Newsletter
Transrail Lighting just posted its results for the first quarter of FY26 and the numbers are, quite literally, electric.
Revenue from operations came in at ₹1,660 crore, up 81% year-on-year. Net profit more than doubled to ₹106 crore i.e. a 105% jump, while operating profit (EBITDA) hit ₹200 crore, rising 66% from the same time last year. In short, margins held steady, profit surged, and the order book? That lit up brighter than a 400kV substation.
Because alongside these earnings, Transrail also announced fresh order wins worth ₹1,748 crore this quarter, marking a 72% growth year-on-year. That pushed its total unexecuted order book to ₹14,654 crore (up 44% YoY), or ₹15,637 crore if you include L1 bids i.e., contracts where it emerged as the lowest bidder and is awaiting formal confirmation.
But numbers aside, this quarter was more about positioning than about performance.
Transrail kicked off the fiscal by completing a string of major projects, starting from 765kV transmission lines in Gujarat’s Khavda region for Adani to 400kV lines in Solapur for ReNew Power and 132kV lines in Eswatini, Africa.
This vertical integration matters. Around 65–70% of Transrail’s EPC contract value is fulfilled using its own manufactured products like towers, conductors, poles. That reduces supplier risk, improves margins, and ensures tighter control over timelines. And now, it’s doubling down. That confidence is also showing up in how rating agencies view it; CRISIL just upgraded its long-term credit rating to AA− / Stable, which essentially means it sees Transrail as a company with very strong capacity to meet its financial commitments, just a notch below the highest-rated corporates. In short: dependable, but still with some room to prove itself.
All this momentum raises a natural question: what exactly is the company into?
Well, this company’s bread and butter is its transmission towers, conductors, substations, and the gigantic metal infrastructure that keeps India’s power supply humming. In other words, it builds the highways of electricity and increasingly, it does this not just in India, but across Asia and Africa.
The company’s business model is built around being a turnkey EPC (Engineering, Procurement & Construction) player, mostly in power Transmission & Distribution(T&D). This includes designing, supplying, installing, and commissioning everything from high-voltage lines to substations.
Over the years, it has branched into civil infrastructure, rail electrification, solar EPC, and yes, some poles and lighting too. But 97% of its current order book is still rooted in its home turf, the T&D vertical.
That’s not a bad thing. In fact, it’s the opposite.
India’s long-term renewable energy target of 500 GW by 2030 requires massive upgrades in the country’s transmission infrastructure. More solar parks and wind farms only help if the power they generate can be moved cleanly, reliably, and across long distances. That means more towers. More conductors. More contracts. And companies like Transrail who already have tower factories, conductor plants, testing units, and a four-decade execution track record are well-positioned to ride this wave.
Which explains why Transrail isn’t just chasing contracts but rather it’s expanding capacity to fulfill them.
Its ongoing capex includes brownfield expansion of its tower manufacturing capacity from 84,000 MT per annum to 1,96,000 MT, and conductor capacity from 24,000 km to 49,500 km. These expansions are expected to wrap up between Q2 FY26 and Q2 FY27. Most of this is being funded through IPO proceeds and internal accruals, signaling a balance-sheet discipline.
In fact, Transrail’s capital structure is holding up quite well. Debt is rising, yes… net debt (excluding IPO funds) has gone from ₹502 crore to ₹613 crore in Q1. But working capital efficiency is improving, and the company’s debt-to-equity ratio is still under 0.4x. Not bad for an infra company operating in a capital-intensive industry.
So, where’s the catch?
Every infra company has one. In Transrail’s case, a few concerns stand out.
First, there's concentration risk with T&D. The company is heavily exposed to a single vertical. If state utilities delay projects, or central funding slows down, it could affect the pipeline. The other segments like solar EPC, civil infra and rail haven’t scaled enough to provide diversification.
Second, there's execution risk. The larger your order book, the greater the complexity in delivery. Delays, cost overruns, or even regulatory hurdles could eat into margins. And while Transrail has an experienced management team and integrated facilities, infra EPC remains a tough business to navigate.
Third, working capital stretch. While revenue and profits are rising, short-term borrowings jumped nearly ₹92 crore this quarter, pushing up total net debt. Receivables from government clients are always at risk of delay, and that can snowball into liquidity issues if not carefully managed.
Despite this, the company is clearly firing on most cylinders and if it can maintain momentum, there’s a lot to look forward to.
For one, the execution of ongoing orders, especially the international ones in Africa and South Asia will be key. It’s one thing to win contracts, quite another to deliver them on time and within budget.
Moreover, investors will watch how tower and conductor capacity additions pan out. If Transrail can finish capex on schedule, it could unlock faster order fulfilment and margin improvements by FY27.
Also there’s scope for business diversification. Civil projects, railway infrastructure, lighting, and solar EPC are all small parts of the portfolio today. But if the company can crack these markets, it could reduce its dependency on T&D in the future.
And finally, there's the broader story of India’s grid expansion, electrification of railways, and renewable push, all of which point to sustained demand for power infrastructure.
Transrail may not be the most talked-about name in the market, but it's quietly building a solid foundation for long-term growth. With a strong start to FY26, a healthy order book, and clear execution plans in place, the company is showing signs of steady momentum.
If it continues to manage risks, expand capacities, and diversify its base, Transrail could well position itself as a key player in India’s evolving infrastructure landscape.
Sometimes, the companies that stay behind the scenes are the ones powering the biggest shifts.
FAQs
What does Transrail Lighting do?
Transrail Lighting is an EPC (Engineering, Procurement & Construction) company that builds transmission towers, conductors, substations, and related infrastructure for the power sector. It primarily operates in the Transmission and Distribution (T&D) segment, with projects across India, Asia, and Africa.
How did Transrail Lighting perform in Q1 FY26?
Transrail Lighting reported a revenue of ₹1,660 crore in Q1 FY26, up 81% year-on-year. Net profit jumped 105% to ₹106 crore, and EBITDA rose 66% to ₹200 crore, with steady margins and strong operational performance.
What is Transrail Lighting's current order book?
As of Q1 FY26, Transrail Lighting has a total unexecuted order book of ₹14,654 crore, up 44% year-on-year. If L1 bids are included, the order book rises to ₹15,637 crore, reflecting strong business momentum.
What is the significance of L1 bids in Transrail's business?
L1 bids refer to contracts where Transrail has emerged as the lowest bidder and is awaiting final confirmation. These are not yet part of the formal order book but indicate a high probability of future order inflows.
How is Transrail Lighting expanding its manufacturing capacity?
Transrail is expanding its tower manufacturing capacity from 84,000 MT to 1,96,000 MT per annum and conductor capacity from 24,000 km to 49,500 km. These brownfield expansions are expected to complete between Q2 FY26 and Q2 FY27.
How does Transrail manage its capital structure and debt?
Transrail’s net debt rose from ₹502 crore to ₹613 crore in Q1 FY26. However, the debt-to-equity ratio remains under 0.4x, showing prudent financial management in a capital-intensive sector.
What are the key risks in Transrail Lighting’s business?
Key risks include overdependence on the T&D segment, execution challenges for large infrastructure projects, and working capital pressure due to delayed government receivables.
Why is Transrail focusing on vertical integration?
Around 65–70% of Transrail’s EPC contract value is fulfilled using its own manufactured products like towers and conductors. This reduces supplier risk, cuts costs, improves timelines, and protects margins.
What role does Transrail play in India’s renewable energy goals?
India’s 500 GW renewable target by 2030 demands a robust transmission network. Transrail, with its T&D focus and proven execution track record, is well-positioned to benefit from this energy transition.
Is Transrail Lighting a good long-term investment?
With strong earnings growth, a rising order book, ongoing capex, and a CRISIL AA− rating, Transrail shows long-term promise. However, investors should monitor its execution capabilities and efforts to diversify beyond T&D.
