Transformers and Rectifiers (India) Limited, also known as TARIL, reported strong business growth in Q2 FY27, supported by higher manufacturing utilisation, improved order execution and rising demand for power infrastructure. The company also reported a substantial increase in its order book, providing visibility for future revenue.

Consolidated revenue from operations reached approximately ₹739 crore, increasing around 61% year on year. Sequentially, revenue also rose significantly, reflecting stronger execution across the company’s manufacturing operations.

Consolidated net profit was approximately ₹81 crore, compared with around ₹37 crore in the corresponding quarter last year. This represents growth of roughly 118%. The sharp increase in earnings indicates that higher business volumes and operating leverage supported profitability.

On a standalone basis, revenue from operations reached approximately ₹709 crore, up 66% year on year and 27% quarter on quarter. Standalone EBITDA increased to ₹114 crore, rising 203% year on year and 53% sequentially.

Standalone EBITDA margin improved to 16.1%, compared with 8.8% in Q2 FY26 and 13.3% in Q1 FY27. Better capacity utilisation and operating leverage helped improve profitability as revenue expanded. The sustainability of this improvement will depend on product mix, input costs, execution efficiency and the timing of new orders.

For H1 FY27, standalone revenue reached approximately ₹1,268 crore, up 35% year on year. EBITDA increased 47% to around ₹185 crore, while EBITDA margin improved to 14.6% from 13.4% in the first half of the previous financial year.

The company’s unexecuted order book stood at approximately ₹7,237 crore as of September 30, 2026, representing growth of 32% year on year. Management indicated that this order book is expected to be executed over approximately 18 to 24 months, providing meaningful medium term revenue visibility.

Order inflow during Q2 FY27 reached approximately ₹1,169 crore, up 97% year on year. The increase reflects demand for large power transformers, autotransformers and reactors. However, order inflow can vary between quarters, so investors should assess the trend over several periods rather than rely on a single quarter.

The company also reported an order pipeline of approximately ₹21,000 crore under negotiation. Around 80% of these opportunities were domestic and 20% were export related. These are potential orders, not confirmed revenue, and their value to the business will depend on successful bidding, commercial terms and eventual execution.

A significant development was TARIL’s entry into the nuclear power segment. It secured its first order for generator transformers for NPCIL’s Kaiga Units 5 and 6. Entry into nuclear infrastructure can expand the company’s addressable market, although delivery requirements and technical standards are demanding.

The company also received orders from Megha Engineering and Infrastructures and a letter of intent from APTRANSCO. Subsequent orders from Damodar Valley Corporation and GETCO further expanded its order pipeline. These projects cover multiple transformer and reactor categories, diversifying the sources of demand.

Power transmission and distribution investment is a key opportunity for TARIL. Rising electricity consumption, grid upgrades, renewable energy integration and expansion of industrial infrastructure can increase demand for high capacity transformers and related equipment.

The transition toward renewable energy also creates a need for stronger transmission networks and grid stability equipment. Transformers and reactors are essential components in these systems. The opportunity for manufacturers depends on project commissioning schedules, utility capital expenditure and timely delivery of equipment.

TARIL is nearing completion of its manufacturing expansion at Changodar, with commercial production expected to begin around the Diwali period. Additional capacity should help the company execute its growing order book and support future revenue expansion. The financial benefit will depend on how quickly the new facilities reach productive utilisation.

Backward integration projects are also progressing. Greater control over selected components and manufacturing processes could improve supply reliability, cost management and production planning. However, these investments require capital and must deliver sufficient operating benefits to justify their cost.

The company reported successful completion of dynamic short circuit testing on three transformers. This technical milestone demonstrates progress in validating product performance under demanding electrical and mechanical conditions. Such testing can strengthen customer confidence, particularly in technically complex projects.

TARIL established a subsidiary in the United Kingdom to strengthen customer support and expand its presence in the UK and European markets. Management indicated that the longer term plan could include local assembly and sales capabilities, potentially developing into a regional manufacturing base.

Export expansion can broaden the customer base and reduce reliance on domestic projects. However, entering new markets requires compliance with local standards, service infrastructure, competitive pricing and effective working capital management. Investors should monitor whether international expansion translates into meaningful orders and profitable revenue.

The company’s standalone debt stood at approximately ₹575 crore at the end of September 2026. The debt to equity ratio was around 0.35 times, while cash and cash equivalents were approximately ₹77 crore. Management also referred to funding flexibility from unutilised QIP proceeds earmarked for backward integration and capital expenditure.

As manufacturing capacity expands, working capital will remain important. Transformer projects can involve lengthy production cycles, milestone based payments and inventory requirements. Delays in customer approvals, component availability or project delivery could affect cash conversion even when reported revenue and profits are growing.

Investors should also watch the impact of copper, steel and other input costs, as well as the company’s ability to pass cost changes through to customers. Large transformer orders may have long execution periods, making procurement discipline and contract terms important to maintaining margins.

Management expressed confidence in achieving its FY27 guidance and maintaining its growth plans. The key priorities include accelerating execution of the existing order book, ramping up expanded manufacturing capacity and progressing backward integration initiatives while maintaining profitable growth.

Overall, TARIL delivered strong revenue and profit growth in Q2 FY27, alongside a larger order book and improving standalone operating margins. Its entry into nuclear power, manufacturing expansion and international ambitions create additional growth opportunities. Future performance will depend on execution quality, capacity utilisation, order conversion, cash flow and the company’s ability to sustain margins as operations scale.

Highlights in Short

• Consolidated revenue rose approximately 61% year on year to ₹739 crore.
• Consolidated net profit reached approximately ₹81 crore.
• Standalone revenue increased 66% to ₹709 crore.
• Standalone EBITDA surged 203% to ₹114 crore.
• Standalone EBITDA margin improved to 16.1%, compared with 8.8% a year earlier.
• H1 FY27 standalone revenue grew 35% to ₹1,268 crore.
• H1 standalone EBITDA increased 47% to ₹185 crore.
• Unexecuted order book reached ₹7,237 crore, up 32% year on year.
• Q2 order inflow stood at ₹1,169 crore, increasing 97% year on year.
• Order opportunities under negotiation totalled approximately ₹21,000 crore.
• The company secured its first nuclear power sector order for NPCIL’s Kaiga Units 5 and 6.
• Additional orders came from major utilities and infrastructure companies.
• Changodar manufacturing expansion is nearing completion.
• Backward integration projects are progressing.
• A UK subsidiary will support expansion in European markets.
• Standalone debt to equity stood at approximately 0.35 times.
• Investors should monitor capacity utilisation, execution, margins and working capital.