access to other bank balances and unutilized QIP proceeds, earmarked for its backward integration initiatives, providing funding flexibility for the planned capital expenditure program. Working capital remains a key area of focus. As of 30th September 2026, standalone inventory stood at approximately 654 crore while trade receivables stood at around 1,053 crores, out of which 825 is current and rest is a non-current debtor. Net working capital days stood at around 154 days, comprising inventory days of approximately 93 days, receivable days of around 117 days and payable days of approximately 56 days. The working capital cycle reflects the nature of the transformer business which involves long manufacturing cycle, milestone-based billing, testing requirements and project-linked customer approvals. We continue to focus on collection, inventory planning and milestone execution to improve capital efficiency as the scale of operation increases. To sum up, TARIL continues to operate from the position of financial strength. The growth in revenue and profitability during Q2 FY27 and H1 FY27, together with a manageable leverage profile, provides a sound foundation. Our financial priorities remain disciplined capital allocation, tighter working capital management and the timely funding of capacity expansion and backward integration initiatives. Thank you. I now hand it over back to the moderator for the Q&A session.
Moderator: Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and 1 on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Harshit Sachdeva from Columbus Capital. Please go ahead.
Harshit Sachdeva (Columbus Capital): Hi, am I audible?
Moderator: Yes, you are audible.
Harshit Sachdeva (Columbus Capital): Hi sir, good evening. Congratulations on a great set of numbers sir, really impressive. Sir, could you just elaborate a bit more on the Kaiga orders and the Megha Engineering order that you received? That's part one. I mean size and what are we supplying and who did we compete against, or did they directly come to you? And second, sir, I mean a new company, Kanohar, just got listed. I mean so, do we compete with them in any segment? So, that's two questions, sir. Thank you.
Satyen Mamtora (Transformers and Rectifiers (India) Ltd): Yeah, so sorry, I couldn't get your name sir. Could you please, hello?
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