Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
Transformers and Rectifiers (India) Ltd (NSE: TARIL) Q4 2026 Earnings Call dated Apr. 21, 2026
Corporate Participants:
Satyen Mamtora — Managing Director
Mehul Shah — Chief Financial Officer
Analysts:
Vikram Datwani — Analyst
Balasubramanian — Analyst
Deepak Poddar — Analyst
Raj Sara — Analyst
Yashrati — Analyst
Sharma — Analyst
Aditya Vora — Analyst
Presentation:
Operator
Ladies and gentlemen, Good day and welcome to Transformers and Rectifiers India Limited Q4 and FY26 conference call hosted by Noama Wealth Management Limited. This conference call may contain forward looking statements about the company which are based on the beliefs, opinions and expectations of the company as on date of this call. These statements are not the guarantee of future performance and involve risk and uncertainties that are difficult to predict. As a reminder, all participant line will be in the listen only mode and there will be an opportunity for you to ask question 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. I now hand the conference over to Mr. Vikram Vikram Dhatwani from Noama 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 Q4FY26 ZAL’s conference call of Transformers and Rectifiers India Limited. We are joined today by Mr. Satyan Mamtora, Managing Director and CEO and Mr. Meun Shah, CFO. I would now like to hand over the call to the management for the opening remarks. Thank you. And over to you sir.
Satyen Mamtora — Managing Director
Good evening ladies and gentlemen. I am Satyan Mamtara, managing director and CEO of Transformers Electrified India Limited. Thank you for joining us today for our FY26 earnings call. We are pleased to connect with you as we close another year with a remarkable performance in terms of all key parameters and happy to share our performance highlights both for Q4 and full year. As you are aware that our board of directors had approved the audited financial results for the quarter year ended 3132026 and the same has been uploaded on our website of stock exchanges along with investors presentation.
The financial year 2025 and 26 has further strengthened Dariel’s position as a leader in transformer industry as the company achieved robust operational and financial performance through operational efficiency, process excellence, effective financial management, strategic growth initiatives and technological development and strong corporate governance. This has resulted in two second successive year of giving record Breaking revenue and profitability numbers, we have achieved highest ever production in the company’s history manufacturing 33763 MVA up from 229118 MVAs in FY26.
This is directly translated into record high revenue growth supported by strong execution and healthy diversified order book. This year we have been intentionally selective in taking new orders as now the company has decided to take orders which are more lucrative in terms of profitability, payment terms and flexibility in delivery times. We deliberately moderated fresh order intake during the year to align with extended deliveries, delivery schedules and capacity planning. In spite of that, our total order inflow FY26 stood at INR 2,374 crores.
This robust inflow has resulted in an executed order book of 5,000 plus crores as of March 31, 2026 ensuring clear revenue visibility for the next 18 months. During the year, the company has received HVDC transformer repair order from PGCR which makes Tariff the first Indian company to get an order of such nature. We are highly energized by this order as it will pave the way forward for Tariff’s entry into HVDC sector upon successful completion of this order. Such types of orders strengthens the company’s position as industry leader and enhances customer trust.
We are pleased to inform you that all our fully automated datatime facility has got approval from pgcr. Now we have initiated the process of getting our tank manufacturing facility approval from pgcr. Also, apart from our capacity expansion at Changod and Moraya, we are also ramping up our testing facility to cope up with the higher number of transformers at those plants. As you are well aware that we have tested a record number of transformers during FY26 both in terms of MBA in total units. Underscoring our internal capabilities of streamlined operations, the backward integration journey is well on course.
Site readiness is progressing well in the plant and machinery orders for the long lead items have already been placed. This backward integration along with technological tie up will enhance our in house capabilities, reduce our dependency on external sources and improve our supply chain resilience. We have already started getting CRGA from our newly acquired CRGA processing unit. So all in all, backward integration journey is well on track and to deliver its results in the very near future. These steps will further increase our margin profile by 150 to 200bps.
Looking ahead as we transition into FY27, our focus remains firmly on strong order book execution through continued operational efficiency, leveraging our expanded capacity, further consolidating our resources and sustainable improving margins. Our long term vision to become 1 billion revenue company within next few years remains intact and we are confident of achieving through consistent execution, customer centric innovation and robust financial discipline. Our strategies include strengthening backward integration, investing in automation and digital transformation, focusing on clean sustainable energy solutions in line with India’s power sector ambitions.
With strong fundamentals, industry leading capabilities and high quality orders in pipeline, we are well positioned to navigate the the opportunities and challenges of the coming year. On behalf of the entire leadership team, I extend my heartfelt gratitude to all our stakeholders, customers, employers, suppliers, board members and investors. Your continued trust and support remains the cornerstone of our journey. Together we are building a future ready organization that not only leads in the transformer industry but also contributes meaningfully to India’s evolving energy landscape and Vixit Bharat by 2047.
Thank you once again for joining us today. I now hand over the MIC to our CFO Mr. Mehul to take you through the financial performance of the company in greater detail. Thank you. Jayeer
Mehul Shah — Chief Financial Officer
Yeah Good evening to everyone who are present over this investor con call to discuss Quarter 4 financial year 26 financial performance of the company. Thank you Satan sir for your insight for leadership remark and for setting the strategy context right for the current quarter. It gives me a great pleasure to discuss with you all our quarter four financial year 26 performance, a quarter that clearly reflects the strength of our execution capabilities, resilience of our business model and the benefits of strategic initiative that we have been implementing over the past several quarters.
I am pleased to report that Quarter four has been a strong quarter for the company which is showing consistent improvement across all the key financial parameters. Revenue on the standalone basis from the operations stood at INR 752 crore as compared to INR 740 crores of quarter 4 25. The growth was driven by the higher capacity utilization, timely execution of order, improvement in supply chain management. The momentum seen during the last couple of quarters will give us confidence for the next quarters of consistent improved performance.
EBITDA for the quarter came to rupees INR 117 crore with the margin of 15.1%. The margin is slightly down due to additional increase in the employee cost on account of ESOPs. Profit after tax stood at INR 77 crore reflecting not only the strong operating performance but also the disciplined financial management across the organization. Revenue on the standalone basis for the full financial year stand at INR23.95 crore as compared to INR 1950 crore for the full financial year. EBITDA for the year come at around 370 crore with the margin of 15.1%.
Profit after tax stood at around 225 crore with the margin of 9.2%. Further, on the consolidated basis, revenue for the quarter stood at 783 crores against INR 737 crore. During quarter four financial year 25 EBITDA stood at INR 141 crores and PAT at 91 crores. On the basis of full financial year consolidated number revenue is 2509 crore up from 2019 crore. EBITDA stood at INR 444 crore and PAT is around 272 crore. Importantly, quarter four also marks a turning point in terms of consistent growth with margin sustainability.
We are very much confident of maintaining the improved margins due to our capacity expansion, backward integration plan and structure, marginal margin improvements. The backward integration facility and the developments are expected to further enhance the cost efficiency and reduce external dependency over the medium term. Looking forward, we enter the next financial year with strong visibility of our order books. New capacities coming on board starting of our backward integration projects. Our order book remains robust.
Execution pipelines are healthy and the plant utilization levels are expected to remain for the full financial year. Before I conclude, I would like to express my sincere appreciation to our team across operation finance supply chain projects for the relentless focus and execution excellence. I would also like to thank our board and investor for their continuous trust and support as we work towards 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 are now happy to take your questions. Thank you.
Questions and Answers:
Operator
Thank you so much sir. We will now begin with the question and answer session. Anyone who wishes to ask a question and one on the touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. The first question comes from the line of Avikshit Vijay from Global Consultant Research. Please go ahead.
Vikram Datwani
Yeah, hi. Am I audible?
Mehul Shah
Yeah. Yes. Yes
Operator
You are.
Vikram Datwani
Yeah, sure. When I was seeing the results, I can see that the cost of materials consumed has increased a bit disproportionate to the revenue. And I’m guessing that this is because of the copper price surge due to the hormone disruption. Could you throw some more light on what other raw materials is disrupted due to this harmless closure?
Satyen Mamtora
Avixit. See, mainly copper is slightly disturbed. Other than that not because of hormuz issue but because of overbooking. For all other like ancillary parts like bushings and stuff, there is a slight disturbance. Plus you know the porcelain is made in gas fired clean gas is also becoming slightly problem. So there is, there are certain issues that we are facing because of hormones, but not very much.
Balasubramanian
Okay, sure.
Vikram Datwani
And one more thing is that we are foreign into hvdc. And I wanted to understand the competitive landscape in HVDC from you. I’ve seen that lot of MNC players are really in the thing. What is the competitive advantage that we have?
Satyen Mamtora
So there are only four major players in hvdc. Hitachi, Siemens, GE and I think tba. But FTBA is not able to compete in with us. In the other tenders only three major competitors are there. Other than that we are the only players who are who will be entering into hvdc.
Vikram Datwani
I’m sorry but I couldn’t quite decipher what the competitive advantage was.
Satyen Mamtora
HVDC is a very highly technical product. And because of the limited number of players in this HVDC side, you know, the margins are also better in hvdc.
Vikram Datwani
Okay, sure. I was also reading Siemens’s con call that only about like 1 to 210 tenders are floated every year for HVDC. So what are our odds on getting that contract compared to these four players that you just mentioned?
Satyen Mamtora
So yes, currently there are only about one to two tenders of hvdc. But going further, the number of tenders that are going to be in pipeline should be around 10 to 12. Each tender should have about three units of HVDC. So there is a good scope in HVDC in the near, in the future, coming future. And by that time we will also be successfully empanelled in HVDC transformers.
Vikram Datwani
Okay, yeah. Thank you very much.
Operator
Thank you. Our next question comes from the line of Vaibhav Mishra from Finvestor. Please go ahead.
Vikram Datwani
Hello sir. Good evening sir. My question is regarding this West Asia conflict. I mean how can it affect or is it affecting us in any way like supply chain or from the delivery side? Are we affected in any way from this?
Mehul Shah
No, basically see if you look at our export number etc, there is very minimal export that what we are currently doing. And from the West Asia region there is a very minimal import that has been coming to India for us. So there is no major impact as far as this conflict is concerned.
Satyen Mamtora
So the only issue that we are looking at is availability of gas for which for our fabrication units and stuff like that. But we are mitigating those issues also.
Vikram Datwani
And sir, regarding the guidance mate, actually in the last three quarters, I think this is the second quarter where we have missed our guidance like revenue guidance of I think 2600 crores in three call. It was told and also order book, it was very confident. He said that closing order book will be 8,000 crores but still 5,000 crores. So what is leading to this recently? I mean the drill, I mean has the history of not missing its guidance. So what is happening? I mean for the last two, three quarters.
Satyen Mamtora
So see, we are deliberately not taking orders currently because we want, as we have previously told that we want to limit our exposure to not more than 18 to 24 months. And we want to be very selective in which orders we take in terms of delivery and in terms of the price that we quote. So we are being extremely selective of what orders to take. And we do not want to take any order which is beyond 24 months of delivery. So that is where we stand at right now. As long as we do not, we are not free for next 24 months.
We do not want to take any further orders.
Vikram Datwani
We
Satyen Mamtora
Want to be extremely selective in for this.
Vikram Datwani
I think this stand was in the last call itself and that we were selecting
Satyen Mamtora
Our stand that we do not want to take any orders that are beyond to 24 months.
Vikram Datwani
Answer our backward integration plans that we have for the next time in Q1, Q2 to the three Q4, four quarters, are they on track? I mean is there any change in timelines of them?
Mehul Shah
No, no. That is all is on track. We already started. The site preparation plant machinery which is having a higher lead time has already been ordered. So by say starting of next financial year you will start the impact of this backward integration plans that we have.
Vikram Datwani
All right. One last question, sir. Regarding FY27. So the, the revenue target that we have in mind for FY27 or the, I mean consolidated margins that we are targeting for.
Mehul Shah
So I think as of now we have not say finalized what we will be looking at but we can, what we can say is around 3250 crores is what we are looking at currently.
Vikram Datwani
All right. Okay. Thank you so much sir. And all the best for the future. Thank you.
Operator
Thank you. Our next question come from the line of Bala Subramanian from Arian Capital Market. Please go ahead.
Balasubramanian
Good evening sir. Thank you so much for the opportunities. So I’m trying to understand gross margin side. In FY26 we have a gross margin of 31%. Sorry 31, 32% kind of range. We are trying to reach 35% by FY28 and 40% with deeper integration. So I’m trying to understand like how this cross margin improved in terms of rip pushing internalizations, CTC internalization, CRG sourcing efficiency and price increases. Which simple item contributes the most weightage. If you could share some clarity on that.
Mehul Shah
Yeah. So basically currently you are right. We are at 30 31% margin. And due to this capacity expansion that what we are doing at our Changodar and Morehouse project plus the efforts that has been done to do the operational efficiencies, etc. This will give us some margins in terms of next say two to three years plus the backward integration plans which will start from the next financial year which will also give us some say 200 to 300 pips of additional margins. So that’s how we are looking at around say 35% margin.
Vikram Datwani
I found
Balasubramanian
This on
Vikram Datwani
The web.
Balasubramanian
Yes sir, I think already mentioned we are on track on for backward integrations. So I’m trying to understand. I think we have a 60% increasing capacity of MEA and how this I think the industry issues not remain resolved in terms of supply constraint. So whether we have all the sourcing agreements or MOU already in place for the incremental CRGO pushing around the CTC volumes.
Satyen Mamtora
Yes, we already have agreements in place sir.
Balasubramanian
Okay sir. Okay. So my last question if you would help us understand and furnace transformers, renewables and green hydrogen on that furnace transformer side we have seen only market size, only 200 to 300 crore despite having high technical barriers and low competitions. Why the addressable market is so small. And like whether we can expect substantial growth in those areas. And secondly renewable side, the margins are I think at lower level for renewable transformers and solar transformers typically lower margins.
Whether we can able to see the margin improvement or volume improvement in those areas. And thirdly, green hydrogen. Yes sir,
Satyen Mamtora
Go on. We go on with your question.
Balasubramanian
Yes sir. Green hydrogen side, I think we have not started any projects or any supplies. I’m trying to understand whether when we can expect a demand from for green hydrogen side especially like any specific policy or project milestone or any tender awards or any state pipeline approvals are in place.
Satyen Mamtora
So as far as renewable transformers for renewable energies is concerned, see with our backward integration and with our manufacturing 75,000 manufacturing capacity our purchasing power becomes significantly high. So the margins improvement there are going to be very high. I completely understand that right now that there is not much margin improvement. There is no much margin improvement there. But with the backward integration and with purchasing power of 75,000 MBA, there should be a substantial decrease in our purchasing price.
So this is going to affect our margins effectively. Green Hydrogen, the projects are still not coming up live. We are also working at a few prototype transformers which need to be short circuit tested and short circuit tested done some testing. So as soon as the projects come up live we will, we will start getting some feedback on the Green Hydrogen transformers. Transformers will see some improvement as the steel industry in India starts moving at a faster pace.
Balasubramanian
Okay sir. Okay. Thank you.
Satyen Mamtora
Thank you. Moderator, can we limit to one question per person please? Otherwise everybody won’t get a chance.
Operator
Sure. Ladies and gentlemen, in order to ensure that the management will be able to address all the questions from the participant, we request you kindly limit your question to one question per participant. If you have a follow up question, please rejoin the queue. Our next question comes from the line of Deepak Podar from Sapphire Capital. Please go ahead.
Deepak Poddar
Yeah, I’m audible sir.
Satyen Mamtora
Yes, you are audible.
Deepak Poddar
Yeah. Thank you very much for this opportunity. I will ask two questions, very quick questions. So sir, our capacity got delayed, right? This Chand Godar plant now, now it’s slated to start by second quarter, right?
Satyen Mamtora
So extended monsoons was one of the biggest reasons in terms of delay in the usefulness of the plant.
Deepak Poddar
Okay, okay, okay, understood. And, and when is Moria plant expected to come on stream?
Satyen Mamtora
More plant we are planning after this year’s monsoon.
Deepak Poddar
So by 3QFY27.
Satyen Mamtora
Yeah, yeah.
Deepak Poddar
Okay. So ideally then your first half growth will be quite muted, right? Because already you. No, no,
Satyen Mamtora
See more. Yeah, we still have, we have. Plant is working at about 75% efficient plant utilization. So we are working on maximizing that plant utilization before we start anything else.
Deepak Poddar
Okay, understood. And, and what’s the capex involved? I’m sorry to
Operator
Interrupt you sir, but please rejoin the queue. Just
Deepak Poddar
A follow up. Yeah,
Operator
You may rejoin. Thank you. Our next question come from the line of Ashish from Leo Capital. Please go ahead.
Vikram Datwani
Yeah, so I had a question regarding the how the industry works. So how fungible is installed MBA capacities across voltage classes. Can capacity allocated to let’s say 220kv be redeployed to higher kv or vice versa or are they largely dedicated voltage specific lines?
Satyen Mamtora
So see basically the capacity, there are three things that would, you know, from 400 we can go down to 220. From 220 we will not be able to go up to 400 if the plant is not designed for 400. So let’s say testing facility, crane capacity, winding machines capacity. There are four, five items which because of which you know from 220 going up to 400 is going to be a challenge. But coming down from 400 to 220 is easy. So it’s not vice versa. But from 400 to 220 it can be done from 400. From 220 to 400.
As long as plant is not designed for 400kv it will not happen.
Vikram Datwani
Okay, so to summarize, let’s say someone has a distribution transformer capacity in MBA that can’t be scaled to a EHV220,400. What are the limitations exactly?
Satyen Mamtora
Crane capacity, let’s say the building, the height of the building, testing facilities, there are many factors. Winding machine capabilities, there are many factors that, that will affect it.
Raj Sara
Okay, okay, okay. I got. Thank you. Thank you. I’ll return the queue for my next question.
Operator
Thank you. Next question comes from the line of Sharma from Equinix Capital Venture. Please go ahead.
Vikram Datwani
Hi sir. Am I audible? Very good evening.
Operator
Yes.
Vikram Datwani
Yeah. So my question is on your industry side like due to the extended monsoon approval delays in overall industry transmission in the industry. So are we seeing any slowdown in the CapEx or is it temporary like one or two quarter execution still over?
Mehul Shah
No, no, there won’t be any delay as far as capex plan is concerned.
Vikram Datwani
Okay. And we are not facing any delay dispatching any order?
Mehul Shah
No.
Vikram Datwani
Okay,
Operator
Thank you. Our next question come from the line of Vineet from Thoro wealth managers. Please go ahead.
Vikram Datwani
Hi sir, good afternoon.
Mehul Shah
Good afternoon.
Vikram Datwani
So my question is around the supply enhancement that has been going around in the entire power value chain. Right. Like most of our vendors as well in the transformer value chain are enhancing the capacities. So I just wanted to if like what’s our, what’s our view on like if we can negotiate with our suppliers when they have increased capacity.
Satyen Mamtora
Sorry Vidik, we didn’t understand your question.
Vikram Datwani
I’m asking in this phase where the capacities are being announced by most of our vendors, what is our position in negotiating on prices with our suppliers?
Satyen Mamtora
See Vineet, honestly there is still hand to mouth in terms of most of the items that transfer manufacturing is concerned. So we can only negotiate in terms of delivery time for each equipment, each product that we need. That is one of the basic negotiations that that can happen currently.
Vikram Datwani
So the demand is so strong that only we can negotiate on the delivery timelines and all that more or less the same.
Satyen Mamtora
Yes.
Vikram Datwani
Thank you.
Operator
Thank you. Our next question Come from the line of Yash Gupta from Ashit Kotecha family office. Please go ahead.
Vikram Datwani
So my first question is on the capacity. Could you please help us understanding the trajectory of our upcoming capacity addition. Is it reasonable to expect that around 50% of the utilization will come by H2FY27? And how should we think about capacity expansion plan over next two to three year and how cash flow will be placed from it?
Mehul Shah
Yeah, see basically from Changodar facility will be up and running from this a quarter two. And after that we will take up the this more. Yeah. Plant expansion. So after these two plants the capacity would be say from 40,000. It will go up to 75,000.
Vikram Datwani
And how our utilization will be for the second half of FY27 and 28.
Mehul Shah
It would be upcoming capacity. Yeah, upcoming capacity. Changodar will start from the in H2 but initially it would be low since it is a new plant etc. But from this a next financial year it would be running at around 75, 80% capacity.
Satyen Mamtora
So I think by end of quarter three we should be almost at 80% capacity in Changodar plant.
Vikram Datwani
But do you think it will impact our EBITDA margin in the first half and maybe Q3?
Mehul Shah
No,
Vikram Datwani
Because
Mehul Shah
See our orders are already in the pipeline and we are working on that. So that won’t be in any impact. It would be in fact definitely the quarter three numbers would be will be on a higher side because of these new capacities. But this say first half the numbers would not be affected by this.
Satyen Mamtora
And yes, like we said before, we are very selective in what orders we want to take. Right now we are not taking any orders that are beyond 24 months. So being selective on the number, the type of orders that we are taking, you know there is not going to be any effect on the EBITDA of the company.
Vikram Datwani
So sir, higher in Q3 means in terms of higher margin or in the amount you are talking about?
Satyen Mamtora
Both. Not margin but in terms of revenues. Revenue.
Vikram Datwani
So margin will be this only 16.5 to 17%. Yeah,
Satyen Mamtora
Yeah. Margins will remain at 16.5 to 17%.
Vikram Datwani
Okay, sure. Thank you sir.
Operator
Thank you. Our next question comes from the line of Yashrati from Mangal Keshu Service. Please go ahead.
Vikram Datwani
Good afternoon and congratulations on good set of numbers. I wanted to show
Yashrati
We are going backward integration on the CTC plant itself. So just wanted to understand would that also require
Vikram Datwani
Additional PGCR approval if we are using that for the capital purposes into our 465 and moving forward when we get HODC approval as well. We will be using our CTC for the capital purposes. So how the PGCI approval would look like.
Satyen Mamtora
So PGCL approval will definitely be needed. And the plant that we are putting up for CTC and the plan that we will be putting up for pressboard. Both these plants are world class plants. So we have already taken into account what all PGCR requires for approval of the plant. And since it is our own captive consumption the approval becomes very easy in terms of from pgcr.
Yashrati
Can I. Can we just get some timeline on the sale and also
Satyen Mamtora
Getting approval from pgcr?
Yashrati
Yes,
Satyen Mamtora
I think within the month of starting the production capacity we should get the approval. See as it is pgci, PGCR and we are also facing some issues regarding the deliveries of CTC conductor. So it is of utmost importance of PGCL also to make sure that they have one more bandlet in India which delivers CTC production.
Yashrati
Okay. And just one more thing on the CTC front itself. So it won’t cater to our whole production for the transformers. So how much we would still look to outsource or it would be enough to for our annual transform manufacturing capabilities.
Satyen Mamtora
So the current plan. Plan is to cater to 100% need of T and R and going forward with certain more expansion we will be also looking at selling in the market. Third party selling also. We will be doing
Vikram Datwani
Okay. Understood. Thank you so much.
Satyen Mamtora
So we will basically be also CTC suppliers to other types of manufacturers.
Operator
Thank you. Our next question comes from the line of Shubham Damsuna from Think Site Advisory. Please go ahead. Yes.
Balasubramanian
Any update on the World bank issue?
Satyen Mamtora
We have. We have given our MEUSA will give you a reply.
Mehul Shah
Yeah. So as for the timelines etc. We have filed the reply to the World bank and we are awaiting the any response also. And recently also we have filed that before taking any decision etc. We should be given an opportunity to be heard in person. So we are awaiting the feedback from the World bank on this.
Balasubramanian
Okay. So when can we expect a reply?
Satyen Mamtora
I think it should. It should be closed in 45 days. That’s what our belief is.
Balasubramanian
Okay. Thank you.
Satyen Mamtora
Thank you.
Operator
Thank you. Our next question comes from the line of Abhijit Singh from Systematics. Please go ahead.
Vikram Datwani
Yes sir. Thank you for the opportunity. So my question is on hvdc. What is the scope of our offering in the HVDC scope overall? For example the OEM typically has about 45 to 60% of the overall project cost. So you mentioned that you will be able to supply three to four units in A substation for hvdc. So what is the scope and percentage of the overall project cost for HVDC for us?
Satyen Mamtora
We didn’t understand your question. Please can you come come back again?
Vikram Datwani
Yes sir. I mean out of the total project cost for an hvdc, what is our scope? What is our scope? So let’s say we are supplying Houd transformer, right? Three to four units per project.
Satyen Mamtora
Yeah. What
Vikram Datwani
Is that? As a percentage of overall capex of the project?
Satyen Mamtora
That should be around 40% of overall CapEx of the project.
Vikram Datwani
Right sir. Because
Satyen Mamtora
It is going to be the largest equipment and the most expensive equipment in the project. So around 40% should be our, our cost.
Vikram Datwani
Right sir. And so when do we expect the approval for PGCI for this particular product?
Satyen Mamtora
So once we’ve successfully repaired this transformer given back back to pgcil after six months of working in satisfactory condition, PGCR will start the process of approving us as one of the HVDC manufacturers in the country.
Vikram Datwani
Right? Sir, just one last thing. I’m sorry but
Operator
Please rejoin the queue for more question.
Vikram Datwani
Sure.
Operator
Thank you. Our next question come from the line of Prathamish Salon K from PL Capital. Please go ahead.
Vikram Datwani
Hi sir. Thank you so much for the opportunity. Sir, my question is again on the HVDC space. I just wanted to understand now that we are supply. Now that we plan to supply only the equipment, the HVDC transformers in the, in the projects and it may take some time for the approvals to come in. And at the same time I recall in the last few, last few calls management had mentioned that we are not really doing LCC or vac. We are trying to. We are trying to come up with our own technology. So for next two, three years all the projects that are in the pipeline have already been established whether as an LCC or VSC project.
So how will Tarrell will be able to, you know, compete for these projects against the established mnc?
Satyen Mamtora
What is LCC
Vikram Datwani
Technology of the hvdc? LCC and vat?
Satyen Mamtora
So we are coming up with our own process of get hvdc.
Vikram Datwani
Yeah. So sir, my question was the same since major. There are two, three projects in the pipeline, right? For next two to three years. So all those two or three projects have already been decided whether they are coming with LCC technology or VSC technology. So if the projects are coming in LCC and BSE and we are not supplying either of these technologies, how will Tarrell will be able to participate in this tenders? So basically we will have to wait for A project in for next four or five years before we can participate.
Is that the right understanding?
Satyen Mamtora
No, that is not the right. And there are other projects that are coming up with EPC contractors also where we will be participating.
Vikram Datwani
Okay, so these projects will the EPC contractors these projects will not primarily come from a player like pgcl. Is that right? No,
Satyen Mamtora
Yeah, yeah, yeah.
Vikram Datwani
Call that. All right. Thank you. Thank you so much.
Operator
Thank you. Our next question comes from the line of Raj Sara from Finvistus. Please go ahead.
Raj Sara
Yes. Yeah.
Vikram Datwani
Thank you very much for giving my opportunity. So I I’m tracking and I’m investing in the company since last 2 and a half years. I appreciate the journey if the Terry has going through but certainly from last four years what I’m seeing that there is a delay in some projects. If I compare the Investor presentation of FY25 and now FY26 on the Chairman’s comment so what I can see that the capex all capex has been delayed by at least one year and all the backward and all the integrations are also delayed with the same timeline and even the guidance of the delayed.
And when I watch interview which is given by your director finance Mr. So that he guides on television and what we come through the conference call there’s a very significant difference in these two outcomes. So I want your take on that.
Satyen Mamtora
So what are you exactly referring to if I may ask? Are you talking about the order input,
Vikram Datwani
Sir? There are numerous things, sir, like ordering flow. What you are mentioning that we are very concerned about the margins and the quality of the order we are taking. Despite questioning on the same line productive finance he then confidently on TV interviews putting the number of 8,000 and close to 7,500 order book closer by FY26. The first thing, the second thing the projects or capexes we are right now executing the timeline of the project is right now delayed by at least one year. All the projects or more.
Yeah. And the third thing is the on the margin front, okay. What we are expecting as an investor from last one year that all the projects which are right now being done will increase the margin. Whereas what we are going through even in the last this Q4, the recent concluded Q4 the fact that we are having a greater number on the top line the margin is still consistent which we would have liked that it could have become the best margin of the year.
Satyen Mamtora
So as long as the outlook on the margin we have always maintained that the margins will remain at 15 to 16%. We have never changed that in terms of the Order book. Yes, we have miscalculated the orders that were supposed to be coming to us. And like we say, we are very careful in selecting which orders we really want to execute. Because right now the market is such where we can be slightly choosy about what orders to take. As far as the new projects are concerned. There was a delay because of extended monsoons which has delayed the project by 1/4.
Vikram Datwani
Answer on the guidance side also sir, initially, when I will once
Satyen Mamtora
Again reiterate that orders input will, will be very selective and we will make sure that, you know, we do not take orders that are beyond 24 months. Will give you an answer. Yeah.
Vikram Datwani
So the top line which was guided in the commencement of FY26 was 3500 which was reduced media after a very subdued Putin that was again told 2500-2600 and even on the third or fourth March and director finance came on television and he retreated the guidance that we are very sure that we will be closing above 2500. So this 100 crore guidance is okay. But the confidence which has been shown initially in the year and right now the tone of the management in this Q4 conference call is not matching.
Mehul Shah
Yeah, that’s true that initially we have targeted that number but that has been later on realized and we have categorically come up and revise that guidance during the quarter two conference call.
Vikram Datwani
So my point is that sir, we are doing very phenomenally well. Let, let us be. It’s up to user be conservative and deliver more rather than being. We have, we
Satyen Mamtora
Have realized, Raj. We have realized this. And that is why this year we have given out outlook of 3250 crores, not beyond that.
Vikram Datwani
Yes, thank you very much. Sir, I’m concerned about the company because I’m invested for last two and a half years. Thank you very much.
Satyen Mamtora
Sure. Sure Raj.
Operator
Thank you. Our next question come from the line of Karan Gupta from AC Mil. Please go ahead.
Vikram Datwani
Yeah, yeah. Audible.
Sharma
Yes.
Vikram Datwani
Yeah. So my question is more on the margin side. Considering the competitive bidding in the industry, what will be the margin on a bitter level console basis over two to three years. So this one thing is the competitive bidding in the industry and the second thing is that you are doing backward integration and you’re seeing 2 to 3% kind of lever in the margin you can get. So my point is in the next two to three years what will be the margin side? It will be compensated by the backward integration we are doing or it will improve further from the mark of 16, 17%.
Mehul Shah
Yeah. See as we are saying that the margins will remain in the range of say 15 to 17% as currently. And through this backward integration coming up you may see some increase in that number
Satyen Mamtora
About 200 to 300 bps.
Vikram Datwani
Okay. And what about the cash flow side, the working capital compared to that by 25 to 26 receivables and part inventory, part doubled I think. So what we are doing for this working capital side, how we are getting mitigated this time?
Mehul Shah
Yes. Compared to Our financial year 25 numbers this definitely the receivable number and inventory numbers are high on the receivable side. I think due to this last minute say March numbers we have missed certain collections. So in the first year less 15 to 16 days time we almost collected around 200 odd crores. So there are some delays as far as the utilities is concerned because their budgets etc has away by March. So they have released the payments in the new financial year.
Vikram Datwani
Okay.
Sharma
So basically payment is got delayed.
Mehul Shah
Yeah.
Operator
Okay, thank you. Our next question come from the line of Dikshant from DB Wealth. Please go ahead.
Vikram Datwani
So you mentioned that we are looking at alternative sources for our gas which will help us continue our production. What is it that we are doing to mitigate this risk right now so that our production can ramp up?
Satyen Mamtora
So we had invested a few years back in some laser cutting technology. We have also invested in plasma cutting technology. So all that is coming coming online. And you know this gas crisis has helped us improve our efficiency on those cutting CNC machines.
Vikram Datwani
So instead of using gas as a power source we will be using electricity as a power source.
Satyen Mamtora
Yes. Yes, that is correct.
Vikram Datwani
Is there any other way that we can make sure that we don’t hit into any problems for expanding our capacity? Because now that we are going to a new phase of expansion this seems to be a risk that seems to be very likely.
Satyen Mamtora
What is the risk? We are talking about? The gas risk are you talking about?
Vikram Datwani
I mean anything that is going to make our production capacity go down or our capability to deliver go down. Gas is one of it, right?
Mehul Shah
No, no, no. There is no issue as such for the utilization of the capacities.
Vikram Datwani
Okay sir. We
Mehul Shah
Don’t see any risk in utilization of the capacities.
Vikram Datwani
Okay sir. Thank you so much.
Operator
Thank you. Our next question come from the line of Aditya Vora from Soham amc. Please go ahead.
Aditya Vora
Hello. Hi. Good evening. Sir. I had a question on margins. You alluded to the fact that I think 15, 16% is a good number to look at currently structurally. I just wanted to understand that most of our Peers in spite of being in low KV class are doing superior margins to us and also that they are not backward integrated. So what is the reason for our margins to be at 15, 16% where majority of the peers are 18, 19 and even 20% to some extent. So that was the understanding which I wanted. And also at a time when the transformer industry is at an explosive growth, shouldn’t we be getting better margins and faster growth?
Mehul Shah
Yes, this backward integration margins is yet to come into the picture. So this we are talking, this margins say of 15, 17% is without this any margin improvement in terms of backward integration. But
Aditya Vora
No, no, I understand what we’re trying to say. But the peers also don’t have backward integration. That is one. And secondly what I’m trying to highlight is that peers are in relatively lower margin, lower KV class while you are predominantly 220 and above. So you know 220 and 400 is what you are targeting. While if I look at majority of our peers we are getting to 220 or 400. In fact if you look at recently caught into 400 volt amp and others are getting there. So ideally our margins structurally should be much higher than them.
And I’m assuming even their backward integration, leaving aside to Atlanta, the backward integration is the same as us. So I don’t know why our margins are at only 15% structurally.
Mehul Shah
Yes sir, that’s the reason why we have stopped. We are very selective in terms of taking orders etc. Going forward. So you as you must have seen this orders we must be executing which we have taken say 12 months 15 months back. And that is the major reasons why we have decided that yes, we will not take any orders which is coming our way. And we will be very selective in terms of margins etc as well as the delivery schedules etc matching with our production line. So that is the reason why we would be selective and our margins will improve.
Aditya Vora
Okay, sure. And just one thing on, on your guidance going forward. Would you like to give any guidance for FY27 in terms of growth percentage? If not the absolute number
Mehul Shah
It would be roughly around say 35, 40% growth in terms of revenue.
Aditya Vora
Okay. And order book any, any sense on that considering you curtailing incremental order inflow to focus on the quality of order.
Satyen Mamtora
I think if you do 3250 crores we will be, let’s say. I don’t know. So
Mehul Shah
Rather than putting these numbers we would be like to restrict ourselves to. We, we will take the order say up to 24 months.
Aditya Vora
Okay. Okay. And 35 to 40% is the revenue growth what you’re talking for FY27.
Mehul Shah
Yes.
Aditya Vora
Okay. Sure sir. Thank you sir.
Operator
Thank you. Our next question comes from the line of Sagar Gandhi from Invesco mutual fund. Please go ahead.
Sharma
Yeah. Sir, my question is on the inquiries under negotiation PowerPoint presentation. That is 23,000 crores that you mentioned. Now you highlighted you are looking at orders only under 24 months. So of this 23,000 crores how much is 24 months?
Satyen Mamtora
After quarter one there should be around 18,000. MV order inquiry. That will be in 24 months.
Sharma
Thank you sir. And sir, you confirmed that the receivables that have gone up by around 410 crores of 200 crores of this 410 crores have come in the first 15 days of April.
Satyen Mamtora
Yeah. Yeah.
Sharma
That has happened, right?
Satyen Mamtora
Yeah.
Sharma
Yeah. Thank you. Thank you so much, sir. And that is it from my moderator.
Satyen Mamtora
We would like to take last few questions please.
Operator
Sure. Next question comes from the lineup. Nimil s shaft an individual investor. Please go ahead.
Vikram Datwani
Yeah. Good evening sir. Thanks for taking my question. So my question would be on the order book mix. So recently we’ve seen a good amount of orders coming from the state util from the government utilities. So could you tell us that out of the outstanding order book of 5000 crore how much percentage consists of this utility players and how much is the private portion?
Satyen Mamtora
So let’s say around 55% will be utilities, 20% will be EPC contractors and remaining all private customers.
Vikram Datwani
Okay. So got it. And another now with backward integration facilities in place which will be coming into effect from the first half of FY27 and by and latest by FY28. So that would lead to shorter lead times and also give us some cost advantages. So would we be approaching more private players who still prefer Chinese suppliers for transformers or we’ll stick to this mix?
Satyen Mamtora
No, we would be approaching many private customers. But provided we are getting. Deliveries and order inflow is going to be quality of the order inflow is going to be the key area of focus in the next year.
Vikram Datwani
Okay, got it. Thank you very much.
Operator
Thank you. So we’ll be taking the last question from Sashi Ranjan from Anandan Capital. Please go ahead.
Vikram Datwani
Good evening team. Thank you for the opportunity that we have order book of around say 5000 crore across. So in previous discussion we also learned that we were not able to pass on to the rising cost because the orders, the orders that was there was older one. So we couldn’t revise upon the increased status. So how many such order book that we have which are not giving us more margin out of that 5,000 crore rupees?
Satyen Mamtora
I think everything that has been there we have already executed. So now we have since last six months we have been very critically analyzing every order that we want to take. And we are very selective in taking orders. So none of the orders that are in this 5500crores have any issues in terms of our margins or cost.
Vikram Datwani
And last one sir, if you may allow, what is the current capacity that we are running at and how far we intend to pull this capacity utilization in next two quarters?
Satyen Mamtora
So we are currently running at around 75% capacity which should go this year. We should go at around 95% capacity.
Vikram Datwani
Thank you so much sir. Thank you for the question.
Operator
Thank you. Ladies and gentlemen, due to time constant. That was the last question. Any pending question may be sent to the Transformer and Rectifiers India Limited investor relations team and they will get back to you with that. I’ll hand the conference over to the management for the closing remarks. Thank you. And over to you team.
Satyen Mamtora
Thank you once again for joining us today. I extend my heartfelt gratitude to all our stakeholders, customers, employees and board members and investors and all of you who have attended this investors call. Thank you very much everybody.
Operator
Thank you so much sir. Ladies and gentlemen, on behalf of NOMA Wealth Management Limited that concludes this conference. Thank you for joining us and you may now disconnect your lines.
Satyen Mamtora
Thank you.