Transformers and Rectifiers (India) Ltd (NSE: TARIL) Q3 2026 Earnings Call dated Jan. 08, 2026
Corporate Participants:
Satyen Mamtora — Managing Director
Chanchal Rajora — Chief Financial Officer
Analysts:
Vikram Datwani — Analyst
Unidentified Participant
Manish Ostwal — Analyst
Samarth Khandelwal — Analyst
Tushar Pendharkar — Analyst
Vedant Sarda — Analyst
Aakash — Analyst
Amankumar Jain — Analyst
Sandeep Agarwal — Analyst
Anupam Goswami — Analyst
Venkatesha rj — Analyst
Nikhil Abhyankar — Analyst
Balasubramanian — Analyst
Chirag Shah — Analyst
Aman Bansal — Analyst
Kushal Kasliwal — Analyst
Viren Sameer Deshpande — Analyst
Deepak Poddar — Analyst
Presentation:
Operator
Ladies and gentlemen, good evening and welcome to the Transformers and Rectifiers India Limited Q3 FY26 Conference Call, hosted by Nuvama Wealth Management 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. [Operator Instructions] Please note that this conference is being recorded.
I now hand over the conference to Mr. Vikram Datwani from Nuvama Wealth Management Limited. Thank you, and over to you.
Vikram Datwani — Analyst
Thank you. Good evening, everyone. On behalf of Nuvama Institutional Equities, I welcome you all to the third quarter FY26 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 of Finance.
I would now like to hand over the call to the management for their opening remarks. Thank you, and over to you, sir.
Satyen Mamtora — Managing Director
Good afternoon, ladies and gentlemen. A very warm welcome to all of you, and thank you for joining us today for Q3 FY26 earnings call. I’m 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 the 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 FY26, the Company delivered revenues of INR704.21 crores with an EBITDA of INR114 [Phonetic] crores. The performance during the quarter has been exceptional and marks a clear inflexion 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, a significant milestone during the quarter was the receipt of an exceptional 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 consciously moderated fresh orders intake. This was a 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 INR8,000 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 FY26-’27, followed by a pressboard facility in quarter three FY26-’27 and RIP bushing plant in quarter four FY26-’27 along with the first phase of our fabrication facility, during the same period.
I am happy to share that the civil work of all these facilities has already been commenced, and equipment orders are firmly in place. These initiatives will significantly enhance our in-house value addition, reduce external dependencies, and improve cost efficiency over the long and medium terms.
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 FY26-’27, while Moraiya is expected to be operational in quarter two FY26-’27. These expansions will support higher volumes, improved execution flexibility, and enable us to cater to the strong demand visibility we see across all our order pipelines.
For the full financial year, we remain confident of delivering at least 25% revenue growth over FY25. We are targeting revenues of approximately INR2,600 crores along with an EBITDA margin of around 16%. This confidence is underpinned by strong execution visibility, a 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 eight days of quarter’s close, reflecting our processes discipline and commitment to best-in-its-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 a future-ready organization with the ambition to emerge as a global leader in the transformer industry.
I now shall invite Chanchal to take you through the financial performance in greater detail. Chanchal, please.
Chanchal Rajora — Chief Financial Officer
Good evening, everyone. Thank you, Satyen, sir, for your insights, for leadership remark, and for setting the strategic context up for the quarter. It gives me the great pleasure to address you that today, as we discussed, our quarter three FY26 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 the standalone basis from the operation stood to INR704 crore as compared to INR428 crore of quarter two FY26. 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 comes to INR114 crore with the margin expanding to 16.18%. The margin improvement was preliminarily led by the better operating leverage, a higher share of execution from the healthy margin orders, and early benefits of the cost optimization. Our profit after tax stood INR71 crore, reflecting not only the strong operating performance but also the disciplined financial management across the organization. Further, on a console basis, revenue of the — revenue for the quarter stood INR737 crore against the INR460 crores during Q2 FY26. EBITDA stood to INR129 crores and PAT to INR76 crores. 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 term. Looking forward, we enter into 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 FY26, we’ve been confident of delivering the revenue of around INR2,600 crore 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 towards building a strong, more resilient, and future-ready organization.
With that, I conclude my remarks. Thank you once again for joining us today. We’re now happy to take your questions. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Anvikshit Vijay[Phonetic] from Global Consignment Research. Please go ahead.
Unidentified Participant
Yeah, hi. Am I audible?
Satyen Mamtora
Yes.
Unidentified Participant
Yes. Thank you for the opportunity. So, I just had a few questions in mind. Last quarter, I remember you telling that we had about a deferment of INR100 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 normalization we’re looking at going forward?
Satyen Mamtora
Vijay, it was not INR100 crore, it was INR70 crore. INR70 crore to INR72 crore. All right?
Unidentified Participant
Okay.
Chanchal Rajora
That benefit, we’ve got it in this. But also, we are around INR40 crore of the same revenue which we could not able to take in this quarter also.
Unidentified Participant
Okay, sir. Okay. Thank you so much. And one more question on that. And if we are targeting a $1 billion revenue by FY28-’29, it means that we are targeting about 48% CAGR and top line from the current levels. Can you help us understand what will drive the growth from here?
Chanchal Rajora
Look Vijay, we have been guiding about the $1 billion or INR8,000 crore revenue for FY28-’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 INR4,500 crores — INR5,500 crores under exhibit order book. And by the close of this year, we will be having around INR8,000 crore of order book in hand. And we expect the same growth in coming years. And that is driving us for that.
Unidentified Participant
Okay, sure. If I may just squeeze in one more question. May I?
Chanchal Rajora
I would appreciate if you can join again because there are lots of people in the line.
Unidentified Participant
Okay, sure. Thank you so much.
Chanchal Rajora
Thank you.
Operator
Thank you. The next question is from the line of Manish Ostwal from Nirmal Bang Securities Private Limited. Please go ahead.
Manish Ostwal
Yes sir. Thank you for the opportunity, sir. My question on the — our order book and the inflow number. So I’m confused with that number. So, like, it is mentioned Q1 number. Because Q1 is also INR665 crore only. So is it a typo error, or you can confirm this quarter three order inflow was INR665 crore only?
Satyen Mamtora
It is INR665 crore. There’s no typo error.
Manish Ostwal
There’s no typo error? Okay. Sir, if you look at the order book of last quarter, it is INR5,478 crore, and we executed the order revenue in this quarter INR737 crore. So if you knock off that and take the closing order book, the order inflow works out to INR708 crore. So why there is a mistake in the mathematics?
Chanchal Rajora
So this is not the mistake in mathematics. Basically, when we do the order book we have — 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.
Manish Ostwal
Okay. And lastly, sir, on this order book — order pipeline, which was in quarter four was INR22,000 crore, now it is INR16,500 crore and the YTD basis compared to last year nine months versus this year nine months, 18.4% decline. The order pipeline is down by 25%. So, how do you see the visibility, and where will we be ending the order book, sir? That’s my question. Last one.
Satyen Mamtora
Manish, we have — as I pointed out in my speech also, we are taking a deliberate decision that we shall pace ourselves in taking in inflow of orders so that you know we do not have our order book beyond 18 months. We want to limit ourselves to an order book of 18 months. Beyond 18 months, it is not very viable because we have seen in the past also we have 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. So, we have been pacing ourselves in terms of taking orders and also pacing ourselves in terms of new capacity that is going to come. So we are very confident that with the — when we close this year, we will have INR8,000 crore order book in hand.
Manish Ostwal
All right. Thank you very much. Thank you.
Satyen Mamtora
Thank you.
Operator
Thank you. The next question is from the line of Samarth Khandelwal from ICICI Securities. Please go ahead.
Samarth Khandelwal
Am I audible?
Satyen Mamtora
Yes.
Samarth Khandelwal
Congratulations on the HVDC repair order. May I know, going ahead, once we complete the order, which technology of HVDC would we be bidding for?
Satyen Mamtora
It will be our own HVDC, indigenously made HVDC. So currently we are repairing this transformer. And once we have — to pre-qualify for any tender that comes in future. So once we repair this transformer, and it has successfully been commissioned, we shall qualify for our own technology of HVDC.
Samarth Khandelwal
So right now, there is LCC and VSC-based. So it will be a different one from that?
Satyen Mamtora
Yes.
Samarth Khandelwal
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.
Chanchal Rajora
29:56 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 — 1,200 MVA. So that is our capacity at this moment. And 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.
Samarth Khandelwal
Okay. Thank you. And sir, lastly, how does the prices or increase in the commodities will affect our margins going ahead?
Chanchal Rajora
We have the price variation…
Satyen Mamtora
Most of our orders are protected by price variation clause. So we shall be protected, but it is again one of them — one of the reasons why we do not want to book ourselves beyond 18 months.
Tushar Pendharkar
Okay.
Satyen Mamtora
So we are protected with price — IEEMA price variation clause. So there is no problem there. But we still want to protect our — we still want to not take orders beyond 18 months.
Chanchal Rajora
Basically, the reason behind that is that we don’t want to block the capacities at present when we see the good business at the higher margins. So we just want to leverage on that.
Samarth Khandelwal
Okay. Thank you. And all the best, sir.
Satyen Mamtora
Thank you.
Operator
Thank you. The next question is from the line of Vedant Sarda from Nirmal Bang Securities Private Limited. Please go ahead. Hello, Mr. Vedant, please go ahead.
Vedant Sarda
My all questions have been answered. Thank you.
Satyen Mamtora
Thank you.
Operator
The next question is from the line of Aakash, an Individual Investor. Please go ahead.
Aakash
Good afternoon, sir. Congratulations on very good results. Sir, I wanted to…
Satyen Mamtora
Thank you, Aakash.
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 named that the Chinese companies would be allowed in power sector or maybe allowed to participate in the electricity or power sector related bids. So my question, I think at this stage, it will be difficult for you to come in whether that comes through or not. But my question is on the price competitiveness. Like how well we are positioned domestically and globally. And how do you see if this rumor becomes factualized in a few months, how well prepared…
Satyen Mamtora
Aakash, from what I have read, the Chinese companies will still have to manufacture in India. So there is only one Chinese manufacturer by the name of TBA who is operating in India in the transformer industry and they are pretty much booked themselves with orders from Adani and Reliance and other companies, other EPCs. So I don’t see there much — that much affecting us in the long term or in the short term.
Aakash
Right, sir. And sir, my second question was on the leave of Mr. Mukul Srivastava, his resignation coming through, and Mr. Satyen Mamtora taking it forward. So what is the management plan going forward? Like would Mr. Satyen continue or would you look for external resources for hiring?
Satyen Mamtora
We shall — 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.
Aakash
Thank you, sir. My all questions are answered.
Satyen Mamtora
Thank you.
Operator
Thank you. The next question is from the line of Amankumar Jain from Finwave Global Opportunities Fund. Please go ahead.
Amankumar Jain
Hello. So sir, congratulations on a strong set of numbers.
Satyen Mamtora
Thank you, Aman.
Amankumar Jain
In the last earnings call, you mentioned a shortage of bushings that led to supply chain disruptions.
Satyen Mamtora
Yes.
Amankumar Jain
You have indicated that your new facility is expected to become operational around June this year. So could you share what capacity you are targeting initially?
Satyen Mamtora
So we’re targeting — you’re talking in terms of number of bushings or KV rate — KV or bushings.
Samarth Khandelwal
Both, sir.
Satyen Mamtora
So we are — 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. And we are close to about 7,000 bushings in the first year of operation.
Amankumar Jain
Okay. And, sir, also, as per my understanding, acceptance and qualification of such critical components usually takes significant time. So, how should we think about ramp-up and customer approvals in this context?
Satyen Mamtora
I think there is one caveat there. If we start getting our bushings tested, and it is just a test — type test that we have to do. So if our bushings pass all those type tests, we should be approved by all mates[ Our OIP bushings currently are approved by almost all electricity boards and PGCR also. So getting RIP bushing approval is not going to be very difficult for us.
Amankumar Jain
Okay. And…
Satyen Mamtora
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. So, we have all that wherewithal also in terms of transformers — in terms of bushings.
Amankumar Jain
So, up until what time do we expect an optimal capacity utilization?
Satyen Mamtora
By the second year of operation, we should be at 60% to — 70% to 80% of capacity utilization.
Amankumar Jain
Okay sir. Thank you. That’s it for my end, sir.
Satyen Mamtora
Thank you.
Operator
Thank you. The next question is from the line of Sandeep Agarwal from Naredi Investment Private Limited. Please go ahead.
Sandeep Agarwal
Hello. Thanks for the opportunity. Sir, my question is what is our cash flow position for nine months? And six month cash flow operation is the — cash from the operations is minus INR34 crore. So what is our cash flow position?
Chanchal Rajora
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 INR30 crore to INR35 crore is on the — we are on positive. Apart from that, we have around INR275 crore of the cash deposits with the bankers. So that way — we are quite okay in that way.
Sandeep Agarwal
Okay. Sir, my next question. What is the margin visibility in the next one to two years? Now, what is the visible margins…
Satyen Mamtora
Margins will stay stagnant at between 15% to 16%. We don’t see much variation in margin, though only variation that can happen is 1% or 2% in margins. That is in terms of our operational excellence that we are looking at. So that is the only way — place where we would be able to get a better margin. Otherwise, this 15% to 16% margins is where we will be at.
Sandeep Agarwal
Okay. And sir, just last…
Chanchal Rajora
Sandeep, I just add up into that. That 15% to 16% margins which what MD sir is mentioning, is on the product side, right? And once we will work out on a better operational efficiency and better leverage of the resources, the margin is going to be increased, as he said, by around 200 basis points.
Sandeep Agarwal
Okay. Sir, just a last question related to the industry. So what is the lag time between the — between order and supply? Just want to know. Currently, it’s three months, four months…
Satyen Mamtora
So currently, the lag time is close to between 24 months and — 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. So, currently the lag time is around 24 months.
Sandeep Agarwal
Okay. Thank you. Thank you, sir.
Operator
Thank you. The next question is from the line of Anupam Goswami from SUD Life. Please go ahead.
Anupam Goswami
Hi, good evening, sir. Congratulations on a good set of numbers.
Satyen Mamtora
Thanks.
Anupam Goswami
Sir, my first question is about the expansion in Changodar and Moraiya. I believe it has got delayed by further by one quarter now that we are saying the first quarter. And on that note, given the order book, shouldn’t we be able to execute the entire order book by — in one year, I mean in FY27, given our now expanded capacity by then.
Satyen Mamtora
It will take some time. Very honestly, you will get — you will expand the capacity in terms of manufacturing of transformers. Where will you get the CTC from? Where will you get the bushings from? Where will you get the CRGO from? All that, that capacity is still not fully capable to cater to whatever expansion that we are doing. So it will take time to gear up again for us to achieve what we want to achieve. The best thing for that is, put our backward integration plans to come into action very soon.
Anupam Goswami
So current order book is again about 18 months of execution time.
Satyen Mamtora
18 to 24 — 24 months. Not 18 months. 24 months.
Anupam Goswami
Okay. And, sir, just last question on this. You mentioned 15% to 16% margin. And then 200 basis points can improve up above that due to backward integration and efficiency?
Chanchal Rajora
Yes.
Satyen Mamtora
Yes, yes, yes.
Anupam Goswami
Okay. So hopefully by FY28 that I think the expansion will also come into good utilization, and that there we can see some…
Satyen Mamtora
Yes.
Chanchal Rajora
Yes, yes, yes.
Anupam Goswami
Okay, thank you, sir. I’ll join back in the queue.
Operator
Thank you. The next question is from the line of Venkatesha RJ [Phonetic], an individual research analyst. Please go ahead.
Unidentified Participant
Hello sir. Thank you. Thanks for giving me an opportunity. My only one question I have. How would that World Bank Debar think[Phonetic], can you throw some light on it? Because they had given a deadline till this — if I’m not wrong, till this January 15th or something like that. Thank you.
Chanchal Rajora
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 to queries by 12th of January. We are filing our reply in this particular week, probably today only we are filing the reply. And we hope that in the next two to three weeks’ time, this will be settled.
Venkatesha rj
Thanks a lot, sir. Thank you. That’s all, sir. Thank you.
Operator
Thank you. The next question is from the line of Nikhil Abhyankar from UTI Mutual Fund. Please go ahead.
Nikhil Abhyankar
Thanks for the opportunity, sir. Just one question. I’m not sure if anyone has asked. Sir, there are just reports coming in today that government is thinking of allowing Chinese imports and — for power equipments. So just wanted to understand your views on this. If there is any traction to this idea or is the government actually thinking of allowing Chinese imports?
Satyen Mamtora
Nikhil, so I just answered that question earlier. Probably you were not there on the queue. Under any circumstances, these Chinese manufacturers will have to make transformers in India. Currently, there is only one plant, one Chinese plant, which is making transformers in India. And that Chinese plant already has enough — is also fully booked for the next 16 months to 18 months. So I don’t think there is going to be a lot of variation in anything in terms of transformer manufacturing. And I also add Nikhil, if these rumors keep coming actually…
Chanchal Rajora
Then it’s not a rumor, it is come — it is.
Satyen Mamtora
They will also — they will also take — You know, 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 a product both. That will take time.
Nikhil Abhyankar
Okay. So, at least for one to two years, you believe that, that won’t be a problem?
Satyen Mamtora
Yes, yes.
Nikhil Abhyankar
Okay, understood. Thanks a lot and all the very best.
Chanchal Rajora
Thank you.
Operator
Thank you. The next question is from the line of Balasubramanian from Arihant Capital. Please go ahead.
Balasubramanian
Good evening, sir. I’m audible?
Satyen Mamtora
Yes, ma’am.
Balasubramanian
Yeah. Sir, like what is the current revenue contribution and the growth outlook for Transformer renewable and green hydrogen applications?
Chanchal Rajora
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. So 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, and once our Changodar facility will be in place, because we are putting up a dedicated line for there, then we have — we will have a major, higher portion of renewable energies from that.
Balasubramanian
Sir, my second question. Could you please share our working capital situation in Q3, and our goal is to be net debt-free in the next 18 months to 12 — 24 months. So what is that planned mix of operational cash flow or any equity rises or affect sales to achieve this net debt-free status?
Chanchal Rajora
Okay. As working capital is concerned, we are in a little better position than what we were in a quarter two H2. H2, we were having a working capital of around — say around 125 days or something. We are now nearly up to around 120 to 122 days time. And second portion is this net debt-free. Yes, 18 months to 24 months is the timeline, which we wanted to become net debt-free, and we are working on that. And first and foremost emphasis on that is to through the internal resources, right? And our working capital, understand — you need to understand one thing. It is a heavy capital intensive product. So working capital has to be a little bit higher side and particularly when we are importing the materials, then this will be on the little higher side. Though our goal is to reach 200 days level, but we will see that how do we reach into the levels. But yes, we will be keeping. By this year end, we should be some — we should be near to 120 days levels.
Balasubramanian
[Technical Issues] On the debt side, sir? Actually, our goal is to be net debt-free in the next 18 months to 24 months…
Chanchal Rajora
Yes, I said that, that is intact. We are working on that. We will be net debt-free in the next 18 months’ time.
Balasubramanian
Okay sir. Sir, my last question, I think only two qualified vendors for a certain specialty furnace transformer. And 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 is the pricing power of the qualified vendors?
Satyen Mamtora
So furniture transformers, the load rating on these furnace transformers is very different. So the furnace starts with very high power, high current, and the voltage is very less. So a lot of people avoid taking this risk and sudden jerks to the transformers. And that is the reason why — and the other thing is if a furnace transform fails, the whole furnace production goes zero. And 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 everybody else in. That is the reason why we are able to sustain in this market because of our credibility and quality of our transformers.
Balasubramanian
What is the opportunity size, sir?
Satyen Mamtora
Opportunity size is very skewed, not very big. But yeah, close to about INR200 crore, INR300 crores.
Balasubramanian
Okay, sir, got it. Thank you.
Operator
Thank you. The next question is from the line of Chirag Shah from ICICI Direct. Please go ahead.
Chirag Shah
Yeah. Hi sir, Just one question. As you mentioned that you will be ending with a FY26 backlog of INR8,000 odd cross, right?
Satyen Mamtora
Sorry, sir. I was not able to hear you clearly. What are you saying, sir?
Chirag Shah
I just want to understand that on one hand, you are saying that you’ll be ending with a backlog of INR8,000 crores by FY26. That is March 26, right?
Satyen Mamtora
Yeah. Close to about INR8,000 crores. Yes.
Sandeep Agarwal
Yeah, close to INR8,000 crores. And if I just look at the first nine months, order inflows have declined double digit. They’re approximately 700 — INR1,800 odd crores. And my closing backlog as of Q3 is INR5,400 odd crores. If I just do a back-of-the-envelope calculation, the implied order inflow minus your execution for 4Q implies the order wins of almost INR3,000 crore plus. So what gives us the confidence that we’ll be able to book such a big number in one quarter of the [Speech Overlap]?
Satyen Mamtora
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. But anyways, Chanchal will give you a better explanation on that.
Chanchal Rajora
Chirag.
Chirag Shah
Yes, sir.
Chanchal Rajora
If you see, basically, generally the most of the peer [Phonetic] issues, they come up with the requirement in quarter four traditionally. And quarter four has been always 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 have been seeing in last quarter, last year quarter, last year FY25 also, we got INR2,400 crore or INR2,500 crore of order, right, in one single quarter? So 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. So that’s the confidence what we have into that, right?
Chirag Shah
Alright, sir. The final question is more from a longer-term perspective, let’s say, next — for the next four years, five years. So we do have a target of $1 billion in terms of revenues. But 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 when at a stage where the industry will mature at some point in time, what will be the margin at that point in time? That’s it from my side.
Chanchal Rajora
Chirag, this question, we have been answering this question for quite some time. So first of all there, 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 seven to eight years’ time. And 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. So this is the thing.
And as far as TARIL is concerned, please understand we are — 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. So that is going to be the runway for the organization itself. And as far as industry is concerned, next 10 years, we don’t foresee anything problematic, and then the sustainable growth will come up.
Chirag Shah
Thank you, sir. That’s it from my side.
Operator
Thank you. The next question is from the line of Tushar Pendharkar from Ventura Securities. Please go ahead.
Tushar Pendharkar
Hello. Sir, thanks for the opportunity. Sir, in Q4 FY25 and Q1 FY26, we reported 35% gross market. And we believe that that was the normal margin because of the backward integration that happened. So, when can we achieve — can we take the FY27 as the year with the 35% gross happened.
Chanchal Rajora
It is FY28.
Tushar Pendharkar
Okay. And will it provide further room for expansion to 40% with the further backward integration?
Chanchal Rajora
Definitely.
Tushar Pendharkar
Okay. Thank you, sir. Thanks. That’s all from my side.
Operator
Thank you. The next question is from the line of Aman Bansal from PESP [Phonetic]. Please go ahead.
Aman Bansal
Hello. Am I audible?
Chanchal Rajora
Yes, Aman.
Satyen Mamtora
Yes, Aman.
Aman Bansal
Yeah. Congratulations on the amazing sales numbers, sir. All of my questions have actually already been answered. So — Yeah. Thank you.
Chanchal Rajora
Thanks. Thanks, Aman.
Satyen Mamtora
Thank you, Aman.
Operator
Thank you. The next question is from the line of Kushal Kasliwal from InVed Research. Please go ahead.
Kushal Kasliwal
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 INR160 crore. And then there was this INR70 crore also — I think this question was also earlier asked in this con call. So sir, if we add both these figures, roughly INR230 crore worth of orders were going from Q2 to Q3 this year. So if we remove that INR230 crore worth of orders, our Y-o-Y growth is actually not — actually is in negative, right?
Chanchal Rajora
Kushal, I think you have misinterpreted what we said in last time about the CTC. What we said is, it is not INR160 crore, we said 16 numbers of the job — jobs CTC that got stuck in port, right. So 16 jobs were got stuck in then. That is two in the month of May and June. So which has received in the month of July and then the production started coming place. Understand one thing that we — that has affected in our revenue of the Q2 as well as on the Q3 also. Because when the jobs get over almost there for 25 days at the port, we could not able to move the next jobs from the China and Korea. So that is why this has got the cascading effect on all the things, right?
And around INR70 crore which you — which were basically booked into the system order, but — because in the system, but indices does not allow us to take into the revenue that is affected. So actual effect is — was only INR70 crore for that quarter. And the same kind of effect we are also facing up into this quarter of around INR40 crore, INR45 crore also.
Kushal Kasliwal
So net-net, there is around INR30 crore of revenue which has come from — so if I remove this INR30 crore, then also our growth rate has…
Satyen Mamtora
INR30 crore is a windfall from the past quarter.
Kushal Kasliwal
Okay. I think I get what you’re saying. I think my next question was around the CTC and CRGO situation. I think last time we said that the CRGO situation was from prices as well as supply was limited. So has that solved now? Has that become normal?
Satyen Mamtora
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 is, it is always a work in progress for all transformer manufacturers.
Kushal Kasliwal
Got it. Got it. Sir, on just your backward integration efforts, I think you were doing in-house CTC manufacturing and a couple of more things, radiators and all. So will that backward integration effort also work for our HVDC transformer demand or will — for HVDC, we’ll have to like change the — we cannot use the backward integration…
Satyen Mamtora
It will work for all sorts of and all kinds of transformers.
Kushal Kasliwal
Okay. Even the CTCs also.
Satyen Mamtora
CTC also. Except for the bushing, I think all transformers. Everything in the transformer, yes.
Kushal Kasliwal
Okay. Sir, just last point on HVDC. Sir, when do you expect to meaningfully see demand from HVDC transformer?
Satyen Mamtora
So once we’ve repaired this transformer and we have — it has been commissioned successfully, we should see PGCL approving us for manufacturing these transformers.
Kushal Kasliwal
And then the orders are expected post ’27?
Satyen Mamtora
Post ’27? Yeah, post ’27. Yes.
Kushal Kasliwal
Got it. Got it. Thank you, sir. Thanks.
Operator
Thank you. The next question is from the line of Viren Sameer Deshpande from Alphapeak Investments. Please go ahead.
Viren Sameer Deshpande
Hello, sir. Congratulations for the good results.
Satyen Mamtora
Thank you.
Viren Sameer Deshpande
We had — last last quarter was a horrible one for not only the business but that World Bank issue. But I think the management has — 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. So if you are filing today, do we expect it to be solved very quickly, as you mentioned, in two weeks, three weeks?
Satyen Mamtora
Very honestly, Viren, we do not know what the World Bank process is but we should get something sooner.
Viren Sameer Deshpande
[Foreign Speech] Actually that doesn’t affect us financially; that was true. But unnecessarily some corporate governance issues et cetera. The market has — the share price indicated that there was a big fear on that issue. But hope you people are in a position to sort it out very quickly.
Satyen Mamtora
Yeah. We are working towards getting it resolved.
Viren Sameer Deshpande
Good. And regarding these expansions which we have been mentioning, someone was saying — you mentioned that everything, all the expansions which are as per our plan and the production expansions, et cetera, will take place about — almost we will be having said 70%, 75% growth in our production capacity in the next year?
Satyen Mamtora
No, our plant utilization will reach around 85%. Plant utilization is what we said, that it will reach 85%.
Viren Sameer Deshpande
By next year end?
Satyen Mamtora
Yeah, by next year.
Viren Sameer Deshpande
[Foreign Speech] Including the expansions? Because you mentioned some 30% [Speech Overlap]
Satyen Mamtora
Yeah, including the expansion. Including the expansion.
Chanchal Rajora
Expansion will.
Viren Sameer Deshpande
Expansion in Q1, I think you will be having some 15,000 MVA, and in Q2, you mentioned 22,000 MVA?
Chanchal Rajora
Yes, yes, yes.
Viren Sameer Deshpande
[Foreign Speech] So 37,000 MVA will be added in the next first half?
Chanchal Rajora
Yes.
Viren Sameer Deshpande
[Foreign Speech] So that when compared with the current capacity of 50,000 MVA, it translates to 74%. So is my understanding correct?
Chanchal Rajora
Sir, my current capacity is around 40,000 MVA. And with the new expansion, we will reach to the 75,000 MVA.
Viren Sameer Deshpande
Okay, very good. And 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. So let us keep this tradition, and the market will always reward this type of gestures.
Chanchal Rajora
Thank you, Viren. This is the organizational effect and efforts which is being paying off us.
Viren Sameer Deshpande
And in this capex also which we are having for this expansion and for the backward integration, when do we expect this backward integration to be completed?
Satyen Mamtora
So the backward integration for the CTC plant, as I had mentioned in my [Indecipherable], one is CTC plant in quarter one, FY26-’27. Moraiya expansion will be in FY26-’27 quarter two. Bushing will be quarter four FY26-’27, and press board will be in quarter three FY26-’27.
Viren Sameer Deshpande
Okay. So next year ending, almost all the things will be completed. So ’27-’28 will be the financial year…
Satyen Mamtora
All our projects will be completed. Yeah, all our projects will be completed.
Viren Sameer Deshpande
Okay. So after that, we expect about 2% growth in margins also.
Chanchal Rajora
Yes, sir.
Satyen Mamtora
Yes.
Viren Sameer Deshpande
Okay. Thank you, sir, and all the best.
Satyen Mamtora
Thank you. Thank you.
Chanchal Rajora
Thanks. Can we take the last question please?
Operator
Thank you. The last question is from the line of Deepak Poddar from Sapphire Capital. Please go ahead.
Deepak Poddar
Yeah, I’m audible, sir?
Satyen Mamtora
Yes, Deepak.
Deepak Poddar
Yeah, so most of my questions have been answered. Just a few things. Now you mentioned FY27 end INR8,000 crores order book. Given the execution in fourth quarter and current unexecuted order book of INR5,500 crores. So we expect around INR3,500 crores of order inflow in the fourth quarter, right? Would that be the right understanding?
Satyen Mamtora
Yeah, that would be a fair assumption.
Deepak Poddar
Okay. And given that you mentioned that even INR2,500 crores we have done in last year fourth quarter. So this is something which looks achievable to you or…
Satyen Mamtora
Yeah, it is absolutely achievable.
Deepak Poddar
Okay. And what will drive this order? I mean, can you throw some light? How…
Satyen Mamtora
We have quoted in many tenders, close to about INR16,000 crore tenders, most of these are on the verge of finalization. And the other thing is they are also thinking that beyond 18 months, they also do not want to expose themselves. So they are also trying to control, pace themselves in placing the orders.
Deepak Poddar
Okay. But generally, our order book — I mean whatever INR8,000 crores we are targeting…
Satyen Mamtora
This is only — this orders — not taking orders or not getting awarded for orders is only a question of pacing the awarding orders.
Deepak Poddar
Okay, okay. And then the execution timeline of this INR8,000 crores, which we are expecting to be closing by FY ’26 [Phonetic], would be around what? 18 months to 24 months.
Satyen Mamtora
Approximately…
Chanchal Rajora
24 months.
Satyen Mamtora
At max it should be 24 months, not beyond 24 months. We are trying to limit ourselves to 18 months.
Deepak Poddar
Okay, understood. And given this year we are looking to grow about, what, 20%, 25%, right? From next year onward, I mean the CAGR that we need to grow to FY [Phonetic] to a $1 billion or INR8,000 crores of 45%, 50% CAGR, is that what we are targeting from FY27 number?
Chanchal Rajora
Sir, that is right. And 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 thing. So those two are the major contributors going to play in that goal, sir.
Deepak Poddar
And all these are coming from first quarter till fourth quarter, right, I mean in part?
Satyen Mamtora
Yeah.
Deepak Poddar
That you already mentioned. So what would be our optimum revenue potential on this capacity? I mean both 77,000 MVA and plus your CTC and bushing capacity that is coming through. So, at 80%, 85% utilization, what sort of revenue potential do we see?
Chanchal Rajora
The $1 billion or INR8,000 crore revenue is actually we are guiding based on these and all the efforts what we are doing.
Deepak Poddar
Okay. So, once you fully utilize all this capacity, INR8,000 crores kind of a top line is achievable.
Chanchal Rajora
[Foreign Speech]
Deepak Poddar
And just my last thing on the industry side. I mean what sort of growth we are looking at the industry level. If you can throw some light on that.
Chanchal Rajora
Sir, world industry — 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%.
Deepak Poddar
India is growing at 15%?
Chanchal Rajora
[Foreign Speech]
Deepak Poddar
Understood. That would be from my side, and I would like to wish you all the very best. Thank you so much.
Chanchal Rajora
Thank you, sir. Thanks a lot for joining us.
Operator
Thank you. Ladies and gentlemen, that was the last question for today. I now hand over the conference to the management for the closing comments.
Satyen Mamtora
Thank you once again for joining us today for our — 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.
Chanchal Rajora
Thanks a lot.
Operator
Thank you very much. On behalf of Nuvawa Wealth Management Limited, that concludes this conference. Thank you for joining with us today, and you may now disconnect your lines.
Satyen Mamtora
Thank you.