Transformers & Rectifiers

Transformers and Rectifiers (India) Limited submitted its monitoring agency report for the quarter ended June 30, 2025, regarding funds raised through a Qualified Institutional Placement. The report, prepared by India Ratings and Research Private Limited, confirmed no deviation from the stated objects of the QIP. The company raised INR 5,000 million through the QIP conducted from June 10-13, 2024, issuing 75,18,796 equity shares at INR 665 per share. During the quarter, the company utilized INR 200.53 million, bringing total utilization to INR 1,939.90 million, with INR 3,060.10 million remaining unutilized. The funds were allocated for business expansion through capital expenditure (INR 1,450 million), working capital requirements (INR 1,250 million), debt repayment (INR 613.80 million), inorganic growth and general corporate purposes (INR 1,574.35 million), and issue expenses (INR 111.85 million). Issue expenses exceeded the planned amount by INR 29.93 million, totaling INR 141.78 million, which was ratified by the Board of Directors. Unutilized proceeds were temporarily deployed in fixed deposits, mutual funds, and other investment instruments. The monitoring agency noted delays in implementation of more than three months, with completion now estimated for July 2026 instead of Fiscal 2025.

Transformers and Rectifiers (India) Limited reported strong quarterly results with revenue from operations at INR 510 crores, marking 64% year-on-year growth. EBITDA increased 127% to INR 97 crores while profit after tax surged 227% to INR 60 crores. The company recorded total order inflow of INR 665 crores during the quarter and maintains an unexecuted order book of INR 5,246 crores as of June 30, 2025, providing revenue visibility for 15-18 months. A notable achievement was securing the company's largest export order worth USD 16.6 million from Botswana. The company is expanding manufacturing capacity by 22,000 MVA at its Moraiya facility, expected to be operational by end of Q2. Management maintains its target of reaching USD 1 billion revenue over the next 3 financial years and expects to close the year with INR 5,000-5,500 crores order book. Current capacity utilization stands at 65% with plans to reach 85-90% this year. The company has INR 18,000 crores worth of inquiries under negotiation.

Transformers & Rectifiers has set an ambitious revenue target of $1 billion over the next three years, expecting EBITDA margins of 17-18%. The company projects an unexecuted order book of Rs 5,000-5,500 crore by the end of next year. Capacity utilization is expected to improve significantly to 85-90% this year, up from 65% last year. Export revenue is anticipated to remain steady at 10% of total revenue.