Ladies and gentlemen, good day and welcome to the Transformers and Rectifiers (India) Ltd Q1 and FY26 earnings conference call hosted by Antique Stock Broking Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Dhirendra Tiwari from Antique Stock Broking. Thank you, and over to you, sir. Thank you. Good day, ladies and gentlemen. Let me extend my warm welcome to you to discuss 1Q FY26 results of Transformers and Rectifiers (India) Limited. To discuss results, I am pleased to have with us today Mr. Satyen Mamtora, MD, and Mr. Chanchal Rajora, CFO and advisor to the board. Before starting the call, let me again congratulate the entire team of TRIL for outstanding performance yet again. With this, I hand over the call to Mr. Satyen for initial remarks. Over to you. Good evening, ladies and gentlemen. A very warm welcome to all of you, and thank you for joining us on our Q1 FY26 earnings call. It gives me a great pleasure to connect with you at the beginning of what promises to be an exciting transformative year for our organization. Earlier today, our board of directors has approved and audited financial results for the quarter ending June 30th 2025. As I said, they have been submitted to the stock exchanges and published along with investor presentations. Let me begin with some of the key highlights from this quarter. During quarter one FY26, we recorded a total order inflow of INR 665 crores, reflecting the strength of our market position and customer confidence. This momentum has translated into an unexecuted order book of INR 5,246 crores as of June 30, 2025, providing strong revenue visibility for the next 15 to 18 months. A standout achievement this quarter was securing a single largest export order in our company's history, valued at $16.65 million, from one of the leading energy EPCs from the country, in Botswana. This milestone underscores not only our growing international presence but also our ability to deliver complex and high-value solutions to global customers. On the manufacturing front, we are making strong progress on our capacity expansion and backward integration roadmap. The construction of our new 22,000 MVA manufacturing capacity at Moraiya facility has commenced. This facility will be reaffirming our commitment to operational excellence. In parallel, we have initiated expansion of our steel processing unit along with construction of our new backward integration units, aimed at enhancing quality, control, and supporting vision for self-reliance. These strategic initiatives are aligned with our ambition to become a global force in the transformer industry. I am pleased to share that we remain firmly on our track journey towards achieving $1 million in revenue over the next three financial years. On behalf of the entire leadership team, I extend my heartfelt gratitude to all our stakeholders: customers, employees, suppliers, board members, and investors. Your continued trust and support remain the cornerstone of our journey. Together, we are building a future-ready organization that will not only lead the transformer industry but also contribute meaningfully to India's evolving energy landscape. I now hand over. Before handing over the mic to our CFO, Mr. Chanchal, I would like all of you to please welcome Mr. Mukul Srivastava. He has joined us as the position of CEO and helped us grow in the manufacturing sector. I hand over now to our CFO, Chanchal, to take you through the financial performance of the company. Good evening, everyone, and thank you, Mr. Chanchal, for the strategic overview and your inspiring leadership through what has been a period of strong execution and transformation. I'm pleased to take you through the financial performance for the first quarter of FY26, which built the momentum of last year and reflects our continued focus on profitability and sustainable growth. Let's begin with the key highlights of the quarter. Revenue from the operation stood at INR 510 crores on a standalone basis, marking a 64% year-on-year growth over the same quarter last year. EBITDA came at INR 97 crores, showing a 127% increase year-to-year, driven by the scale benefits and improved cost efficiencies. Profit after tax was INR 60 crores, a significant 227% year-to-year growth, with strong operational performance and executions. Improvements of the operational efficiency and process optimization have begun to reflect positively on our profitability. Our EBITDA and PAT margins have expanded meaningfully over the prior year, and we continue to maintain the sharp focus on the cash flows and working capital management. We also continued improvement across our key operational and financial ratios, strengthening our balance sheet further and enhancing return on capital metrics. As of 30 June 2025, in quarter 1, our current ratio stands at 2.25, reflecting strong liquidity. The trade receivables days have increased. The trade receivables days are at 126 days, which includes the retention money also, while the trade payables are at 72 days, indicating the better working capital cycle management. Looking ahead, we remain committed to the driving margins expansion, enhancing capital efficiency, and progressing towards becoming a net debt-free company in the next 18 to 24 months. We are fully committed to our long-term goals of reaching $1 billion in revenue in the next three financial years, and we believe that we are well tracked to achieve this. In conclusion, I would like to express my deepest gratitude to all of our stakeholders, our customers, investors, board members, and especially to our hardworking employees for their continued trust and belief in our journey. Your support drives our passion to deliver excellence and create long-term values. With that, I conclude my remarks and thank you all once again for the continued support and interest. We will now open the floor for questions. Thank you. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking questions. In order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to one per participant. Please stand by while the question queue assembles. The first question is from the line of Manish from Nirmal Bang. Yes. Of being the conference, another great exhibition in the business. My question on the annual report which we have released recently. So there's a trade receivable in the non-current asset sitting INR 336 crores versus INR 2 crores last year. So can you explain why the trade receivable sitting in the non-current asset is difficult to understand? Because it should be part of the current assets. Why we are putting it that way? Manish, thank you for this question and welcome on this call. Manish, this trade receivable is of the non-current nature trade receivables, which includes the retention money which we are going to get from the utilities in one to one and a half year time, and also, it includes the debtors which are not immediately due for the payment, so this classification has been done by our auditors on their advice to understand better the exact trade receivable cycle what company is having. So what is the typical time frame to receive this money of INR 336 crores? Look, this is not INR 336 crores. INR 336 crores out of INR 336 crores, around INR 180 crores was around on the retention money, which we basically get in 12-15 months' time when with the utilities, and it is a continuous process which is keep coming. Okay. And one question. Next question, please, Shruti. The next question is from the line of Samarth Khandelwal from ICICI Securities. Proceed. Hello. Am I audible? Yeah, Samarth. Yeah. Firstly, congratulations on the performance, so my question is regarding what would be the size of specialty transformers? That's a very good question. The size of special duty transformers that the company has, what would be the? Around 35% of the turnover. Okay. Thank you. Thank Thank you. Thank you. Thank you. Thank you. The next question is from the line of [Raj Sara]. Thank you. Thank you, Ms. Mohanti. Yes, sir. Yes. Congratulations, first of all, for posting once again a very solid set of numbers. So just wanted to ask the margin, which is bumped up when compared to the same from last financial year quarter one. So is it sustainable, and what could be now the margin going forward, keeping all the backward integration in mind which is coming in the next three, four, five quarters? Yes, the margins are sustainable. Backward integration is going to help us in a great deal in terms of protecting our profits. But also, with Mukul joining us, we are working towards operational excellence, and we are working towards, how do I say, operational profits. So that is going to help us more in terms of not raw material costs, but in terms of how efficiently we run our plants now. So that is going to help us a lot in securing our margins. And Raj, just to continue what R&D has told just now, if you see that last three quarters, quarter by quarter, we are strengthening our margins. And this shows that trend is sustainable and on the right direction. Okay. Thank you, sir. And just one other question. Now, if I see the government of India target to have a solution of high-voltage transformers that is going to be actually double than the last we have done in financial year 2025. So though we have targeted the number of INR 351 crores, that is very close. So what is the seeing the transmission capacity and the capacity is going on right now to execute. So the execution can be in line with what is the country going to install the capacity going forward? Every transformer manufacturer is trying to align itself toward the country demand. And we are also working in that direction, and we hope that we all will be able to better the country's requirements pretty soon. Okay, sir. Any ballpark numbers, sir, if you can guide us for margin and PAT margins going forward? We are at the levels which are already going on. As I have been telling throughout my call, that around 17%-18% is the numbers which are sustainable numbers. And we are working in that direction, and we are delivering that numbers. Thank you very much. Thank you very much, and once again, congratulations, and wish you best luck for the future. Thank you. Thanks. Thanks. Thank you. The next question is from the line of Aashish Soni from Private Family Office. Please proceed. 18,000 crore order book, when do you expect and what are you expecting to convert in next? You have INR 18,000 crore order book, right? No. No, no, no, no. It's inquiries and then negotiation. Yeah, yeah. So that one, how many are we expecting next two or three quarters out of that? We should be closing our order book next year at around INR 5,000 crores. But I think we collect last quarter an executed order book, INR 5,000 crores next year. So on 1st April, April 1st 2026, our executed order book will be INR 5,000 crores. And we are expecting around INR 3,500 crores of turnover on this year. So next year, you will again start with INR 5,000 crore order book. That's what you are saying? Because if I recollect, last quarter, you told, I think, INR 8,500 crores by next year order book if I recollect. Look, Ashish, what MD is trying to tell you is that we are basically now working on the directions where we can have the high-margin order books and high-margin revenues and high-margin orders. We are targeting that we should have the number of somewhere around INR 5,000-5,500 crores plus order book, which will give us the high-yield revenue instead of going for each and every order. Right. Okay. So yeah, that's what we are targeting. Okay. Thank you. The next question is from the line of Anupam Goswami from SUD Life. Please proceed. Good afternoon, sir. Sir, wanted to understand what is now if you can give us some color on the TAM of us, like where each transformer's level we are at, that capacity, what is the TAM growing at, and upside any scenario or any color if you can touch, and after that, how difficult or any challenge we will face or not. Anupam, can you repeat the first part of the question again? Capacity of transformers we are in, in that, how is the macro scenario looking at, how is the market looking at, and what kind of growth and also in next quarter? The company is trying to expand a lot of capacity, almost doubling the organization capacity. We, I mean, like any other transformer manufacturer, are also trying to add the capacity, and this scenario is likely to remain there for at least five to seven years. That is what we expect. As with the question on exports, we are looking at certain areas of exports. We know that we got an order from Botswana for $17 million. But we are a little bit choosy because already with the existing order book we have, we have a little scope for expanding on exports. Our exports would be at 10%. Any exposure to U.S.? No. Not currently. That's what we have. Got it, sir. Thank you. Thank you. The next question is from the line of Ankur Goyal from APG Portfolio. Please proceed. Hello, sir. I'm audible? Yes, yes. Sure. Okay. So my question is, after all expansions are complete, how much revenue and order execution does management expect will come from each plant? Ankur, if you remember back then, we have been last two, three quarters, we have been guiding that we are working in a direction of a billion revenue, $1 billion revenue, and this revenue basically includes the expansions what we are doing here. Right? As you can see from the expanded numbers, so this includes the revenue which is coming from the expansion also. Okay. And sir, my second question is regarding receivable days. As you know, from past quarter, receivables are improved significantly. How sustainable is it in the context of raising volume and new plant segments? This is a long-term sustainable figure what we are eyeing, and last three quarters, which you see that we are continuously delivering that. Okay. Next question is from the line of Samarth Khandelwal from ICICI Securities. Please proceed. Thank you for the opportunity. My question is regarding recently Goyal came out with that they'll be promoting with an incentive scheme for producing in India high-voltage related transmission equipment, so do we see any opportunity there? How do we think about this? It is not for the transformers, actually, but we are still exploring if anything, something is there for us. But it is not for us. It is basically with equipment like RIP bushings and others. Okay. Okay. Sir, one more question, if I may. This is with respect to the capacity, expansion capacity we are undertaking. Could you outline by when it will come live? Sorry? Which capacity are we talking about? We are undertaking expansion of. The Moraiya plant should be operational by end of quarter two. The 15,000. Yeah, yeah, yeah. The expansion of Moraiya plant should be operational by end of quarter two. Okay. Okay. Thank you. Thank you. The next question is from the line of Rajesh Vora from [TalTrue] Investment. Yes, sir? Okay. I have a small request. Please take the repeat questions at the last once all people who are in line are finished. Okay. Okay, sir. No time. Please request participants to one question at one time. All right, sir. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your question to one per participant. The next question is from the line of Rajesh Vora from [TalTrue] Investment Advisors. Please proceed. Congratulations on a great set of results. I wanted to understand the competitive scenario. On one hand, the incumbents are raising their capacity given the demand, and on the other hand, there are new players who are also trying, who are in low voltage and entering into 400 kV and higher voltage class. I want to understand how does it move in a couple of years of time, and for new players particularly, how long does it take for them to certify and start competing with players like us. If we could take us through that and positioning ourselves to deal with the competition, that would be great. Rajesh, if you look at the order book, it's INR 5,240 crores. We have live inquiries which are in finalization stage in the next two quarters, and we are hopeful that we should be ending our year with at least INR 5,500 crores order in hand executable for the next year. New competition is coming, yes, but at the same time, that competition has to have their PQs met. As long as their PQs don't meet, which will take at least another 18 months for them to meet PQs. So I don't see there any change in the scenario in terms of PQs orders. And also, there is so much business and demand in the market that even with the new players that are coming in, not much effect is going to be on established manufacturers. Yeah. So given the demand, how many players can it typically accommodate? Given the fact that it's a seven-year cycle as you're seeing, and with new players also entering, how many players can it accommodate? As many new players are coming, demand is so huge right now, and that's the problem. Plus, Rajesh, you also have to understand that when peers are looking now with all the expansion that we are doing and all the backward integration, we will have a certain advantage over the raw material cost of everything, so when you have that advantage on the raw material cost and also the deliveries of the raw material, definitely we are going to be at a greater advantage than them. Got it. Got it. All right. Congratulations. I'll get back in the queue. All the best. Thank you. Thank you. Thank you. The next question is from the line of Rucheeta from I-WEALTH. Please proceed. Rucheeta, ma'am? I think she left. Hello? Yes, ma'am. Yeah. Hi. Good evening. So congratulations on a good set of numbers. So my question was more on the gross margin side. So from the last two quarters, we've seen a bump up, right, from 30% - 35%. So what has led to this, and is this gross margin a new normal for us? Rucheeta, you can consider that. Okay. We are on an ongoing process of constantly upgrading our manufacturing facilities. We are in the process of manufacturing excellence. So yes, you can consider this as a new norm, but things will change as we become more efficient in terms of manufacturing transformers. On the positive side. Yes. Okay. So as in when CRGO comes, our margin should improve even further? Similarly, yes. But there are always tailwinds to the business. Because if this margin continues, then this operational efficiency and all of that. Yes. Operational efficiency improvement is an ongoing process, which we do continuously. This is a process of. Thank you. The next question is from the line of [Neel Pavaria]. Please proceed. Hi, sir. Good evening. So just one question on the order inflow side. We are seeing kind of considering we have secured around INR 700 crores of orders. When we look at, let's say, specifically into this segment only, they have shown almost twice order inflow compared to us. And also, the second question is when we look at, let's say, when we are targeting INR 5,000 crores of order book, and lastly, we have secured approximately around INR 525 crores for the domestic orders. So we will need approximately around INR 4,000 crores of orders. So have we lost any market share? I mean, in the current quarter, considering peers are showing a very strong growth in order inflow, so just wanted a color on the scene. We have trending growth also, and this is where many categories say that now we have become pick and choose in terms of the order. We are choosing the order, considering what is the revenue margins we are making, and what is being managed here. So we are not going after any order, and we don't want to go that. So whenever, as in when good opportunity comes, we are taking into that. As far as the INR 5,000 crores-INR 5,500 crore order book is concerned, please understand I have right now INR 18,000 crore plus inquiries, and which is every day is building up. So if I take 20%-25% of that, also I'm reaching to that numbers also. And it's again on me that how much numbers we can take into that. Please also understand that in this, the distribution transformers which our one unit makes, we don't have any inquiry of that because that is a cash and carry order book. There's nothing like that that we are losing to anybody. Yes, we have become more smart in selection of the orders. Okay. Understood. So can I squeeze one more question, please? Yeah, tell me. Yeah. So thank you so much. Sir, so this gross margin expansion that we are seeing for the current quarter, the first quarter, approximately around 200 basis points of expansion, is it a function of more of a, let's say, kind of a scenario of pricing power, or the raw material costs have been declined? Just wanted to clarify on the thing. Thank you. It is basically the combination of various factors. Price increase is also there. Operational efficiency is also there, and the better control on the raw material also there. This is there. Okay. Incremental order inflows, how has been the pricing scenario as of now? It's the same level. Okay. Thank you so much. I wish you all the best for the future quarter. Thank you. The next question is from the line of Bhavya from Kriis PMS. Please proceed. Hi sir. Congratulations for the good set of numbers. Sir, how much is the margin in the export order that we just won? Margins are at the same level nowadays, Bhavya. Okay. And sir, out of the INR 18,000 crores inquiries, how much would be the pipeline of exports and the inquiries? The size of the exports would be around 25%, but the orders that we would aim at would be only 10% of our total turnover next year. Okay. Understood. And And what job? Please tell us what orders? More than 10% of exports. Thank you. The next question is from the line of [Saurabh Kara]. Please proceed. Sir, what gives you the confidence that we will continue the current growth trend? Sorry, Saurabh, I could not understand what you are trying to tell. What gives you the confidence that we will continue the current growth trend? Yes, sir. We are fully confident, and order book and inquiries reflect that also. Sir, what is our current capacity utilization? Last year, when we ended up in March, we were at around 65% capacity level, and this year we are targeting to reach around 85%-90%. Okay. Thank you, sir. Thank you. The next question is from the line of Abhijit Singh from Systematix. Please proceed. Yeah. Thank you for the opportunity. My question is on the new product introduction that we are planning on. In the last few calls, we are talking about the green hydrogen transformer. One is how is that product panning out? How is the market response for that product? And how much sales, order inflow, and order book does it contribute to us? And apart from the green hydrogen transformer, is there any other new product or new category that we are planning to enter into? See, the green hydrogen transformers are currently at the R&D stage because these are going to be large transformers. We are currently under R&D stage, and to make them financially viable, that project to make them financially viable because large transformers will still take some time. They are currently in R&D stage. Sir, any sense that you can give right now, understand maybe for the next one or two years, the market may be limited, but going forward, let's say, because we are also anticipating strong demand for green hydrogen, so in that context, can this be really big for us in the next four, five years? I seriously didn't understand your question. Can you please repeat your question? My question is, what can be a total addressable market for green hydrogen transformer in, let's say, next four to five years? The financial viability of the project is going to be the governing factor on it. So we really can't estimate how big the market is going to be. However, what we are planning and what we have been doing, we could touch around INR 500 crores-INR 550 crores in terms of green hydrogen transformers. Right. Right. That's helpful. So last on the exports strategy. So if I'm not wrong, we've talked about 10% of revenue contribution from exports. Is that correct? Yes. Okay. We are typically focused more on exports market as of now because of the huge demand that is coming up. Yes. All right, sir. Thank you for answering the question. That's it from my side. Thank you. The next question is from the line of Aditya Agarwal from [Fine] Avenue. Please proceed. Good afternoon, sir. Am I audible? Yes. Sir, I just wanted to ask that, is there any slowdown in inquiries and/or negotiation? Like in the Q4, we had an inquiry and a negotiation of somewhere around INR 22,000 crore, whereas it is somewhere around INR 18,000 crore right now. And on the order. It is 18,000 MVA. INR 18,000 crore. INR 18,000 crore, yeah. Yeah, INR 18,000 crore. And on the order inflow side, in the Q4, we had an order inflow of roughly around INR 2,200 crores, and in the Q1, it is INR 665 crores. So is there any slowdown in the order inflow side that we are seeing in the overall space, or is it just the seasonal factor? No, this is not a slowdown. These are long-term projects with a large decision period, so it is not that it will go on a uniform basis, so some pluses and minuses can happen. INR 18,000 crores itself is a large number, so beyond that, beyond INR 10,000 crores numbers, it's such a large number that some pluses and minuses can happen, so there is no indication of slowdown, and historically, if you see in quarter one and quarter two, the order book is normally slow, and once quarter three comes, the order book starts picking up. Okay. Okay. And sir, any plans for moving to HVDC? Like in the previous con call, we said that we are looking for 1,200 kVA size. So is there any progress? We are still exploring. Nothing concrete as of now. Whenever we will have something concrete, we shall let you know. Yes. Thank you so much. Thank you. Thank you. Thank Thank you, sir. Thank you. The next question is from the line of Amit, an individual investor. Please proceed. Yeah. Thank you for the opportunity. My question is about 3,500 crores of revenue this year, how much will be coming from U.S.A.? And we have a vision of $1 billion revenue by FY28. Whether the tariffs imposed by Donald Trump can affect our vision of FY28? We currently have no inquiries from the U.S., and we are very wary of getting any inquiries from the U.S. So there is nothing that can harm us either way. Amit also, just for your information, the transformer comes under the strategic list of everywhere in the world. Nothing is going to affect. Okay. Thank you, sir. Thank you. Due to time constraints, that was the last question. I now hand the session over to the management for the closing comments. Over to you, sir. I would sincerely like to thank each and every one of you for taking time to join us today for your continued trust in our journey. We hope we have addressed most of your inquiries, and we look forward to many more meaningful interactions with you in the future. Thank you. Thank you. On behalf of Antique Stock Broking, that concludes this conference. Thank you for joining us, and you may now disconnect your line.