Transformers and Rectifiers (India) Ltd7:17 pm IST
Transformers and Rectifiers (India) Ltd Q1 FY27: 10% revenue growth; guides 25% FY27 growth; 16% EBITDA; 9-10% PAT; order book INR 6,630 cr
Financial Performance
- Standalone revenue for Q1 FY27 was INR559 crores, up 10% YoY.
- Standalone EBITDA was INR87 crores with 15.6% margin.
- Standalone PAT was INR50 crores, with 8.9% margin.
- Consolidated Q1 FY27 revenue was INR572 crores; EBITDA INR110 crores.
- Consolidated PAT was INR64 crores; EBITDA margin 19.2%.
- Unexecuted order book as of 30 Jun 2026: INR6,630 crores, up 26% YoY.
- Order inflow in Q1 FY27 was INR2,114 crores, up 218% YoY.
- Inquiries under negotiation total INR23,000 crores; win rate historically 10-15%.
- Backward integration aims to bring 80-85% of raw materials in-house.
- Export orders to USA totaled INR150 crores; USA exports targeted at 10-15% of revenue.
Order Book and Capacity
- Unexecuted order book stands at INR6,630 crores, executable over 18-24 months.
- Q1 FY27 revenue growth drivers include Changodar expansion, not demand weakness.
- Changodar capacity utilization expected to be 60-65% this year; 80-85% next year.
- Moraiya utilization currently 60-65%; potential to 80-85% by next year.
- Backward integration reduces external dependency, improving supply chain resilience.
- Orders typically run 18-24 months; PGCIL order is a 30-month exception.
Projects and Capex
- Changodar expansion capex about INR150 crores.
- Backward integration capex around INR900-1000 crores.
- CTC facility: 8,000 MTPA; commissioning by Q2 FY27.
- Pressboard/insulation: 5,000 MTPA Phase I; 10,000 Phase II; commissioning by Q3 FY27.
- RIP bushings: 3,000 units/annum Phase I; 6,000 Phase II; commissioning Q4 FY27.
- Fabrication facility: 25,000 MTPA Phase I; 50,000 Phase II; commissioning by Q1 FY28.
- CRGO processing facility already commissioned.
Balance Sheet and Liquidity
- Standalone debt INR424 crores; tangible net worth INR1,410 crores; debt-to-equity ~0.3x.
- Debt-to-EBITDA ~1.1x; debt rise due to working capital and growth investments.
- FY26 end cash and bank balance INR139 crores; unutilized QIP proceeds INR145 crores.
- Funding for capex to come from QIP, leasing, internal accruals; limited debt.
- Inventory INR561 crores; receivables INR1,057 crores; net working capital days ~170.
Guidance and Outlook
- FY27 guidance: 25% revenue growth; EBITDA margin 16%; PAT margin 9-10%.
- Backward integration expected to lift margins 200-300 bps from FY28 onward.
- Export share targeted at 10-15% of revenue; USA market remains core.
- HVDC manufacturing to start in 15-16 months; repair work to finish in 9 months.
- Capex funding via QIP and leasing; no major debt planned.
Q&A Highlights
- Q1 revenue grew 10%; Changodar throughput temporarily impacted.
- Order book pipeline around INR23,000 crores; win rate 10-15%.
- FY29 topline targeted around INR8,000 crores; earlier 1 billion USD target reflects rupee rates.
- Moraiya utilization expected to reach 80-85% by next year; current 60-65%.
- USA export share guided at 10-15% of revenue; pricing and quality are drivers.
- Raw-material coverage through December 2026; backward integration reduces risk.
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