This article first appeared on GuruFocus .
Release Date: November 12, 2025
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 significant year-on-year revenue growth of 61% for the first half of FY26.
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The company's EBITDA grew by 49%, and profit before tax (PBT) increased by 66%, showcasing strong financial performance.
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The company secured new orders worth 1,992 crores during Q2, including entry into three new countries, enhancing its international presence.
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Transrail Lighting Ltd ( NSE:TRANSRAILL ) maintained a strong order book of 17,799 crores, providing good visibility for future quarters.
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The company received multiple awards for safety and quality, including the Maharashtra Safety Award 2023, highlighting its commitment to operational excellence.
Negative Points
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The company's net debt increased to INR 703 crores, with a debt-equity ratio of 0.38 times, indicating higher leverage.
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Working capital days increased slightly to 84 days, excluding IPO funds, due to accumulated inventory.
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There was a delay in the commissioning of the brownfield plant due to heavy monsoons, affecting project timelines.
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The company's exposure in Bangladesh is decreasing, with no new bids planned until current projects are completed.
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Despite a strong first half, the company maintained a conservative full-year revenue growth guidance of 25%, suggesting limited growth in H2.
Q & A Highlights
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Q: What has been the CapEx for H1 and what is the guidance for CapEx and order inflow for the full year FY26? A: Against the approved CapEx of 325 crores in phase 1, 88% of the orders have been placed and around 60% utilized. The order book guidance is in the range of 9,000 to 10,000 crores of fresh order book for this year. - MD and CEO
Q: Has the increase in debt been taken for funding working capital requirements or for some other purpose? A: The increase in debt is partly for working capital requirements and partly for term loans for capital purposes. - CFO
Q: Regarding the growth trajectory, how do you see the order pipeline supporting future growth? A: We are at 2.8 times book and bill, with a 23-25% growth guidance for next year. We plan to book further orders in H2 to the tune of 3,000 to 5,000 crores to meet our needs. - MD and CEO
Q: Can you explain why there hasn't been an increase in gross margins despite a drop in steel prices? A: While steel prices have softened, other commodities like copper and zinc have increased, and construction costs have risen. We are maintaining a 12% margin, which is competitive in the industry. - MD and CEO
Q: What is the strategy for solar EPC projects, and why focus internationally rather than domestically? A: We are focusing on international solar EPC projects as they align with our transmission background and offer reasonable margins. We are not focusing on domestic projects currently. - MD and CEO
Q: How is the company managing its cash flow and working capital? A: We are focusing on faster collections and project closures to improve cash flow. We expect to be in a comfortable cash inflow position by March. - CFO
Q: What is the current exposure and receivables from Bangladesh? A: Our total exposure is around 1,500 crores, with receivables in the range of 400+ crores. We received substantial payments in October. - MD and CEO
Q: What is the expected order intake from international markets for the year? A: We expect approximately 40% to 45% of our 10,000 crore order intake to come from international markets. - MD and CEO
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
