TARIL Strengthens Transformer Leadership with Record FY26 Performance, Rs. 5,000 Crore Order Book and Backward Integration Push

TARIL Strengthens Transformer Leadership with Record FY26 Performance, Rs. 5,000 Crore Order Book and Backward Integration Push

- TARIL's long-term aspiration of becoming a USD 1 billion revenue company within the next few years

The Electrical Post

Transformers and Rectifiers (India) Limited (TARIL) delivered another year of record-breaking performance in FY26, reinforcing its position as one of India's leading transformer manufacturers through strong operational execution, capacity enhancement, technological advancements and strategic investments in backward integration.

Transformers & Rectifiers is India's one of the most prominent transformer manufacturers, providing innovative solutions for more than four decades. Based in Ahmedabad, TARIL was set up in 1981 and has become a reliable name among the industry's top transformer manufacturing companies with 18,000+ installations worldwide. With top notch, technologically advanced facilities, backward integration features, and emphasis on high-voltage, specialty, and environment-friendly transformers, TARIL caters to various sectors such as power, railways, renewables, and infrastructure. Innovative, quality, and customer-focused, TARIL keeps powering essential infrastructure globally with dependable transformer technologies designed for tomorrow's energy system.

Addressing the Q4 FY26 conference call, Managing Director and Chief Executive Officer Satyen Mamtora stated that FY26 further strengthened TARIL's standing in the transformer industry, with the company registering its second consecutive year of record revenue and profitability.

According to Mamtora, the company's performance was driven by operational efficiency, process excellence, effective financial management, strategic growth initiatives, technological developments and strong corporate governance practices.

TARIL achieved the highest production levels in its history during FY26, manufacturing 33,763 MVA compared with 29,118 MVA in the previous year. The increase in production translated into record revenue growth, supported by strong execution capabilities and a diversified order portfolio.

The company adopted a selective approach toward fresh order intake during the year, focusing on contracts offering superior profitability, favourable payment terms and greater delivery flexibility. Management deliberately moderated order inflows to align with delivery schedules, capacity planning and long-term operational efficiency.

Despite this calibrated strategy, order inflows during FY26 stood at Rs. 2,374 crore, resulting in an unexecuted order book exceeding Rs. 5,000 crore as of March 31, 2026. The sizeable backlog provides clear revenue visibility for the next 18 months and underlines sustained demand for transformer manufacturing capabilities in the domestic power sector.

A key milestone for the company during the year was securing an order from Power Grid Corporation of India Limited (PGCIL), making TARIL the first Indian company to receive an order of this nature. Management indicated that successful execution of the project would pave the way for the company's entry into the High Voltage Direct Current (HVDC) segment, opening new opportunities in India's evolving transmission landscape.

Mamtora noted that the order enhances customer confidence and further strengthens TARIL's positioning as a technology-focused transformer manufacturer.

The company has also achieved an important milestone in its manufacturing ecosystem, with its fully automated radiator facility receiving approval from PGCIL. TARIL has now initiated the approval process for its tank manufacturing facility as well.

Alongside capacity expansion initiatives at its Changodar and Moraiya facilities, the company is upgrading its testing infrastructure to support increasing transformer production volumes. During FY26, TARIL tested a record number of transformers in terms of both MVA capacity and unit volumes, reflecting strengthened in-house capabilities and streamlined operations.

The company's backward integration programme continues to make steady progress. Site readiness activities are advancing as planned, while orders for long-lead machinery and equipment have already been placed.

Management believes backward integration, supported by technological collaborations, will significantly enhance internal manufacturing capabilities, reduce dependence on external suppliers and improve supply chain resilience.

TARIL has already begun sourcing Cold Rolled Grain Oriented (CRGO) material from its newly acquired CRGO processing facility, marking an important step in its integration journey.

According to the company, the backward integration strategy is expected to deliver tangible benefits in the near future and could improve margins by approximately 150 to 200 basis points over time.

Looking ahead to FY27, management intends to focus on efficient execution of the strong order backlog, leveraging expanded manufacturing capacities, consolidating resources and pursuing sustainable margin enhancement initiatives.

Mamtora reiterated TARIL's long-term aspiration of becoming a USD 1 billion revenue company within the next few years, supported by disciplined execution, customer-centric innovation and prudent financial management.

The company's strategic roadmap includes further strengthening backward integration, increasing investments in automation and digital transformation, and expanding its role in clean and sustainable energy solutions aligned with India's power sector ambitions.

From a financial perspective, TARIL reported strong growth across all key parameters during FY26.

On a standalone basis, revenue increased to Rs. 2,395 crore from Rs. 1,950 crore in the previous financial year. EBITDA stood at approximately Rs. 370 crore, translating into a margin of 15.4%, while profit after tax reached Rs. 225 crore with a margin of 9.4%.

On a consolidated basis, fourth-quarter revenue stood at Rs. 783 crore compared with Rs. 737 crore in the corresponding quarter of FY25. EBITDA during the quarter reached Rs. 141 crore, while profit after tax stood at Rs. 91 crore.

For the full financial year, consolidated revenue rose to Rs. 2,509 crore from Rs. 2,019 crore in FY25. EBITDA improved to Rs. 444 crore, while consolidated PAT reached approximately Rs. 272 crore.

Management highlighted that Q4 FY26 marks an important inflection point for sustained growth accompanied by margin stability. The company expressed confidence in maintaining its improved profitability profile, supported by capacity additions, backward integration initiatives and structural margin enhancement measures.

The upcoming commissioning of backward integration facilities, coupled with continued operational improvements, is expected to further improve cost efficiency and reduce external dependencies over the medium term.

Entering FY27, TARIL believes it is well positioned for the next phase of growth, backed by a healthy order pipeline, new manufacturing capacities, ongoing backward integration projects and strong plant utilisation levels.

With a record production base, a Rs. 5,000 crore-plus order book, growing capabilities in advanced transformer technologies and a clear roadmap towards enhanced self-reliance, TARIL appears poised to strengthen its contribution to India's expanding transmission network and the broader vision of a developed and energy-secure nation by 2047.

Published at : Sep 27, 2026 06:37 AM (IST)

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