Transformers and Rectifiers Revenue Down Slightly, Capacity Expansion on Track

Transformers and Rectifiers (India) Limited reported a slight revenue decrease to INR460 crores in Q2 FY26, with EBITDA at INR65 crores. Revenue was impacted by raw material shortages and weather-related delays. However, the company’s capacity expansion projects are progressing, and a strong order inflow is expected in H2. The company reaffirms its revenue growth target of at least 25% for FY26.

Q2 FY26 Financial Performance

Transformers and Rectifiers (India) Limited (TARIL) announced its Q2 FY26 results, reporting revenue of INR460 crores and an EBITDA of INR65 crores. The quarter’s revenue was slightly lower compared to the previous year due to temporary operational challenges, including a shortage of key raw materials and heavy rainfalls affecting manufacturing sites. These factors led to clearance delays and deferred project deliveries.

Operational Updates and Expansion

Despite the challenges, TARIL’s capacity expansion and backward integration projects remain on track. The Moraiya facility is progressing well, while the Changodar expansion is expected to be operational in the next quarter, following a slight delay due to monsoon and equipment delivery issues.

Order Book and Future Outlook

The company deliberately moderated fresh order intake in H1 to align with extended delivery schedules and capacity planning. However, TARIL anticipates a strong order inflow in H2, with a robust pipeline exceeding INR8,000 crores. The company remains confident in achieving at least 25% revenue growth for FY26, targeting around INR2,600 crores with an EBITDA margin of approximately 16%.

World Bank Project Clarification

TARIL addressed concerns related to a past World Bank project, clarifying that the project was completed successfully with all payments received. The company reiterated that none of its current or under-discussion orders are funded by the World Bank and that corporate governance and compliance remain a priority.

Leadership Announcement

The company announced the elevation of Chanchal Rajora to Director of Finance, recognizing his contributions and strategic role within the organization.

Financial Position

TARIL maintains a strong financial position with healthy liquidity and a current ratio of 3.45. The company remains committed to becoming net debt-free within the next 18 to 24 months.

Source: BSE

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