Transformers And Rectifiers (India) Limited (TARIL) Q4 2026 Earnings Call Transcript

Ladies and gentlemen, good day and welcome to Transformers and Rectifiers India Ltd. Q4 and FY26 conference call hosted by Nuwama Wealth Management Ltd. 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 lesson only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone form. I now hand the conference over to Mr. Vikram Datwani from Noama Wealth Management Limited. Thank you and over to you.

Thank you. Good evening, everyone. On behalf of Nuwaba Institutional Equities, I welcome you all to the Q4 FY26 results conference call of Transformers and Rectifiers India Limited. We are joined today by Mr. Satyan Mamatora, Managing Director and CEO, and Mr. Mehul Shah, CFO. I would now like to hand over the call to the management for their opening remarks. Thank you, and over to you, sir.

Good evening, ladies and gentlemen. I am Satyan Mamatura, Managing Director and CEO of Transformers Electrifies India Limited. Thank you for joining us today for our F526 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 31, 3, 20, 26, 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 Tariff'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 into second successive year of giving record-breaking revenue and profitability numbers. We have achieved highest production in the company's history, manufacturing 33,763 MVAs, up from 229,118 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. 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 modulated fresh order insights during the year to align with extended deliveries, delivery schedules, and capacity planning. Despite of that, our total order inflow, FY26 student, I know 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 talent 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 datator facilities has got approval from PGCL. Now we have initiated the process of getting our tank manufacturing facility approval from PGCL also. Apart from our capacity expansion at Changwan and Moraya, we are also ramping up our testing facility to cope up with the higher number of transformers at those plants. of transformers during FY26, both in terms of MBA in total units, underscoring our internal capability of streamlined operations. The backward integration journey is well on course. Site readiness is progressing well and 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 resistance. We have already started getting CRGO from our newly acquired CRGO 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 200 VPS. As we transition into FI27, 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 a 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. Thank you. We are well positioned to navigate the opportunities and challenges of the coming year on behalf of the entire leadership team. Thank you. Transformation industry, but also contributes meaningfully to India's evolving energy landscape. I hand over the mic to our CFO, Mr. Mehul, to take you through the financial performance of the company in greater detail.

Thank you to everyone who are present over this investor call to discuss quarter 4, financial year 26, financial performance of the company. Thank you, Satyen, 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 4, 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 4 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 crores as compared to INR 740 crores of quarter 425. 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 INR 117 crores with a 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 crores 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 stands at INR 2395 crores as compared to INR 1950 crores for the full financial year. EBITDA for the year come at around 370 crores with the margin of 15.1%. Profit after tax stood at around 225 crores with the margin of 9.2%. For there... On the consolidated basis, revenue for the quarter stood at 783 crores against INR 737 crores during quarter 4, 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 crores, up from 2019 crores. EBITDA stood at INR 444 crores and PAT is around 272 crores. Importantly, Quarter 4 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 plans, and structural 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 operations, finance, supply chain 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 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.

Thank you so much, sir. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the Question Queue, you may press star and 2. Participants are requested to use handsets while asking 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 Consulant Research. Please go ahead.

Yeah, hi. Am I audible?

Yes, you are.

Yeah, so 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 Hormus disruption. Could you give some more light on what other raw materials is disrupted due to this Hormus closure?

Thank you. Copper is slightly disturbed. Other than that, not because of Hormuz issue, but because of overbooking for all other ancillary parts like bushings and stuff, there is a slight disturbance. Plus, you know, the porcelain... If gas is made in gas-fired clean, gas is also becoming slightly a problem. So there are certain issues that we are facing because of horrors, but not very much.

Okay, sure. And one more thing is that we are pouring into HVDC, and I wanted to understand the competitive landscape in HVDC from you. I've seen that a lot of MNC players are already in the thing. What is the competitive advantage that we have?

So, there are only four major players in HVDC, Hitachi, Siemens, GE, and... I think, TBA. But as TBA is not able to compete with us in the other tenders, only three major competitors are there. Other than that, we are the only players who will be entering into HVDC.

I'm sorry, but I couldn't quite decipher what the competitive advantage was.

HPDC is a very highly technical product, and because of the limited number of players in this HPDC side, you know, the margins are also better in HPDC.

Okay, sure. I was also reading Siemens' call that only about like one to two 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?

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 empaneled in HVDC transformers.

Okay, yeah. Thank you very much.

Thank you. Our next question comes from the line of Vaibhav Mishra from Finvestre. Please go ahead.

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?

No. Physically, see, if you look at our export number, etc., there is very minimal exports 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.

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.

All right, sir. And, sir, regarding the guidance, actually, in the last three quarters, I think this is the second quarter where we have missed our guidance, like the revenue guidance of, I think, 2,600 cores in 2.3 call, it was told. And also, order book, it was very confidently said that the closing order book will be 8,000 cores versus 5,000 cores. So, what is leading to this recently? I mean, the drill has the history of not missing its guidance. So, what is happening for the last two, three quarters?

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.

We are maintaining

our stand that we do not want to take any orders that are beyond 24 months.

All right, sir. And, sir, our backward integration plans that we have for the next time in Q1, Q2, Q3, Q4, Q4 quarters, are they on track? I mean, is there any change in timelines of them?

No, no, that is all is on track. We already started the type preparation plant machinery, which is having a higher lead time, has already been ordered. So, by, say, starting of next financial year, we will start the impact of this backward integration plans that we have.

One last question, sir, regarding FOI 27, so the revenue target that we have in mind for FOI 27 or the consolidated margins that we are targeting for?

So I think as of now, we have not, say, finalized what we will be looking at, but what we can say is around 3,250

crores is what we are looking at currently.

Okay, thank you so much, sir, and all the best for the future. Thank you.

Thank you. Our next question comes from the line of Bala Subramanian from Arihant Capital Market. Please go ahead.

Good evening, sir. Thank you so much for the opportunity. Sir, I'm trying to understand the gross margin side. In FI 26, we have a gross margin of 31%. Sorry, 31-32% kind of range. We are trying to reach 35% by FI28 and 40% with deeper integration. So I'm trying to understand how this cross-margin improved in terms of RIP pushing internalization, CTC internalization, CRGO sourcing efficiency, and price increases. Which central item counterparts are the most rated? If you could share some clarity on that.

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 Chagodar and Moriya project, plus the efforts that have been done to do the operational efficiencies, etc., this will give us some margins in terms of the 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 margin. So that's how we are looking at around, say, 35% margin.

Yes, sir. I think I already mentioned we are on track for backward integrations. So I'm trying to understand, I think we have a 60% increase in 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 and CTC volumes?

Yes, we already have agreements in place, sir.

Okay, sir. Okay. So my last question, this is going to 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 is the addressable market is so small? And 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 be able to see the margin improvement or volume improvement in those areas. And thirdly, green hydros.

Yes, sir. Go on, go on with your question.

Yes, on the 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 for green hydrogen side, especially like any specific policy or project milestone or any tender awards or any state pipeline approvals are in place.

So, uh... As far as renewable transformers for renewable energies is concerned, see, with our backward integration and with our manufacturing, with 75,000 MVA 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 there is not much margin improvement. There is no much margin improvement there. But with backward integration and with purchasing power of 75,000 MVA, 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 done some testing. So as soon as the projects come up live, we will start getting some feedback on the green hydrogen transformers.

What is the Furnace Transformer site, sir?

Furnace Transformer will see some improvement as the steel industry in India starts moving at a faster pace.

Okay, sir. Okay, thank you.

Thank you. Moderator, can we limit to one question per person, please? Otherwise, everybody won't get a chance.

Sure. Ladies and gentlemen, in order to ensure that the management will be able to address all the questions from the participants, 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 Purdar from Sapphire Capital. Please go ahead.

Yeah, I'm audible, sir. Yes, you are audible. Yeah, thank you very much for this opportunity, sir. Sir, I will ask two questions, very quick questions. So, sir, our capacity got delayed, right? This Chandgodar plant, now it's needed to start by second quarter, right?

So, extended monsoons was one of the biggest reasons in terms of delay in the usefulness of the plant. Okay, okay, okay, understood.

And when is the Moria plant expected to come on stream?

Moria plant, we are planning after this year's monsoon.

So, by CQFA 27?

Yeah, yeah.

Okay. So ideally, then your first-half growth will be quite muted, right?

Because already... No, no. See, Moraya, we still have... Moraya plant is working at about 75% plant utilization. So we are working on maximizing that plant utilization before we start anything else.

Okay. Understood. And what's the CAPEX?

I'm sorry to interrupt you, sir, but please rejoin the queue for more questions.

This is the follow-up, yeah.

You may be joined. Thank you. Our next question comes from the line of Aashish from Leo, capital P2.

Yeah, so I had a question regarding how the industry works. So how fungible is installed MBA capacities across voltage classes? Can capacity allocated to, let's say, 220 KV be redeployed to higher KV or visors, or are they largely dedicated voltage-specific lines?

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 or five items 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 can be done. From 220 to 400, as long as plant is not designed for 400 kV, it will not happen.

Okay, so to summarize, let's say someone has a distribution transformer capacity in MBA, that can't be scaled to a EHV 220-400 capacity. No, no, no. And what are the limitations exactly?

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 will affect it.

Okay, okay, okay. I got it. Thank you. Thank you. I'll rejoin with you for my next question.

Thank you. Our next question comes from the line of Marshall Sharma from Equinix Capital Venture. Please go ahead.

I said, I'm a whatever. Very good evening.

Yes, you do.

Yeah, so my question is on your industry side, like due to the extended mass, so now there will be an approval delay in the overall industry transportation industry. So are we seeing any slowdown in the CapEx or is it temporary like one or two quarter executions?

No, no, there won't be any delay as far as CapEx plan is concerned.

Okay, and we are not facing any delay in dispatching any order, current order book and all.

Okay, sir. Thank you.

Thank you. Our next question comes from the line of Vinit from Toro Wealth Managers. Please go ahead.

Hi, sir. Good afternoon.

Good afternoon.

Sir, my question is around the supply enhancement that is 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 know what's our view on if we can negotiate with our suppliers when they have increased capacity. I mean, I'm asking in this phase where the capacities are being enhanced by most of our vendors, what is our position in negotiating on prices with our suppliers?

Manufacturing is concerned.

So, pay demand is so strong that only we can negotiate on the delivery timelines a lot, but on production side, it's more or less the same.

Thank you, sir. Thank you, sir.

Thank you. Our next question comes from the line of Yash Gupta from Ashit Kotecha Family Office. Please go ahead.

Sir, 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 H2FI27? And how should we think about capacity expansion plan over next two to three years and how cash flow will be replaced from it?

Yeah, see, basically from Changodar, facility will be up and running from this quarter too. And after that, we will take up this Moraya plant expansion. So after these two plants, the capacity would be, say, from 40,000, it will go up to 75,000.

And how our utilization will be for the second half of FI 27 and 28?

It would be roughly... Offcoming capacity. Yeah, upcoming capacity, Changodhar will start from the H2, but initially it would be low since it is a new plant, etc. But from the, say, next financial year, it would be running at around 75-80% capacity.

So, I think by end of quarter 3, we should be almost at 80% capacity in Changodur plant.

But do you think it will impact our EBITDA margin in the first half and maybe Q3?

No. Because, see, our orders are already in the pipeline, and we are working on that, so that won't be any impact. It could be, in fact, definitely the quarter three numbers would be, uh, We will be on a higher side because of these new capacities, but this, say, first half, the numbers would not be affected by this.

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, there is not going to be any effect on the EBITDA of the company.

So, sir, higher in Q3 means in terms of higher margin or in the amount you are talking about?

Both. Not margin, but in terms of revenue.

So, margin will be this only 16.5 to 17 percent?

Yeah, yeah. Margin will remain at 16.5 to 17 percent.

Okay, sir. Thank you, sir.

Thank you. Our next question comes from the line of here. Shirati from Mangal Kesho service. Please go ahead.

Good afternoon and congratulations on good set of numbers. I wondered, so we are going backward integration on the CTC plant itself. So, just wanted to understand, would that also require additional PGCR approval, if we are using that for the captive purposes, into our 465 and moving forward, when we get HVDC approval as well, we would be using our CTC for the captive purposes. So, how the PGCR approval would look like?

So, PGCL approval will definitely be needed, and the plant that we are putting up for CTC and the plant that we will be putting up for press board, both these plants are world-class plants. So, we have already taken into account what all PGCL requires for approval of the plant, and since it is our own captive consumption, the approval becomes very easy in terms of from PGCL.

Can we just get some timeline on the film? And also...

Timeline on what? Getting approval from BGCL?

Yes.

I think within the month of starting the production capacity, we should get the approval. See, as it is, PGCR and we are also facing some issues regarding the deliveries of CTC conductor. So, it is of utmost importance for PGCR also to make sure that they have one more vendor in India which delivers CTC production.

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 you would still look to outsource or it would be enough for our annual transform manufacturing capability?

So, the current plan is to cater to 100% need of TNR. And going forward with certain mode expansion, we will be also looking at selling in the market, third-party selling also we will be doing.

Okay, understood. Thank you so much.

So we will basically be also CTC suppliers to other transformer manufacturers.

Thank you. Our next question comes from the line of Shivam Damsuna from ThinkSight Advisory. Please go ahead.

Sir, am I audible?

Yes, you are.

Sir, any update on the World Bank issue?

We have given our... Mevusha will give you a reply.

Yeah, so as per the timeline, etc., we have filed the reply to the World Bank, and we are awaiting any response also. 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.

Okay. So, when can we accept a reply?

I think it should be closed in 45 days. That's what our belief is.

Okay. Thank you.

Our next question comes from the line of Abhijit Singh from Systematics. Please go ahead.

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 percent of the overall project cost. So, you mentioned that you will be able to supply 3 to 4 units in a substation for HPDC. So, what is the co-opend percentage of the overall project cost for HPDC for us?

We didn't understand your question. Please, can you come back again?

Yes, sir. I mean, out of the total project cost for an HVDC, what is our scope?

So, let's say we are supplying HVDC transformer, right? Three to four units per project. So, what is that as a percentage of overall capex of the project?

That should be around 40% of overall capex of the project.

Right, sir.

Because a reality transformer is going to be the largest. Equipment and the most expensive equipment in the project, so around 40% should be our cost, our...

Right, sir. And sir, when do we expect the approval from PG-CIL for this particular product?

So once we've successfully repaired this transformer and given back to PG-CIL, after six months of working... In satisfactory condition, PGCE will start the process of approving us as one of the HVDC manufacturers in the country.

Right, sir.

Just one last thing.

I'm sorry, but please rejoin the queue for more questions. Our next question comes from the line of Pratamish Salunke from PL Capital. Please wait.

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 plan to supply only the equipment, the HVDC transformers in the projects, and it may take some time for the updoers to come in. And at the same time, I recall in the last few calls, management had mentioned that we are not really doing LCC or VAC. 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 VAC project. So, how will Taril be able to compete for these projects against the established MNC? What is LCC project? Sir, technology of the LCC and VAT.

So, we are coming up with our own process of HVDC.

Yeah, Choksa, my question was the same. Since 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 VST technology. So, if the projects are coming in LCC and VST and we are not supplying either of these technologies, how will Terrell be able to participate in these tenders? So, basically, we will have to wait for a project for next 4-5 years before we can participate. Is that the right understanding?

No, that is not the right understanding. There are other projects that are coming up with EPC contractors also where we will be participating.

Okay, so these projects will, the EPC contractors, these projects will not primarily come from a player like PTCL. Is that right? Yeah, yeah, yeah. All right, all right. Thank you, thank you so much.

Thank you. Our next question comes from the line of Raj Saraab from Finvestors. Please go ahead.

Can I have an audible, sir?

Yes, yeah.

Thank you very much for giving my opportunity. Sir, I am tracking and I am an investor in the company since the last two and a half years. I appreciate the journey with the tariff as well. But sir, from last one, what I am seeing is 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 have been delayed by at least one year. And all the back work and all the integrations are also delayed with the same timeline. And even the guidance also delayed. And when I watch interview, which is given by your Director of Finance, Mr. Sancho Rojvada.

Good morning, everyone.

That he writes on television, and when we come to the conference call, there is a very significant difference in these two outcomes. So, I want your take on that.

So, what are you exactly referring to, if I may ask? Are you talking about the order input?

Sir, there are numerous things, sir, like order inflow. 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 to Director of Finance, he then confidently on TV interviews, putting the number of 8,000 and close to 7,500 order to close the first thing, the second thing, the projects or capexes we are right now executing. The timing of the project, which is right now delayed by at least one year, all the projects, let it be, and the third thing is on the early 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 is Q4, The recent computer tutor, despite 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. So, all these reasons.

So, as long as the outlook on the margin, we have always maintained that the margins will remain at 15 to 16 percent. 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 monsoon, which has delayed the project by one quarter.

And sir, on the guidance side also, sir,

I will once again reiterate that orders input will be very selective and we will make sure that, you know, we do not take orders that are beyond 24 months.

Sir, on the top line, sir, not on the order book, sir, which you have clarified now.

Top line will give you an answer. Yeah.

So, the top line which was guided in the commencement of FY26 was 3,500, which was reduced mid-year after very subdued Q2. That was again told 2,500 to 2,600. And even on the 3rd or 4th March, the Director of Finance came on P&D Vision, and he reiterated the guidance that we are very sure that we will be closing above 2,500. So, this 100th parole 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.

Yes, that's true that initially we have targeted that number, but that has been later on realized, and we have categorically come up and revised that guidance during the quarter two conference call.

Sir, my point is that, sir, we are doing very phenomenally well. Let us be, instead of the user, be conservative and deliver more, rather than being more efficient.

We have realized, Raj, we have realized this, and that is why this year we have given an outlook of 3,215 crores, not beyond that.

Thank you very much, sir. I am concerned about the company because I am invested for last year and half years. Thank you very much.

Sure, sure, Raj.

Thank you. Our next question comes from the line of Karan Kupra from ACMIL. Please go ahead.

Yeah, so my question is more on the margin side. Considering the competitive bidding in the industry, what will be the margin on a beta-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 2-3% kind of lever in the margin you can get. So, my point is, in the next 2-3 years, what will be the margin size? It will be compensated by the backward integration you are doing, or it will improve further from the mark of

Yeah, see, as we are saying that the margins will remain in the range of, say, 15 to 17 percent as currently, and through this backward integration coming up, you may see some increase in that number.

About 200 to 300 Bp.

Okay, and what about the cash flow side, the working capital, I'm trying to satisfy 25 to 26, this doubled 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.

Compared to our financial year 25 numbers, this is 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, say, less 15 to 16 days time, we almost collected around 200 odd crores. There are some delays as far as the utilities is concerned because their budgets etc. has gone away by March, so they have released payments in the new financial year.

So the payment date got delayed?

Yes.

Thank you. Our next question comes from the line of Dikshant from DB Wealth. Please go ahead.

Sir, 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?

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 online and, you know, this gas crisis has helped us improve our efficiency on those cutting CNC machines.

So instead of using gas as a power source, we will be using electricity as a power source?

Yes, yes, that is correct.

Sir, 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.

What is the risk that we are talking about? The gas risk are you talking about?

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?

No, no, no. There is no issue as such for the utilization of the capacities.

Okay, sir. We don't see any risk in the utilization of the capacities, Dishant.

Okay, sir. Thank you so much.

Thank you. Our next question comes from the line of Aditya Vohra from Soham AMC. Please go ahead.

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 the 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?

Yes, see, this backward integration margin is here to come into the picture. So, this, we are talking this margin, say, of 15, 17 percent is without this any margin improvement in terms of backward integration.

No, no, I understand what they'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 a relatively lower margin, lower KV class, while you are predominantly in 220 and above. So, you know, 220 and 400 is what you are targeting, while if I look at majority of our peers, they are getting to 220 or 400. In fact, if you look at, say, Atlanta, it recently caught into 400, 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 Atlanta, their backward integration is the same as us. So, I don't know why our margins are at only 15% structurally.

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 we must have seen, these 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.

Okay, sure. And just one thing on your guidance going forward, would you like to give any guidance for FY27 in terms of growth percentage, if not the absolute number?

It could be roughly around, say, 35-40% growth in terms of revenue.

Okay, and order book, any sense on that, considering you curtailing incremental order inflow to focus on the quality of orders?

I think if we do 3,250 colors, we will be, let's say, I don't know.

Sir, other than putting these numbers, we would be like to restrict ourselves to we will take the order, say, up to 24 months.

Okay, okay. And 35 to 40% is the revenue growth what you are talking for, FY27.

Yes.

Sure, sir. Thank you, sir.

Thank you. Our next question comes from the line of Fagar Gandhi from Invesco Mutual Fund. Please go ahead.

Yeah, sir, my question is on the inquiries under negotiation. PowerPoint presentation, that is 23,000 crores that you have mentioned. Now you highlighted you are looking at orders only under 24 months. So of this 23,000 crores, how much is it for 24 months?

There should be around 18,000 MVA order, inquiry that will be in 24 months.

Thank you, sir. And, sir, you confirm 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.

Yeah, yeah.

That has happened, right? Yeah, thank you. Thank you so much, sir.

Moderator, we would like to take last few questions, please.

The next question comes from the line of Nabil Ashraf, an individual investor. Please go ahead.

Yeah, good evening, sir. Thanks for taking my question. Sir, my question would be on the order book mix. So recently, we've seen a good amount of orders coming from the government utilities. So could you tell us that out of the outstanding order book of 5,000 crore, how much percentage consists of this utility player and how much is the private portion?

So, let's say around 55% will be utilities, 20% will be EPC contractors, and remaining all private customers.

Okay, so got it. And another thing that now is backward integration of facilities in place, which will be coming into effect from the first half of FY27 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 will we stick to this mix?

No, we would be approaching many private customers but provided we are getting, you know, deliveries and The quality of the order info is going to be the key area of focus in the next year.

Okay, I got it. Thank you very much.

Thank you. So, we'll be taking the last question from Sashi Ranjan from Anand and Capital.

Good evening, team. Thank you for talking. I heard that we have order book of around, say, 5,000 crore, approximately. So, in previous discussion, we also learned that we were not able to pass on to the rising costs because the orders that were there were older ones. So, we couldn't revise upon the increased tariff. So, how many such order books that we have, which are not giving us more margin other than 5,000 crore rupees?

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 these 5,500 crores have any issues in terms of our margins or cost.

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 to diversion in the next two quarters?

So, we are currently running at around 75% capacity. This year, we should go at around 95% capacity. Thank you so much, sir.

Thank you. Ladies and gentlemen, due to time constant, that was the last question. Any pending question may be sent to the Transformer and Rectifier Syndicate 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, Tim.

Thank you once again for joining us today. I've extended my heartfelt gratitude to all of our stakeholders, customers, employers, and board members and investors, and all of you who have attended this call, investors' call. Thank you very much, everybody.

Thank you so much, sir. Ladies and gentlemen, on behalf of Norma Wealth Management Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Thank you.