Transrail Lighting Ltd (TRANSRAILL) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator (Nuvama Institutional Equities): Ladies and gentlemen, good day, and welcome to Transrail Lighting Limited Q2 FY '27 earnings conference call hosted by Nuvama Institutional Equities. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinions, and expectations of the company as on date of this call. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Bhakti Shewale from Nuvama Institutional Equities. Thank you, and over to you, ma'am.
Bhakti Shewale (Nuvama Institutional Equities): Thank you, Nirav. Ladies and gentlemen, good day, and welcome to the Transrail Lighting Q2 FY '27 conference call hosted by Nuvama Institutional Equities. 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 any assistance during the conference call, please signal an operator by pressing star and then zero on your touchtone phone. I now hand over the conference to Mr. Randeep Narang, Managing Director and CEO, Mr. Rajesh Neelakant, Group CFO and Chief Strategy Officer, and Mr. Deepak Khandelwal, CFO from the Transrail Lighting. Thank you, and Mr., over to you Mr. Narang.
Randeep Narang (Transrail Lighting Ltd): Thank you very much, and welcome to all. Good afternoon. I'm joined here with Mr. Rajesh and Deepak, as already mentioned. So, I'm very pleased to share that Transrail has delivered very strong Q2 '27 performance, recording the highest ever revenue and EBITDA. This robust performance is achieved despite the continued impact on supply chain and logistics due to the Middle East-West Asia crisis. This reflects better execution momentum across our projects, sharp focus on cash flow management. With this, the company's overall H1 performance is back on track to achieve the annual growth guidance. Since listing, we have not missed any of our revenue or margin guidance, and we continue to be confident to achieve the same trend this year. Our focus remains on sustaining this growth while striving for industry-leading profitability and cash generation. Speaking of the numbers, our revenue from operations for quarter ended September 30th has grown to 2,056 crores, which is a 32% jump
Randeep Narang (Transrail Lighting Ltd): year on year. Similarly, EBITDA stood at 238 crores, which is a 28% jump year on year quarter two. Alongside our operating performance, we've continued to strengthen our balance sheet. A cash flow from operations was impressive, 435 crores in H1, while the net working capital cycle days is sustained at 82 days for the same period. It reflects our continued focus on collections, project execution milestones, and efficient working capital management. Going forward, improving cash conversion will remain important priority as we scale up of operations further. On manufacturing front, we have had meaningful progress in expanding our capacities. Our tower manufacturing capacity currently stands at 1,84,400 metric tons per annum, while completion of phase one of conductor expansion has increased our installed conductor capacity to 40,800 kilometers per annum. We have progressed well with our planned capex investments to further strengthen our manufacturing base. The expanded capacity will enable us to support larger and more complex projects, improve supply assurance, and have greater control of quality and delivery to meet the customer expectations. Our order book stands at 14,218 crores as of September 30th. While post the quarter got over, we have already declared orders of 1,747 crores, providing strong revenue visibility. With this improvement in order momentum, we're confident to achieve our annual order intake of 10,000 plus crores, while maintaining a healthy book-to-bill ratio. The order win is also encouraging throughout the business diversification perspective spanning transmission, substation, conductors, and reconductoring opportunity. An important development is the order win we had and we have awarded got awarded five conductor jobs in India, while we will use our own manufactured carbon core HCLS conductors. We see this as important product breakthrough for Transrail. Reconductoring provides an opportunity to enhance the existing transmission corridors without requiring the development of entirely new transmission routes. Our entry into these projects with our own manufactured HTLS conductor strengthens our presence in the conductor segment and opens up an additional opportunity in transmission infrastructure market. Further, we also started booking small quantities for US and other developed markets. We also recently secured greenfield GIS project in Jordan, which is 400 to 765 kV transmission lines in India. Looking ahead, we believe the structural opportunity in India power transmission and distribution sector remains strong. Rising electricity demand, renewable energy capacity additions, increasing electrification, and need to strengthen and modernize the national grid has created a sustained requirement for transmission lines, substations, HVDC infrastructure, and associated power infrastructure. We believe that not merely a near-term opportunity, but multi-decadal growth drivers are available in the power infrastructure industry. The scale of investments envisaged across the sector provides encouraging visibility for experienced EPC players like Transrail with meaningful opportunities in next five years up to 2030-32. With the broader growth opportunity programs, Green Energy Corridor, Phase III, GEC III, we expect to play an important role. The program envisages an outlay of approximately 1,86,000 crores, including 1.36 lakh crore only for state interstate transmission and 53 50,000 crores for battery storage. Most of this is expected in TBCB model and hence we expect our existing large clients will be well-positioned for such projects and hence, addressable market for us will improve over the years. As part of strategic diversification and leverage our core T&D expertise, we are evaluating opportunities in complimenting our existing capabilities. In this context, the Board has approved to acquire 49% stake in Project SPV, which is development of approximately 990 MW AC of solar projects in Maharashtra. This will allow us to leverage our scale, expertise in power sector, generate long-term steady returns and cash flows, while continuing to maintain our primary focus on our core EPC business. As you look ahead, our priorities remain clearly defined: accelerate execution of our strong order book, maintain our order intake momentum, complete planned capex, manufacturing facilities, strengthen our product market, and consistently improve profitability and cash conversion. We believe Transrail is entering an important phase of further growth. The power transmission and distribution sector is poised for multi-decadal investment cycle with strong industry visibility extending beyond 2030-32 and beyond this. We believe the structural opportunity will be significant growth driver of Transrail in the coming years.
Randeep Narang (Transrail Lighting Ltd): With this, I request our CFO Mr. Deepak to go through the financial numbers for quarter two.
Deepak Khandelwal (Transrail Lighting Ltd): Thank you, MD, sir. Good afternoon, everyone. I will take you through our financial performance for Q2 and H1 financial year '27. Revenue from operation for Q2 financial year '27 stood at 2,056 crore representing a year-on-year growth of 32%. EBITDA for the quarter was ₹238 crore, up by 28% year-on-year, translating into a margin of 11.6%. Profit before tax stood at 158 crore, up 26%, while profit after tax was 104 crore, representing growth of 12% year-on-year. For H1 financial year '27, revenue from operations stood at 3,792 crore, EBITDA was 441 crore, and EBITDA margin was 11.6%. Profit after tax stood at 212 crore. On the balance sheet, our priorities remain improving cash conversion, managing receivables and inventories, and deploying working capital efficiently. We have showcased improved receivable management with a reduction in trade receivables translating into a higher cash and bank balances, while maintaining working capital days at 82 days. Operating cash flow from operations during H1 stood at 435 crore compared with ₹29 crore during the corresponding period last year. Net debt stood at ₹143 crore. The company is well positioned to capitalize on future growth opportunities, supported by strong execution capabilities, a healthy order pipeline, and expanded manufacturing capacity. Our focus remain on ensuring that growth is profitable and sustainable, while maintaining margin discipline and strengthening cash flow generation. With that, we can open the floor for question and answer.
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