T R I L Q1 FY27 Results (NSE: TARIL)
Signal: Margin pressure
The read
Q1FY27 marked a sharp deceleration in revenue growth (+8.1% YoY) and the first YoY PAT decline (-4.7%) in at least 10 quarters, driven by margin compression from higher raw material costs and a 52% surge in finance costs. The standalone result was weaker (PAT -17.7% YoY), partially offset by subsidiaries (contributing ~₹13 Cr). The order book remains strong with the ₹1,000 Cr+ PGCIL win, but the operating trends warrant monitoring — the margin arc that had expanded for 6 straight quarters has now contracted for 2 of the last 3 quarters.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹572.34 Cr | 8.1% | -26.9% |
| EBIT | ₹73.81 Cr | -4.3% | |
| Net profit | ₹64.29 Cr | -4.7% | |
| EPS | ₹2.05 | -8.5% | |
| EBIT margin | 15.5% |
P&L walk
Revenue grew only +8.1% YoY (decelerating sharply from +64.3% in Q1FY26 and +31.8% in Q3FY26); margin compressed 170bps YoY on higher raw material costs and finance cost, with PAT down -4.7% despite a lower effective tax rate. The EBITDA margin appears to be ~15.5% vs 17.2% YoY, though EBITDA is not explicitly disclosed; OPM (EBIT margin) was 12.9% vs ~13.5% YoY.
Segments
Single-segment (Manufacturing of Transformers) — no segment table; the consolidated result largely mirrors the standalone, with subsidiaries contributing ~₹13 Cr to consolidated PAT vs standalone ₹49.87 Cr.
Key positives
- Revenue ₹572.34 Cr is second-highest Q1 on record, +8.1% YoY, indicating sustained demand in the transformer market.
- Subsidiaries contributed ₹14.42 Cr net profit (PAT minus standalone), showing group diversification is adding value.
- Order book strength reinforced by ₹1,000 Cr+ ultra-mega order from Power Grid Corporation on June 30, 2026, providing multi-year revenue visibility.
Key concerns
- Gross margin compressed ~560bps YoY as raw material cost rose to 79.6% of revenue from 74.0% — the highest level in at least 9 quarters — with no disclosed driver.
- Finance cost surged 52% YoY and 36.5% QoQ to ₹14.37 Cr (2.5% of revenue), interest coverage falling to ~5.1x from ~7.3x a year ago.
- PAT declined -4.7% YoY, the first YoY decline in 10 quarters; standalone PAT fell -17.7% YoY.
- Revenue growth decelerated sharply to +8.1% YoY from +64.3% in Q1FY26 and +31.8% in Q3FY26, signalling a normalization from a high-growth phase.
- Effective tax rate rose to 27.0% from 25.4% YoY (standalone even higher at 36.4% vs 25.9%), adding to earnings pressure.
Research and educational content only. Not investment advice.