Improved plant utilisation supports TARIL Q2; FY27 guidance retained
Management linked growth to Changodar and Moraiya utilisation and said transformer expansion is nearing commercial production around Diwali.
Filed 13 Oct 2026, 15:37 IST · after market close · Transformers & Rectifiers India Ltd (TARIL)
Key takeaways
- Management attributed Q2 revenue of Rs 739.44 cr to improved utilisation at the Changodar and Moraiya plants.
- Management retained its FY27 guidance of 25% revenue growth, 16% EBITDA margin and 9% to 10% PAT margin.
- The unexecuted order book is expected by management to be executable over 18 to 24 months as transformer capacity expansion nears completion.
Price around the results
Plant utilisation drove Q2 revenue
Transformers & Rectifiers India reported consolidated Q2FY27 revenue of Rs 739.44 cr, with management attributing the increase to better utilisation at its Changodar and Moraiya plants. Operating profit was Rs 128.77 cr, while other income of Rs 2.72 cr was not the main source of profit before tax of Rs 109.93 cr.
FY27 targets remain unchanged
Management said Q2 performance supported its FY27 guidance of 25% revenue growth, a 16% EBITDA margin and a 9% to 10% PAT margin. The company said transformer manufacturing expansion is nearing completion, with commercial production expected around Diwali.
Capacity and order execution are the next operating markers
Management said the unexecuted order book can be executed over the coming 18 to 24 months. It also said commercial commissioning of all facilities is targeted by Q1 FY28, allowing for a delay of up to one quarter, and that existing and expanded capacity should support its growth objectives without additional constraints. The presentation identifies supply-chain delays and raw-material cost volatility as industry challenges, while approximately Rs 121 cr of unutilised 2024 QIP proceeds remains earmarked for backward integration.
No post-result price signal yet
The consolidated results were filed after market close, so there is no post-result market reaction to assess. The next market session will provide the first observable response to the quarter and the retained FY27 guidance.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹739 cr |
| Other income | ₹3 cr |
| Expenses | ₹611 cr |
| Operating profit | ₹129 cr |
| Operating margin (%) | 17.41% |
| Interest | ₹14 cr |
| Depreciation | ₹7 cr |
| Profit before tax | ₹110 cr |
| Tax | ₹29 cr |
| Net profit | ₹81 cr |
| EPS (₹) | ₹2.66 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Revenue growth in Q2 was attributed to improved utilization at the Changodar and Moraiya plants.
Guidance & outlook
- The company expects FY27 revenue growth of 25%, an EBITDA margin of 16% and a PAT margin of 9% to 10%.
- The un-executed order book is executable over the coming 18 to 24 months.
Expansion
- Transformer manufacturing expansion is nearing completion, with commercial production expected around Diwali.
- Commercial commissioning of all facilities is targeted by Q1 FY28, allowing for a delay of up to one quarter.
- Existing and expanded capacities are considered sufficient to support growth objectives without additional capacity constraints.
New initiatives
- Approximately ₹121 crore of unutilized 2024 QIP proceeds is earmarked for backward integration initiatives.
Problems & risks
- The company identifies supply-chain and lead-time issues as key industry challenges.
- The company identifies high raw-material cost volatility as a key industry challenge.
What to watch
- Whether reported revenue growth remains aligned with management's 25% FY27 guidance.
- Whether transformer expansion reaches commercial production around Diwali.
- Whether all facilities are commissioned by the Q1 FY28 target, allowing for a delay of up to one quarter.