Thank you. Good evening, everyone.

On behalf of Nuvama Institutional Equities, I welcome you all to the third quarter FY '26 results conference call of Transformers and Rectifiers India Limited. We are joined today by Mr.

Satyen Mamtora, Managing Director and CEO, and Mr. Chanchal Rajora, Director, Finance.

I would now like to hand over the call to the management for their opening remarks. Thank you, and over to you, sir.

Good afternoon, ladies and gentlemen. A very warm welcome to all of you, and thank you for joining us today for Q3 FY '26 earnings call.

I am Satyen Mamtora, Managing Director and CEO of the company. We truly appreciate your time and your continued engagement with our company.

It is a pleasure to connect with you once again as we continue our journey for transformation, disciplined execution, and sustainable growth. Earlier today, our board of directors approved financial results for quarter ended December 31st, 2025.

These results have been duly submitted to stock exchanges and are available along with our investor presentation. Let me begin by sharing some of the key highlights and strategic developments from the quarter.

In Q3 FY '26, the company delivered revenues of ₹704.21 crores with an EBITDA of ₹114 crores. The performance during the quarter has been exceptional and marks a clear inflection point in our operational momentum.

Improved execution, better project conversion, and enhanced capacity utilization and tighter cost controls across the organization have contributed meaningfully to the performance. These results clearly demonstrate that we are back on stride and well positioned to achieve our stated revenue profitability objectives for the year.

Particularly significant milestone during the quarter was the receipt of exceptionally HVDC repair order from Power Grid. This order is strategically important as it makes TARIL the first Indian-origin company to receive HVDC repair order, underscoring our growth, technological capabilities, engineering credibility, and trust from marquee customers.

This achievement reinforces our position in the high voltage and advanced transformer segment and opens new long-term opportunities in HVDC ecosystem. As communicated earlier, during the first half of the year, we cautiously moderated fresh orders intake.

This was deliberate and strategic decision aimed at aligning with new orders with extended delivery schedules, strengthening execution discipline, and ensuring optimal capacity planning. I am pleased to share that this approach is now yielding results.

Looking ahead, we expect strong order inflow during the second half supported by a robust and diversified UEOB close to ₹8,000 crores across domestic and international markets. In parallel, we are making steady progress on our backward integration, which is a critical pillar of our long-term competitiveness, margin sustainability, and supply chain resilience.

We have planned six backward integration facilities, and execution is progressing as per schedule. The CTC plant is targeted for commissioning in FY '26-'27, followed by pressboard facility in quarter three FY '26-'27, and RIP bushing plant in quarter four FY '26-'27, along with the first phase of our fabrication facility during the same period.

I'm happy to share that civil work of all these facilities has already commenced, and equipment orders are firmly in place. These initiatives will significantly enhance our in-house value addition, reduce external dependencies, and improve cost efficiencies over long and medium term.

Alongside backward integration, we also continue to expand our core manufacturing footprint through organic capacity expansion. Our Changodar facility expansion is on track and completion on quarter one FY '26-'27, while Moraiya is expected to be operational in quarter two FY '26-'27.

This expansion will support higher volumes, improved execution flexibility, and enable us to cater to a strong demand visibility we see across all our order pipeline. For the full financial year, we remain confident of delivering at least 25% revenue growth over FY '25.

We are targeting revenues approximately ₹2,600 crores along with EBITDA margin of around 16%. This confidence is underpinned by strong execution visibility, healthier order mix, benefits from operating leverage, and structural improvements that we are making across the organization.

Equally important, we continue to strengthen our governance framework and internal processes. Corporate governance, compliance, and transparency remain at the heart of everything that we do.

I am particularly proud to highlight that we have declared our audited financial results within 8 days of quarters close, reflecting our processes, discipline, and commitment to best-in-class disclosure standards. Before I conclude, I would like to sincerely thank our customers for their trust, our employees for their dedication and resilience, our suppliers and partners for their continued support, our board members for their guidance, and the most important, our investors for their continued confidence in our long-term vision.

Together, we are building future-ready organization with the ambition to emerge as a global leader in the transformer industry. Now I shall invite Chanchal to take you through the financial performance in greater detail.

Chanchal, please.

Good evening, everyone. Thank you, Satyen sir, for your insightful leadership remark and for setting the strategic context for the quarter.

It gives me a great pleasure to address you today as we discuss our quarter three FY '26 performance, a quarter that clearly reflects the strength of our execution capabilities and resilience of our business model, and the benefits of the strategic initiative we have been implementing over the past several quarters. I am pleased to report that quarter three has been a strong quarter for the company marked by a sharp improvement across all the key financial parameters.

Revenue on a standalone basis from the operation stood to ₹704 crore rupees as compared to ₹428 crore rupees of quarter two FY '26. The growth was driven by the improved supply side normalization, higher plant utilization, and timely execution of the projects across the key segments.

The momentum seen during the quarter validates to our confidence in a strong second half of the year. EBITDA for the quarter came to ₹114 crore rupees with the margin expanding to 16.18%.

The margin improvement was primarily led by the better operating leverage, a higher share of execution from the healthy margin orders, and early benefits of the cost optimization. Profit after the tax stood ₹71 crore rupees, reflecting not only the strong operating performance, but also the disciplined financial management across the organization.

Further, on consolidated basis, revenue for the quarter stood ₹737 crore against the ₹460 crore during a Q2 FY '26. EBITDA stood to ₹129 crore, and PAT took ₹76 crore.

Importantly, quarter three also marks a turning point in terms of the structural margin improvements. We are confident that margin sustainability will improve going forward.

The backward integration facility and the developments are expected to further enhance the cost efficiencies and reduce external dependency over the medium terms. Looking forward, we enter to Q4 and the next financial year with this strong visibility.

Our order book remains robust, execution pipeline are healthy, and the plant utilization levels are expected to remain elevated. For the full year FY '26, we remain confident of delivering the revenue of around ₹2,600 crore rupees along with the EBITDA margin of around 16% to 17%.

Beyond 2026, our focus remains on the profitable growth, return ratio improvement, and disciplined capital allocation. Before I conclude, I would like to express my sincere appreciation to our team across operations, finance, supply chain, and projects for their relentless focus and execution excellence.

I would also like to thank our board and investors for their continuous trust and support as we work toward building a strong, more resilient, and a future-ready organization. With that, I conclude my remarks.

Thank you once again for joining us today. We'll now happy to take your questions.

Thank you.

Hi. Am I audible?

Yes.

Yes, thank you for the opportunity. I just had a few questions in mind.

Last quarter, I remember you telling that we had about a deferment of ₹100 crore in revenue because of the monsoon, and if we adjust this quarter's revenue to that, the adjusted revenue growth comes to about 13%. Is this the normalized level we're looking at going forward?

Vijay, it was not ₹100 crore rupees. It was ₹70 crore rupees, ₹70 to ₹72 crore rupees.

Right? That benefit we got it in this.

Also, we are on 40 ₹40 crore rupees of the same revenue which we could not able to take in this quarter also.

Sir. Thank you so much.

One more question on that. If we are targeting a $1 billion revenue by FY '28-'29, it means that we are targeting about 48% CAGR in top line from the current levels.

Can you help us understand what will drive the growth from here?

Look, Vijay, we have been guiding about the billion dollar or ₹8,000 crore rupees revenue for FY '28-'29. This has got the various factors into that, not only the growth of the transformer business, but also the growth of the backward integration facilities what we are putting up.

Right? The backward integration facilities itself are going to give us a robust business, as well as the growing demand of the industries is going to give us the huge amount of the new businesses.

As we see that today we are at around ₹4,500 ₹5,500 crore rupees unexecuted order book, and by close of this year, we'll be having around ₹8,000 crore rupees of order book hand. We expect the same growth is in coming years.

That is driving us for that.

Sure. If I may just squeeze in one more question, may I?

I would appreciate if you can join again because there are lots of people in the line.

Sure. Thank you so much.

Yeah.

Yes, sir. Thank you for the opportunity, sir.

My question on our order book and the inflow number. I'm confused with that number.

It is mentioned Q1 number because Q1 is also ₹665 crore only. Is it typo error, or you can confirm this quarter three order inflow was 665 only?

It is 65 It is 665. There's no typo error.

There's no typo error. Okay.

Sir, if you look at the order book of last quarter, it is ₹5,478 crore, and we executed the order revenue in this quarter ₹737 crore. If you knock off that and take the closing order book, the order inflow works out to ₹708 crore.

Why there is a in the mathematics?

This is not the mistake in mathematics. Basically, when we do the order book, there are certain price variation factors also there, and there are certain the bought-out items there, which generally does not reflect into the order books.

That is why this difference comes.

Okay. Lastly, sir, on this order pipeline, which was in quarter four was ₹22,000 crore, now it is ₹16,500 crore.

The YTD basis compared to last year 9 months versus this year 9 months, 18.4% decline, the order pipeline is down by 25%. How do you see the visibility and where will we ending the order book, sir?

That's my question. Lastly.

Manish, as I pointed out in my speech also, we are taken a deliberate decision that we shall pace ourselves in taking inflow of orders so that we do not have our order book beyond 18 months. We want to limit ourselves to order book of 18 months.

Beyond 18 months, it is not very viable because we have seen in the past also we faced some issues. So 18 months is where we are limiting ourselves.

That 18 months is the highest time limit where we want to execute a certain order. We have been placing ourselves in terms of taking orders and also pacing ourselves in terms of new capacity that is going to come.

We are very confident that when we close this year, we will have ₹8,000 crore order book in hand.

All right. Thank you very much.

Thank you.

Thank you.

Am I audible?

Yes.

Congratulations on the HVDC repair order. May I know going ahead, once we complete the order, which technology of HVDC would we bidding for?

It will be our own HVDC, indigenously made HVDC. Currently, we are repairing this transformer, and once we have to prequalify for any tender that comes in future, once we repair this transformer and it has successfully been commissioned, we shall qualify for our own technology of HVDC.

Right now, there is LCC and VSC based. It will be a different one from that?

Yes.

Okay. Sir, my next question is if you could list out the capacity that we have right now and when and how much would be getting commissioned.

If you could just confirm that once again.

Look, at present, we have the capacity in our Moraiya plant is around 27,000 MVA, Changodar is around 12,000 MVA, and Odhav is around 11,000 1,200 MVA. That is our capacity at this moment.

The capacity new which we are going to add up in the next financial year is 15,000 MVA in Changodar in quarter one and 22,000 in Moraiya in quarter two.

Okay. Okay.

Thank you. Sir, lastly, how does the prices or increase in the commodities will affect our margin going ahead?

Most of our orders are protected by price variation clause. We shall be protected, but it is again one of the reasons why we do not want to book ourselves beyond 18 months.

Okay.

We are protected by IEEMA price variation clause, there is no problem there, but we still want to not take orders beyond 18 months.

Basically, the reason behind that is that we don't want to block the capacities at present when we see the good business and the higher margins. We just want to leverage on that.

Okay. Thank you and all the best, sir.

Thank you.

My all questions have been answered. Thank you.

Thank you.

Good afternoon, sir. Congratulations on a very good result.

Thank you, Aakash. Thank you, sir.

I wanted to understand your views on like the current rumor or the news which is going on. Basically, Reuters have claimed that the Chinese companies would be allowed in power sector or all or maybe allowed to participate in the electricity or power sector related bids.

My question I think at the stage it will be difficult for you to comment whether that's true comes through or not, but my question is on the price competitiveness, like how well we are positioned domestically and globally. How do you see if like if if there this rumor comes factualized in few months, how well how well prepared

Aakash, from what I have read, the Chinese companies will still have to manufacture in India. There is only one Chinese manufacturer by the name of TBEA who is operating in India in the transformer industry.

They are pretty much booked themselves with orders from Adani and Reliance and other companies, other EPCs. I don't see that much effecting us in the long term or in the short term.

Right, sir. Right, sir.

Sir, my second question was on the news of Mr. Nikhil Srivastava, his resignation coming through and Mr.

Satyen Mamtora taking forward. Sir, what is the management plan going forward?

Would Mr. Satyen continue or would you look for external resources for hiring a new CEO?

I shall continue as the CEO and the MD of the company till such time that we decide that we are ready for a CEO now.

Perfect, sir. Thank you, sir.

That all my questions are answered.

Thank you. Hello.

Hello? Yes, Aman.

Sir, congratulations on a strong set of numbers. In the last concall, you mentioned a shortage of bushings that led to supply chain disruptions.

Yes.

You have indicated that your new facility is expected to become operational around June this year. Could you share what capacity you are targeting initially?

You're talking in terms of number of bushings or kV of bushings?

Both, sir.

In the first phase, we are going up to 245 kV RIP bushings. Then we are working our way forward in the second year of manufacturing to 400 kV RIP bushings.

We are close to about 7,000 bushings in the first year of operation.

Okay. Sir, also, as per my understanding, acceptance and qualification of such critical components usually takes significant time.

How should we think about ramp-up and customer approvals in this context?

I think there is one caveat there. If we start getting our bushings tested and it is just a type test that we have to do, if our bushings pass all those type tests, we should be approved by all.

Our OIP bushings currently are approved by almost all electricity boards and PGCIL also. Getting a RIP bushing approval is not going to be very difficult for us.

Okay. And

If you look at in terms of the wherewithal to get the approvals, we also have that in terms of we are a transformer manufacturer. There is a certain credibility behind TARIL.

We have all that wherewithal also in terms of bushings.

Up until what time do you expect an optimal capacity utilization?

By second year of operation, we should be at 60 to 70 to 80% capacity utilization.

Sir. Thank you, sir.

That's it from my end.

Thank you.

Hello. For the opportunity.

Sir, my question is what is our cash flow position for 9 months? As 6-month cash from the operation is -34 crore.

What is our cash flow position?

Sandeep, we are in the cash flow positive at this moment. Right?

I don't have the right figure right now to give you, but yes, around ₹30 to ₹35 crore rupees we are on positive. Apart from that, we have around ₹275 crore rupees of the cash deposits with the bankers.

That way, we are quite okay in that way.

Okay. Sir, my next question, what is our margin visibility in the next 1 to 2 years?

What is the sustainable margin?

Margins will stay stagnant at between 15% to 16%. We don't see much variation in margin.

The only variation that can happen is 1% or 2% in margins, that is in terms of our operational excellence that we are looking at. That is the only place where we would be able to get a better margin.

Otherwise, this 15% to 16% margins is where we will be at.

Okay. Sir, just last question

Sandeep, Sandeep, I just add up into that 15% to 16% margins what MD sir is mentioning is on the product side. Right?

Once we will work out on a better operation efficiency and better leverage of the resources, the margin is going to be increase as he said by around 200 basis point.

Okay. Sir, just last question related to the industry.

Sir, what is the lag time between order and supply? Just want to know.

Currently, if it's 3 months, 2 months

Currently, the lag time is close to between 24 and 2 to 28 months. We want to bring it down back to 18 months, so that is the reason why we are again being very cautious now.

Currently the lag time is around 24 months.

Okay. Thank you.

Thank you, sir.

Hi. Good evening, sir.

Congratulations on a good set of numbers.

Thanks.

Sir, my first question on the expansion in Changodar and Moraiya. I believe it has got delayed further by one quarter now that we are saying first quarter and on that note, given the order book, shouldn't we be able to execute the entire order book in 1 year, FY '27, given our now expanded capacity by then?

Will take some time. Very honestly, you will expand the capacity in terms of manufacturing of transformers, but where will you get the CTC from?

Where will you get the bushings from? Where will you get the CRGO from?

All that capacity is still not fully capable to cater to whatever expansion that we are doing. It will take time to gear up again for us to achieve what we want to achieve.

The best thing for that is our backward integration plans to come into action very soon.

Okay. Current order book is again about 18 months of execution time?

18 to 24 24 months, not 18 months, 24 months.

Okay. Sir, this last question on this.

You mentioned 15% to 16% margin, and then 200 bps can improve above that due to backward integration and efficiency?

Yes. Yes.

Yes. Yes.

Okay. Hopefully by FY '28 that I think the expansion will also come into good utilization and there we can see some

Yes. Yes.

Yes. Yes, sir.

Okay. Thank you, sir.

I'll join back in the queue.

Hello, sir. Thank you.

Thanks for giving me an opportunity. My only one question I have.

How about the World Bank debar kind of thing? Hence throw some light on it because they had given a deadline, if I'm not wrong, till this at January 15th or something like that.

Thank you.

Venkatesh, first of all, I would like to tell you that there is no debarment from the World Bank as of now on us. Second point is that World Bank has given us the timeline to reply their queries by 12th of January.

We are filing our reply in this particular week. Probably today only we are filing the reply.

We hope that in next 2 to 3 weeks' time, this will be settled.

Thanks a lot, sir. Thank you.

That's all, sir. Thank you.

Thanks for the opportunity, sir. Just one question.

I'm not sure if anyone has asked. There are these reports coming in today that government is thinking of allowing Chinese imports for power equipments.

Just wanted to understand your views on this, whether there is any traction to this idea or is the government actually thinking of allowing Chinese imports?

Nikhil, I just answered that question earlier. Probably you were not there on the queue.

Under any circumstances, this Chinese manufacturers will have to make transformers in India. Currently, there is only one plant, one Chinese plant which is making transformers in India.

That Chinese plant is also fully booked for next 16 to 18 months. I don't think there is going to be a lot of variation in anything in terms of transformer manufacturing.

I also add, Nikhil, these rumors keep coming actually.

No, no, it's not a rumor. It is come.

One more thing is there. If any new foreign player is coming, they need to take the approvals of the product.

That will also take plant and product both. That will take time.

Okay. Okay.

At least for 1 to 2 years, you believe that that won't be a problem.

Yeah. Yes.

Okay. Understood, sir.

Thanks a lot and all the very best.

Thank you.

Good evening, sir. Am I audible?

Yes, ma'am.

Yeah. Sir, what is the current revenue contribution and the growth outlook for transformer as a group renewable and green hydrogen applications?

Okay. Ma'am, first of all, green hydrogen application demand actually has not started coming up in India as of now or anywhere in the world also.

Probably we are a little away from that. Once that will start coming up, we would be able to tell or anybody would able to tell more about that.

Renewable energy, our portion is increasing now. Once our Changodar facility will be in place because we are putting up a dedicated line for that, then we will have a major higher portion of renewable energies from that.

Sir. My second question, could you please share our working capital situation in Q3?

Our goal is to be net debt-free in next 18 to 12 24 months. What is that planned mix of operational cash flow or any equity racers or asset sales to achieve this net debt-free status?

As working capital is is concerned, we are we are in little better position than what we were in a quarter to H2. H2 we were having a working capital of around say around 125 days or something.

We are now nearing up to around 120 to 22 days time. Second portion is is this net debt-free, yes, 18 to 24 months is the timeline which we wanted to become net debt-free, and we are working on that on that.

First and foremost emphasis on that is to through the internal resources. Right?

Our working capital, you know the understand you need to understand one thing. It is a heavy capital intensive intensive product, working capital has to be a little bit higher side, and particularly when we are importing the materials, then this will be this will be on the little little higher side.

Though our goal is to reach 200 days level, but we will see that how do we reach into the levels. Yes, we will be keeping by this year-end, we should be some we should be near to 120 days levels.

Sir. On the debt side, sir?

Huh?

Actually, our goal is to be net debt-free in next 18 to 24 months.

That's I said. That is intact.

We are working on that. We will be net debt-free within next 18 months time.

Sir. My last question, I think only two qualified vendors for a certain specialty furnace transformer.

Why only two qualified vendors in this industry, and what are the technical barriers to entry here, and what is the opportunity size, and how sustainable the pricing power because of the two qualified vendors?

Furnace transformers, the load rating on this furnace transformers is very different. The furnace starts with very high power, high current, and the voltage is very less.

A lot of people avoid taking this risk and sudden jerks to the transformers, and the other thing is if a furnace transformer fails, the whole furnace production goes zero. With the investment that people have done in their factories for melting steel, it is very difficult for people to cross that barrier and let anybody else in.

That is the reason why we are able to sustain in this market because of our credibility and quality of our transformers.

What is the opportunity size, sir?

Opportunity size is very skewed, not very big, but yeah, close to about 200 ₹200-₹300 crores.

Sir. Got it.

Thank you.

Hi, sir. I have just one question.

As you mentioned that we'll be ending with a FY '26 backlog of ₹8,000-odd crores, right?

Sorry, sir. I was not able to hear you clearly.

What were you saying, sir?

I just want to understand that on one hand, you are saying that we'll be ending with a backlog of ₹8,000 crores by FY '26, that is March '26, right?

We are close to about ₹8,000 crores, yes.

Close to ₹8,000 crores. If I just look at the first 9 months, our inflows have declined double digit.

We are approximately ₹700-₹800-odd crores. My closing backlog as of FY Q3 is ₹5,400-odd crores.

If I just do a back-of-the-envelope calculation, the implied order inflow minus execution for fourth Q implies the order win of almost ₹3,000 crore plus. What gives us the confidence that we'll be able to book such a big number in 1 quarter?

We have many inquiries in pipeline which are about to finish or close. In this quarter, most of this will be getting awarded to us.

Anyways, Chanchal will give you a better explanation on that.

Chirag, if you see, basically, generally, the most of the PSUs, they they come up with the requirement in quarter four, traditionally. Quarter four has been always the the biggest quarter in terms of the supplies as well as in terms of the deliveries and as well as the new requirements.

Right? If you if you if you've been seeing in last quarter last year quarter last year FY '25 also, we got ₹2,400 crore rupees or ₹2,500 crore rupees of order, right, in in 1 single 1 single quarter.

That is that is the confidence and the kind of the inquiries what we have the pipeline at a very, very advanced negotiation are going to basically give us the orders pretty soon, as soon as in this month itself. That's the that's the confidence what we have into that, right.

Sir, final question is more from a longer term perspective, let's say, next 4 to next 4-5 years. We do have a target of a billion dollar in terms of revenues.

Post that, even if we achieve that, post that, given a lot of companies are putting up capacities in the transformer sector, how long is the runway for us in terms of growth, and how will pricing pressure be there when new capacities come up, and at a stage where the industry will mature at some point in time, and what will be the margin at that point in time? That's all from my side.

Okay.

Chirag, this question we have been answering this question for quite some time. Whatever capacities are coming, they are not good enough for the demands which India is forcing in next 10 years' time.

Right? There is not going to be any problem in terms of the demand in coming next to 7 to 8 years' time.

Basically, new demands like EV demands as well as the replacement market is also going to add up into that. I just mentioned in the last questions also, hydrogen demand has not even started coming up into the country.

This is the thing. As far as TARIL is concerned, please understand though the transformer remains a big focus for us, but we are diversifying ourselves into the backward integration product, and they are going to yield us also in some time in a big numbers.

That is going to be the runway for the organization itself. As far industry is concerned, next 10 years is we don't foresee anything problematic, and then the sustainable growth will come up.

Thank you, sir. That's it from my side.

Hello. Sir, thanks for the opportunity.

Sir, in Q4 FY '25 and Q1 FY '26, we reported 35% gross margin. We believe that that was the normal margin because of the backward integration effect.

Can we take the '27, FY '27, as the year with the 35% gross margin?

It is FY '28.

Okay. Okay.

Will it provide further room for expansion to 40% with the further backward integration?

Definitely.

Okay. Okay.

Thank you, sir. Thank you.

That's all from my end.

Hello. Am I audible?

Yes, Aman.

Yes, Aman. Yeah.

Congratulations on the amazing set of numbers, sir. All of my questions have actually already been answered, yeah.

Thank you. Thanks.

Thanks, Aman.

Thank you, Aman.

Hi, sir. Thank you for the opportunity.

Sir, although this quarter looks like a 30% growth, but I think last quarter, you announced that there was a copper conductor shortage, import blockage of around ₹160 crore. Then there was this ₹70 crore also.

I think this question was also earlier asked in this concall. Sir, if we add both these figures, roughly ₹230 crore worth of orders were going from Q2 to Q3 this year.

If we remove that ₹230 crore worth of orders, our YoY growth actually is in negative. Kushal

Kushal, I think you have misinterpreted what we said in last time about the CTC. What we said, it is not ₹160 crore.

We said 16 16 numbers of the jobs CTC that got stuck in ports, right? So 16 jobs would got stuck in, and that is too in the month of May and June.

Which has received in the month of July, and then the production has started coming place. Understand one thing that has affected in our revenue of the Q2 as well as on the Q3 also because when the jobs got almost there for 25 days at the port, we could not able to move the next jobs from the China and the Korea.

That is why this is got the cascading effect on all the things, right. Around ₹70 crore rupees which were basically booked into the order, but in the system, but Ind AS does not allow us to take into the revenue, that is affected.

Actual effect was only ₹70 crore rupees for that quarter, and the same kind of effect we are also facing up into this quarter of around 40 ₹45 crore rupees also.

Net-net, there is around ₹30 crore of revenue which has come from So if I remove this ₹30 crore, then also our growth rate has

₹30 crore is windfall from the past quarter.

Okay. Theek hai, I think I get what you are saying.

I think my next question was around the CTC and CRGO situation. I think last time we said that the CRGO situation was prices as well as demand supply was limited.

Has that solved now? Has that become normal now?

It is not solved. We are providing for it, but it is work in progress.

It is always work in progress. The kind of growth that Indian transformer industry is seeing, it is always a work in progress for all transformer manufacturers.

Got it. Got it.

Sir, on just your backward integration efforts, I think you were doing in-house CTC manufacturing and couple of more things, radiators and all. Will that backward integration effort also work for our HVDC transformer demand or we cannot use the backward integration for that?

No,

it will work for all sorts of and all kinds of transformers.

Even the CTCs also?

The CTC also, except for the bushing. I think all transformers, everything in the transformer, yes.

Okay.

Okay. Sir, just last point on HVDC.

Sir, when do you expect to meaningfully see demand from HVDC transformer?

Once we've repaired this transformer and it has been commissioned successfully, we should see PGCIL approving us for manufacturing this transformer.

Then the orders are expected post '27?

Post '27. Post '27, yes.

Got it. Got it.

Thank you, sir. Thanks.

Hello. Congratulations for the good results.

Last quarter was a horrible one for not only the business, but that World Bank issue. I think the management, it has been mentioned today that we will be filing the reply very shortly in a day or two because 12th was the last date, I heard.

If you are filing today, do we expect it to be solved very quickly as you mentioned in 2-3 weeks?

Very honestly, Viren, we do not know what the World Bank process is, but we should get something sooner. Accha.

Actually, that doesn't affect us financially. That was true, but unnecessarily some corporate governance issues, etcetera, the share price indicates that there was a big fear on that issue.

Hope you people are in a position to sort it out.

We are working towards getting it resolved.

Quickly. Regarding this expansions which we have been mentioning, you mentioned that all the expansions which are as per our plan, and the production expansions, etcetera, will take place almost we will be having 70%-75% growth in our production capacity in the next year?

No, our plant utilization will reach around 85%. Plant utilization is what we say that it will reach 85%.

By next year-end?

By next year-end. Accha,

including the expansions, because you mentioned some 37,000

MVA. Including the expansion.

In- including the expansions. Expansion will reach

Expansion in Q1, I think you will be having some 15,000 MVA, and in Q2, you mentioned 22,000 MVA.

Yes. Yes, yes, yes,

yes. Accha, 37,000 MVA will be added in the next first half.

Yes. Accha,

so that when compared with the current capacity of 50,000, it translates to 74%. Is my understanding correct?

Sir, my current capacity is around 40,000, and with the new expansion, we'll reach to the 75,000 MVA.

Okay. Very good.

Congratulations to you all and Mr. Rajora also in particular that as promised, you have been in a position to present the results in the first week itself.

Let us keep this tradition, and the market will always reward this type of gestures.

Thank you, Viren. This is the organizational efforts which is being paying off us.

In this capex, also which we are having for this expansion and when do we expect this backward integration to be completed?

The backward integration for the CTC plant, as I had mentioned in my speech, one is CTC plant is quarter one 25 FY '26-'27. Okay.

Moraiya expansion will be in FY '26-'27 quarter two. Bushing will be quarter four FY '26-'27, and pressboard will be in quarter three FY '26-'27.

Next year-ending, almost all the things will be completed. So '27-'28 will be the financial year

All our projects will be completed.

After that, we expect about 2% growth in margins also?

Yes, sir. Yes.

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

Thank you.

Thanks. Can we take the last question, please?

Am I audible, sir?

Yes, Deepak.

Most of my questions have been answered. Just few things.

Now you mentioned FY '27 end ₹8,000 crores order book given the execution in fourth quarter and current unexecuted order book of ₹5,500 crores. We expect around ₹3,500 crores of order inflow in the fourth quarter, right?

Would that be a right understanding?

That would be a fair assumption.

Okay. Given that you mentioned that even ₹2,500 crores we have done in last year fourth quarter, this is something which looks achievable to you or

It is absolutely achievable.

Okay. What will drive this order, can you throw some light what Yeah.

We have quoted in many tenders close to about ₹16,000 crore tenders, and most of this are on the verge of finalization. The other thing is, they are also thinking that beyond 18 months, they also do not want to expose themselves.

They are also trying to pace themselves in placing the orders.

Okay. Generally, our order book, whatever ₹8,000 crores we're targeting that

This not taking orders or not getting awarded orders is only a question of pacing the awarding orders.

Okay. The execution time line of this ₹8,000 crores which we are expecting to be closing by FY '26 end would be around what, 18 to 24 months?

That's Approximate 24 months.

At max, it should be 24 months, not beyond 24 months. We are trying to limit ourselves to 18 months.

Okay. Understood.

Given this year, we are looking to grow about what, 20-25%, right? From next year onwards, the CAGR that we need to grow to FY to a billion dollar or ₹8,000 crores of 45-50% CAGR, is that what we are targeting from FY '27 onwards?

Sir, that is right. Understand one thing in that drive, there are two major sectors which are going to contribute apart from our present capacity: the new capacity which we are going to add up around 35,000 MVA, and the backward integration revenue which we are targeting to contribute that things.

Those two are the major contributors going to play in that goal, sir.

All this are coming from first quarter till fourth quarter, right? In parts.

Yeah.

That you've already mentioned. What would be our optimum revenue potential on this capacity?

Both 77,000 MVA and plus your CTC and bushing capacity that is coming through.

At

80-85% utilization, what sort of revenue potential we see?

The billion dollar, ₹8,000 crore rupees revenue is actually we are guiding based on this and all the efforts what we are doing.

Okay. Once you fully utilize all this capacity, ₹8,000 crores kind of a top line is quite achievable.

Just my last thing on the industry side. What sort of growth we are looking at the industry level if you can throw some light on that?

Sir, world transformer industry, only the transformer I'm talking about, is growing at the CAGR level of 6.7%, and India is growing at the CAGR level of 15%.

India is growing at 15%?

Ji, sir.

Understood. That would be it from my side, and would like to wish you all the very best.

Thank you so much.

Thank you, sir. Thanks a lot for joining us.

Thank you once again for joining us today for your continued confidence in our journey. We look forward to your questions and engaging in meaningful discussions.

Your insights and support remain invaluable to us as we continue to execute our strategy and create long-term value for all our stakeholders. Thank you.

Thanks a lot.

Thank you. Thank you.

Goodbye. Have a nice evening.

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