1. Opening Hook
India’s power equipment boom is minting heroes, and TARIL wants to be crowned emperor of transformers. Fresh off record revenue, a giant ₹5,000 crore order book, and a swagger-filled HVDC entry pitch, management sounded like they’re building more than transformers — maybe an empire.
But this call wasn’t all chest-thumping. Missed guidance, delayed capex, margin questions, and investor frustration snuck into the party.
Management says selective order booking is a strategy, not a slowdown. Analysts asked whether that’s discipline… or convenient post-facto storytelling.
Then came the juicy bits — HVDC dreams, 200-300 bps margin hopes, backward integration promises, and a bold $1 billion revenue ambition.
Read on, because things get much more interesting when management starts defending why ₹8,000 crore order book became ₹5,000 crore. That’s where the real concall began.
2. At a Glance
- Revenue up ~23% YoY – Transformers are flying out faster than grid approvals.
- EBITDA up ~28% – Operating leverage finally showed up wearing a hard hat.
- PAT up ~38% – Profit didn’t just grow, it flexed.
- Order book ₹5,000+ crore – Visibility strong, though bulls were promised an even bigger buffet.
- Margins at 15.4%-15.5% – Stable, but still refusing to become the superstar management hints at.
- FY27 revenue target ₹3,250 crore – Ambitious enough to excite, conservative enough after guidance misses.
3. Management’s Key Commentary
“We are intentionally selective in taking orders.”
(Translation: We missed order-book guidance, but let’s call it premium curation 😏)
“Backward integration can improve margins by 150-200 bps.”
(Translation: The magic margin potion is always arriving next year.)
“We remain confident of becoming a $1 billion revenue company.”
(Translation: Dream big, execute bigger… hopefully on schedule.)
“We are the first Indian company with an HVDC repair order from PGCIL.”
(Translation: One repair order has been upgraded into a national strategic narrative.)
“We won’t take orders beyond 24 months visibility.”
(Translation: No low-margin clutter. Also a neat excuse for lower order inflows.)
“Margins should remain 16.5%-17%, with upside from integration.”
(Translation: Please stop asking why peers have better margins 😅)
“Changodar should be at 80% capacity by Q3.”
(Translation: Monsoon delayed us, not ambition.)
“FY27 growth can be 35%-40%.”
(Translation: We just missed guidance, but here’s another shiny one.)
Best moment? Investors openly questioned guidance credibility.
That rarely happens unless confidence has started wobbling.
Management’s defense was fascinating:
- Missed order book? Deliberate selectivity.
- Delayed capex? Monsoon.
- Margins lagging peers? Old orders.
- Future margin expansion? Backward integration.
There’s almost a universal
