This article first appeared on GuruFocus .
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Q3 Revenue:INR1,796 crore, a 32% year-on-year increase.
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Q3 EBITDA:INR228 crore, up 27% year on year.
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Q3 EBITDA Margin:12.7%.
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Q3 Operating PBT:INR168 crore, a 33% increase year on year.
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Q3 Operating PAT:INR126 crore, a 36% increase year on year.
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Nine-Month Revenue:INR5,017 crore, a 49% year-on-year increase.
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Nine-Month EBITDA:INR614 crore, a 40% year-on-year increase.
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Nine-Month EBITDA Margin:12.2%.
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Nine-Month Operating PBT:INR437 crore, a 51% year-on-year increase.
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Nine-Month Operating PAT:INR320 crore, a 61% year-on-year increase.
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Net Debt:INR463 crore as of December 31, with a debt-equity ratio of 0.39 times.
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Interest Cost as Percentage of Revenue:Improved to 3.3% for nine months from 4.1% last year.
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Cash Equivalents:INR380 crore, an increase of INR296 crore over H1.
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Order Inflows:INR1,396 crore in Q3, cumulative INR5,135 crore for nine months.
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Undelivered Order Book:INR14,733 crore as of December 31.
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Return on Capital Employed (ROCE):25.25% for nine months FY26.
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Release Date: February 03, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Transrail Lighting Ltd ( NSE:TRANSRAILL ) reported a 32% year-on-year increase in Q3 revenue, reaching INR1,796 crore.
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EBITDA margins improved to 12.7% for Q3, with absolute EBITDA growing by 27% year-on-year to INR228 crore.
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The company achieved a significant 49% increase in revenue for the nine-month period, totaling INR5,017 crore.
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Net debt was reduced to INR463 crore, with a debt-equity ratio of 0.39 times, reflecting prudent capital management.
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The order book remains strong, with an undefeated order book of INR14,733 crore and an L1 position of INR3,483 crore, providing strong revenue visibility.
Negative Points
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The company faced a one-time exceptional item of INR17 crore related to new labor codes, impacting statutory expenses.
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There was a sharp moderation in order inflow growth on a quarter-on-quarter basis, down by nearly 30%.
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Subcontracting expenses remained elevated in Q3, which could impact cost management.
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Execution in international markets showed some slowdown, with Q3 international revenue slightly lower than the previous year.
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The company faces challenges with ROW (Right of Way) and forest clearances, which could impact project timelines.
Q & A Highlights
Q: Based on the current execution and order backlog, what order inflow do you anticipate for this year and next year, and what kind of execution growth do you foresee? A: We expect to surpass last year's order intake of INR9.5 to INR10,000 crore, with current bids of INR15,000 crore awaiting results. We have increased our revenue growth guidance from 24-25% to 27% for this year, and we aim for a 20-25% growth in the next couple of years, supported by a strong order book.
Q: How much have contract assets, including retention money, changed this quarter, and how has this affected cash and cash equivalents? A: Contract assets stood at INR2,643 crore as of December 31, 2025, up from INR2,522 crore in March. The increase in cash and cash equivalents is due to realizations from these contract assets, improved execution, internal accruals, and better working capital management.
Q: There has been a sharp moderation in order inflow growth quarter-on-quarter. Does this indicate a broader slowdown in tendering activity, or is it specific to Transrail? A: Contrary to that perception, our order intake has grown by 9-10% over the same period last year. Our L1 position is better than last year, and we expect to meet or exceed our order intake guidance of INR9.5 to 10,000 crore.
Q: With the recent union budget increasing Power Grid's CapEx by 32% to INR37,000 crore, what impact do you expect on your order inflows? A: The increased CapEx from Power Grid, a key client, presents a positive opportunity for us. We are engaged in over 20 projects with them, and we anticipate increased market share and more contracts from this development.
Q: Can you provide details on the order book mix across different regions, and what are the current debt levels and future plans regarding debt? A: Our order book is diversified with INR8,000+ crore from India, INR4,000 crore from Africa, INR1,200 crore from South Asia (including Bangladesh), and INR750-800 crore from the GCC region. Current net debt is INR463 crore, with plans for marginal increases to support CapEx, funded by internal accruals and IPO proceeds.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
