Transrail Lighting reported an encouraging Q3 and 9-month performance for FY26, showcasing strong momentum in its core transmission and distribution (T&D) segment. Revenue for the 9 months grew by an impressive 49% to Rs. 5,017 crores, with EBITDA margins stabilizing around 12.2%. The company’s strategic focus on disciplined execution and profitability is reflected in a robust order book providing strong revenue visibility.
Quarterly and Nine-Month Performance Highlights
Transrail Lighting announced highly encouraging operational and financial results for the quarter and nine months ended December 31, 2025. The management highlighted the strength of the core T&D business, supported by disciplined execution and cash flow management.
Q3 FY’26 Performance
- Revenue from operations grew by 32% year-on-year to Rs. 1,796 crores.
- Absolute EBITDA increased by 27% YoY to Rs. 228 crores, with margins at 12.7%.
- Operating Profit Before Tax (PBT) rose by 34% to Rs. 169 crores.
- Operating Profit After Tax (PAT) grew 18% YoY to Rs. 110 crores.
9-Month FY’26 Performance
- Revenue from operations saw broad-based growth of 49%, reaching Rs. 5,017 crores.
- EBITDA grew 40% YoY to Rs. 614 crores (Margin: 12.2%).
- Operating PBT improved by 52% to Rs. 441 crores.
- Operating PAT registered a significant growth of 62% YoY to Rs. 324 crores (Margin: 6.4%).
Balance Sheet and Capital Management
Profitability was complemented by strengthening balance sheet parameters. As of December 31st, net debt stood at Rs. 463 crores, resulting in a low debt-to-equity ratio of just 0.39x. The company also noted that Return on Capital Employed (ROCE) remained strong at 25.25% for the nine-month period, indicating efficient capital utilization.
Working capital management improved, with working capital days reducing to 83 days from 91 days previously. Furthermore, cash equivalents increased by Rs. 293 crores over H1 to stand at Rs. 380 crores.
Order Inflows and Future Visibility
The order book remains a significant strength, driven primarily by the T&D segment, which accounts for 90% of the business.
- Cumulative order inflows for the 9-month period reached Rs. 5,135 crores.
- Order inflows were 55% domestic and 45% international.
- The unexecuted order book as of December 31st stood at Rs. 14,733 crores, rising to Rs. 18,216 crores including L1 positions.
Looking ahead, management sees addressable market visibility exceeding Rs. 1 lakh crores over the next 12 months. The company is prioritizing high-quality, margin-assertive projects across geographies including the recently entered GCC region.
Operational Updates and Outlook
In project execution milestones, the company successfully commissioned three high-capacity lines in the 765 kV Khetri – Narela transmission line project, noted as a milestone for strengthening North India’s grid reliability.
On the CAPEX front, production has commenced at expanded brownfield projects, with the greenfield facility expected to be inaugurated shortly. This phased CAPEX aims to effectively double capacity over towers and conductors.
Management expects the overall revenue growth guidance for FY’26 to be maintained at 27% plus, emphasizing that while there were temporary headwinds (like ROW issues) affecting Q4 projections, the structural tailwinds for the T&D sector—driven by urbanization and renewable energy integration—remain strong for the next three to five years.
Source: BSE
