💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 30.2% YoY to INR 5,307.75 Cr in FY25. The T&D segment remains the primary driver (88-90% of revenue), while the Railways business crossed the INR 100 Cr revenue mark in FY25. H1 FY26 revenue showed a robust 61% YoY growth.

Geographic Revenue Split

The order book is split 55% Domestic and 45% International. Exposure to Bangladesh, which was 35% in FY24, significantly reduced to 12% by July 31, 2025, due to diversification into the MENA and GCC regions.

Profitability Margins

Net Profit after Tax (PAT) grew 42.5% YoY to INR 334.34 Cr in FY25. PAT margins for H1 FY26 increased by 78 basis points to 6.1%. ROCE stood at 35% in FY25 and is projected to stabilize at 27-30% over the medium term.

EBITDA Margin

EBITDA margin was 14.5% in FY25, up from 14% in FY24. However, H1 FY26 EBITDA margins stood at 11.98% due to execution mix and operational costs. The company maintains a minimum profitability threshold for all new bids to sustain 13-14% margins.

Capital Expenditure

Total planned capex of INR 326 Cr for capacity enhancement. This is funded via INR 91 Cr from IPO proceeds, INR 190-200 Cr in term loans, and the remainder through internal accruals. Net PPE grew by INR 65 Cr between March and September 2025.

Credit Rating & Borrowing

Credit rating upgraded to CRISIL AA-/Stable/CRISIL A1+ from CRISIL A+/Stable/CRISIL A1. Interest coverage ratio improved to 2.7 times in FY25 from 2.4 times in FY24, with a medium-term target of 2.7-3.0 times.

⚙️ Operational Drivers

Raw Materials

Steel, Zinc, Aluminum, and Copper. Steel is a major component, with prices recently dropping by INR 3,000 to 4,000 per metric ton, though gross margins remained stable due to fixed-price contract structures.

Import Sources

Not explicitly disclosed, but the company operates in 20+ countries including Nigeria, Malaysia, and UAE, suggesting global procurement for international projects.

Key Suppliers

Not disclosed; however, the company is backward integrated in manufacturing towers, poles, and conductors, reducing dependency on third-party component suppliers.

Capacity Expansion

The Silvassa factory achieved record production of 12,740 MT of poles in FY25. Ongoing capex of INR 326 Cr is focused on further enhancing manufacturing capacities for towers and poles to support the INR 14,654 Cr order book.

Raw Material Costs

Raw material costs are managed through backward integration and pre-bid risk analysis. While steel prices fluctuated, the company's integrated model for towers and conductors helps sustain operating margins at 13-14%.

Manufacturing Efficiency

Efficiency is driven by backward integration and a 'minimum profitability threshold' policy for bidding, ensuring only high-margin, executable projects are added to the book.

📈 Strategic Growth

Expected Growth Rate

23-25%

Growth Strategy

Growth will be achieved through a massive order book of INR 14,654 Cr, entry into new MENA/GCC markets, and diversification into Civil (bridges/hydro) and Railway OHE segments. The company plans to book an additional INR 3,000-5,000 Cr in orders in H2 FY26.

Products & Services

Turnkey EPC for Power Transmission & Distribution, Substations, Railway Overhead Electrification (OHE), Steel Pipe Masts for High-Speed Rail, and specialized Lighting Poles.

Brand Portfolio

Transrail Lighting Limited.

New Products/Services

Steel Pipe Masts for the Mumbai-Ahmedabad Bullet Train project (INR 92 Cr order) and expansion into Solar EPC and Civil Hydro projects.

Market Expansion

Recent entry into a new MENA region country with a INR 548 Cr order and a GCC region project worth INR 822 Cr. The company now operates in over 20 countries.

Market Share & Ranking

Leading provider of turnkey solutions globally in Transmission, Distribution, and Substations; specific market share % not disclosed.

Strategic Alliances

Joint Ventures are used for specific EPC projects; the company is also acquiring a part of Gammon Engineers and Contractors Private Limited (GECPL) to bolster civil engineering capabilities.

🌍 External Factors

Industry Trends

The T&D sector is seeing a strong global outlook driven by renewable energy integration and grid modernization. Transrail is positioning itself by expanding capacity and diversifying into related civil/railway infrastructure.

Competitive Landscape

Faces intense competition from other large EPC players in the power sector, which can pressure bid prices.

Competitive Moat

Moat is built on backward integration (manufacturing own towers/conductors), which protects margins, and a strong track record with multilateral funding agencies that acts as a barrier to entry for smaller players.

Macro Economic Sensitivity

Highly sensitive to global T&D infrastructure spending and interest rate cycles due to the capital-intensive nature of EPC work.

Consumer Behavior

Not applicable for B2B/Government EPC business.

Geopolitical Risks

Exposure to Bangladesh sovereign risk (12% of order book) and political instability in 20+ operating countries. Mitigation includes funding via multilateral agencies.

⚖️ Regulatory & Governance

Industry Regulations

Operations must comply with international engineering standards and local regulations in 20+ countries. The company follows Section 134(3) of the Companies Act for financial reporting.

Taxation Policy Impact

Effective tax rate for FY25 was approximately 29.5% (INR 140.40 Cr tax on INR 474.74 Cr PBT).

Legal Contingencies

The company is involved in the restructuring process of GECPL as a potential acquirer. Specific values for other pending litigation were not disclosed.

⚠️ Risk Analysis

Key Uncertainties

Execution delays in international projects (e.g., Bangladesh) and potential elongation of the working capital cycle could impact liquidity.

Geographic Concentration Risk

55% of revenue is concentrated in India, with the remaining 45% spread across 20+ countries, reducing single-country risk.

Third Party Dependencies

Low dependency for core components due to backward integration in towers, poles, and conductors.

Technology Obsolescence Risk

Low risk; the company is investing in 'strong technological capabilities' for T&D and high-speed rail masts.

Credit & Counterparty Risk

Counterparty risk is low as domestic clients are mostly government/large private entities (PGCIL, Adani) and international projects are funded by World Bank/ADB.