Transformers And Rectifiers India Targets 70,000 MVA Manufacturing Capacity By End Of FY26

Transformers and Rectifiers (India) Ltd. is targeting a transformer manufacturing capacity of 70,000 MVA by the end of FY26. The company is expected to reach a capacity of 15,000 MVA from April, according to Chief Financial Officer Chanchal Rajora.

The company is targeting a revenue of Rs 3,500 crore in FY 2025-2026, backed by the enhanced production capacity.

Speaking to NDTV Profit, Rajora said: "By the end of next financial year, we should have close to 70,000 MVA capacity. We are working on that. Indian players are also trying to come on to that level. So we see that some new capacity will come in the next two years, but this gap (between demand and supply) will remain."

Rajora said that Ebitda margins will remain at 17-18% over the next decade.

“17-18% is the normalised margin; beyond that, the margins will vary. In one or two quarters, you may get higher margins, but these margins are industry margins and the industry is going to settle at that level,” he added.

The company is targeting net profit margins of over 10% in FY26. “I want to reach the 10% PAT levels without any other income,” he said.

Rajora ruled out any capital-raising initiative by the company in the next 6 months, but if an inorganic opportunity arises, the company could think of raising funds.

Commenting on the demand and supply gap in transformers, Rajora said that even if companies increase the production of transformers, there is sufficient demand in the country to absorb it.

“At present, in India, the MVA manufacturing capacity is around 3,50,000 MVA, whereas demand is around 4,50,000 to 4,60,000 MVA. As per CEA guidelines, by 2029, the demand will be around 7,80,000 MVA. So you can analyse what is going to be the scenario,” he said.

The CFO underlined that global players are making limited exports to India, and government subsidies for solar installation will further increase the demand for transformers.

Transformers and Rectifiers India shares closed 1.96% lower at Rs 417.5 apiece on the NSE, compared to the benchmark Nifty50 settling flat at 22,545.05.