Transrail Lighting Shines Bright: Q2 & H1 FY26 Performance Review

Transrail Lighting Limited, a prominent Indian EPC company specializing in Power Transmission & Distribution (T&D), has delivered a stellar performance for the second quarter and first half of the financial year 2026. The company's latest results underscore its robust growth trajectory, strategic execution, and strong market position, reaffirming its status as a key player in the infrastructure sector.

For H1 FY26, Transrail reported an impressive operational revenue of INR 3,221 crore, marking a significant 61% year-on-year growth compared to INR 2,004 crore in H1 FY25. This top-line expansion was complemented by strong profitability, with EBITDA increasing by 49% to INR 386 crore from INR 259 crore in the previous year. The Profit After Tax (PAT) witnessed an even more remarkable surge of 84%, reaching INR 197 crore in H1 FY26 compared to INR 107 crore in H1 FY25. For Q2 FY26 alone, operational revenue stood at INR 1,561 crore (up 43% YoY), EBITDA at INR 186 crore (up 34% YoY), and PAT at INR 91 crore (up 65% YoY). These figures highlight the company's ability to convert revenue growth into enhanced shareholder value.

Financial Performance Snapshot (INR Crore)

Strategic Initiatives and Operational Excellence

Transrail's robust performance is a direct outcome of its strategic initiatives and strong operational execution. The company's core T&D segment continues to be its primary growth engine, contributing approximately 90% of its revenue. This focus is complemented by a diversified business portfolio that includes Civil Construction, Railways, Poles & Lighting, and a strategic foray into international Solar EPC.

One of the key drivers is the ongoing capacity expansion program. The brownfield expansion of tower manufacturing units is nearing completion by Q3 FY26, with the Greenfield project facility expected to be commissioned by Q4 FY26. Furthermore, the conductor plant will enter its expansion phase by Q1 FY27. These expansions are set to significantly boost manufacturing capacities, from 84,000 MT PA to 1,96,000 MT PA for towers and from 24,000 KM to 49,500 KM for conductors, ensuring the company is well-equipped to meet future demand and maintain competitive timelines.

In a strategic move, Transrail has ventured into international Solar EPC, focusing on markets in Africa and the Caribbean. This decision leverages the company's existing global footprint and execution capabilities, aligning with its broader strategy to tap into the growing renewable energy sector where it sees favorable margins. The company also continues to strengthen its Civil Construction division, including through the acquisition of CEDEC Engineering Private Limited, to capitalize on opportunities in bridges and hydro infrastructure.

Order Book and Future Outlook

The company's order book remains exceptionally strong, providing clear revenue visibility. The unexecuted order book, including L1 positions, stood at INR 17,799 crore as of September 30, 2025, reflecting a 46% year-on-year increase. New order inflows during H1 FY26 totaled INR 3,740 crore, a 66% YoY growth, primarily driven by domestic T&D projects. Management has guided for a fresh order book of INR 9,000 crore to INR 10,000 crore for the full year FY26, indicating sustained momentum.

Transrail's global footprint spans 60 countries across five continents, with a strong presence in India, Africa, Rest of Asia, Americas, and Europe. This geographical diversification, coupled with its backward integrated manufacturing facilities, provides a significant competitive advantage. The company's commitment to quality and safety was recognized with an 'A Grade' certification from POWERGRID for its Deoli tower plant and multiple safety awards.

Financial Discipline and Risk Management

Despite the strong growth, Transrail maintains financial discipline. While net debt (excluding IPO funds) increased to INR 702.97 crore, partly for working capital and capex, the Debt-Equity Ratio remains healthy at 0.38 times. The company's liquidity position is adequate, supported by timely collections. Working capital days increased to 91 days in H1 FY26, primarily due to strategic inventory accumulation to benefit from lower steel prices, with management expecting a comfortable cash inflow position by March.

Notably, CRISIL upgraded Transrail's long-term credit rating to AA-/Stable and its short-term rating to A1+, reflecting its robust financial profile and strong execution credibility. The company also transparently acknowledged a contingent liability of INR 67 crore related to various disputes, which it considers part of the routine course of business.

Conclusion

Transrail Lighting Limited's Q2 and H1 FY26 results demonstrate a company firing on all cylinders. With robust financial growth, a healthy order book, strategic capacity expansions, and a disciplined approach to operations, Transrail is well-positioned to capitalize on the immense opportunities in the power transmission and broader infrastructure sectors. The management's clear guidance for future growth and margin stability, coupled with its focus on ESG initiatives and digital transformation, reinforces confidence in its long-term vision and execution capabilities.