Transformers and Rectifiers (India) (532928) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue was INR 460 crore with EBITDA of INR 65 crore, impacted by raw material shortages and deferred deliveries; the company manufactures a wide range of transformers and reactors, serving power and industrial sectors globally.

• Margins were affected by execution of older, low-margin orders and lower capacity utilization.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025.

• No current or pipeline orders are funded by the World Bank; the company is addressing recent debarment and reiterates strong corporate governance.

• Appointment of Mr. Ajay Shriram Patil as Independent Director and elevation of Dr. Chanchal S. S. Rajora to Director Finance.

Financial highlights

• FY25 revenue reached ₹1,950 crore, up from ₹1,273 crore in FY24; H1 FY26 consolidated revenue was ₹989.36 crore, up 26% year-over-year.

• Q2 FY26 consolidated revenue was ₹529.33 crore, up from ₹461.54 crore in Q2 FY25; consolidated net profit for H1 FY26 was ₹67.46 crore, up from ₹45.91 crore.

• FY25 EBITDA was ₹320 crore (16.41% margin); Q2 FY26 consolidated EBITDA margin was 13.81%.

• Standalone net profit for H1 FY26 was ₹60.15 crore, up from ₹42.10 crore in H1 FY25.

• Basic and diluted EPS (standalone) for H1 FY26 were ₹2.00, compared to ₹1.41 in H1 FY25; consolidated EPS for H1 FY26 was ₹2.24, up from ₹1.52.

Outlook and guidance

• Full-year revenue growth of at least 25% over FY25 is targeted, with revenue of around INR 2,600 crore and EBITDA margin of approximately 16%.

• H2 FY26 expected to be robust as supply conditions normalize and plant utilization improves.

• Unexecuted order book stands at ₹5,472 crore, with ₹592 crore in new order inflow and over ₹18,700 crore in inquiries under negotiation as of Q2 FY26.

• Net debt-free status targeted within 18-24 months.

• Management expects significant increase in business operations and improved cash flows for subsidiaries.