Transformers & Rectifiers India Ltd (TARIL) Q1 FY27 Results Analysis: Revenue Growth Slows to 8%, Order Book at Rs.5,005 Cr

Transformers & Rectifiers India Ltd's Q1 FY27 numbers came in soft, with revenue of Rs. 572.34 Cr (+8.13% YoY) and PAT growth of -4.70% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

TARIL's Q1FY27 results showed a sharp deceleration in revenue growth to 8.13% YoY from 64% a year ago, with PAT declining for the first time in recent quarters. Margins were pressured by surging copper costs, though consolidated EBITDA margin held at 16.31%, near the lower end of guidance. The strong order book of Rs.5,005 Cr and post-period order wins provide visibility, but the FY27 revenue target of Rs.3,250 Cr appears challenging.

Key Investment Insights

Key Positives

• Consolidated EBITDA margin improved 117 bps QoQ to 16.31%.
• Subsidiary PAT contribution grew 62% YoY to Rs.11.65 Cr.
• Post-period order wins include PGCIL Rs.1,000 Cr+, GETCO Rs.228 Cr, Bhanwariya Rs.175 Cr, and export Rs.150 Cr.
• Unexecuted order book stood at Rs.5,005 Cr as of March 2026, providing strong revenue visibility.

Risk Factors

• Revenue growth decelerated sharply to 8.13% YoY (consolidated) from 64% in Q1FY26.
• PAT declined 8.66% YoY (consolidated, owners) to Rs.61.52 Cr, first YoY decline in recent quarters.
• Cost of materials as % of revenue surged 1,483 bps YoY to 80.67%, driven by copper prices.
• Standalone EBITDA margin compressed 266 bps YoY to 13.07%.
• Q1 revenue of Rs.572 Cr is 30% below the quarterly run-rate needed to achieve FY27 revenue target of Rs.3,250 Cr.