Ladies and gentlemen, good day and welcome to the Transformers and Rectifiers (India) Limited Q1 FY 2027 Earnings Conference Call. 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 touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Krishna Patel. Thank you, and over to you, ma'am. Thank you, Anushka. Good afternoon, everyone. A warm welcome to all participants joining the Q1 FY 2027 earnings conference call of Transformers and Rectifiers (India) Limited. Joining us today from the management team are Mr. Satyen Mamtora, the Managing Director and CEO, and Mr. Mehul Shah, the Chief Financial Officer, who will discuss the company's operation and financial performance for the quarter and address your questions thereafter. Before we begin, I would like to remind you that certain statements made during this call may constitute forward-looking statements. These statements are based on management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Please note that the audio recording transcript of this conference call are the property of Transformers and Rectifiers (India) Limited and may not be copied, introduced, rebroadcasted, redistributed in any form without the consent of the company. With that, I would like to now hand over the call to Mr. Satyen Mamtora, the Managing Director and CEO, for his opening remarks. Over to you, sir. Good evening, everyone, and a warm welcome to the earnings conference call of Transformers and Rectifiers (India) Limited to discuss the company's business and financial performance for the Q1 FY 2027. We concluded our board meeting yesterday and have subsequently uploaded our financial results along with the investor presentation to the stock exchange and company website. We hope all the participants have had enough opportunity to review this material. Thank you for joining us today, and we look forward to sharing our performance highlights and addressing the questions during the course of this call. First of all, I'd like to begin the call by setting the tone of the company and outlining what stakeholders can expect from TARIL in FY 2027. First and foremost, I would like to assure all our stakeholders that we are committed to providing only those guidance parameters that we are confident of achieving. Going forward, our focus is firmly on delivering on our commitments and letting our performance speak for itself. We recognize that the trust and confidence of all our stakeholders are paramount, and we remain committed to protecting and strengthening that trust through consistent execution and transparent communication. In line with this objective, we have appointed Ernst & Young to support and strengthen our investor relations initiatives, ensuring timely, transparent, and effective engagement with the investment community. Q1 FY 2027 updates. As of June 30th, 2026, our unexecuted order book stood at INR 6,630 crore, reflecting a 26% year-on-year growth, providing a strong revenue visibility over medium term. During the quarter, we successfully completed dynamic short-circuit testing of 4 transformer units with significant technical milestones that validates our product's ability to withstand extreme electrical and mechanical stresses under fault conditions in accordance with the stringent international standards. The current unexecuted order book is executable over the next 18- 24 months, and we remain confident of delivering these orders within the stipulated timelines as we have adequate manufacturing capacity, resources, and execution capabilities in place to support timely product deliveries. Our existing transformer manufacturing capacity of 75,000 MVA plus across all plants, coupled with recent expansion initiatives, provides us the capability to support annual revenues in the range of INR 5,000 crore-INR 6,000 crore over the medium term. Our immediate priority is not adding further transformer manufacturing capacity, but maximizing utilization and improving throughput and enhancing operational efficiency across all facilities. During quarter one FY 2027, we have received a healthy order inflow of INR 2,114 crore, 218% year-on-year growth over low base around last year this time. Major orders received during this quarter were ultra-mega order from PGCIL, above INR 1,000 crore for manufacturing of transformers of various ratings within 13 months. Order from GETCO of about INR 228 crore for manufacturing transformers and reactors. Order from RRVPNL of INR 175 crore for manufacturing transformers and reactors. Export order from PDC AK LPIV, LLC, U.S.A. of about INR 150 crore for manufacturing transformers. We currently have INR 23,000 crore of inquiries under negotiation. Historically, our win ratio is in the range of 10%-15%, and we are confident of achieving that. Out of the inquiries under negotiation, we are bidding for 80% domestic and 20% export orders. With an equal mix between government, private customers and utilities, and industrial customers. Alongside our core transformer manufacturing expansion, we are building a comprehensive backward integration ecosystem that will strengthen our supply chain reliability, improve margins, enhance quality control, and reduce dependence on external vendors. Three projects under implementation include CTC facility, 8,000 metric tons per annum, and phase two is 24,000 metric tons per annum, targeted commissioning by Q2 FY 2027. Pressboard and insulation facility, 5,000 metric tons per annum, phase one, and 10,000 metric tons per annum, phase II, targeted to commission by Q3 FY 2027. RIP bushings facility, 3,000 units per annum and 6,000 units per annum in phase II, targeted commissioning Q4 FY 2027. Fabrication facility, 25,000 metric tons per annum. Phase I, 50,000 metric tons per annum, targeted commissioning by Q1 FY 2028. CRGO processing facility, already commissioned and operational. Upon completion of these facilities to cater approximately 80%-85% of our raw material requirement in-house, significantly enhancing our manufacturing integration and operational efficiency. In transformer industry, where component availability remains a key bottleneck globally, we believe backward integration will become a significant competitive advantage for TARIL over the coming years. We acknowledge that there have been delays in commissioning of additional facilities at Changodar plant. The delay is primarily attributed to extreme monsoon conditions impacting the project execution timelines, construction force availability, constraints, and additionally, engineering enhancements and modifications across product-specific manufacturing lines and testing infrastructure. I'm pleased to share that the projects are now progressing in line with revised execution schedule. Changodar expansion involving investment of approximately INR 150 crores and backward integration initiatives entailing a total investment of INR 900 crores-INR 1,000 crores, remain key strategic priorities. We are confident that these facilities will be commissioned as per the timelines outlined. During quarter one FY 2027, TARIL delivered 10% year-on-year growth in revenue. On a sequential basis, revenue growth was impacted comparatively lower capacity utilization at Changodar facility where ongoing expansion and modernization activities are temporarily affecting the operational throughput. Importantly, this does not reflect any weakness in demand or order inflow or execution capability. The impact was purely project related, temporary in nature. We have accelerated the execution of the project and placed the implementation process on a fast track. As the expanded facilities progressively stabilize, we expect meaningful improvement in operational efficiency and execution levels, with the growth expected to pick up from Q3 FY 2027 onwards. At TARIL, we remain confident of our growth trajectory and are targeting 25% revenue growth in FY 2027, along with EBITDA margin of 16% and PAT margin of 9%-10%. These targets are underpinned by a healthy order book, expanding manufacturing capabilities, and sustainable demand outlook for the power transmission and distribution sector. As we enter the remaining part of FY 2027, our focus are clear. Timely execution of the order book, ramping up utilization at Changodar, commissioning backward integration facilities as per revised timelines, sustaining margins through operational efficiencies, converting a healthy inquiry pipeline into executable orders, strengthening high-value product opportunities. The transformer industry in India continues to offer significant growth opportunities driven by sustained investments in power and infrastructure and grid modernization. Additionally, emerging demand on data centers expansion and railway electrification. EV charging infrastructure, renewable energy integration are evolving substantial opportunities for transformer manufacturing over the coming years. The business environment remains favorable, we continue to closely monitor certain external factors, particularly the unfolding geopolitical developments subject to the factors remaining stable. We remain committed to delivering on the guidance shared with our stakeholders. Thank you. Good evening, everyone. Thank you for joining us today. I would like to take you through the company's financial risk profile, covering our profitability, leverage, working capital, liquidity position, capital allocation, and the key risk monitorable from a finance perspective. For Q1 FY 2027, standalone revenue from operations stood at INR 559 crores, registering a 10% year-on-year growth. EBITDA stood at INR 87 crores with EBITDA margin at 15.6%, while PAT stood at INR 50 crores with a PAT margin of 8.9%. The quarter was impacted on a sequential basis due to lower capacity utilization at Changodar plant as ongoing expansion activities affected operational throughput. This is transitional in nature and with the expansion expected to complete by August 2026, we expect utilization levels to improve progressively. From a consolidated perspective, revenue from operations stood at INR 572 crores, EBITDA stood at INR 110 crores and PAT stood at INR 64 crores in Quarter One FY 2027. Consolidated EBITDA margin remained healthy at 19.2%, which reflects the benefit of our integrated operations and contribution from subsidiaries. Coming to the balance sheet, our leverage profile remains comfortable. On a standalone basis, total debt stood at around INR 424 crores as of financial year 2026, against a tangible net worth of approximately INR 1,410 crores, translating into a debt-to-equity ratio of around 0.3x. Our debt to EBITDA stood at around 1.1x, which remains well within a prudent range for a manufacturing business of our size and growth profile. Borrowings have increased compared to FY 2025, this increase is largely linked to working capital requirements and growth-related investments, rather than any structural weakness in the balance sheet. Given the strong order book, expansion-led scale-up and maintained profitability profile, we believe the current leverage remains manageable and supports our growth plans. On liquidity, TARIL remains adequately positioned. We ended FY 2026 with a standalone cash and bank balance of approximately INR 139 crores. In addition, around INR 145 crore of unutilized proceeds from the QIP remains earmarked for backward integration initiatives. This provides us with additional funding flexibility as we execute our plant CapEx program. The ongoing expansion at Changodar involves CapEx of around INR 150 crores, while the backward integration program is expected to involve investment of around INR 900-INR 1,000 crores. We intend to fund this through a disciplined mix of QIP proceeds, leasing arrangement, internal accruals and debt if required. The objective is to maintain an efficient capital structure while ensuring that growth does not come at the cost of the balance sheet discipline. Key area we continue to monitor closely is working capital. As of FY 2026, standalone inventories stood at INR 561 crore and receivables stood at INR 1,057 crores. Net working capital days increased to around 170 days, with inventory days of approximately 85 days and receivable days at 130 days. This reflects the nature of our business, where large transformer orders typically involve long manufacturing cycle, milestone-based billing, testing requirements and project-linked customer approval. Our backward integration initiatives are strategically important from a risk management perspective. The new facilities for CTC conductor, press board insulation, bushing, fabrication, and CRGO are expected to strengthen supply chain control, improve availability of critical inputs, support timely delivery, and create cost efficiency over the medium term. Our fully commissioned, this initiative should reduce dependency on external suppliers and improve resilience against supply side disruptions. I would like to sum up my remarks by highlighting that TARIL continues to operate from a position of financial strength. Over the last few years, the company has scaled its revenue base meaningfully while improving the quality of earnings, strengthening net worth, and maintaining leverage at a comfortable level. On a standalone basis, the revenue from operation has grown at a five-year CAGR of 27%, EBITDA at 38%, and PAT at 101%, reflecting strong operating leverage and improved profitability across the business cycle. From a return profile standpoint, TARIL has demonstrated consistent improvement in standalone ROCE, improved from 11.1% in FY 2021 to 19.1% in FY 2026, while return on equity improved from 2.1% in FY 2021 to 15.7% in FY 2026. These metrics underline that the company has been able to deploy capital more efficiently while scaling operations. Thank you. I now hand it back for the question and answer session. 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 touchtone 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 a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We take the first question from the line of Abhijeet Singh from Systematix. Please proceed. Thank you for the opportunity. Sir, first question is on the revenue and execution front. In Q1, we have seen that the revenue growth has moderated to an extent, given the kind of order book we have. Sir, you mentioned also in the PPT and your remarks that the ongoing expansion at Changodar is likely to be giving issues in this quarter. Sir, can this also be attributed to some kind of supply chain issues, especially given the geopolitical climate right now, and some of the sourcing that we face challenges in the quarter? That is my first question. How to look at it going forward in Q2 and H2? As far as the revenue is concerned, that is mainly on account of the lower capacity utilization at the Changodar plant. We have enough orders on hand. Only thing is that new facilities are yet to commence, and that will commence from August 26th. Mainly it will be stabilized by going forward since quarter three. As far as the second question is related to the availability of the raw materials. Mostly we have covered ourself, by procuring this material, say up to December, till the time our backward integration facilities are up and running. Till that time we are well covered ourself. Majorly the geopolitical reason is not affecting much, as far as the raw material is concerned. Has our inventory increased a lot at the end of Q1 in that situation? Yeah, inventory levels are high. That means you might see increased interest costs in the balance nine months, right? Because of that. We might need more working capital for this. Integration in the next nine months. Yeah, see, this would be a temporary feature to protect ourselves, and it will be modernized once our backward integration facilities are up and running. That will start reducing the inventory levels also. Right. Sir, second question is on the other expenses. This quarter we have seen the other expenses on the lower side a little bit. Usually they would hover around 13%, 14%. This quarter is around 12% or so. I would expect that some kind of commodity and forex pressure would eat into our margins. Could you explain that why is the other expenses on the lower side in this quarter? Is there a one-off there? No, there is no one-off. If you look at our quarter one other expense, it is around INR 69.74 crores. Last year it is around INR 66 crores. There is no major reduction as such. Right. Sir, lastly, on the order inflow for the full year, I've seen that we've done very strongly in Q1 in terms of exports. We have got this INR 150 crore order from U.S. In that light, for the full year FY 2027, what is our expectation for the order inflow, both from the domestic and the export markets? If you could highlight also geography-wise, because as far as I understand, there's a lot of good demand for greener transformers in Europe also. Right? From that perspective, what is the inflow situation for FY 2027 that we expecting? We would be maintaining about 30% growth rate in both domestic and export market. We are currently looking at the Americas, as we say it, North America and South America, and some of the Australian orders where we are very confident that we are going to get a good growth in terms of numbers in transformers. All right, sir. Thank you for answering the question. That's it from my end. May I request the moderator to keep one question per person, please? Sure, sir. Before we proceed with the next question, ladies and gentlemen, in order to ensure that the management is able to address questions from all the participants, please limit your questions to one per participant. We take the next question from the line of Subhadip Mitra from Nuvama. Please proceed. Rupesh sir, thank you for the opportunity. Just wanted to check on the guidance. I think you mentioned for FY 2027, 25% increase in revenue and a 16% EBITDA margin. Is that the right number? Yeah. That is there. 25% as far as the revenue, and 16% EBITDA margin, and 10% reserve of PAT. At the PAT level. Also, just wanted to understand that from a slightly longer term perspective, if let's say we look into FY 2028 and beyond, what kind of revenue growth and margins do you think are sustainable? In the past you had talked about reaching $1 billion kind of a top line at some point of time in the future. Any thoughts on that? The company is constantly working and progressing towards $1 billion by 2028, 2029. We are constantly working on that, and we are very confident that we should be able to reach $1 billion by 2028, 2029. Understood. For FY 2028, any thoughts on revenue and EBITDA margin? We'll get to it when we get there. Quarter four we will give you a clear guideline on FY 2028. Understood. Thanks. That's it from my side. Thank you. Thank you. We take the next question from the line of Jainam Vora from Saltoro Investment Advisors. Please proceed. Hi. Thank you very much for the opportunity, and congratulations on the INR 1,000 crore PGCIL order win. PGCIL order win. Yes. INR 1,000 crore+. Yes. Apologies, INR 1,000 crore+ PGCIL order win. I just wanted to understand the thought process behind that win. I think even the biggest companies, your peers wouldn't have received a single shot order like that. What was the requirement? What was the thinking? If you could spend a couple of minutes behind that. Do we see, given the kind of energy transition and the opportunity that is there, PGCIL wanting to give such orders even in future? That would be very helpful. This order, like we said that we have about INR 23,000 crores in our order pipeline. Means inquiries under negotiation. This was one of them, and which finalized in the first quarter. We have many more, about INR 23,000 crores worth in pipeline. Our win ratio is about 15%-20%, we should be winning those inquiries. No, I understand that. I want to understand specific to this order. I think single shot order of this nature would be the first for the company and also for the industry, right? What typically goes into this order? Is it just L1 bidding? Going forward as well, what indications is PGCIL giving to companies like ours, given the opportunity? If you could explain that. Yes, all the tenders that we quote in India are on L1 basis. I think as far as we have multiple more inquiries with PGCIL, which are under negotiation, so they will take some time. Got it. We can expect such ultra mega orders to keep flowing in given the opportunity, and PGCIL has the appetite to give such orders to companies like. Yes, of course. Got it. Thank you. Thank you so much. I'll get back in the queue. Thank you. We take the next question from the line of Shivam Singh from Capital Ark. Please proceed. Hello, am I audible? Good evening, Shivam. Yeah, you are audible, Shivam. Good evening, sir. Sir, I just wanted to understand, sir, in our previous quarter, our employee count was INR 38 crores. In this quarter, it's INR 22 crores. Could you quantify what these changes are? Yeah. See this, in the last quarter, we have made some provision as far as the ESOP and the MD commission. Okay, sir. That is there in the last quarter, this year, it is already part of that. Okay, sir. Sir, I had one more small question. Sir, we told that low order margins that we were taking in, we have stopped taking that and we are going for higher margin orders, that is not reflecting in our actual business. When do we expect that to kick in? Yeah. See, this result, number, if you look at this EBITDA margin of around, say, 16%, that is consistently we are maintaining. In this year, last, if you look at quarter four, our margins was in that line. Even if you look at our entire number of financial year 2026, that is almost on the same line. Definitely, this will be continuing in the near future also. Okay, sir. Thank you so much, sir. I'll get back in the line. Yeah. Thank you. We take the next question from the line of Prathamesh from Motilal Oswal. Please proceed. Hi. Am I audible? Yeah. Hi. Just wanted to know if you could please provide a breakdown of power transformer order book by rating class, and also which players do we compete within each classes? We compete with almost all players in India. Our business starts from 33 kV all the way up to 1,200 kV. In 33 kV, we have competitors which are small manufacturers. Then from 132 kV to 220 kV, we have competitors like other Baroda-based manufacturers. Then for EHV and UHV transformers, we have competitors which are mostly multinationals. Okay. Our INR 5,300 crore order book for power transformer, if we were to split it by rating class, which would be the top two or top three classes and their percentage is? We have orders fairly spread out amongst all classes. From 66 kV to 765 kV, these are very fairly spread. Okay. Sir, if we were to just check the revenue split of power transformer for this quarter, is it the same? Are we fairly split across classes for revenue for power transformer in this quarter, or are we heavy in some particular segment only? This quarter has been slightly heavy on the 220, 400, and 765 kV segment because our Changodar plant is currently going through expansion. By August end, this will be fairly spread across all ratings. IDTs, distribution transformers, small power transformers, large power transformers, EHV and UHV transformers, all transformers it will be fairly spread across. Okay. Understood, sir. I'll join the queue. Thank you. Thank you. We take the next question from the line of Darshil Jhaveri from Crown Capital. Please proceed. Hello. Good afternoon, sir. Thank you so much for taking my question, sir. Firstly, congratulations on a good performance in a very challenging condition, sir. Sir, just wanted to clarify one thing, sir. We mean $1 billion- top line by FY 2029, right? Yes. Okay. We are working on it. We are constantly progressing towards it. 2029 looks very achievable currently. Okay. No, fair enough, sir. Sir, with all the backward integration that we are doing, in terms of margin benefit, what can we see flowing through from FY 2028? Because most of our facility this year in backward integration will come in the later half, right? So FY 2028 would be the year with nearly most of it coming online, right? So what kind of backward integration benefit we can see in margin, sir? Yeah, it will be basically between 200 basis points to 300 basis points. See, these facilities will come up in Q1 FY 2028. Starting from FY 2028, we will see gradual increase in the margins. The CTC plant will be commissioned by Q2, the press board plant will be commissioned by Q3, and the bushing plant, which is a large bottleneck for us currently, will be commissioned by Q4. Correct. There will be a gradual improvement as scale improves. Fair enough, sir. That's not an issue. Sure. Just the depreciation would hit in FY 2028, right, sir? Yeah, once this capitalization is done. Okay. Yeah. Fair enough. I'll join back the queue, sir. Thank you so much. Thank you. Thank you. We take the next question from the line of Balasubramanian from Arihant Capital. Please proceed. Good evening, sir. Thank you so much for the opportunity. Sir, the order flow is almost +200% year-on-year, nearly INR 2,000 crores plus. Earlier, we used to maintain an 18- 24 months execution timeline, right now we are taking up to within 30 months with a large order. Is there any changes in the strategic direction for taking orders in terms of timeline and whether Yes, sir. Most of the orders that we are taking are currently from 18- 24 months. This was a single bid, we got this for 30 months. Otherwise, most of the orders that we are categorically taking are from 18- 24 months. Okay, this one is exceptional, right, sir? This is only an exception right now. Okay, sir. Secondly, sir, right now the global market is shifting towards voltage source converter-based HVDC systems, which are more complex than line commutated converter systems. What is our design strategies based on, like LCC, VSC or hybrid side? If you could talk about, I think we are coming out with our own process. How do you look at compared to some big competitors like Hitachi, Siemens or GE? What is the estimated- We are looking at hybrid. These are basically, not patented, but manufacturing secrecy kind of thing. We would not like to discuss any further on this, but it will be based on hybrid systems. Okay. Any R&D CapEx required for this, sir? Not currently. Okay, sir. Thank you, sir. Thank you. We take the next question from the line of Gaurav Khemka from Mas Ventures. Please proceed. Yeah. Hi. Am I audible? Sorry to interrupt, Mr. Gaurav. We are not able to hear you. Please come closer to your device and then speak. Am I audible now? Yes, Gaurav. Hi, am I audible? Yes, Gaurav. Go on. Yeah. Thank you for the opportunity. First of all, congratulations for a 10% increase in the revenue and posting good numbers. I just wanted to know about, since our inventory is getting increased, and the inventory turnover is also getting increased, when can we see our inventory getting the sales and reflecting in our profit and loss statements, and we're getting the cash flows? As we told you that looking at the current geopolitical situation in the raw material, we have decided to keep the higher inventory level. Till the time our backward integration facilities are up and running, we will maintain this level and you will start gradual reduction from, say, from quarter four of the next financial year. Till December, we are covered as far as the raw material is concerned. Looking at the geopolitical situation, we have protected ourselves until December, and we are pretty much sure that all our backward integration plants will be ready by December. We have protected ourselves until December in terms of raw material. Okay. Thank you. Thank you for the clarification. Yeah, that's from my side. Thank you. We take the next question from the line of Vaibhav Mishra from Finvestors. Please proceed. Hello. Good evening. Sir, I have one question. The EBITDA margins that we are targeting for FY 2027 of 16%, these are excluding other income, correct? These are operational EBITDA margin, correct? Yeah. This margin has been calculated as including other income. This quarter, we have done 19%, and we are guiding for 16% for the whole year. Means we are going to go down below 15% as well. No, 16% at a transformer level. This 19% margin is with including the subsidiary at a consolidated level. For consolidated number, any margin that you would like to guide for FY 2027, sir? Like for like 19% this quarter that we have achieved, what kind of number can we see for the whole year? I think couple of percent more. 20%, 21% or beyond that. Okay. All right, sir. One more small question, sir. Like our orders, how do we protect the margins? Do we have price variation clause or we buy the inventory as orders are received? What kind of model we follow? We are protected by price variation clause. Looking at the geopolitical situation, currently, we have stocked up our inventory until December 2026, that we are protected. You know, we have large orders, and we need to execute these orders on time. We have protected ourselves in terms of inventory. After December, all our backward integration plants will be functional, we are pretty much sure that raw material problem we will not face. All right, sir. One small update regarding Moraiya expansion. I think it was to be completed by Q3. Is that on track, sir? No, Moraiya expansion is Q3 2027, and that is on track. Okay. All right. Okay. Thank you so much, sir. Thank you. All the best. Thank you. Thank you. We take the next question from the line of Yash Gupta from Asit Koticha Family Office. Please proceed. Good afternoon, sir. Sir, my first question on the debt levels, how we're looking at the debt level going forward, as currently, we have already at INR 400+ crores of debt and working capital requirement to complete this INR 6,600 crores of unexecuted order, along with that INR 1,000 crores of CapEx that we are going to build. How you are looking at the debt number for next couple of years? We will not like to increase anything in the debt. As far as the CapEx is concerned, we have enough cash as well as the QIP money, plus we have the arrangement through the leasing. For CapEx, we will not be needing much fund. If anything is required, there may be a small debt. Working capital level, we try to reduce the working capital cycle, and from that only we will generate the additional capital that is required for the INR 6,600 crore order book. If you look at INR 150 crore. Yeah. INR 150 crores of the QIP money left for the backward integration. Currently, we are at INR 400 crores and INR 1,000 crores for the current CapEx. If we say 80% on the current uncompleted order book of INR 6,600 crores, then INR 5,000 crores for debt. How we are going to manage it for next two years? INR 150 crores odd from the QIP money. We have arrangement for the leasing, et cetera, for the plant machinery. That CapEx part is gone now. There is no fund requirement as far as the CapEx is concerned. Then we may utilize certain internal accruals if required. The CapEx will be funded in that line. The working capital, we would like to squeeze our working capital cycle to generate the additional fund so that we can manage the additional revenue that what we are planning. Okay. This INR 1,000 crores of CapEx, what will be the number after leasing, if we are going for finance leasing? Finance leasing would be roughly around, say, INR 500 crore. Okay, we need to spend only INR 500 crores. Yes. Okay. Sir, this, our INR 1,000 crores for backward integration, what turnover ratio we can expect on this? I understand that we'll be utilizing this capacity for captive utilization, what will be the turnover ratio on this INR 1,000 crores of backward integration? In the first phase, this will be entirely for the tariff. In the second phase, we will look to sell into the market. There is a third party sale. That will roughly give us additional, say around INR 800 crores-INR 1,000 crore additional revenue from this. For the outside sale? Yeah, for the outside sale. We can say that 50% for outside and 50% for captive? No, this will be around 60%, 65% for captive and the remaining for outside sale. Okay, sure. Thank you, sir. Thank you. We take the next question from the line of Avikshit Vijay from Global Consolidated Research. Please proceed. Yeah. Hi. Am I audible? Yes. Thank you for the opportunity. My first question is, what is the update on the HVDC front? Like last quarter, I remember we were saying that we were getting into it. What is the timeline that we can expect revenues in? HVDC front, I think it will take another 15-16 months to get fully into manufacturing HVDC. We still have nine months to complete our repair of HVDC. Once we completed our repair of HVDC, then PGCIL will empanel us for the first trial order of HVDC. Okay, great. I think this is a follow-up from the previous participant, the $1 billion revenue target. It needs about 50% CAGR from current levels, and we are guiding for 25% right now. How is this reconciling? I am not getting the math here. See, this 2029 is the, you can say the earliest period, but we will definitely target. See, if looking at our existing capacity, we can go up to say around INR 6,000 crore. This backward integration top line, which will be to the third party, that will be around INR 1,000 crore. That's how. See, given the target at the $1 billion time, rupee level was different and now the rupee level is different. We are looking at somewhere around, say INR 8,000 crore. Okay. Sure, sir. One last question. Why is it that only we are facing a very big slowdown in the revenue growth while our peers are posting like 50%, 60%? That is because of the lower capacity utilization of the Changodar plant. That will be by August 26, it will start the capacity utilization and from quarter three it will normalize. Okay, sir. Thank you so much. That answers it. Yeah. Thank you. We take the next question from the line of Pratham Modi from HPMG Shares and Securities. Please proceed. Hello, am I audible? Yeah. Good evening, and thank you for the opportunity. My question is regarding CRGO steel. The DGTR has initiated an investigation into CRGO steel imports, which could potentially lead to imposition of a provisional anti-dumping duty. Could you share your assessments of the likely short-term and long-term impact on company raw material cost? This investigation is currently going on and we would not like to comment on that right now. With the requirement that India has in terms of the growth of Indian electricity demands, they may have to relook at what can be done. Okay. Is there any strategy that company is considering to mitigate a potential impact? We are currently just waiting and seeing what the results are. Until December 2026, we have protected ourselves in terms of whatever raw materials that we require. Yes. We are pretty much sure that things will get sorted out by then. Okay. That answers my question. Thank you so much, sir. Thank you. Thank you. We take the next question from the line of Wilson, an individual investor. Please proceed. I would request Mr. Wilson to unmute and then speak. I think he's not there. You can take the next. Okay sir, we'll just proceed with the next question. We take the next question from the line of Gaurav Shukla from Finvestors. Please proceed. Good evening, Gaurav. Good evening, sir. Am I audible, sir? Yes, you are audible. Sir, in your PPT page number 25, you have showed that capacity of all Moraiya, Changodar and Odhav. Sir, what is this? I not understand. It is capacity present or after expansion this capacity will be? Sorry, Gaurav, we couldn't understand your question. Can you repeat your question, please? Sir, in your PPT, page number 25. You have showed the capacity of Moraiya, Changodar and Odhav. 40,000 MVA per annum, 35,000 MVA per annum, 22,000 per annum. Sir, is this capacity [Non-English content] [Non-English content] Sir, what will be the closing order book for FY 2027? [Non-English content] We are looking at 30% growth. We are confident that we will be achieving 30% growth in terms of UEOB. Okay, sir. Thank you, sir. This is from my side. Thank you. We take the next question from the line of Shrinarayan Mishra from Baroda BNP Paribas AMC. Please proceed. Thank you. My question is again on the lower utilization. Basically, Changodar does less than 220 kV transformers. [crosstalk] Changodar will do 220 kV, up to 220 kV. Not less than 220. Yeah. Moraiya was operational fully. If you can give like-to-like growth, for more than 220 kV transformers, what would be year-on-year growth? We can get some sense of how the like-for-like growth was. Shrinarayan, let me put it this way. We are looking at 30% growth in all sectors. The growth in terms of 220 kV is also much beyond 30%. Looking at our current manufacturing capacity, we are looking at 30% growth this year, and next year we may go up to 45%. That I agree, I wanted to isolate the impact of capacity expansion at Changodar. After that, what would have been the revenue growth? That's why I'm asking. More than 220 kV, what would be the revenue growth? More than 220 kV? Yes. More than 220 kV. Basically, currently Moraiya is operating at around 60%-65% capacity level. This would go up to, say, 80%-85% capacity level going forward. Okay. Here also there was a slowdown. That's what we should understand. Even in more than 220 kV at Moraiya, the execution was slower. No. As per, say, last quarter only, it is around roughly, say, 60%-65% capacity utilization. Okay. Why is the utilization lower here, 60%-65%? While other competitors are operating at close to full capacity. As such, there is no major reason as such. The order book is there, but still the capacity utilization is low, not able to understand what exactly is delaying the revenue ramp-up, or I don't know what is happening here. While other competitors are posting good numbers. I think we are pretty much in the same line as the market growth is. I don't know. Okay, fine. Just one question related to this only, that we would have done higher mix of more than 220 kV transformers, given Changodar was impacted. Still our margins are 16%. When the Changodar plant comes back, is there a possibility this 16% will become 14% or 15%? No, there is no possibility. We are pretty much protected in terms of the orders that we have. There is no possibility that it will go down. I'm talking purely because of the mix. Lower rated transformers will have lower margins, right? No, we are pretty much protected, we already have orders in hand of INR 6,630 crores. We are pretty much protected in terms of Changodar manufacturing capacity also is concerned. Okay, thanks. Thanks. All the best. Thank you. We take the next question from the line of Rahulkumar Mishra from Antique Stock Broking. Please proceed. Hi. Thanks for the opportunity. Sir, I have just one question, and it is pertaining to the Changodar facility. Currently, as per the PPT, we see that because of the capacity expansion and modernization activities that is undergoing, the utilization stood low at 27%. Once the capacity is up and running, what utilization are we expecting in the near to medium term? Like, say, for this year, as well as for 2028 and 2029. In this year, the capacity utilization will still be at 60%-65%. Okay. From next year, we will be ramping up the capacity utilization to 80%-85%. Okay. This is similar to what you have said for Moraiya plant. Yes. Even the backward integration plants will come into play by then. Next year we should be at a better capacity utilization. Okay. That answers my question. Thank you so much. Thank you. We take the next question from the line of Bhavya Dedhia from KRIS PMS. Please proceed. Hello. Sir, my question is, I wanted to know the outlook for the U.S.A. market. What is the volume growth that we see in the U.S.A. market for this year, how are we competing in the U.S.A. market? Is it on the basis of quality, price? On what basis are we competing in the U.S.A. market? Good evening, Bhavya. See, in the U.S. market, we are one of the big major suppliers up to 765 kV transformers, we have a track record of 765 kV transformers for more than 20 years now. Okay. On that basis, a lot of U.S. customers are relying on our quality, our production capabilities, price is also one of the factors that we look at. Okay. What kind of revenue are we expecting this year from the U.S.A. market? Our export business will basically be at 10%-15%. We will not go beyond 15% in our export business. We will be maintaining that business through the year. Okay. Thank you. Thank you. We take the next question from the line of Rahul Chandak from Alpha Plus Capital. Please proceed. Hello, can you hear me? Yeah, Rahul. Tell me. In FY 2026, we saw increase in trade receivables, current receivables. Going in this quarter, how has that turned out to be? As we speak, this receivable level has reduced. As we told in the last con call also, that there are certain receivables which has been realized in April. As on 30th June, this receivable level has reduced. Going forward, what kind of working capital days are we looking at? We are targeting on an average, say, 120 days to 130 days. Okay, thank you. That's my question. Thank you. This would be the last question. Thank you. We'll take last three questions, please. Sure, sir. We take the next question from the line of Basant Bansal from NVG Investment. Please proceed. Good evening, sir. Sir, my question is around on the top line. Now we are talking of $1 billion. $1 billion means INR 9,600 crore approximately. Last year we were at INR 2,500 crore. If we add 25% for 2027, we will reach to INR 3,136 crore. That means for next two year, that is 2028 and 2029, we will have to add another INR 6,500 crore in our top line. Are we sure of those numbers or is there any confusion? There is no confusion as such. When we said about this $1 billion, at that particular point of time, the rupee rate, et cetera, is very low. We are targeting, say, INR 8,000 crores revenue. As we have given in our presentation, et cetera, through this expansion at Changodar and Moraiya, we will be able to easily achieve around, say, INR 5,000 crore to INR 6,000 crores. With its backward integration, additional, say, INR 800 crores to INR 1,000 crores. That gives us up to, say, INR 7,000 to INR 8,000 crores by 2029. You can look at, instead of INR 9,600 crores, you can look at around INR 8,000 crores. Okay. Yeah. Thank you very much. Thank you. We take the next question from the line of Viren Sameer Deshpande from Alphapeak Investments. Please proceed. Hello. Good afternoon, sir. My questions have been already answered. I have only one small question regarding these EBITDA margins, which we have been mentioning. It is around 16% will be hopefully the blended margin for the consolidated company. Is it correct? 16%? Yeah. 16% we are mentioning in guidance. Is it for the consolidated entity? I think it is only for the transformer that is standalone, no, you mentioned? Yeah, 16%. Yes. That includes other income, but it is only for the standalone entity, and the subsidiaries will have higher margin. Last year, our blended margin for consolidated was 17.3%. Yeah. We will be close to that-- Subsidiary may be given some additional 100 basis points. That will be there. Okay. Overall, the margins will be higher than the last year 25%, 26%? Yes. For the consolidated company. Yes, that is correct. Okay. Thank you and all the best. Our expansions are really promising, and we look forward to the quick and prompt completion as early as possible. Really, the next two years will be very good inflection point for the company, and all the best. Thank you, sir. Thank you. This will be the last question, moderator, please. Okay, sir. We take the next question and the last from the line of Arun from ABDS Capital. Please proceed. Good evening, Arun. Good evening. Am I audible? Yes, Arun. Okay. I guess a little bit of a repeat. In the utilization chart that you have in your presentation, Changodar, we understand all the reasons that you mentioned. Odhav is 100%. My confusion is what was holding back Moraiya to be closer to 100%? That is 57%. Arun, there are certain geopolitical issues that we have faced in the past quarter, and that is the reason why we have stuck at 57%. Now, this quarter onwards, we are already protected until December. With our backward integration plants coming into play, our utilization will be much higher than this in the coming quarters. Moraiya utilization would really improve after the backward integration comes into play, or even before that? No, we have already protected ourselves in terms of the raw material for up till December. This quarter is going to show a pretty good improvement in terms of capacity utilization. After December, with our backward integration plant coming into play, we will see a much better improvement. Okay. Do you think Moraiya could get to something like 80% by Q3? We are working on it. 80%, 85% is not far-fetched. Wow. Thank you, sir, and all the best. Thank you. Thank you. Ladies and gentlemen, that was the last question for the day and would now like to hand the conference over to the management for closing comments. Over to you, sir. Good evening, everybody. Thanks once again for joining the investor call for Transformers and Rectifiers (India) Limited. We hope we have been able to address all your key questions and provide clear perspective on TARIL's performance, growth plans and outlook for FY 2027. Our focus remains on disciplined execution, timely delivery of commitments, and creating long-term value for all our stakeholders. Should you have any further questions or queries, please feel free to reach out to our investor relations advisor, Ernst & Young, who will be happy to coordinate with us and assist you offline. Thank you very much. Thank you. On behalf of Transformers and Rectifiers Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.