Transrail Lighting Limited has received favorable credit ratings from CRISIL Ratings Limited for its debt instruments and bank facilities, marking a significant milestone in the company's financial journey. The rating agency has assigned new ratings to the company's debentures and commercial paper while enhancing the rated amount for existing bank facilities.

Rating Action and Enhancement

CRISIL has taken comprehensive rating action on Transrail's various financial instruments and facilities:

The enhancement in bank facility rating amount by Rs 600 crore demonstrates the company's growing financial capacity and creditworthiness in the market.

Strong Business Fundamentals Drive Ratings

The ratings reflect Transrail's established market position in the engineering, procurement and construction (EPC) business catering to the power sector. The company's order book has grown significantly to Rs 14,733 crore as of December 31, 2025, providing strong revenue visibility over the medium term.

For fiscal 2025, Transrail generated revenue of Rs 5,294 crore, representing 30% year-on-year growth, with EBITDA margin of 14.5% compared to 14% in fiscal 2024. The company's revenue is expected to register 26-28% growth in fiscal 2026, driven by healthy execution of the substantial order book.

Financial Profile Strengthened by IPO

Transrail's financial risk profile has improved significantly following the completion of its initial public offering in December 2024. The IPO, including pre-IPO funding in September 2024, raised total net proceeds of Rs 425 crore.

The fund raise strengthened the company's networth to Rs 2,070 crore as of September 30, 2025, compared with Rs 1,139 crore as of March 31, 2024. Key financial metrics showed improvement with adjusted gearing coming down to 0.9 times and total outside liabilities to tangible networth ratio to 2.3 times.

Operational Excellence and Market Position

Transrail's four-decade-long experience in the power transmission and distribution sector, combined with integrated manufacturing capabilities, supports its strong market position. The company operates manufacturing facilities with capacity of 1,01,000 tonnes per annum for transmission towers, 60,000 tonnes per annum for conductors, and 25,000 tonnes per annum for poles.

The company's international presence spans 50 countries across Africa, America, Europe, and Asia, with international business constituting 58% of sales in fiscal 2025. The order book is geographically diversified with approximately 55% domestic orders and 45% international orders.

Outlook and Liquidity Position

CRISIL maintains a stable outlook on Transrail's ratings, expecting the business risk profile to benefit from increasing scale of operations and strong order book execution. The company's liquidity position is strong, backed by unencumbered cash equivalent of around Rs 480 crore as of December 31, 2025, and expected annual cash accrual of more than Rs 450 crore over the medium term.

The rating agency noted that while the company faces working capital-intensive operations typical of EPC businesses and exposure to competitive pressures, these challenges are mitigated by strong risk management practices and established client relationships with entities like Power Grid Corporation of India Limited and various state transmission utilities.

Transrail Lighting Limited has announced securing significant new orders worth ₹2,350 crore, primarily focused on domestic transmission and distribution projects. The latest order wins include construction of 765 kV transmission lines along with contributions from the company's Civil and Poles & Lighting segments, reflecting strong demand across its diversified business portfolio.

Order Inflow Performance

The new orders have propelled the company's cumulative order inflows for FY26 beyond ₹7,980 crore, demonstrating robust momentum in securing new business. The company's strong performance is further supported by its market positioning and pipeline strength.

Business Segment Breakdown

The latest order wins span multiple business verticals, with the domestic transmission and distribution segment forming the primary component. The orders include:

• Power T&D Segment: Major portion focusing on 765 kV transmission line construction
• Civil Construction: Contributing to the overall order value
• Poles & Lighting: Select wins adding to the diversified order book

Management Commentary

Mr. Randeep Narang, MD & CEO, highlighted the significance of these wins in strengthening the company's market position. The orders in the domestic T&D segment, particularly the 765 kV transmission line projects, underscore strong demand potential and competitive positioning. The management emphasized the company's ability to sustain growth momentum while maintaining execution discipline and delivering strong margins.

Market Position and Pipeline

Transrail Lighting maintains a strong competitive position with L1 status exceeding ₹800 crore, indicating potential future order conversions. The company operates with a healthy bidding pipeline across both domestic and international markets, supporting its growth outlook.

Company Profile

Transrail Lighting Limited operates as a leading engineering, procurement and construction company with over four decades of experience in power transmission and distribution. The company maintains a global presence across 63 countries spanning five continents, employing more than 2,700 people. Its business verticals include Power T&D, Civil Construction, Railways, Pole & Lighting, and Solar EPC, supported by large-scale manufacturing facilities in India for galvanized lattice towers, overhead conductors, and galvanized monopoles.