Transrail Lighting Targets 12% Ebitda Margin In FY26 On Strong T&D Business

Transrail Lighting, a leading player in the power transmission and distribution (T&D) sector, is targeting an Ebitda margin of 12% in FY26, according to its Managing Director (MD) and Chief Executive Officer (CEO), Randeep Narang.

The company expects to achieve this with strong performance in its T&D business. According to Narang, the company is also hopeful of getting orders with a good margin profile that could aid the growth.

“Yearly guidance which we had given was around 12-12.2%. We had said in our RHP (Red Herring Prospectus) last year when we came public that we would be doing between 11.5% to 12%,” he said.

The company is aiming for a revenue growth of 20% to 25% in FY26.

“If you see the run rate, we've done around Rs 1,650 crore (in Q1FY26) and if you analyse the number, it will be in the range of 20% to 25%. So, we are maintaining our guidance and we will be there in terms of 25% revenue growth,” he added.

The company is targeting an order book of Rs 9,000 crore to Rs 10,000 crore, with a focus on projects with a good margin profile.

“I am not looking at a Rs 15,000 crore order book. We are looking at a Rs 9,000-Rs 10,000 crore order book with a healthy margin to maintain the margin and Ebitda profile we see. So it is not about garnering orders,” the top executive emphasised.

The company sees a potential opportunity of orders worth Rs 1 lakh crore in the domestic and international markets combined.

“We are looking at around 10% of market share. That 10% can become 12% too. We have already bid for around Rs 8,000 crores of fresh tenders. Another Rs 25,000 crores is in the pipeline in the next 3-4 months,” the CEO said. 

Outside India, the company has a significant presence in Africa and Southeast Asia. Revenue is evenly split between domestic and international markets, though its order book is tilted towards domestic projects at a ratio of 60:40.

He emphasised the importance of the T&D business for the company. “92% of our revenues come from T&D. Around 90-92% is the order book from T&D. The Rest is a smaller part of our other business, which is civil, railway electrification and poles.”

Shares of Transrail Lighting ended 13.78% higher at Rs 803 apiece on the NSE on Wednesday, while the benchmark Nifty50 ended at 24,574.2, down 0.31%.