Transformers & Rectifiers (India) Limited (TARIL) announced robust financial results for the second quarter and first half of FY27. Revenue grew by 66% year-on-year to INR709 crore in Q2 FY27, driven by improved execution and capacity utilization. Order inflows reached INR1,169 crore, marking a 97% year-on-year increase. The company is also advancing its backward integration and capacity expansion projects, positioning for sustained growth.
Strong Q2 Performance Driven by Order Inflows
Transformers & Rectifiers (India) Limited (TARIL) has reported a significant surge in its financial performance for the second quarter and first half of the financial year 2027. The company’s revenue from operations stood at INR709 crore in Q2 FY27, representing a substantial 66% year-on-year growth and a 27% quarter-on-quarter increase. This growth was attributed to enhanced capacity utilization and improved execution across its manufacturing facilities.
EBITDA and Margins Show Significant Improvement
EBITDA for the quarter saw an impressive increase of 203% year-on-year to INR114 crore, alongside a 53% quarter-on-quarter growth. Consequently, the EBITDA margin expanded to 16.1% in Q2 FY27, a notable improvement from 8.8% in Q2 FY26 and 13.3% in Q1 FY27. This margin expansion reflects the benefits of higher operating leverage and improved utilization levels.
First Half FY27 Highlights
For the first half of FY27, TARIL’s revenue from operations reached INR1,268 crore, a 35% year-on-year growth. The EBITDA for H1 FY27 stood at INR185 crore, up by 47% year-on-year, with the EBITDA margin improving to 14.6% from 13.4% in H1 FY26.
Robust Order Book and Key Wins
As of September 30, 2026, the company’s unexecuted order book stood at INR7,237 crore, a 32% increase year-on-year, providing strong revenue visibility for the next 18 to 24 months. During Q2 FY27, order inflows amounted to INR1,169 crore, a 97% year-on-year growth. Major orders secured include the first-ever order from the nuclear power sector for NPCIL Kaiga Units 5 and 6, a large transformer order from Megha Engineering and Infrastructures Limited, and an LOI from APTRANSCO.
Capacity Expansion and Backward Integration Progress
The company’s transformer manufacturing expansion at Changodar is nearing completion, with commercial production expected around Diwali. Backward integration projects are also progressing as per schedule. In September 2026, TARIL established a subsidiary in the UK to enhance customer support and expand its presence in European markets. The company is confident of achieving its FY27 guidance and growth plans.
Financial Position and Outlook
On a standalone basis, total debt was approximately INR575 crore as of September 30, 2026, with a debt-to-equity ratio of approximately 0.35x. Cash and cash equivalents stood at approximately INR77 crore. TARIL anticipates an industry-wide demand environment driven by investments in power generation, transmission, and renewable energy. With its diversified product portfolio and global presence, the company is well-positioned for future opportunities.
Capacity Expansion and Future Growth
The Changodar expansion project will bring the manufacturing capacity to 35,000 MVA, with an investment of around INR150 crore. This will take the total capacity to 75,000 MVA. The company expects a per MVA realization of around INR7 lakhs. Backward integration is expected to provide a 200-300 basis point margin expansion, with full effect anticipated by FY29. TARIL is targeting a growth of 25% and beyond for FY27, with a PAT margin of 9-10%. Exports accounted for 8% of total revenue in Q2 FY27.
Raw Material and Pricing Strategy
Despite higher raw material prices, TARIL’s margins are largely protected due to price variation clauses in a majority of its orders. The company passes on price variations quarterly, contributing an estimated 7% to 8% to revenue growth. Retention money for orders ranges from 5% to 10%, currently amounting to approximately INR200 crore.
HVDC and Data Center Opportunities
TARIL has begun the re-engineering process for HVDC transformer manufacturing, aiming for participation in tenders within the next one and a half years. The company is also a regular supplier of transformers to large data centers in India and abroad, with ongoing manufacturing for this segment. Expansion at the Moraiya plant will add approximately 30% plus manufacturing capacity.
Future Outlook and Funding
The company is on track to reach a revenue of USD1 billion through a combination of transformer sales and other products like bushings, pressboard, CRGO, and tank manufacturing. This target is expected to be achieved by late FY29 or early 2030, with current plans not requiring additional capex beyond existing expansion and backward integration projects.
BESS Market and CTC Plant Update
TARIL is not currently executing BESS transformer orders but sees inquiries and expects to secure orders in the current quarter. The CTC backward integration plant is expected to be operational from the next quarter, with full commercial manufacturing commencing by Q4 FY27, initially for captive consumption, with external sales starting from Q1 FY28. The CTC plant has a capacity of 3,000 MTPA, with approximately 60% for captive use.
Source: BSE
