Thank you, Anushka. Good afternoon, everyone.

A warm welcome to all participants joining the Q1 FY27 earnings conference call of Transformers and Rectifiers (India) Limited. Joining us today from the management team are Mr.

Satyen Mamtora, the Managing Director, CEO, and Mr. Mehul Shah, the Chief Financial Officer, who will discuss the company's operational and financial performance for the quarter and address your questions thereafter.

Before we begin, I would like to remind you that certain statements made during this call may constitute forward-looking statements. These statements are based on management's current expectations and are subject to risks, uncertainties that could cause actual results to differ materially from those expressed or implied.

Please note that the audio recording, transcript of this conference call are the property of Transformers and Rectifiers (India) Limited and may not be copied, reproduced, rebroadcasted, redistributed in any form without the consent of the company. With that, I would like to now hand over the call to Mr.

Satyen Mamtora, the Managing Director, CEO, for his opening remarks. Over to you, sir.

Good evening, everyone, and a warm welcome to the earnings conference call of Transformers and Rectifiers (India) Limited to discuss the company's business and financial performance for the Q1 FY27. We concluded our board meeting yesterday and have subsequently uploaded our financial results along with the investor presentation to the stock exchange and company website.

We hope all the participants have had enough opportunity to review this material. Thank you for joining us today, and we look forward to sharing our performance highlights and addressing the questions during the course of this call.

I'd like to begin with the call by setting the tone of the company and outlining what stakeholders can expect from TARIL in FY27. First and foremost, I would like to assure all of our stakeholders that we are committed to providing only those guidance parameters that we are confident of achieving going forward.

Our focus is firmly on delivering on our commitments and letting our performance speak for itself. We recognize that the trust and confidence of all of our stakeholders are paramount, and we remain committed to protecting and extending that trust through consistent execution and transparent communication.

In line with this objective, we have appointed Ernst & Young to support and strengthen our investor relations initiatives, ensuring timely, transparent, and effective engagement with the investment community. Quarter 1 FY27 updates.

As of June 30th 30th, 2026, our unexecuted order book stood at ₹6,630 crore, reflecting a 26% year-on-year growth, providing a strong revenue visibility over medium term. During the quarter, we successfully completed dynamic short circuit testing of four transformer units with significant technical milestone that validates our product's ability to withstand extreme electrical and mechanical stresses under fault conditions in accordance with the stringent international standards.

The current unexecuted order book is executable over next 18 to 24 months, and we remain confident of delivering these orders within the stipulated timelines as we have adequate manufacturing capacity, resources, and execution capabilities in place to support timely project delivery. Our existing transformer manufacturing capacity of 75,000 MVA plus across all plants, coupled with a recent expansion initiative, provides us the capability to support annual revenues in the range of ₹5,000 to ₹6,000 crore over the medium term.

Our immediate priority is not adding further transformer manufacturing capacity, but maximizing utilization and improving throughput and enhancing operational efficiency across all facilities. During quarter 1 FY27, we have received a healthy order inflow of ₹2,114 crore, 218 year-on-year growth 218% year-on-year growth over low base around last year this time.

Major orders received during this quarter were ultra mega orders from PGCIL above ₹1,000 crore for manufacturing of transformers of various ratings within 30 months, order from GETCO of about ₹228 crore for manufacturing transformers and reactors, order from RRVPNL of ₹175 crore for manufacturing transformers and reactors, export order from PDC HKL LLC, USA of about ₹450 crore for manufacturing transformers. We currently have ₹23,000 crore of inquiries under negotiation.

Historically, our win ratio is in the range of 15 to 10% to 15%, and we are confident of achieving that. Out of the inquiries under negotiation, we are bidding for 80% domestic and 20% export orders within equal mix between government, private customers and utilities, and industrial customers.

Alongside our core transformer manufacturing expansion, we are building a comprehensive backward integration ecosystem that will strengthen our supply chain reliability, improve margins, enhance quality control, and reduce dependence on external vendors. Three projects under implementation include CTC facility, 8,000 metric tons per annum, and phase 2 is 24,000 metric tons per annum, targeted commissioning by Q2 FY27.

Pressboard and insulation facility, 5,000 metric tons per annum phase 1, and 10,000 metric tons per annum phase 2, targeted to commissioned by Q3 FY27. RIP Bushings facility, 3,000 units per annum, and 6,000 units per annum in phase 2, targeted commissioning Q4th FY27.

Fabrication facility, 25,000 metric tons per annum phase 1, 50,000 50,000 metric tons per annum, targeted commissioning by Q1 FY28. CRGO processing facility already commissioned and operational.

Upon completion of this facilities to cater approximately 80% to 85% of our raw material requirement in-house, significantly enhancing our manufacturing integration and operational efficiency. In transformer industry where component availability remains a key bottleneck globally, we believe backward integration will become a significant competitive advantage for TARIL over the coming years.

We acknowledge that there have been delays in commissioning of additional facilities at Changodar plant. The delay is primarily attributed to extended monsoon conditions impacting the project execution timelines, construction force availability constraints, and additionally, engineering enhancements and modifications across product specific manufacturing lines and testing infrastructure.

I am pleased to share that the projects are now progressing in line with revised execution schedule. Changodar expansion involving investment of approximately ₹150 crore and backward integration initiatives entailing a total investment of ₹900 to ₹1,000 crore remain key strategic priorities, and we are confident that this facilities will be commissioned as per the timelines outlined.

During quarter 1 FY27, TARIL delivered 10% year-on-year growth in revenue. However, on a sequential basis, revenue growth was impacted comparatively lower capacity utilization at Changodar facility.

An ongoing expansion and modernization activities are temporarily effecting the operational throughput. Importantly, this does not reflect any weakness in demand or order inflow or execution capabilities.

The impact was purely project-related, temporary in nature. We have accelerated the execution of the project and placed the implementation process on a fast track.

As the expanded facilities progressively stabilize, we expect meaningful improvement in operational efficiency and execution levels, with the growth expected to pick up from Q3 FY27 onwards. At TARIL, we remain confident of our growth trajectory and are targeting 25% revenue growth in FY27 along with EBITDA margin of 16% and PAT margin of 9% to 10%.

These targets are underpinned by healthy order book, expanding manufacturing capabilities, and sustainable demand outlook for the power transmission and distribution sector. As we enter the remaining part of FY27, our focus are clear: timely execution of the order book, ramping up utilization at Changodar, commissioning backward integration facilities as per revised timelines, sustaining margins through operational efficiencies, converting a healthy inquiry pipeline into executable orders, strengthening high-value product opportunities.

The transformer industry in India continues to offer significant growth opportunities driven by sustained investments in power and infrastructure and grid modernization. Additionally, emerging demand on data centers expansion and railway electrification, EV charging infrastructure, renewable energy integration are evolving substantial opportunities for transform manufacturing over the coming years.

While the business environment remains favorable, we continue to closely monitor certain external factors, particularly the unforeseen geopolitical developments, subject to the factors remaining stable. We remain committed to delivering on the guidance shared with our stakeholders.

Thank you. Yeah.

Good evening, everyone. Thank you for joining us today.

I would like to take you through the company's financial risk profile, covering our profitability, leverage, working capital, liquidity position, capital allocation, and the key risks monitorable from a finance perspective. For Q1 FY27, standalone revenue from operations stood at ₹559 crore, registering a 10% year-on-year growth.

EBITDA stood at ₹87 crore with EBITDA margin at 15.6%, while PAT stood at ₹50 crore with a PAT margin of 8.9%. The quarter was impacted on a sequential basis due to lower capacity utilization at Changodar plant as ongoing expansion activities affected operational throughput.

However, this is transitional in nature, and with the expansion expected to complete by August '26, we expect utilization levels to improve progressively. From a consolidated perspective, revenue from operations stood at ₹572 crore, EBITDA stood at ₹110 crore, and PAT stood at ₹64 crore in quarter 1 FY27.

Importantly, consolidated EBITDA margin remained healthy at 19.2%, which reflects the benefit of our integrated operations and contribution from subsidiaries. Coming to the balance sheet, our leverage profile remains comfortable.

On a standalone basis, total debt stood at around ₹424 crore as of FY26 against a tangible net worth of approximately ₹1,410 crore, translating into a debt-to-equity ratio of around 0.3x. Our debt-to-EBITDA stood at around 1.1x, which remains well within a prudent range for a manufacturing business of our size and growth profile.

While borrowings have increased compared to FY25, this increase is largely linked to working capital requirements and growth-related investments rather than any structural weakness in the balance sheet. Given the strong order book, expansion-led scale-up, and maintained profitability profile, we believe the current leverage remains manageable and supports our growth plans.

On liquidity, TARIL remains adequately positioned. We ended FY26 with a standalone cash and bank balance of approximately ₹139 crore.

In addition, around ₹145 crore of unutilized proceeds from the QIP remains earmarked for backward integration initiatives. This provides us with additional funding flexibility as we execute our planned capex program.

The ongoing expansion at Changodar involves capex of around ₹150 crore, while the backward integration program is expected to involve investment of around ₹900 to ₹1,000 crore. We intend to fund this through a disciplined mix of QIP proceeds, leasing arrangement, internal accruals, and debt if required.

The objective is to maintain an efficient capital structure while ensuring that growth does not come at the cost of the balance sheet discipline. A key area we continue to monitor closely is working capital.

As of FY26, standalone inventory stood at ₹561 crore, and receivables stood at ₹1,057 crore. Net working capital days increased to around 170 days, with inventory days of approximately 85 days and receivable days at 130 days.

This reflects the nature of our business, where large transformer orders typically involve long manufacturing cycle, milestone-based billing, testing requirements, and project-linked customer approval. Our backward integration initiatives are strategically important from a risk management perspective.

The new facilities for CTC conductor, pressboard insulation, bushing, fabrication, and CRGO are expected to strengthen supply chain control, improve availability of critical inputs, support timely delivery, and create cost efficiency over the medium term. Once fully commissioned, this initiative should reduce dependency on external suppliers and improve resilience against supply-side disruptions.

I would like to sum up my remarks by highlighting that TARIL continues to operate from a position of financial strength. Over the last few years, the company has scaled its revenue base meaningfully while improving the quality of earnings, strengthening net worth, and maintaining leverage at a comfortable level.

On a standalone basis, the revenue from operations has grown at a 5-year CAGR of 27%, EBITDA at 38%, and PAT at 101%, reflecting strong operating leverage and improved profitability across the business cycle. From a return profile standpoint, TARIL has demonstrated consistent improvement in standalone ROCE, improved from 11.1% in FY21 to 19.1% in FY26, while return on equity improved from 2.1% in FY21 to 15.7% in FY26.

These metrics underline that the company has been able to deploy capital more efficiently while scaling operations. Thank you.

I now hand it back for the question-and-answer session.

Thank you for the opportunity. Sir, first question is on the revenue and execution front.

In Q1, we have seen that the revenue growth has moderated to an extent given the kind of order book we have. You have mentioned also in the PPT and your remarks that the ongoing expansion at Changodar, they've led to the teething issues in this quarter.

Sir, can this also be attributed to some kind of supply chain issues, especially given the geopolitical climate right now? Is some of the sourcing that was challenging during the quarter?

That is my first question. How do you look at it going forward in Q2 and H2?

Okay.

As far as the revenue is concerned, that is mainly on account of the lower capacity utilization at the Changodar plant. It does not involve this.

We have enough orders in hand. Only thing is that new facilities are yet to commence, and that will be commenced from August '26, and mainly it will be stabilized by going forward since quarter 3.

As far as the second question is related to the availability of the raw material, mostly we have covered ourselves by procuring this material, say, up to December, till the time our backward integration facilities are up and running. Till that time, we are well covered ourselves.

Majorly, the geopolitical reason is not affecting much as far as the raw material is concerned. Okay.

Has our inventory increased a lot at the end of Q1? In that situation

because we have secured the material? Yes, inventory levels are high.

Okay.

That means we might see increased interest cost in the balance 9 months, right? Because of that.

We might need more working capital for this to sustain this kind of execution in the next 9 months.

See, this will be a temporary feature to protect ourselves. It will be moderate once our backward integration facilities are up and running, so that will start reducing the inventory levels also.

Right. Sir, second question is on the other expenses.

This quarter, we've seen the other expenses on the lower side a little bit. Usually, they hover around 13%, 14%.

This quarter, they were 12% of sales. I would expect that some kind of commodity and forex pressure would eat into our margins.

Could you explain that why is the other expenses on the lower side in this quarter? Was there a one-off there?

No, there is no one-off. See, if you look at our quarter 1 other expense, it is around ₹69.74 crore.

Last year, it is around ₹66 crore. There is no major reduction as such.

Right. Okay.

Sir, lastly, on the order inflow for the full year, I have seen that we have done very strongly in Q1 in terms of exports. We've got this ₹150 crore order from US.

In that light, for the full year FY27, what is our expectation for the order inflow, both from the domestic and the export markets? If you could highlight also geography-wise, because as far as I understand, there's a lot of good demand for green transformers in Europe also.

Right? From that perspective, what is the inflow situation for FY27 that we're expecting?

We would be maintaining about 30% growth rate in both domestic and export market. We are currently looking at the Americas as we say it, North America and South America, and some of the Australian orders where we are very confident that we are going to get a good growth in terms of numbers in transformers.

All right, sir. Thank you for answering the questions.

That's it from my end.

May I request the moderator to keep one question per person, please?

Good afternoon, sir, and thank you for the opportunity. Just wanted to check on the guidance.

I think you mentioned for FY27, 25% increase in revenue and a 16% EBITDA margin. Is that the right number?

That 25% as far as the revenue, and 16% EBITDA margin, and 10% is around PAT. At the PAT level.

Also, just wanted to understand that from a slightly longer-term perspective, let's say we look into FY28 and beyond, what kind of revenue growth and margins do you think are sustainable? In the past, you had talked about reaching a billion-dollar kind of a top line at some point of time in the future.

Any thoughts on that?

The company is constantly working and progressing towards $1 billion by 28-29. We are constantly working on that.

We are very confident that we should be able to reach $1 billion by 28-29.

Understood. For FY28, any thoughts on revenue and EBITDA margins?

We'll get to it when we get there. Quarter 4, we will give you a clear guideline on FY28.

Understood. Thanks.

That's it from my side.

Thank you.

Hi. Thank you very much for the opportunity.

Congratulations on the ₹1,000 crore PGCIL order win. I just wanted to understand— ₹1,000 crore plus

PGCIL order win.

Yes.

Apologies. ₹1,000 crore

plus PGCIL order win. I just wanted to understand the thought process behind that win.

I think even the biggest companies, your peers, wouldn't have received a single-shot order like that. What was the requirement?

What was the thinking, if you could spend a couple of minutes behind that? Do we see, given the kind of energy transition and the opportunity that is there, of PGCIL wanting to give such orders even in future?

That would be very helpful.

This order, like we said that we have about ₹23,000 crore in our order pipeline, inquiries under negotiation. This was one of them, and which finalized in the first quarter.

We have many more, about ₹23,000 crore worth in pipeline, our win ratio is about 15% to 20%, we should be winning those inquiries.

No, I understand that. I want to understand specific to this order.

I think single-shot order of this nature would be the first for the company and also for the industry, right? What typically goes into this order?

Is it just L1 bidding? Going forward as well, what indication is PGCIL giving to companies like ours given the opportunity, if you could explain that?

Yes, all the tenders that we quote in India are on L1 basis. I think we have multiple more inquiries with PGCIL, which are under negotiations.

They will take some time.

Got it. We can expect such ultra mega orders to keep flowing in given the opportunity, and PGCIL has the appetite to give such orders to companies like

ours.

Got it. Thank you so much.

I'll get back in the queue.

Hello. Am I audible?

Good evening, Shivam. You are audible, Shivam.

Good evening, sir. Sir, I just wanted to understand, sir, in our previous quarter, our employee cost was ₹38 crore, and this quarter it's ₹22 crore.

Could you quantify what these changes are?

See, in the last quarter, we have made some provision as far as the ESOP and the MD commission.

Sir.

That is there in the last quarter. This year, it is already part of that.

Sir. Sir, I had one more small question.

Sir, we told that low order margins that we were taking in, we have stopped taking that, and we are going for higher-margin orders. That is not reflecting in our actual business.

When do we expect that to kick in?

See, this result, etcetera, number, etcetera, if you look at this EBITDA margin of around, say, 16%, that is consistently we are maintaining. In this year, if you look at quarter 4, our margins was in that line.

Even if you look at our entire number of financial year '26, that is almost on the same line. Definitely, this will be continuing in the near future also.

Sir. Thank you so much, sir.

I'll get back in the line.

Hi. Am I audible?

Yeah.

Hi. Just wanted to know if you could please provide a breakdown of power transformer order book by rating class, and also which players do we compete within each classes?

We compete with almost all players in India. Our business starts from 33 kV all the way up to 1200 kV.

In 33 kV, we have competitors which are small manufacturers. Then from 132 kV to 220 kV, we have competitors like other Baroda-based manufacturers.

Then for EHV and UHV transformers, we have competitors which are mostly multinationals.

Okay. Our ₹5,300 crore odd order book for power transformer, if we were to split it by rating class, which would be the top two or top three classes and their percentages?

We have orders fairly spread out among all classes. From 66 kV to 765 kV, these are very fairly spread.

Okay. Sir, if we were to just check the revenue split of power transformer for this quarter, is it the same?

Are we fairly split across classes for revenue for power transformer in this quarter, or are we heavy in some particular segment only?

This quarter has been slightly heavy on the 220, 400, and 765 kV segment, because our Changodar plant is currently going through expansion. By August end, this will be fairly spread across all ratings.

IDTs, distribution transformers, small power transformers, large power transformers, EHV and UHV transformers, all transformers it will be fairly spread across.

Okay. Understood, sir.

I'll join the queue.

Thank you.

Hello. Good afternoon, sir.

Thank you so much for taking my question, sir. Firstly, congratulations on a good performance in a very challenging condition, sir.

Sir, just wanted to clarify one thing, sir. We mean a billion-dollar top line by FY28-29, right?

Yes.

Okay. So—

We are working on it.

We are constantly progressing towards it. '29 looks very achievable currently.

Okay. No, fair enough, sir.

Sir, with all the backward integration that we are doing, in terms of margin benefit, what can we see flowing through from FY28? Because most of our facilities this year in backward integration will come in the later half, right?

FY28 would be the year with nearly most of it coming online, right? What kind of backward integration benefit we can see in margin, sir?

It will be basically between 200 basis points to 300 basis points. See, this facilities will come up in Q1 FY28.

Starting from FY28, we will see gradual increase in the margins. The CTC plant will be commissioned by Q2, the pressboard plant will be commissioned by Q3, and the bushing plant, which is a large bottleneck for us currently, will be commissioned by Q4.

Correct. There'll be a gradual improvement as scale improves.

Fair enough, sir. That's not an issue.

Just the depreciation would hit in FY28, right, sir?

On a bookkeeping— Once this capitalization is done.

Okay. Fair enough.

I'll join back the queue, sir. Thank you so much.

Thank you.

Good evening, sir. Thank you so much for the opportunity.

Sir, order inflow almost 200 200% plus year-on-year, nearly ₹2,000 crore plus. Earlier, we used to maintain 18 to 24 months ka execution timeline, but right now we are taking within 30 months the large order.

Is there any changes in the strategic direction for taking orders in terms of timeline and whether— No. Yes, sir.

Most of the orders that we are taking are currently from 18 to 24 months. Since this was a single bid, we got this for 30 months.

Otherwise, most of the orders that we are categorically taking are from 18 to 24 months.

Okay. This one is exceptional, right, sir?

This is only an exceptional right now.

Sir. Secondly, sir, right now the global market is shifting towards voltage source converter-based HVDC systems, which are more complex than line-commutated converter systems.

What is our design strategies based on, like LCC, VSC, or hybrid side? If you could talk about I think we are coming up with our own process.

How do you look at compared to some big competitors like Hitachi, Siemens, and GE? What is the estimated—

We are looking at hybrid. These are basically manufacturing secrecy kind of thing, we would not like to discuss any further on this.

It will be based on hybrid systems.

Okay. Any R&D capex required for this, sir?

Not currently.

Sir. Thank you, sir.

Yeah. Hi.

Am I audible?

Am I audible now?

You're Gaurav.

Hi. Am I audible?

Yes, Gaurav. Go on.

Thank you for the opportunity. Congratulations for a 10% increase in the revenue and posting a good numbers.

I just wanted to know since our inventory is getting increased, and the inventory turnover is also getting increased. When can we see our inventory getting the sales and reflecting in our profit and loss statements and getting the cash flows?

See, basically,

as we told you that looking at the current geopolitical situation and the raw material, we have decided to keep the higher inventory levels. Till the time our backward integration facilities are up and running, we will maintain this level, and you will start gradual reduction from, say, quarter 4 of the next financial year.

Till December, we are covered as far as the raw material is concerned.

Looking at the geopolitical situation, we have protected ourselves until December, and we are pretty much sure that all our backward integration plants will be ready by December. We have protected ourselves until December in terms of raw material.

Okay. Thank you for the clarification.

That's from my side.

Hello. Good evening.

Sir, I have one question. The EBITDA margins that we are targeting for FY27 of 16%, these are excluding other income, correct?

These are operational EBITDA margin, correct?

Yeah. This margin has been calculated as including other income.

This quarter, we have done 19%, and we are guiding for 16% for the whole year. Means we are going to go down below 15 as well?

No, 16% at a transformer level. This 19% margin is with including the subsidiary, at a consolidated level.

Okay.

For consolidated number, any margin that you would like to guide for FY27, sir? Like for like, 19% this quarter that we have achieved, what kind of number can we see for the whole year?

I think a couple of percent more. 20%, 21% maximum.

Not beyond that.

Okay. All right, sir.

One more small question, sir. Our orders, how do we protect the margin?

Do we have price variation clause, or we buy the inventory as orders are received? What kind of policy we follow?

We are protected by price variation clause. Looking at the geopolitical situation, currently we have stocked up our inventory until December December 2026.

That we are protected as we have large orders and we need to execute this orders on time. We have protected ourselves in terms of inventory.

After December, all our backward integration plants will be functional. We are pretty much sure that raw material problem we will not face.

All right, sir. One small, sir, update regarding Moraiya expansion.

I think it was to be completed by Q3. Is that on track, sir?

No. Moraiya expansion is Q3 2027, and that is on track.

Okay. All right.

Thank you so much, sir. Thank you.

All the best.

Good afternoon, sir. Sir, my first question on the debt levels.

How we are looking at the debt level going forward as currently we have already at ₹400-plus crore of debt and working capital requirement to complete this ₹6,600 crore of unexecuted orders along with that ₹1,000 crore of capex that we are going to build. How you are looking at the debt number for next couple of years?

See,

we will not like to increase anything in the debt. As far as the capex is concerned, we have enough cash as well as the QIP money, plus we have the arrangement through the leasing.

For capex, we will not be needing much fund. If anything is required, then may be a small debt it.

Working capital level, we try to reduce the working capital cycle, and from that only we will generate the additional capital that is required for this ₹6,600 crore order book.

₹150 crore—

Yeah.

₹150 crore of the QIP money left for the backward integration. Currently, we are at ₹400 crore and ₹1,000 crore for the current capex.

If we say 80% on the current uncompleted order book of ₹6,600 crore, then ₹5,000 crore for that. How we are going to manage it for next 2 years?

See, basically, ₹150-odd crore from the QIP money. We have arrangement for the leasing, etcetera, for the plant machinery.

That capex part is gone. Now there is no fund requirement as far as the capex is concerned.

Then we may utilize certain internal accruals if required. The capex will be funded in that line.

The working capital, we would like to squeeze our working capital cycle to generate the additional fund so that we can manage the additional revenue that what we are planning.

Okay. This ₹1,000 crore of capex, then what will be the number after leasing if we are going for finance leasing?

Finance leasing would be roughly around, say, 500 cr.

Okay. We need to spend only ₹500 crore then.

Yes.

Okay. Sir, our ₹1,000 crore of backward integration, what turnover ratio we can expect on this?

I understand that we'll be utilizing this capacity for captive utilization, but what will be the turnover ratio on this ₹1,000 crore of backward integration?

In the first phase, this will be entirely for the TARIL. In the second phase, we will look to sale into the market as a third-party sale.

That will roughly give us additional, say, around ₹800 crore to ₹1,000 crore additional revenue from this.

For outside sale.

For the outside sale.

We can say that 50% for outside and 50% for captive?

No, this would be around 60 60%, 65% for captive and remaining for outside sale.

Okay. Sure.

Thank you, sir.

Yeah. Hi.

Am I audible?

Yes.

Thank you for the opportunity. My first question is what is the update on the HVDC front?

Last quarter, I remember we're saying that we were getting into it, and what is the timeline that we can expect revenues?

HVDC front, I think it will take another 15 to 16 months to get fully into manufacturing HVDC. We still have 9 months to complete our repair of HVDC.

Once we completed our repair of HVDC, then PGCIL will empanel us for the first trial order of HVDC.

Okay. Great.

I think this is a follow-up from the previous participant, the $1 billion revenue target. It means about 50% CAGR from current levels, and we are guiding for 25% right now.

How is this reconciling? I'm not getting the math here.

See, this 2029 is the, you can say, the earliest period, but we will definitely target because, see, if looking at our existing capacity, we can go up to, say, around ₹6,000 crore. This backward integration top line which will be to third party, that will be around 1,000 cr.

See, if we had given the target at the $1 billion time, rupee level was different, and now the rupee level is different. We are looking at somewhere around, say, ₹8,000 crore.

Okay. Sure, sir.

Yes. One last question.

Why is it that only we are facing a very big slowdown in the revenue growth, while our peers are posting 50%, 60%? Yeah.

That is because of the lower capacity utilization of the Changodar plant. That will be by August '26, it will start the capacity utilization, and from quarter 3 it will normalize.

Sir. Thank you so much.

That answers it.

Yeah.

Hello. Am I audible?

Yeah.

Good evening, and thank you for the opportunity. My question is regarding CRGO steel.

The DGTR has initiated an investigation into CRGO steel imports, which could potentially lead to imposition of a provisional anti-dumping duty. Could you share your assessment of the likely short-term and long-term impact company raw material cost?

This investigation is currently going on, and we would not like to comment on that right now. With the requirement that India has in terms of the growth of Indian electricity demands, they may have to relook at what can be done.

Okay. Is there any strategy that company is considering to mitigate a potential impact?

We are currently just waiting and seeing what the results are. Plus, we have already protected ourselves in terms of until December 20 2026.

We have protected ourselves in terms of whatever raw materials that we require. We are pretty much sure that things is get sorted out by then.

Okay. That's answered my question.

Thank you so much, sir.

Thank you.

I think he's not there. You can take the next.

Good evening, Gaurav.

Good evening, sir. Am I audible, sir?

Yes, you are audible.

Sir, in your PPT, page number 25, you have showed that capacity of all Moraiya and Changodar and Odhav. Sir, what is this?

I not understand. It is capacity present or after expansion this capacity will be?

Sorry, Gaurav. We couldn't understand your question.

Can you repeat your question, please?

Sir, in your PPT, page number 25, you have showed the capacity of Moraiya, Changodar, and Odhav, 40,000 MVA per annum, 35,000 MVA per annum, 22,000 per annum. Sir, is this capacity abhi hai

ya baad mein hogi? Changodar ki capacity August mein chalu ho jaegi.

Moraiya ki abhi hai, aur Odhav ki bhi abhi hai.

Sir. Sir, closing order book for FY27 kya kya rahegi?

Kya sochte hain, sir, aap?

We are looking at 30% growth. We are confident that we will be achieving 30% growth in terms of order

UOB. Sir.

Thank you, sir. This is from my side.

Thank you. My question is again on the lower capacity utilization which is basically Changodar does less than 220 kV transformers.

Moraiya—

Changodar will do 220 kV up to 220 kV, not less than. Yeah.

Sorry.

Yeah. Moraiya was operational fully.

If you can give like-to-like growth, for more than 220 kV transformers, what would be year-on-year growth? We can get some sense of how the like-for-like growth was.

Shrinarayan, let me put it this way. We're looking at 30% growth in all sectors.

The growth in terms of 220 kV is also much beyond 30%, but looking at our current manufacturing capacity, we're looking at 30% growth this year, and next year we may go up to 45%. No,

that I agree, but I wanted to isolate the impact of capacity expansion at Changodar. After that, what would have been the revenue growth?

That's why I'm asking. More than 220 kV, what would be the revenue growth?

More than 220 kV?

Yes.

More than 220 kV, see,

basically, currently Moraiya is operating at around 60%, 65% capacity level. This would go up to, say, 80%, 85% capacity level going forward.

Okay. Here also there was a slowdown.

That's what we should understand? Even in more than 220 kV at Moraiya, the execution was slower?

No. It is

as per, we can say, last quarter only. It is around roughly, say, 60%, 65% capacity utilization.

Okay. Why is the utilization lower here, 60%, 65%?

While other competitors are operating at close to full capacity.

There is no major reason as such. Because

the order book is there, but still, the capacity utilization is low. Not able to understand what exactly is delaying the revenue ramp-up or I don't know, what is happening here.

While other competitors are posting good numbers, Satyen Mamtora (MD & CEO):

I think we are pretty much in the same line as the market growth is, and I don't know.

Okay. Fine.

Just one question related to this only, that we would have done higher mix of more than 220 kV transformers given Changodar was impacted, but still our margins are 16%. When the Changodar plant comes back, is there a possibility this 16 will become 14 or 15?

No, there is no possibility. We are pretty much protected in terms of the orders that we have, there is no possibility that it will go down.

No,

I'm talking purely because of the mix. Lower-rated transformers will have lower margins, right?

No, we are pretty much protected, and we already have orders in hand of ₹6,630 crore. We are pretty much protected in terms of Changodar manufacturing capacity also is concerned.

Okay. Fine.

Thanks. All the best.

Hi. Thanks for the opportunity.

Sir, I have just one question, and it's pertaining to the Changodar facility. Currently as per the PPT, we see that because of the capacity expansion and modernization activities that is undergoing, the capacity stood low or the utilization stood low at 27%.

Once the capacity is up and running, what utilization are we expecting in the near to medium term, say for this year as well as for '28 and '29?

In this year, the capacity utilization will still be at 60%, 65%.

Okay.

From next year, we will be ramping up the capacity utilization to 80%, 85%.

Okay. This is similar to what you have said for Moraiya plant.

Yes. Because even the backward integration plants will come into play by then, next year we should be at a better capacity utilization.

Okay.

Okay. That answers my question.

Thank you so much.

Hello. Sir, my question is I wanted to know the outlook for the USA market.

What is the volume growth that we see in the USA market for this year? How are we competing in the USA market?

Is it on the basis of quality, price? On what basis are we competing in the USA market?

Good evening, Bhavya. See, in the US market, we are one of the major suppliers up to 765 kV transformer, and we have a track record of 765 kV transformers for more than 20 years now.

Okay.

On that basis, a lot of US customers are relying on our quality, our production capabilities, and price is also one of the factors that we look at.

Okay. What kind of revenue are we expecting this year from the USA market?

Our export business will basically be at 10% to 15%. We would not go beyond 15% in our export business.

We will be maintaining that business through the year. Okay.

Okay. Thank you.

Hello. Can you hear me?

Yes. Rahul, tell me.

In FY26, we saw an increase in trade receivables, current receivables. Going in this quarter, how has that turned out to be?

As we speak, this receivable level has reduced. As we told in the last concall also that there are certain receivables which has been realized in April.

This as on 30th June, this receivable level has reduced.

Going forward, what kind of working capital days are we looking at?

We are targeting, on an average, say, 120 days to 130 days.

Okay. Thank you.

That's my question. Thank you.

We'll take last three questions, please. Sure.

Good evening, sir. Sir, my question is on the top line.

Now we are talking of $1 billion. $1 billion means ₹9,600 crore approximately.

Last year, we were at ₹2,500 crore. If we add 25% for '27, we will reach to ₹3,136 crore.

That means for next 2 years, that is '28 and '29, we will have to add another ₹6,500 crore in our top line. Are we sure of those numbers, or is there any confusion?

There is no confusion as such. When we said about this $1 billion, at that particular point of time, the rupee rate, etcetera, is very low.

We are targeting, say, ₹8,000 crore revenue. As we have given in our presentation, etcetera, through this expansion at Changodar and Moraiya, we will be able to easily achieve around, say, ₹5,000 crore to ₹6,000 crore.

With this backward integration, additional, say, ₹800 crore to ₹1,000 crore. That gives us up to, say, ₹7,000 to ₹8,000 crore by '29.

You can look at, instead of ₹9,600 crore, you can look at around ₹8,000 crore. Okay.

Okay. Yeah.

Thank you very much.

Hello. Good afternoon, sir.

My questions have been already answered. I had only one small question regarding this EBITDA margins, which we have been maintaining it is around 16% will be hopefully the blended margin for the consolidated company.

Is it correct? 16%,

yeah.

16%, we are mentioning in guidance. Is it for the consolidated entity I think it is only for the transformer, that is standalone.

No? You mentioned.

Yeah, 16%, yes. Okay.

That includes other income, but it is only for the standalone entity. The subsidiaries will have higher margin, because last year, our blended margin for consolidated was 17.3%.

Yeah. Subsidiary may be given some additional 100 basis points, so that will be there.

Okay. Overall the margins will be higher than the last year 25-26?

Yes.

Yes.

For the consolidated company?

Yes. That is correct.

Okay.

Okay. Thank you, and all the best.

Our expansions are really promising, and we look forward to the quick and prompt completion as early as possible. Really, next 2 years will be very good inflection point for the company, and all the best.

Thank you, sir.

Thank you.

This would be the last question, moderator, please.

Good evening, Arun.

Good evening. Am I audible?

Yes, Arun.

Okay. I guess a little bit of a repeat.

In the utilization chart that you have in the presentation, Changodar we understand all the reasons that you mentioned. Odhav is 100%.

My confusion is what was holding back Moraiya to be closer to 100%? That is 57%.

Arun, there are certain geopolitical issues that we have faced in the past quarter. That is the reason why we have stuck at 57%.

By now, this quarter onwards, we are already protected until December. With our backward integration plants coming in the play, our utilization will be much higher than this in the coming quarters.

Moraiya utilization would really improve after the backward integration comes into play or even before that?

No, we have already protected ourselves in terms of the raw material for up till December. This quarter is going to show a pretty good improvement in terms of capacity utilization.

After December, with our backward integration plant coming into play, we will see a much better improvement.

Okay. Do you think Moraiya could get to something like an 80% by Q3?

We are working on it. 80%, 85% is not far-fetched.

Okay. Thank you, sir, and all the best.

Thank you.

Thank you.

Good evening, everybody. Thanks once again for joining the investor call for Transformers and Rectifiers (India) Limited.

We hope we have been able to address all your key questions and provide clear perspective on TARIL's performance, growth plans, and outlook for FY27. Our focus remains on disciplined execution, timely delivery of commitments, and creating long-term value for all of our stakeholders.

Should you have any further questions or queries, please feel free to reach out to our investor relation advisor, Ernst & Young, who will be happy to coordinate with us and assist you offline. Thank you very much.

Thank you.