Q2 FY27 · NSE: TARIL

Transformers And Rectifiers (India)

Results filed 13 October 2026 · Market cap ₹8,954 crore · PE 29.4

GrowthGuidance maintainedTranscript read

Revenue: +60.7%; on a year ago
EBITDA: +149.9%; on a year ago
Profit to shareholders: +117.9%; on a year ago
EBITDA margin: 17.4%; +1.1 pts on last quarter

TARIL delivered strong Q2 FY27 operational results, with consolidated revenue rising 61% YoY to INR 739 crore and EBITDA margin expanding to 17.4% on robust operating leverage. Growth is supported by an unexecuted order book of INR 7,237 crore, with capacity expansion at Changodar nearing completion and multiple backward integration initiatives slated for FY27-FY28. However, working capital remains stretched at 154 days with elevated inventory and receivables, keeping free cash flow generation constrained in the near term.

Transformers And Rectifiers (India) Limited, Q2 FY27₹ crore, consolidated

	Q2 FY27	Q1 FY27	vs previous quarter	Q2 FY26	vs a year ago
Revenue	739	572	+29.2%	460	+60.7%
Operating profit (EBIT)	122	86.52	+40.5%	44.25	+174.7%
Operating margin	16.4%	15.1%	+132 bps	9.6%	+682 bps
Other income	2.72	16.31	−83.3%	13.92	−80.5%
Exceptional items	0	0	–	0	–
Profit before exceptional items and tax	110	88.03	+24.9%	45.3	+142.7%
Profit to shareholders	81.38	64.29	+26.6%	37.35	+117.9%
Earnings per share (₹)	2.66	2.05	+29.8%	1.13	+135.4%

Source: Transformers And Rectifiers (India) Limited’s filing to NSE, 13 October 2026. Operating profit is revenue less every expense except interest, so it leaves out other income and exceptional items. n.m.: not meaningful, because the earlier figure was zero or negative, or the latest one is a loss.

What stood out

Entry into the nuclear power sector with first-ever order for NPCIL Kaiga Units 5 & 6
Source
"First-ever order of nuclear power sector, supplying generator transformers for NPCIL Kaiga Units 5 and 6, marking the strategic entry into high-level infrastructure" (Transcript, Page 2 / Satyen Mamtora)
Significant order book and inquiry pipeline providing 18 to 24 months visibility
Source
"unexecuted order book stood at 7,237 crore, up by 32% year-on-year... executable over the next 18 to 24 months. We currently have 21,000 crores of inquiries under negotiation" (Transcript, Pages 2-3 / Satyen Mamtora)
High working capital cycle with extended debtor and inventory days
Source
"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." (Transcript, Page 4 / Mehul Shah)

Guidance

Metric	Guidance	Period
Revenue Growth Source "we are maintaining our, you know, INR3,200 crores, so I think we are good at that." (Transcript, Page 12 / Satyen Mamtora)	25% growth for FY27 (reaching INR 3,200 crore)	FY27
EBITDA Margin Source "FY27 Outlook: Our performance in Q2 reinforces our confidence in delivering our FY27 guidance, comprising 25% revenue growth, an EBITDA margin of 16%" (Presentation, Page 12)	Around 16%	FY27
PAT Margin Source "So, you maintain the forecast that you have been saying, 9% to 10% PAT margin... Satyen Mamtora: Yes." (Transcript, Page 9)	9% to 10%	FY27
Long-term Revenue Target Source "So, with all these sales adding up, we are pretty much sure that we'll reach USD1 billion... It will be late part of FY29 or early 2030." (Transcript, Pages 13-14 / Satyen Mamtora and Mehul Shah)	USD 1 billion revenue target	Late FY29 or early FY30
Working Capital Days Source "It should be below 120 days. We are trying to, you know, reach at 120, and once we reach there, we would like to see close to between 110 days and 120 days this year." (Transcript, Page 6 / Satyen Mamtora)	Targeting 110 to 120 days by end of FY27	End of FY27

Guidance was maintained on revenue (25% / INR 3,200 crore) and margins (EBITDA ~16%, PAT 9-10%), with management reaffirming confidence following strong Q2 numbers.

Tailwinds

Robust operating leverage and capacity utilization driving significant EBITDA margin expansion
Source
"EBITDA margin improved to 16.1% compared to 8.8% in Q2FY26 and 13.3% in Q1 FY27. This reflects the benefit of higher operating leverage and improved utilization level during the quarter." (Transcript, Page 4 / Mehul Shah)
Price variation clauses insulating margins from raw material cost increases
Source
"prices, etcetera, are still on the higher side. But what we have, we have a majority of order which is having, say, a price variation clause. So mainly, it does not affect our margin in a big way." (Transcript, Page 7 / Mehul Shah)
Favorable industry order pipeline across green energy, grid modernization, and data centers
Source
"India is witnessing a significant investment across power generation, transmission infrastructure, renewable energy integration and grid modernization. Emerging areas such as data centers... creating additional sources of electricity demand" (Transcript, Page 3 / Satyen Mamtora)

Headwinds

Elevated raw material prices and supply chain bottlenecks for critical inputs
Source
"prices, etcetera, are still on the higher side... timely availability of certain critical raw materials is still an issue that we are trying to figure out by keeping a large inventory" (Transcript, Pages 7, 12 / Mehul Shah)
Stretched working capital cycle with substantial non-current debtors and retention money
Source
"trade receivables stood at around INR1,053 crores, out of which INR825 crores is current and rest is the non-current debtors... Roughly, [retention money] would be around INR200 crores." (Transcript, Pages 4, 7 / Mehul Shah)

New businesses and products

new geography · Established in September 2026

UK Subsidiary Setup

Expected benefit: Strengthen customer support, expand footprint in UK and European markets, and eventually develop local assembly and manufacturing capabilities
Timeline: Established September 2026; local assembly/manufacturing over time

Source

"In September 2026, we established a subsidiary in UK to strengthen our customer support and expand our presence in the UK and European markets." (Transcript, Page 3 / Satyen Mamtora)

capacity expansion · Near completion, commercial production expected around Diwali

Changodar Transformer Manufacturing Expansion

Expected benefit: Takes Changodar capacity from 12,000 MVA to 35,000 MVA; total company capacity to 75,000 MVA, generating revenue potential of INR 5,000-6,000 cr
Risks: Ramping up and capacity utilization execution
Timeline: Commissioning around Diwali (Q3 FY27)
Investment: INR 150 odd crores

Source

"Capex is around INR150 odd crores... this will take our total capacity to 75,000... commercial production expected to commence around Diwali." (Transcript, Pages 3, 8 / Satyen Mamtora and Mehul Shah)

capacity expansion · Under installation/trial phases; commercial commissioning targeted by Q4 FY27 to Q1 FY28

Comprehensive Backward Integration (CTC, Pressboard, Bushings, Fabrication)

Expected benefit: Provides 80-85% backward integration of raw material requirements, leading to 200-300 bps EBITDA margin expansion
Risks: Implementation delays (management noted up to one-quarter delay)
Timeline: CTC by Q3/Q4 FY27, Pressboard & Bushings by Q4 FY27, Fabrication by Q1 FY28
Investment: Funded partly via INR 121 crore unutilized 2024 QIP proceeds, leasing, internal accruals, and debt

Source

"we are looking at around 200 basis point to 300 basis point margin expansion through this backward integration... Approximately ₹121 Cr of unutilized proceeds from the 2024 QIP remains earmarked" (Transcript, Page 8 / Mehul Shah; Presentation, Page 12)

new product · Re-engineering and repairing a PGCIL transformer

HVDC Transformer Manufacturing Foray

Expected benefit: Qualification to bid and participate in commercial tenders for HVDC converter transformers
Risks: Technical hurdles and lengthy qualification testing cycle (18 months)
Timeline: 18 months to qualification for commercial tenders

Source

"we are currently repairing the transformer, so with that will be another four to five months' time, then the successful running... will take another six to seven months. And then we will qualify... at least one and half year is away" (Transcript, Page 12 / Mehul Shah)

Things to check

Revenue up over 60%: check for an acquisition or a weak year-ago quarter
Significant portion of debtors is non-current alongside high retention money
Source
"standalone trade receivables stood at around INR1,053 crores, out of which INR825 crores is current and rest is the non-current debtors... retention money... would be around INR200 crores." (Transcript, Pages 4, 7 / Mehul Shah)
High working capital intensity with NWC at 154 days tying up cash
Source
"Net working capital days stood at around 154 days, comprising inventory days of approximately 93 days, receivable days of around 117 days" (Transcript, Page 4 / Mehul Shah)

How the call went

The call was informative with clear granularity on operational parameters, order book breakdown, and margin expectations, though management was somewhat repetitive and slightly defensive regarding guidance conservatism.

Specific or vague: Management provided detailed figures regarding capacity, realization per MVA (~INR 7 lakhs), order mix by voltage class (55-60% 400 kV+), breakdown of working capital days, and backward integration timelines.
Candour: Management acknowledged that critical raw material constraints persist and require maintaining elevated inventory, admitted a slight delay in backward integration facilities, and quantified non-current debtors and retention money directly.
The hard questions: Analysts probed into conservative full-year guidance given strong H1 run rates, delays in CTC commissioning, the math behind reaching the USD 1 billion revenue goal given plant capacities, and stretched working capital days affecting cash conversion.

What analysts pressed on

Stretched working capital cycle and weak operating cash flow conversion relative to peers
Pacing and execution delays of the backward integration projects (specifically CTC)
Conservative full-year guidance implying a deceleration in H2 revenue growth
Competitive dynamics in HVDC and whether EPC package winners (e.g., GE/Hitachi) will crowd them out

Answers that sidestepped

Satyen Mamtora avoided giving specific order size or MVA details for the NPCIL Kaiga order, only mentioning voltage rating and plant cost percentage.
Mehul Shah deflected a question on non-CTC backward integration capacities (bushings, tanks, radiators) by telling the analyst to refer to the uploaded presentation.

Numbers against the story

The reported figures strongly support the narrative of operational turnaround and expansion, with standalone revenue up 66% YoY to INR 709 crore and EBITDA margins surging to 16.1% due to operating leverage. However, while management paints a confident picture of growth and liquidity, balance sheet metrics highlight stretched net working capital (154 days) and elevated receivables (INR 1,053 crore, with over INR 220 crore classified as non-current), demonstrating that earnings are currently absorbed into working capital rather than converting to strong free cash flow.

Sources

Concall transcript · filed 21-Oct-2026
Press release · filed 13-Oct-2026
Investor presentation · filed 13-Oct-2026
Figures: the company’s results filing with NSE, linked under the table.

Notes written by gemini-3.8-flash from the documents above on 1 November 2026. They summarise what the company said and can contain mistakes: check the source passage before relying on a point. Not investment advice.