Transformers and Rectifiers (India) Ltd reported a strong Q2 FY27 performance, with revenue surging 66% to Rs 709 crore and EBITDA rising 203% year-on-year. The company's unexecuted order book now stands at a robust Rs 7,237 crore, bolstered by a maiden nuclear power sector order from NPCIL. Management has reiterated its 25% annual revenue growth guidance, supported by imminent capacity expansion at its Changodar facility and strategic backward integration efforts.
Transformers and Rectifiers Q2 Revenue Hits Rs 709 Crore With 203% EBITDA Surge
Q2 Revenue grew 66% year-on-year to Rs 709 crore, while EBITDA surged 203% to Rs 114 crore.
Reader Takeaway: Strong nuclear sector entry and capacity expansion drive growth, but high working capital remains a key monitorable.
What just happened
Transformers and Rectifiers (India) Ltd delivered a significant financial turnaround in Q2 FY27. Standalone revenue reached Rs 709 crore, reflecting a 27% increase over the previous quarter. EBITDA margins widened substantially to 16.1%, compared to 8.8% in the same period last year. For the first half of the fiscal year, the company clocked a total revenue of Rs 1,268 crore with an EBITDA margin of 14.6%.
Why this matters
The company’s strategic shift toward high-voltage products is yielding results, with 55-60% of its Rs 7,237 crore order book now comprising 400 kV and above transformers. The securing of its first-ever nuclear power order from NPCIL for Kaiga Units 5 and 6 marks a high-value entry into a specialized sector, providing a potential pipeline for repetitive business.
Capacity and Execution
Commercial production at the expanded Changodar facility is expected to begin around Diwali, scaling capacity to 35,000 MVA. Additionally, a new CTC plant is nearing commission, aimed at long-term margin improvement through backward integration. The management has confirmed that most existing contracts include price variation clauses to hedge against raw material cost volatility.
Risks to watch
Working capital remains elevated at 154 days. While management has expressed a commitment to bring this down to 120 days, high inventory levels persist due to raw material availability challenges. Furthermore, the company faces execution risks regarding the timely ramp-up of new capacity and the successful conversion of its large unexecuted order book into revenue over the next 18-24 months.
What to track next
Investors should monitor the commercial stabilization of the Changodar facility, the pace of the CTC plant integration, and the quarterly reduction in working capital days to determine if margin guidance of 9-10% PAT remains achievable.