TRANSRAIL Q2 revenue reaches Rs 2,056 crore as margins ease

TRANSRAIL reported record revenue of Rs 2,056 crore in Q2 FY27, up 32% year on year, but its EBITDA margin declined to 11.6% from 11.9% and PAT margin fell to 5.0% from 5.9%. Profit after tax still increased 12% to Rs 104 crore during the quarter.

How did TRANSRAIL perform in Q2 FY27?

TRANSRAIL delivered Rs 2,056 crore of revenue in the second quarter of FY27, compared with Rs 1,561 crore in Q2 FY26, an increase of Rs 495 crore or 32%. Revenue was also 18% higher than Rs 1,736 crore in Q1 FY27. In H1 FY27, or the first half of FY27, revenue reached Rs 3,792 crore, up 18% from Rs 3,221 crore in H1 FY26.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 28% year on year to Rs 238 crore in Q2 FY27 from Rs 186 crore. Profit after tax, or PAT, increased 12% to Rs 104 crore from Rs 92 crore. Both profit measures grew more slowly than quarterly revenue, while H1 EBITDA rose 14% to Rs 441 crore and H1 PAT rose 7% to Rs 212 crore.

Why did TRANSRAIL’s margins fall despite record revenue?

TRANSRAIL’s presentation shows lower Q2 FY27 EBITDA and PAT margins but does not identify a specific operational cause. EBITDA margin was 11.6%, down 0.3 percentage points from 11.9% in Q2 FY26, while PAT margin was 5.0%, down 0.9 percentage points from 5.9%. The H1 EBITDA margin was also lower at 11.6%, compared with 12.0% a year earlier.

Below EBITDA, depreciation and amortisation increased 35% to Rs 20 crore in Q2 FY27 from Rs 15 crore in Q2 FY26. Interest expense rose 22% to Rs 73 crore from Rs 60 crore, while other income declined 4% to Rs 13 crore from Rs 14 crore. Profit before tax increased 26% to Rs 158 crore, compared with Rs 125 crore a year earlier.

Tax increased 66% to Rs 54 crore in Q2 FY27 from Rs 33 crore in Q2 FY26, compared with the 12% increase in PAT to Rs 104 crore. On a quarter-on-quarter basis, Q2 revenue rose 18% from Rs 1,736 crore in Q1 FY27 and EBITDA increased 17% from Rs 203 crore, but PAT declined 4% from Rs 108 crore. The PAT margin fell from 6.2% in Q1 FY27 to 5.0% in Q2 FY27.

What did TRANSRAIL report on cash flow and leverage?

TRANSRAIL reported Rs 435 crore of cash flow generated from operations in H1 FY27 and net debt of Rs 143 crore at the half-year stage. Net debt was Rs 267 crore at FY26, Rs 502 crore at FY25 and Rs 533 crore at FY24. Net debt to EBITDA was 0.2 times in H1 FY27, compared with 0.3 times at FY26 and 1.1 times at FY24.

Debt to equity was 0.31 times in H1 FY27, compared with 0.29 times at FY26 and 0.34 times at FY25. Return on capital employed was 25.1% in H1 FY27, versus 25.8% at FY26. Working-capital days were 82, compared with 81 at FY26, and management attributed the broadly comparable position to improved receivables management, lower trade receivables and higher cash balances.

TRANSRAIL reported AA-/Stable long-term ratings from CRISIL and India Ratings, with India Ratings upgrading its rating in August 2026. Both agencies assigned A1+ short-term ratings. The company also reported tower capacity of 184,400 metric tonnes per annum and conductor capacity of 40,800 kilometres per annum, with the latter stated to be 70% higher.

What orders and projects supported H1 FY27 execution?

TRANSRAIL constructed 775 circuit kilometres of transmission lines in H1 FY27 and completed a 400 kilovolt river-crossing transmission-line project in Bangladesh. It also completed an 18-kilometre, 400 kilovolt cross-border transmission line connecting Nepal’s New Butwal substation. The Bangladesh project included a 120-metre tower and steel piles extending 113 metres below the riverbed.

The company completed 167 track kilometres of 25 kilovolt alternating-current traction overhead electrification for Southern Railway in H1 FY27. Other completed projects included the Rajasthan REZ-Bikaner 400 kilovolt transmission line and the Koppal 400 kilovolt double-circuit line. TRANSRAIL also reported completion of its first transmission-monopole supply to Australia.

Order intake was Rs 1,638 crore in H1 FY27, comprising 89% power transmission and distribution, 8% poles and lighting, and 3% civil work. Domestic orders represented 62% and international orders 38%. TRANSRAIL also reported Rs 777 crore of reconductoring orders using high-temperature low-sag conductors and a conductor-supply order from the United States.

What does TRANSRAIL disclose about its FY27 outlook?

Management said TRANSRAIL was on track against its FY27 guidance after H1 revenue growth of 18% and an EBITDA margin of 11.6%. Its stated FY27 revenue-growth guidance is 20% to 22%, while the EBITDA-margin target is 11%. The presentation does not provide a full-year revenue or profit amount target.

For FY26, TRANSRAIL reported revenue growth of 30% against its 25% guidance and an EBITDA margin of 11.9% against a guided range of 11.5% to 12.0%. The company’s FY27 guidance comparison labels its H1 FY27 performance as on track. That label is management’s assessment rather than a revision of the 20% to 22% revenue-growth range.

TRANSRAIL’s unexecuted order book stood at Rs 14,218 crore on September 30, 2026, of which power transmission and distribution represented 93%. Civil work accounted for 4%, poles and lighting for 2%, and railways for 1%; the geographic split was 62% domestic and 38% international. The company additionally declared Rs 1,747 crore of new orders in October 2026 and said about Rs 18,000 crore of projects had been bid and were under evaluation.

Integration of GACTEL is underway, with management focusing on operational synergies and value-chain consolidation. TRANSRAIL does not quantify expected cost savings, revenue contribution or the timetable for those potential synergies. Its reported H1 FY27 expansion also includes the 184,400 metric-tonne annual tower capacity and 40,800-kilometre annual conductor capacity.

Conclusion

TRANSRAIL combined a record Rs 2,056 crore of Q2 FY27 revenue with slower growth in EBITDA and PAT, resulting in lower operating and net margins. H1 FY27 revenue rose 18% to Rs 3,792 crore, while Rs 435 crore of operating cash flow and Rs 143 crore of net debt were the company’s reported cash-generation and leverage measures.

The next disclosed measures to watch are management’s FY27 revenue-growth guidance of 20% to 22% and its 11% EBITDA-margin target. Execution of the Rs 14,218 crore unexecuted order book, the Rs 1,747 crore of orders declared in October 2026, and the ongoing GACTEL integration will determine how those plans appear in subsequent reported revenue and profitability.