• Record production of 33,763 MVA in FY26, up from 29,118 MVA in FY25, representing highest ever production in company history
• Became first Indian company to receive HVDC transformer repair order from PGCIL, opening pathway to enter HVDC sector worth approximately 40% of total project costs
• Order book stands at INR 5,000+ crores as of March 31, 2026, providing 18-month revenue visibility, though significantly below earlier guidance of 8,000 crores
• Changodar capacity expansion delayed by one quarter due to extended monsoon, now expected to start Q2 FY27; Moria expansion pushed to post-monsoon (Q3 FY27)
• Backward integration on track with CRG processing unit already operational; CTC and other facilities expected to start next financial year, targeting 200-300 bps margin improvement
• Fully automated data center facility received PGCIL approval; tank manufacturing facility approval process initiated
• Total capacity expansion from current 40,000 MVA to 75,000 MVA expected to reach 75-80% utilization by FY28
• Management deliberately moderated order intake during FY26, being selective on orders with better profitability, payment terms, and delivery schedules within 24 months

TARIL reported record FY26 results with revenues of INR 2,395 crores (standalone) and production of 33,763 MVA, but missed guidance significantly (targeted 2,600 crores). Management is being highly selective on new orders, limiting intake to 24-month delivery cycles, resulting in a 5,000 crore order book versus previously guided 8,000 crores. While backward integration and capacity expansion are on track to improve margins by 200-300 bps, delays in capacity commissioning and conservative order intake raise near-term growth concerns despite strong FY27 guidance of 35-40% revenue growth.

For FY26, standalone revenue reached INR 2,395 crores versus INR 1,950 crores in FY25, representing approximately 23% YoY growth but missing the guided target of 2,600 crores. EBITDA stood at INR 370 crores with margins of 15.1%, and PAT was INR 225 crores with 9.2% margin. Q4 FY26 standalone revenue was INR 752 crores (vs INR 740 crores in Q4 FY25), with EBITDA of INR 117 crores (15.1% margin) and PAT of INR 77 crores. On consolidated basis, FY26 revenue was INR 2,509 crores (vs INR 2,019 crores prior year), EBITDA of INR 444 crores, and PAT of INR 272 crores. Q4 consolidated revenue was INR 783 crores with EBITDA of INR 141 crores and PAT of INR 91 crores. Working capital increased significantly with receivables and inventory roughly doubling, though management collected approximately INR 200 crores in first 15 days of April. Gross margins currently stand at 31-32%, with target to reach 35% through capacity expansion and backward integration.

Management tone was mixed - confident about long-term prospects and execution capabilities but defensive about missing guidance for second consecutive quarter. CEO Satyan Mamtora emphasized selective order intake strategy, stating the company will only accept orders within 24-month delivery schedules with better profitability and payment terms. This represents a strategic shift from aggressive growth to margin protection. CFO Nayun Shah acknowledged the guidance miss but maintained confidence in FY27 targets of INR 3,250 crores revenue (35-40% growth). Management repeatedly stressed that backward integration and capacity expansion remain on track despite delays, and that HVDC entry through PGCIL repair order validates their technical capabilities. However, when pressed by analysts on repeated guidance misses and delays, management became somewhat evasive, with one investor noting disconnect between TV interviews by Director Finance and conference call commentary. The emphasis on being 'extremely selective' on orders suggests management is prioritizing margin stability over top-line growth after potentially taking less profitable orders in prior periods.

Multiple significant challenges emerged: 1) Capacity expansion delays - Changodar delayed by one quarter to Q2 FY27, Moria pushed to Q3 FY27 due to extended monsoon, impacting near-term production scaling. 2) Raw material supply constraints - copper disrupted due to Hormuz issues, porcelain production affected by gas availability problems, bushings and ancillary parts facing delivery delays due to overbooking across industry. 3) Working capital deterioration - receivables and inventory doubled versus prior year, though management attributes this to utility payment delays at fiscal year-end. 4) Order intake significantly below targets - FY26 intake of INR 2,374 crores and closing order book of 5,000 crores versus previously guided 8,000 crores, raising questions about demand visibility or competitive positioning. 5) Margin pressure - despite industry capacity constraints, company maintains only 15-17% EBITDA margins while peers in lower KV segments achieve 18-20%+, suggesting potential pricing or cost structure issues. 6) HVDC entry uncertainty - while repair order from PGCIL is positive, actual manufacturing capability won't be demonstrated for 6+ months, and HVDC projects require either LCC or VSC technology which TARIL is developing independently. 7) World Bank debarment issue remains unresolved with response pending, though management expects resolution in 45 days. 8) Gas supply risk for fabrication units, though being mitigated through laser and plasma cutting technology investments.

Revenue Outlook: FY27 revenue guidance of INR 3,250 crores, representing 35-40% growth from FY26 base of INR 2,395 crores

Margin Outlook: EBITDA margins to remain at 15-17% in near term; gross margins expected to improve from current 31-32% to 35% through backward integration (200-300 bps improvement) and capacity expansion over next 2-3 years

Key Targets:

• Changodar facility to start production in Q2 FY27 at initial low utilization, reaching 75-80% by FY28
• Moria expansion to commence post-monsoon (Q3 FY27)
• Total capacity expansion from 40,000 MVA to 75,000 MVA
• Backward integration facilities (CTC, fabrication) to start contributing from FY27
• Target to become USD 1 billion revenue company within next few years
• Order intake limited to 24-month delivery schedules going forward
• PGCIL approval for HVDC manufacturing expected 6 months after successful repair order completion
• 100% captive CTC production capability, with potential third-party sales thereafter

The Q&A session revealed significant analyst skepticism about management's credibility and execution after missing guidance for the second consecutive year. Multiple investors pressed management on the disconnect between optimistic TV interviews and actual results, with one long-term investor (tracking for 2.5 years) specifically noting that director of finance gave confident guidance on television that wasn't met. Analysts were particularly focused on three areas: (1) Why margins lag peers despite operating in higher KV segments, (2) Why order intake was deliberately curtailed to 5,000 crores versus guided 8,000 crores, and (3) Timeline and commercial viability of HVDC entry. Management's responses were often defensive, repeatedly emphasizing 'selective' order intake and 24-month delivery limits without fully explaining why this selectivity was suddenly necessary or why previous orders were apparently less profitable. On positive notes, analysts showed interest in backward integration benefits and HVDC opportunity, though pressed for specifics on competitive positioning. Working capital deterioration raised concerns, though management's explanation of year-end utility payment delays and subsequent INR 200 crore collection seemed to satisfy most questioners. The tone shifted from management presenting achievements to defending strategic choices and guidance misses, with management providing more conservative FY27 guidance (3,250 crores vs potential for higher growth given capacity additions) likely to rebuild credibility. Overall, the session reflected damaged investor confidence that will require several quarters of consistent execution to restore.