Transformers and Rectifiers (TARIL) reported a 66% year-on-year revenue increase in the second quarter of fiscal year 2027, according to the company's earnings call. The firm also raised its EBITDA margin to 16.1%, with a strong order book valued at ₹7,237 crore. TARIL aims to expand its Changodar capacity from 12,000 MVA to 35,000 MVA and expects to start CTC production from the fourth quarter of FY27, the company said on October 15.
During the Q2 FY27 earnings call, TARIL management outlined plans to execute orders over the next 18 to 24 months, emphasizing the growing importance of exports. The company is targeting a revenue milestone of $1 billion by FY29 or FY30. To improve profitability, TARIL is focusing on backward integration, which could enhance margins by 200 to 300 basis points. The management also highlighted working capital as a key concern and aims to reduce working capital days from 154 to between 110 and 120.
The 66% revenue growth and margin improvement reflect strong demand in the transformers and rectifiers sector, with TARIL positioning itself for significant capacity expansion. The company's $1 billion revenue target aligns with broader industry trends of increasing infrastructure investments and export opportunities. The planned capacity increase at Changodar and the introduction of CTC production are expected to strengthen TARIL's market position amid rising competition.
TARIL's order book of ₹7,237 crore and the execution timeline of 18 to 24 months provide a clear revenue visibility for the near term. The company’s next quarterly update will reveal progress on capacity expansion and working capital management, critical factors for sustaining growth and meeting its $1 billion revenue goal.