Thank you very much. We will now begin the question -and-answer session. We take the first question from the line of Abhijeet Singh from Systematix.

Sir, first question is on the revenue and execution front. So in Q1, we have seen that the revenue growth has moderated to an extent given the kind of order book we have. And sir, you've mentioned also in the PPT and your remarks that the ongoing expansion at Changodar led to the teething issues in this quarter. Sir, can this also be attributed to some kind of supply chain issues , especially given the geopolitical cl imate right now ? And some of the sourcing that w ere challenging during the quarter. So that is my first question. And how to look at it going forward in Q2 and H2.

Okay. So as far as the revenue is concerned, that is mainly on account of the lo wer capacity utilization at the Changodar plant. So we have enough orders on hand. Only thing is that new facilities are yet to commence, and that will be commenced from August '26. And mainly, it will

be stabilized from Q3. And as far as the second question is related to the availability of the raw material. So mostly, we have covered ourselves by procuring this material, say, up to December 2026 till the time our backward integration facilities are u p and running. So till that time, we are well covered. So majorly, the geopolitical reason is not affecting much as far as the raw material is concerned.

Sir, so has our inventory increased a lot at the end of Q1.

Yes, we have. Yes, inventory levels are high.

So that means you might see increased interest cost in the balance 9 months, right? Because of that. We might need more working capital for this to sustain this kind of execution in the next 9 months?

Yes. But see, this will be a temporary feature to protect ourselves. And it will be modernized once our backward integration facilities are up and running. So that will start reducing the inventory levels also.

Right, right. Sir, second question is on the other expenses. So this quarter, we have seen the other expenses on the lower side a little bit. Usually they would hover around 13%, 14%. This quarter is around 12% of sales. And I would expect that some kind of commodit y and forex pressure would eat into our margins. So could you explain that why is the other expenses on the lower side in this quarter? Is there a one-off there?

No, no, there is no one -off. If you look at our quarter 1 other expen se, it is around INR69.74 crores last year. It is around INR66 crores. So there is no major reduction as such.

Right. And sir, lastly, on the order inflow for the full year. I've seen that we have done very strongly in Q1 in terms of export s. We've got this INR150 crores order from U.S. in that light for the full year FY27, what is our expectation for the order inflow, both from the domestic and the export markets? If you could highlight also geography-wise, because as far as I understand, there's a lot of good demand for transformers in Europe also. Right? From that perspective, what is the inflow situation for FY27, that we expecting?

So we would be maintaining about 30% growth rate in both domestic and export market. We are currently looking at the Americas, as we say it, North America and South America and some of the Australian orders where we are very confident that we are going to get a good growth in terms of numbers in transformers.

Yes, that is 25% as far as the revenue and 16% EBITDA margin and 10% PAT margin. Subhadip Mitra: At the PAT level. Also just wanted to understand that from a slightly longer -term perspective, if we look into FY28 and beyond, what kind of revenue growth and margins do you think are sustainable? And in the past, you had talked about reaching $1 billion kind of a top line at some point of time in the future. So any thoughts on that?

So the company is constantly working and progressing towards 1 billion by FY'28, FY'29. So we are constantly working on that. We are very confident that we should be able to reach $1 billion by '28, '29. Subhadip Mitra: Understood. And for FY28, any thoughts on revenue and EBITDA margin?

We'll get to it when we get there. So Q4, we will give you a clear guideline on FY28.

We take the next question from the line of Jainam Vora from Saltoro Investment Advisors.

Congratulations on the INR1,000+ crores PGCIL order win.

I just wanted to understand the thought process behind that win. I think even the biggest companies, your peers wouldn't have received a single-shot order like that. So what was the requirement? If you could spend a couple of minutes behind that? And do we see given the kind of energy transition and the opportunity that is there, PGCIL wanting to give such big orders even in future. So that would be very helpful.

So this order, like we said that we have about INR23,000 crores in our order pipeline with inquiries under negotiation. This was one of them and which finalized in the first quarter. We have many more about INR23,000 crores worth in pipeline. So our win ratio is about 1 0% to 15%. So we should be winning those inquiries.

No, I understand that. I want to understand specific to this order. I think single shot order of this nature would be first for the company a nd also for the industry, right? So what typically goes into this order? Is it just L1 bidding? And going forward as well, what indication is PGCIL giving to companies like us given the opportunity, if you could explain that?

So yes, all th e tenders that we quote in India are on L1 basis. And I think as far as we have multiple more inquiries with PGCIL, which are under negotiation. So they will take some time.

Got it. So we can expect such Ultra Mega Orders to keep flowing in gi ven the opportunity and PGCIL has the appetite to give such orders to companies like us?

Yes, of course.

We take the next question from the line of Shivam Singh from Capital Arc.

Yes. See, in the last quarter, we have made some provision as far as the ESOP and the MD commission. So that is there in the last quarter. And this year, it is already part of that.

Okay, sir. And sir, I had one more small question. Sir , we told that low order margins that we were taking in, we have stopped taking that, and we are going for higher margin orders. But that is not reflecting in our actual business. When do we expect that to kick in?

Yes. See, this result, if you look at this EBITDA margin of around 16%. That is consistently we are maintaining in this year, last if you look at Q4FY27, our margins was in that line. Even if you look at our entire number of FY26, that is almost on the same line. So definitely, this will be continue in the near future also.

We take the next question from the line of Prathamesh from Motilal Oswal.

Just wanted to know if you could please provide a breakdown of power transformer order book by rating class. And also which players we compete within each classes?

So we compete with almost all players in India. Our business starts from 33 kV all the way up to 1,200 kV. So in 33 kV, we have competitors which are small manufacturers from 132 kV to 220 kV, we have competitors like other Baroda -based manufacturers. And then for EHV and UHV transformers, we have competitors which are mostly multinationals.

Okay. And our INR5,300 crores order book for power transformer, if we were to split it by rating class, which would be the top 2 or top 3 classes and their percentages?

So we have always fairly spread out amongst all classes. So from 66 kV to 765 kV, they are very fairly spread.

Okay. And sir, if we were to just check the revenue split of power transformer for this quarter, is it the same? Are we fairly split across classes in that for revenue for power transformers in this quarter? Or are we heavy in some particular segment only?

So this quarter has been slightly heavy on the 220, 400, 765 kV segment because our Changodar plant is currently going through expansion. By August end, this will be fairly spread across all ratings. So IGTs, distribution transformers, small power transformers, large power transformers, EHV and UHV transformers, all transformers it will be fairly spread across.

We take the next question from the line of Darshil Jhaveri from Crown Capital.

Firstly, congratulati ons on a good performance in a very challenging condition, sir. Sir, just wanted to clarify one thing. Sir, we mean a $1 billion top line by FY29, right?

Yes.

Okay, okay. And sir...

No. Fair enough, sir. And sir, with all the backward integration that we are doing, like in terms of margin benefit, what can we see flowing through from FY28? Because most of our facility this year in backward integration will come in the later half, right? So FY28 would be the year with nearly most of it coming online, right? So what kind of backward integration benefit we can see in margins, sir?

Yes, it w ill be basically between 200 basis points to 300 basis points. But see, these facilities will come up in Q1 FY28. So starting from FY28, we will see gradual increase in the margin.

So the CTC plant will be commissioned by Q2FY27. The Pressboard plant will be commissioned by Q3 FY27. And the Bushing plant, which is a large bottleneck for us currently, will be commissioned by Q4FY27.

Will be a gradual improvement as scale improves. Yes, fair enough, sir. That's not an issue. Yes. And just the depreciation would hit in FY28, right, sir, like on a bookkeeping note, sir?

Yes. Once this capitalization is done.

We take the next question from the line of Balasubramanian from Arihant Capital.

Thank you so much for the opportunit y. Sir, the order flow is almost 200% plus year -on-year, nearly INR2,000 crores plus. Earlier we used to maintain like 18 to 24 months execution time line. But right now, we are taking up to within 30 months as a large order. Is there any changes in the strategic direction for taking orders in terms of time line.

Most of the orders that we are taking are currently from 18 to 24 months. Since this was a single bid, we call this for 30 months. Otherwise, most of the orders that we are categorically taking are from 18 to 24 months.

Okay. This one is exceptional, right, sir?

This is only an exception right now.

Okay, sir. Okay. And secondly, sir, like right now, the global market is shifting towards voltage source converter -based HVDC systems, which are more complex than line -communicated converter systems. So what is our design strategy based on like LCC, VSC or hybrid side? If you could talk about like I think we are coming with our own process. So how do you look at compared to like some big competitors like Hitachi, Siemens or GE? And what is the estimated...

We are looking at hybrid. These are basically not patented, but manufacturing secrecy kind of thing. So we would not like to discuss any further on this, but it will be based on hybrid systems.

Okay. Any R&D capex required for this, sir?

We take the next question from the line of Gaurav Khemka from Mars Ventures.

First of all, congratulations for a 10% increase in the revenue and posting a good number. So I just wanted to know about since our inventory is getting increased . So when can we see our inventory getting like the sales and reflecting in our profit and loss statement and getting the cash flows?

See, basically, as we told you that looking at the current geopolitical situation in the raw material, we have decided to keep the higher inventory level. So till the time our backward integration facilities are up and running, we will m aintain this level, and you will start gradual reduction from, say, from quarter 4 of the next financial year. So till December, we are covered as far as the raw material is concerned.

So looking at the geopolitical situation, we have protected ourselves until December, and we are pretty much sure that all our backward integration plants will be ready by December. So we have protected ourselves until December in terms of raw material.

We take the next question from the line of Vaibhav Mishra from Finvestors.

Sir, I have one question. The EBITDA margins that we are targeting for FY27 of 16%, these are excluding other income, correct? These are operational EBITDA margin, correct?

Yes. This has been calculated as including other income.

So this quarter, we have done 19% and we are guiding for 16% for the whole year we are going to go down below 15% as well?

No, no 16% at a transformer level. This 19% margin is with incl uding the subsidiary at a consolidated level.

Okay. So for consolidated number, margin that you would like to guide for FY27, like-for-like 19% this quarter that we have achieved. What kind of number can we see for the whole year?

I think a couple of percent more. 20%, 21% or beyond that.

And one small question, sir. Like our orders, how do we protect the margins? Do we have price variation clause or we buy the inventory as orders are received? What kind of model we follow?

We are protected by price variation clause. But looking at the geopolitical situation, currently, we have stocked up our inventory until December 2026. So that we are protected as we have large orders and we need to execute these orders on time. We have protected ourselves in terms of inventory. But after December, all our backward integration plants will be functional. So we are pretty much sure that raw material problem we will not face.

No. Moraiya expansion is Q3 2027 and that is on track.

We take the next question from the line of Yash Gupta from Asit Koticha Family Office.

Sir, my first question on the debt levels. How are we looking at the debt level going forward as currently we have already at INR400-plus crores of debt and working capital requirement to complete this INR6,600 crores of unexecuted order book along with that INR1,000 crores of capex that we are going to build. So how you are looking at the debt number for next couple of years?

See, we will not like to increase anything in the debt. As far as the capex is concerned, we have enough cash as well as the QIP money plus we have the arrangement through the leasing. So for capex, we will not be needing much fund. If anything is required, there may be a small debt. But working capital level, we try t o reduce the working capital cycle. And from that only, we will generate the additional capital that is required for INR6,600 crores order book.

But if you look at like INR150 crores of the QIP money left for the backward integration. But currently, we are at INR400 crores and INR1,000 crores for the current capex. And if like we say 80% on the current uncompleted order book of INR6,600 crores, then INR5,000 crores for debt, so how are we going to manage it for next 2 years?

See, basically, INR150-odd crores from the QIP money, we have arrangement for the leasing for the plant machinery. So that capex part is gone. There is no fund require ment as far as the capex is concerned. And then we may utilize certain internal accruals if required. So the capex will be funded in that line. And the working capital, we would like to squeeze our working capital cycle to generate the additional fund so that we can manage the additional revenue that what we are planning.

So this INR1,000 crores of capex, then what would be the number after leasing if we are going for finance leasing?

Finance leasing would be roughly around, say, INR500 crores.

So we need to spend only INR500 crores then?

Yes.

Okay. Sir, INR1,000 crores for backward integration, what turnover ratio we can expect on this? I understand that we'll be utilizing this capacity for captive utilization. But what will be the turnover ratio on this INR1,000 crores of backward integration?

In the first phase, this will be entirely for the TARIL. And in the second phase, we will look to see into the market. There is a third -party sale. So that will roughly give us additional, say, around INR800 crores to INR1,000 crores additional revenue from this.

No, this would be around 60%-65% for captive and remaining for outside sale.

We take the next question from the line of Avikshit Vijay from Global Consilient Research.

So my first question is what is the update on the HVDC front? Like last quarter, I remember, we were saying that we were getting into it. And what is the time line that we can expect revenues?

So HVDC front, I think it will take another 15 to 16 months to get fully into manufacturing HVDC. We still have 9 months to complete our repair work of HVDC. So once we completed our repair of HVDC, then PGCIL will empanel us for the first trial order of HVDC.

Okay, great. And I think this is a follow-up from the previous participant, the 1 billion revenue target. It means about 50% CAGR from current levels, and we are guiding for 25% right now. So how is this reconciling? I mean I'm not getting the math here.

So, see, this 2029 you can say the earliest period, but we will definitely target because see, if you looking at our existing capacity, we can go up to, say, around INR6,000 crores. And this backward integration top line, which will be to the thi rd party, that will be around INR1,000 crores. See, while we had given the target at the 1 billion time, rupee level was different and now the rupee level is different. So we are looking at somewhere around, say, INR8,000 crores.

Okay, okay. Sure, sir. Yes. And one last question. Why is it that only we are facing a very big slowdown in the revenue growth, while our peers are posting like 50%, 60%?

That is because of the lower capacity utilization of the Changodar plant. So that will be by August '26, it will start the capacity utilization. And from quarter 3, it will normalize.

We take the next question from the line of Pratham Modi from HPMG Shares and Securities.

My question is regarding CRGO steel. The DGTR has initiated an investigation into CRGO steel imports, which could potentially lead to imposition of a provisional anti -dumping duty. Could you share your assessments of the likely short -term and long -term impact on company raw material cost?

This investigation is currently going on, and we would not like to comment on that right now. But with the requirement that India has in terms of the gr owth of Indian electricity demands, they may have to relook at what can be done.

Okay. So, is there any strategy that company is considering to mitigate a potential impact?

We are currently just waiting and seeing what the results are. Plus we have already protected ourselves in terms of whatever raw materials that we require. So we are pretty much sure that things will get sorted out by then.

We take the next question from the line of Gaurav Shukla from Finvestors.

Sir, in your PPT, Page number 25. You have showed the capacity of Moraiya, Changodar and Odhav. 40,000 MVA per annum, 35,000 MVA per annum, 22,000 per annum. Sir, is this capacity present or after expansion??

It is the current manufacturing capacity.

We take the next question from the line of Shrinarayan Mishra from Baroda BNP Paribas AMC.

My question is again on the growth utilization. Basically, Changodar does less than 220 kV transformers. So Moraiya was operational fully. So if you can give like-to-like growth, I mean, for more than 220 kV transformers, what would be year -on-year growth? So we can get some sense of how the like-for-like growth was?

Shrinarayan, let me put it this way. We're looking at 30% growth in all sectors. The growth in terms of 220 kV is also much beyond 30%. But looking at our current manufacturing capacity, we are looking at 30% growth this year.

No, that I agree. But I wanted to isolate the impact of capacity expansion at Changodar. And after that, what would have been the revenue growth. That's why I'm asking -- more than 220 kV, what would be the revenue growth?

See basically, currently, Moraiya is operating at around 60%-65% capacity level. And this would go up to, say, 80%-85% capacity level going forward.

So here also, there was a slowdown. So that's what we should understand. Even in more than 220 kV at Moraiya, the execution was slower?

No. It is as per the last quarter only, it is around roughly 60%-65% capacity utilization.

Okay. And why is the utilization lower here, 60% -65%? I mean while other competitors are operating at close to full capacity.

There is no major reason as such.

Because the order book is there, but still, I mean, the capacity utilization is low. So not able to understand what exactly is delaying the revenue ramp -up or I don't know. I mean, what is happening here. So while other competitors are posting good numbers. So...

I think we are pretty much in the same line as the market growth is.

Okay, fine. And just one question related to this only that we would have done higher mix of more than 220 kV transformers given Changodar was impacted. But still our margins are 16%. And when the Changodar plant comes back, is there a possibility this 16% will become 14% or 15%?

No, I'm talking purely because of the mix. Lower rated transformers will have lower margin, right?

No. We are pretty much protected and we alread y have orders in hand of INR6,630 crores. So we are pretty much protected in terms of Changodar manufacturing capacity also is concerned.

We take the next question from the line of Rahulkumar Mishra from Antique Stock Broking.

Just one question pertaining to the Changodar facility. So currently, as per the PPT, we see that because of the capacity expansion and modernization activities that is undergoing, the capacity utilization should low at 27%. So once the capa city is up and running, what utilization are we expecting in the near to medium term, like say, for this year as well as for '28 and '29?

So in this year, the capacity utilization will still be at 60%-65%. And from next year, we will be ramping up the capacity utilization to 80%-85%.

Okay. So this is like similar to what you have said for Moraiya plant?

Yes. Because even the backward integration plans will come into play by then. So next year, we should be at a better capacity utilization.

We take the next question from the line of Bhavya Dedhia from KRIIS PMS.

Sir, my question is I wanted to know the outlook for the USA market, what is the volume growth that we see in the USA market for this year? And how are we competing in the USA market? Is it on the basis of quality, price ? On what basis are we competing in the USA market?

Good evening, Bhavya. So see, in the U.S. market, we are one of the big major suppliers up to 765 kV transformers, and we have a track record of 765 kV transformers for more than 20 years now. So on that basis, a lot of U.S. customers are relying on our quality, our production capabilities and price is also one of the factors that they look at.

Okay. And what kind of revenue are we expecting this year from the USA market?

So our export business will basically be at 10% to 15%. We will not go beyond 15% in our export business. So we will be maintaining that business through the year.

We take the next question from the line of Rahul Chandak from Alpha Plus Capital.

So in FY26, we saw increase in trade receivables. So going in this quarter, how has that turned out to be?

So as we speak, this receivable level has reduced. As we told in the last call also that there are certain receivables, which has been realized in April. So as on 30 June 2026, this receivable level has reduced.

So we are targeting on an average, say, 120 days to 130 days.

Moderator, we'll take last 3 questions, please

We take the next question from the line of Basant Bansal from NBG Investment.

Sir, my question is around on the top line. Now we are talking of 1 billion. 1 billion means INR9,600 crores approximately. Last year we were at INR2,500 crores. If we add 25% for 2027, we will reach to INR3,136 crores. That means for next 2 year, that is '28 and '29, we will have to add another INR6,500 crores in our top line. So are we sure of those numbers or is there any confusion?

So there is no confusion as such. So when we said about $1 billion at that particular point of time, the rupee rate, was low. So we are targeting, say, INR8,000 crores revenue. As we have given in our presentation, through this expansion at Changodar and Moraiya, we will be able to easily achieve around say, INR5,000 crores to INR6,000 crores. And with this backward integration, additional, say, INR800 crores to INR1,000 crores. So that gives us the up to say, INR7,000 crores to INR8,000 crores by FY'29. So instead of INR9,600 crores, you can look at around INR8,000 crores.

We take the next question from the line of Viren Sameer Deshpande from Alphapeak Investment.

My questions have been already answered. I had only one small question regarding this EBITDA margins, which we have been mentioning it is 16% will be hopefully the blended margin . Is it correct? 16% we are mentioning in guidance. Is it for the consolidated entity? I think it is only for the transformer that is standalone, you mentioned?

Yes, 16%. Yes.

Okay. That includes other income, but it is only for the stand alone entity. And the subsidiaries will have higher margin because last year, our blended margin for consolidated was 17.3%. So, we will be close to that?

Subsidiary may be given some additional 100 basis points. So that will be there.

Okay. So overall, the margins will be higher than the last year '25, '26?

Yes, yes.

For the consolidated company?

Yes, that is correct.

Thank you, sir. This will be the last question, moderator, please.

Okay, sir. We take the next question and the last from the line of Arun from ABDS Capital.

Okay. So I guess a little bit of a repeat. In the utilization chart that you have in the presentation, Changodar, we understand all the reasons that you mentioned. Odhav is 100%. So my confusion is what was holding back Moraiya to be closer to 100%? That is 57%.

Arun, there are certain geopolitical issues that we have faced in the past quarter. And that is the reason why we were constrained at 57%. But by now this quarter onwards, we have already protected until December. And with our backward integration plant coming in the play, our utilization will be much higher than this in the coming quarters.

So Moraiya utilization would really improve after the backward integration comes into play or even before that?

No, we have already protected ourselves in terms of the raw material for up till December. So this quarter is going to show a pretty good improvement in terms of capacity utilization. And after December, with our backward integration plant coming into play, we will see a much better improvement.

Okay. So do you think Moraiya could get to something like an 80% by Q3?

We are working on it. 80%, 85% is not far-fetched.

Thank you. Ladies and gentlemen, that was the last question for the day. I would now like to hand the conference over to the management for closing comments. Over to you, sir.

Good evening, everybody. Thanks once again for joining the investor call for Transformers and Rectifiers (India) Limited. We hope we have been able to address all your key questions and provide clear perspective on TARIL's performance, growth plans and outlook for FY27. Our focus remains on disciplined execution, timely delivery of commitments and creating long- term value for all our stakeholders. Should you have any further questions or queries, please feel free to reach out to our Investor Relations advis or, Ernst & Young, who will be happy to coordinate with us and assist you offline. Thank you very much.

Thank you. On behalf of Transformers and Rectifiers (India) Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.

Thank you.