Transformers and Rectifiers (India) Ltd (NSE: TARIL) Q1 2026 Earnings Call dated Aug. 01, 2025
Corporate Participants:
Unidentified Speaker
Satyen J. Mamtora — Managing Director
Chanchal Rajora — Chief Financial Officer & Advisor To The Board
Analysts:
Unidentified Participant
Dhirendra Tiwari — Analyst
Manish Ostwal — Analyst
Samarth Khandelwal — Analyst
Anupam Goswami — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to the Transformers and Rectifiers India Limited, Q1 and FY26 earnings conference call hosted by Antique Stockbroking Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr. Direndra Tiwari from Antics Truck Broker. Thank you. And over to you sir.
Dhirendra Tiwari — Analyst
Thank you. Good day. Ladies and gentlemen, let me extend my warm welcome to you to discuss 1QFY26 result of Q Transformers and Rectifiers India Limited. To discuss results, I am pleased to have with us today Satyan Mumtora, M.D. and Mr. Chanchal Rajora, CFO and advisor to the board. Before starting the call, let me again congratulate the entire team of Drill for outstanding performance. Yet again
with this, I hand over the call to Mr. Satyan for initial remarks. Over to you.
Satyen J. Mamtora — Managing Director
Good evening ladies and gentlemen. A very warm welcome to all of you and thank you for joining us on our Q1 FY26 earnings call. It gives me a great pleasure to connect with you at the beginning of what promises to be an exciting transformative year for our organization. Earlier today our Board of directors has approved the audited financial results for the quarter ending 30th 2025 30th June 2025 and the change has been submitted to the stock exchanges and published along with investor presentation. Let me begin with some of the key highlights from this quarter. During quarter one FY26 we recorded a total order inflow of 665 crores.
Reflecting the strength of our market position and customer confidence. This momentum has translated into an unexecuted order book of 5,246 crores as of June 30, 2025 providing strong revenue visibility for the next 15 to 18 months. A standout achievement this quarter was securing the single largest export order in our company’s history valued at 16.65 million from one of the leading energy EPCs from the country in Botswana. This milestone underscores not only our growing international presence but also our ability to deliver complex and high value solutions to global customers. On manufacturing front, we are making strong progress on our capacity expansion and backward integration roadmap.
The construction of our new 22,000 MVA manufacturing capacity at Morella facility has commenced. This facility will be reaffirming our commitment to operational excellence. In parallel, we have initiated expansion of our CRGO processing unit along with construction of our new backward integration units aimed at enhancing quality control and supporting long term vision for self reliance. These strategic initiatives are aligned with our ambition to become a global force in transformer industry. I am pleased to share that we remain firmly in our track journey towards achieving US dollars 1 million in revenue over the next three financial years.
On behalf of the entire leadership team, I extend my heartfelt gratitude to all our stakeholders, customers, employees, suppliers, board members and investors. Your continued trust and support remain the cornerstone of our journey. Together we are building a future ready organization that will not only lead transform an industry but also contribute meaningfully to India’s evolving energy landscape. I now hand over before handing over the mic to our CFO Mr. Chandel, I would like all of you to please welcome Mr. Mukul Srivasav. He joined us as a position of CEO and help us grow in the manufacturing sector.
I hand over now to our CFO Sanchal who takes you through the financial performance in greater details.
Chanchal Rajora — Chief Financial Officer & Advisor To The Board
Good evening everyone and thank you Satyam sir for the strategic overview and your inspiring leadership through what has been a period of strong execution and transformation. I’m pleased to take you through the financial performance for the first quarter of FY26 which builds the momentum of last year and reflects our continued focus on the profitability and sustainable growth. Let’s begin with the key highlights of the quarter. Revenue from the operation stood at 510 crore rupees on a standalone basis marking a 64% year on year growth over the same quarter last year EBITDA came at 97 crore rupees showing 127% increase year to year driven by the scale, benefits and improvements, cost efficiencies.
Profit after tax was 60 crore, a significant 227% year to year growth reflecting strong operational performance discipline in executions. Improvements of the operational efficiency and process process optimization has begun to reflect positively on our profitability. Our EBITDA and PAT margins have expanded meaningfully over the period or the prior year and we continue to maintain the sharp focus on the cash flows and working capital management. We also improved across our key operational and financial ratios in strengthening our balance sheet further and announcing return on capital metrics as on 30 June 2026 in Quarter 1 our current ratio stands 2.25 reflects a strong liquidity.
The trade receivables days have trade referral days is at 126days which includes the retention money Also while the Trade payables are at 72 days indicating the better working capital cycle management looking ahead, we remain committed to the driving margins extension, enhancing capital efficiency and progression towards becoming a net debt free company. Next over 18 to 24 months. We are fully committed to our long term goals of reaching US$1billion in revenue in next three financial years. And we believe that we are well tracked to achieve this. In conclusion, I would like to express my deepest gratitude to all of our stakeholders, our customers, board members and especially to our hard working employees for their continued thoughts and belief in our journey. Your support drives us, drives our patient to deliver excellence and create long term values. With that I conclude my remarks and thank you all for once again for the continuing support and interest.
We all now open the floor for the questions. Thank you.
Questions and Answers:
operator
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press Star and one on their touchstone telephone. If you wish to remove yourself from the question queue you may press star and 2. Participants are requested to use handsets while asking questions. In order to ensure that the management is able to address questions from all participants in the conference please limit your questions to one per participant. Ladies and gentlemen, we will wait for a moment while the question queue assembled.
The first question is from the line of Manish Oswal from Nirmal Bank. Please proceed.
Manish Ostwal
Yes sir. Thank you for the opportunity. Good set of numbers. Great exhibition in the business. My question on our annual report which we have used recently. So there is a great receivable in the non current assets which sitting 336 crore versus so can you explain why. The trade asset is sitting in the non current asset? Difficult to understand because it should be. Part of the current assets. Why we have put it that way. Manish, thank you for this question and welcome on this call. Manish, these trades with this. These are the non current nature trade receivables which includes the retention money which we are going to get from the utilities in one in one to one and a half year time. And also it includes the revenue debtors which are not immediately due for the payments. So this classification has been done by our auditors on their advice to understand better the exact trade receivable cycle what company is having.
Manish Ostwal
So what is it typical time frame to receive this money of 336 crore.
Chanchal Rajora
Look this is not 336 crore. 336 crore out of 3 days 36 crore 180 crore rupees. Was around this on the retention money which. Which we basically get in 12 to 15 months time when did the utilities and it is a continuous process which is keep coming.
Manish Ostwal
And one.
Chanchal Rajora
Next question please Shruti.
operator
The next question is from the line of Samad Khandelwal from its securities. Please proceed.
Samarth Khandelwal
Hello. Am I audible?
Chanchal Rajora
Yeah sir.
Samarth Khandelwal
Firstly congratulations on the performance so my question is regarding what would be the size of specialty transformers saw the company as opportunities.
Satyen J. Mamtora
Sorry, I didn’t get your question.
Samarth Khandelwal
The size of special duty transformers that the company has.
Satyen J. Mamtora
Around 35% of the turnover.
Samarth Khandelwal
Okay. Okay, thank you. I’ll get back in a few.
operator
Thank you. The next question is from the line of Raj Dara from Finn Finvesto. Please proceed.
Unidentified Participant
Thank you first of all for posting once again a very subtle set of numbers. So just wanted to ask the the. Margin which is bumped up you can. Compare the same from last financial year part one. So is it sustainable and what could be now the pack margin going forward keeping all the backward integration keeping in mind which is coming in next 3, 4, 5 quarters.
Satyen J. Mamtora
Yes, the margins are sustainable. Backward integration is going to help us in a great deal in terms of protecting our profits. But also with Mukul sir joining us we are working towards operational excellence and we are working towards, you know, operational profit. So that is going to help us more in terms of not raw material cost but in terms of how efficiently we run our plants now. So that is going to help us a lot in securing our margins.
Chanchal Rajora
And Raj, just to continue what RND has told just now if you see that last 3/4 quarter by quarter we are strengthening our margins and this shows that trend is sustainable and on the right direction.
Unidentified Participant
Okay, thank you sir. And just one other question now if I see the government of India target to have installation of high voltage transformer that is going to be actually double than the last we have done in. Financial year of 25. So though we have target the number of 3500 that is very phenomenal. So what is if I seen the execution capacity and the capacity which is coming on right now to execute so is execution can be in line with what is the country going to install the capacity going forward.
Chanchal Rajora
Every transformer manufacturer is trying to align itself towards the country demand and we are also working on that direction and we hope that we all will be able to cater the country’s requirement pretty soon.
Unidentified Participant
Okay so any ballpark numbers or if you can guide us for margin and pat margins going forward
Chanchal Rajora
we are at. We are at the levels which already is going on as Been I have been telling throughout my call that around 17, 18% is the numbers which is a sustainable numbers and we are working on that direction. We are delivering that number.
Unidentified Participant
Thank you very much. Thank you very much and once again congratulations and wish you best luck for the future. Thank you.
Chanchal Rajora
Thanks.
operator
Thank you. The next question is from the line of Ashish Tony from family office please.
Unidentified Participant
18,000 crore order book. When do you expect and what percentage are you expecting to convert order book? Right.
Chanchal Rajora
Inquiries under negotiation.
Unidentified Participant
Yes, yes. So that one. How many are you expecting in next? Two quarters or three quarters out of that.
Satyen J. Mamtora
So we should be closing our order book next year at around 5000.
Unidentified Participant
But I think you guided we collect last quarter.
Satyen J. Mamtora
5000 crores next year. So on the 1st of April 1st, April 2026 our unexecuted order book would be 5000 crores. And we are expecting around 3500 crores of turnover of this on this year.
Unidentified Participant
Next year you again start with 5000 crore order book. That’s what you’re saying because last quarter you told I think 8,500 crore by next year order book wise if I recollect.
Chanchal Rajora
Look Ashish, what we. What is trying to tell you is that we are. We are basically now working on the directions where we can have the high margin order books and high margin revenues and high margin margin orders. So we are targeting that we should have the number of somewhere around 5000, 5500 crore plus order book which will give us the high yield revenue instead of going for each and every order. Right? Yeah. That’s what we are talking.
Unidentified Participant
Okay, thank you.
operator
The next question is from the line of Anupam Ghosta from Sud Life. Please proceed.
Anupam Goswami
Good afternoon sir. Wanted to understand what it’s now if you can give us some color on the tam of us like where each transformers level we are at that capacity. What is the time growing at and export any scenario or any color if you can fetch and after this carries how difficult or any challenge you will face or not.
Chanchal Rajora
Can you repeat the first part of the question again.
Anupam Goswami
Capacity of transformers we are in. In that what is. How is the macro scenario looking at? How is the market looking at and what kind of growth you are looking. And also in the export part.
Chanchal Rajora
A lot of capacity. Almost doubling the power generation capacity. So we. I mean like any other transfer of manufacturer we are also trying to add the capacity and this scenario is likely to remain there for at least five to seven years. That is what we also expect. As regards to your question on exports we are looking at Certain areas of exports, you know that we won an order from one of the major customers at 17 million USD from Botswana. But we are little bit choosy because already we would be exuding existing order book. We have. We have little. Little scope for funding on exports.
Satyen J. Mamtora
Our exports would remain at 10%. 10%.
Anupam Goswami
Sir. Any exposure to us?
Satyen J. Mamtora
No, not currently. Nothing that we have in hand.
Anupam Goswami
Got it, sir. Thank you.
operator
Thank you. The next question is from the line of Ankur Goed from Green Portfolio. Please.
Unidentified Participant
I hope I’m audible. So my question is. After all expansions are complete. How much revenue and order execution does management expect will come from each plant?
Chanchal Rajora
Ankur, if you. If you remember that. And we have been last two, three quarters. We have been guiding that. We are working on a direction of eight billion dollar revenue. One billion dollar revenue. And this revenue basically improves the extensions what we are doing. So. Numbers. So this includes the revenue which is coming from the expansion also.
Unidentified Participant
Okay. And for my second question is regarding receivable days. As we know that from past quarter receive several days are improved significantly. How sustainable is this in the context of raising volume and new client segments?
Chanchal Rajora
This is the long. This is a long term sustainable figure. What we are eyeing in the last three quarters. If you see that we are continuously delivering that.
Unidentified Participant
Okay, thank you.
operator
Next question is from the line of Samad Khanderwal from ICICI Securities. Please proceed.
Samarth Khandelwal
Thank you for the opportunity once again. So my question is regarding. Recently Rowan came out with that they’ll be promoting coming out with an incentive scheme for producing in India high voltage related transmission equipment. So do we see any opportunity there? How do we think about this?
Chanchal Rajora
It is not for the transformers actually. But we are still exploring. Is anything. Something is there for us. But it is. It is not for us. It is basically the equipments like Rip bushings and others.
Samarth Khandelwal
Okay. Okay. One more question if I may. This is with respect to the capacity expansion capacity we are undertaking. Could you outline by when it will come live?
Satyen J. Mamtora
Which capacity are we talking about?
Samarth Khandelwal
We are undertaking? Expansion of.
Satyen J. Mamtora
Plant should be operational by end of quarter two.
Samarth Khandelwal
The 15,000 MBA expansion.
Satyen J. Mamtora
Yeah, yeah, yeah. The expansion of Moria plant should be operational by the end of quarter two.
Samarth Khandelwal
Okay.
operator
Thank you. The next question is from the line of Rajeshwara from Toltero investment advice.
Unidentified Participant
Yes sir, I have a small request. Please take the repeat questions at the last once the all people who are in line are finished.
operator
Okay. Okay. So no turn
Unidentified Participant
request. Please request participants to one question at one time.
operator
All right, sir. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference. Please limit your question to one per participant. The next question is from the line of Rajesh Vora from Sartoro Investment Advisors.
Unidentified Participant
Congratulations on a great set of results. I wanted to understand the competitive scenario. So on one hand the incumbent bunch are raising their capacity given the demand. And on the other hand there are new players who are also trying low voltage are entering into 400kV and higher voltage class. So I want to understand how does it move from in a couple of years of time and for new players particularly how long does it take for them to certify and start competing with players like us. So if you could take through that and positioning ourselves to deal with the competition, that would be great.
Satyen J. Mamtora
Rajesh. See, currently our unexecuted order book is 5246 crores. We have in live inquiries which are, you know, in finalization stage in the next two quarters. And we are hopeful that we should be ending our year with at least 5,500 crores order in hand executable for the next year. New competition is coming. Yes, but at the same time that competition has to have their PQs max as long as the PQs don’t meet, which will take at least another 18 months for them to meet PQs. So I don’t see there any change in the scenario in terms of P’s orders.
And also there is so much business and demand in the market that even with the new players that are coming in, not much effect is going to beyond established manufacturers.
Unidentified Participant
Yeah. So given the demand, how many players can it typically accommodate? Given the fact that it’s a seven year cycle as you’re seeing and with new players also entering, how many players can it accommodate?
Chanchal Rajora
As many as new players are coming. Demand is so huge right now.
Satyen J. Mamtora
And plus Rajesh, you also have to understand that when TNR is looking now, with all the expansion that we are doing and all the backward integration, we will have a certain advantage over the raw material cost of everything. Can we have that on the raw material cost and also the deliveries of the raw material? Definitely. We are going to be at a greater advantage than that.
Unidentified Participant
Got it? Got it. All right. Congratulations. I’ll get back in the queue. All the best.
operator
Thank you. The next question is from the line of from Iwealth. Please proceed.
Chanchal Rajora
I think she left.
Unidentified Participant
Hello? Yes, ma’. Am. Yeah, hi. Good evening. So congratulations on a good set of numbers. So my question was more on the gross margin side. So from the last two quarters. We’ve seen a bump up right from 30% to 35%. So what has led to this? And is this gross margin a new normal for us?
Chanchal Rajora
You can consider that.
Satyen J. Mamtora
We are on. An ongoing process of constantly upgrading our manufacturing facilities. We are in the process of, you know, manufacturing excellence. So yes, you can consider this as a new norm. But things will change as we become more efficient in terms of manufacturing transformers.
Chanchal Rajora
On the positive side.
Satyen J. Mamtora
On the positive side. Yes.
Unidentified Participant
Okay. So as and when CRGO comes a margin should improve even further.
Chanchal Rajora
Generally. Yes. But you know there are always tailwinds to the business.
Unidentified Participant
Okay. Okay. Because if this margin continues, you know, then with operational efficiency and all of that.
Chanchal Rajora
Yes. Operational efficiency improvement is an ongoing process which we do continuously.
Satyen J. Mamtora
It is a constant, ongoing process.
operator
Thank you. The next question is from the line of Priya Tabaria. Please proceed.
Unidentified Participant
Hi sir. Good evening. So there’s one question on the order inflows. We have seen kind of a 5% decline in terms of order inflow on a year. On their basis considering we have secured around 700 crores of orders. When we look at let’s say our peers specifically into this segment only they are. They have shown almost twice order inflow compared to us. And also when we. The second question is when we look at. Let’s say when we are targeting 5000 crores of order book. And lastly we have secured approximately around 525 crore for the domestic orders. So we will need approximately around 4000 crores of orders.
So have we lost any market share? And in the current quarter considering peers are showing a very strong growth in terms of order inflows. I just wanted a color on.
Chanchal Rajora
Yes. If you. If you have been following us our earning call in last earning call also MD sir has very category says that now we have become pick and choose in terms of the order. We are choosing the order considering what is the revenue margins we are making as well as what is the delivery time is there. So we are not going after every order and we don’t want to go that. So whenever as and when good opportunity comes we are taking in that. As far as the 5,000, 5,500 crore rupees order book is concerned. Please understand. I have right now 18,000 crore plus inquiries.
And which is every day is this building up. So if I take. If I. If I take 20, 25% of that also I’m reaching to that numbers also. And it is again on me that how much number we can take into that. And please also understand that in this the Distribution transformers which our one unit make. We don’t have any inquiry of that because that is a cash and carry order book. So there is nothing like that that we are losing to anybody. Yes, we have become more smart in selection of the orders.
Unidentified Participant
Okay. So can I. Can I squeeze one more question please? Yeah. So. Thank you so much. So. So this gross margin expansion that we are seeing for the current quarter, that is first quarter, approximately around 200 bits of expansion. Is it a function of more of a. Let’s say kind of a scenario of pricing power or the raw material cost has been declined. Just wanted to color on this one. Thank you.
Chanchal Rajora
It is basically the combination of various factors. Price increase is also there. Operational efficiency is also there. And the better control on the raw material also there. This is there.
Unidentified Participant
Okay. Incremental order inflows. How has been the pricing scenario as of now
Chanchal Rajora
is the same levels.
Unidentified Participant
Okay. Okay. Thank you, sir. Thank you so much. I wish you all the best for the future.
operator
Thank you. The next question is on the line of Bhavya from Chris, pms. Please proceed.
Unidentified Participant
Hi sir. Congratulations for the good set of numbers. Sir. How much is the margins in the export order that we just won?
Chanchal Rajora
Margins are at the same level, sir, nowadays.
Unidentified Participant
Okay, answer. Out of the 18,000, 18,000 crores inquiry. How much will be the pipeline of exports? In the inquiry.
Satyen J. Mamtora
The size of the export should be around 25%. But the orders that you would aim at would be only 10% of the total turnover next year.
Unidentified Participant
Okay, understood. And what geographies
Satyen J. Mamtora
more than 10% of exports.
operator
Thank you. The next question is from the line of Saura Khara. Please proceed.
Chanchal Rajora
Sorry Sarah, I could not understand what you are trying to tell.
Unidentified Participant
What gives you the confidence that we will continue the current growth trend?
Chanchal Rajora
Yes sir, we are fully confident. And order book and inquiry reflects that also.
Unidentified Participant
So what is our current capacity utilization?
Chanchal Rajora
Last year, last year when we ended up in March we were at around 65% capacity level. And this year we are targeting to reach around 85 to 90%.
operator
Thank you. The next question is from the line of Abhijit Singh from Systematics. Please proceed.
Unidentified Participant
Yeah. Thank you for the opportunity. So my question is on the new product introduction that we are planning on. So in the last few calls we are talking about the green hydrogen transformers. And so one is how is that product panning out? How is the market response for that product? And how much sales order inflow and order book does it contribute to us? And apart from the green hydrogen transformer, is there any other new product or New category that we are planning to enter into.
Satyen J. Mamtora
See the green hydrogen transformers are currently at the R D stage. Because these are going to be large transformers. So we are currently under R D stages to make them financially viable. That project to make them financially viable. Such large transformers will still take some time but they are currently in R and D stage.
Unidentified Participant
So any stand that you can give right now, understand maybe for the next one or two years the market may be limited but going forward, let’s say because we are also anticipating strong demand for the magazine. So in that context, can this be really big for us in the next four, five years?
Satyen J. Mamtora
I seriously understand your questions. Please repeat your question.
Unidentified Participant
My question is what can be a target addressable market for green hydrogen transformer in let’s say next four to five years?
Satyen J. Mamtora
See, the financial viability of the project is going to be the governing factor on it. So we really can’t estimate how big the market is going to be. However, what we are planning and what we have been doing which we could touch around 500 to 550 crores in terms of transformers.
Unidentified Participant
That’s helpful. So last on the exports strategy. So if I’m not wrong, we formed about 10% of contribution from exports, is that correct?
Satyen J. Mamtora
Yes.
Unidentified Participant
Okay. So we are basically focusing more on the domestic market as of now because of the huge demand that is coming up.
Satyen J. Mamtora
Yes.
Unidentified Participant
All right sir, thank you for answering the question.
operator
Thank you. The next question is from the line of Aditya Garwan from. Fine, please proceed.
Unidentified Participant
Yes sir, I just wanted to ask that. Is there any slowdown in inquiries under negotiation? Like in the Q4 we had an inquiry under negotiation of somewhere around 22,000 crore. Whereas it is somewhere around 18,000 crore rupees right now.
Satyen J. Mamtora
And also it is 18,000. Sorry.
Unidentified Participant
Yeah, yeah, 18,000 crore. And on the order inflow side in the Q4 we had an order inflow of roughly around 2200 crores. And over in the Q1 it is 665 crore. So is there any slowdown in the order inflow side that we are seeing in the overall space or is it just the seasonal factor?
Chanchal Rajora
No, this is not a slowdown. These are long drawn projects with large gestation periods. So it is not that it will go on a uniform basis. So some procedural minus, it can happen. 18,000 itself is a large number. So I mean beyond that, beyond 10,000 numbers it is such a large number that some plus event can happen. So this is no indication of.
Satyen J. Mamtora
And historically if you see in quarter one and quarter two the order book is normally slow and once quarter three comes order book starts picking up.
Unidentified Participant
Okay. Okay, answer. Any plans for moving to HVDC? Like in the previous con we said. For that we are looking for 1200 KBSI. So is there any.
Satyen J. Mamtora
We are still exploring. Nothing concrete as of now. Whenever we will have something concrete. We. Shall let you know.
Unidentified Participant
Yes. Thank you so much. Thank you so much.
Chanchal Rajora
Thanks Aditya.
operator
Thank you. The next question is from the line of Amit, an individual investor. Please proceed.
Unidentified Participant
Yeah. Thank you for the opportunity. My question is like in our 3500 course of earning this year, how much will be coming from USA? And we have a vision of $1 billion revenues by FY28. Whether the carriage imposed by the term can affect our vision of 2020 from FY28.
Satyen J. Mamtora
We currently have no inquiries from us and we are very wary of, you know, getting any inquiries from us or so there is nothing that that can harm us either way.
Chanchal Rajora
Also, just for your information, this transformer comes under the strategic list of everywhere in the world. So nothing is going to impact.
Unidentified Participant
Thank you.
operator
Thank you. Due to time constraints. That was the last question. I now hand the conference over to the management for the closing comments. Over to you, sir.
Satyen J. Mamtora
I would sincerely like to thank each and every one of you for taking time to join us today. For your continued trust in our journey. We hope we have addressed most of your inquiries and we look forward to many more meaningful interactions with you in the future. Thank you.
operator
Thank you on behalf of Antec Stockbroking. That concludes this conference. Thank you for joining us. And you may now disconnect your line.