Transrail Lighting Q2 FY27 results: net profit down 47.2% to ₹103.94 crore, revenue down 36.2%

How did Transrail Lighting perform in Q2 FY27?

Transrail Lighting reported consolidated revenue of ₹2,056 crore for Q2 FY27, against ₹1,736 crore in Q1 FY27 and ₹3,221 crore in Q2 FY26. Revenue increased 18.4% sequentially but decreased 36.2% year on year. On a standalone basis, revenue was ₹2,057.26 crore, down 36.1% from the year-ago quarter.

Consolidated EBITDA was ₹236.73 crore, with an 11.5% margin, compared with ₹202.27 crore and 11.7% in Q1 FY27 and ₹382.71 crore and 11.9% in Q2 FY26. PBT was ₹156.89 crore, while the net profit attributable to owners was ₹103.94 crore and basic EPS was ₹7.74.

Net profit fell 3.7% from ₹107.88 crore in Q1 FY27 and 47.2% from ₹196.80 crore in Q2 FY26. Basic EPS declined from ₹8.04 in the previous quarter and ₹14.66 in the year-ago quarter. Standalone net profit was ₹104.7 crore, compared with ₹199.12 crore in Q2 FY26.

What changed in Transrail Lighting's costs and profit?

Total expenses were ₹1,913 crore in Q2 FY27, ₹1,065 crore lower than Q2 FY26. Cost of materials fell ₹463.15 crore to ₹1,046 crore, employee cost declined ₹61.67 crore to ₹98.29 crore, finance costs fell ₹36.50 crore to ₹73.38 crore and depreciation decreased ₹9.49 crore to ₹19.93 crore. Other expenses were down ₹709.85 crore at ₹629.60 crore.

Other income fell ₹11.92 crore to ₹13.47 crore from ₹25.39 crore in Q2 FY26, while tax was ₹54.15 crore, lower by ₹20.90 crore from ₹75.05 crore. There was no exceptional item. The filing does not state a reason for the year-on-year movement in profit.

Against Q1 FY27, total expenses increased ₹303.88 crore to ₹1,913 crore. Cost of materials rose ₹123.82 crore, other expenses increased ₹45.30 crore, finance costs rose ₹17.66 crore and employee cost increased ₹11.71 crore. Other income fell ₹3.16 crore and tax rose ₹18.02 crore, while net profit declined ₹3.94 crore.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹7,826.53 crore, compared with ₹7,354.49 crore at 31 March 2026. Total equity was ₹2,442.99 crore, against ₹2,281.29 crore, while borrowings increased to ₹750.92 crore from ₹659.4 crore and cash rose to ₹607.93 crore from ₹385.24 crore.

Inventories increased to ₹907.75 crore from ₹763.04 crore, trade receivables fell to ₹1,342.27 crore from ₹1,737.68 crore and trade payables rose to ₹3,064.37 crore from ₹2,781.71 crore. H1 FY27 operating cash flow was ₹375.95 crore, compared with negative ₹27.19 crore in H1 FY26.

Investing cash flow was negative ₹93.56 crore in H1 FY27, compared with negative ₹76.78 crore in H1 FY26, while financing cash flow was negative ₹67.62 crore against positive ₹49.56 crore. Capital expenditure was ₹118.93 crore, compared with ₹117.29 crore in the earlier period.

How has Transrail Lighting done over the last 8 quarters?

Revenue reached its highest level in Q2 FY26 at ₹3,221 crore and its lowest point in Q3 FY25 at ₹1,340.36 crore. It has since remained below the Q2 FY26 peak, rising from ₹1,736.03 crore in Q1 FY27 to ₹2,056.27 crore in Q2 FY27.

Net profit peaked at ₹196.8 crore in Q2 FY26 and bottomed at ₹93.24 crore in Q3 FY25. It fell to ₹96.5 crore in Q4 FY26, recovered to ₹107.88 crore in Q1 FY27 and eased to ₹103.94 crore in Q2 FY27. EBITDA margin was 11.5% in the latest quarter, against its peak of 12.6% in Q3 FY26.

What else did the company announce?

On 3 November 2026, the board approved the unaudited standalone and consolidated financial results for the quarter and half year ended 30 September 2026. It also appointed Harsh Narang as Vice President (Civil Business), Prashant Thorat as Senior Vice President (Poles & Lighting Business) and Unmesh Nerkar as Senior Vice President (Supply Chain Management) as senior management personnel.

The board recorded the retirement of Anant Kadiwal, President (Civil Business), on reaching the prescribed retirement age. Ashok Rawat resigned as Vice President (Poles & Lighting Business) and consequently ceased to be senior management personnel; the filing states that he resigned due to personal reasons. The same-day filings did not announce a dividend or fund raise.

What did the auditors point out?

The auditors said that nothing had come to their attention indicating that the results had not disclosed the information required under Regulation 33 of the Listing Regulations or contained any material misstatement. They added that a review is substantially less in scope than an audit and they had not performed an audit or expressed an audit opinion.

The review report included an Emphasis of Matter referring to Income-tax department search and seizure operations and a block return for 1 April 2019 to 29 March 2026. The company had paid tax of Rs. 14.30 crores for the period towards an incorrect claim on account of expenses, and the auditors said their conclusion was not modified on account of this matter.

Under Other Matters, the auditors said they did not review the financial results of 28 branches. Those branches reflected total assets of Rs. 1,160.83 crores, total revenues of Rs. 648.01 crores and total net profit after tax of Rs. 145.75 crores.

What did Transrail Lighting's management say?

Management expects tower capacity to rise from 1,84,400 MTPA to 2,00,000 MTPA and conductor capacity from 40,800 km per annum to 49,500 km per annum by FY27 year-end. It also expects a 60% domestic and 40% international mix over two to three years, targeted solar commissioning by March 2028 and no finalized QIP plan for at least six months.

Management identified cash conversion as a watchpoint, Middle East-West Asia conflict-related supply-chain and logistics effects, competitive intensity, receivables over six months and commodity exposure. It said receivables over six months increased and were expected to fall next quarter, while domestic commodity exposure was hedged.

How did Transrail Lighting shares react?

After the filing appeared, the stock fell 1.7% in the first 5 minutes, 0.8% in 15 minutes and 0.6% in 30 minutes. It closed the reaction day 2.5% higher from the previous close, against a 2.9% median rise for other Heavy Electrical Equipment stocks and a 2.2% rise for the Nifty Microcap 250.

By the next day's close, the stock was down 0.3% from its pre-results close. This was 3.0 percentage points below the industry median gain of 2.6%, while the Nifty Microcap 250 was up 2.2% on the reaction day. The stock initially moved from ₹445.75 after the filing versus a prior close of ₹443.50.

Earlier results-day moves were mixed: the stock fell 3.7% on 6 August 2026 and 6.2% on 26 May 2026, rose 7.4% on 2 February 2026, fell 0.8% on 11 November 2025, rose 12.2% on 5 August 2025 and 1.3% on 3 April 2025, and rose 0.1% on 15 January 2025.

How did other Heavy Electrical Equipment companies do?

Sixteen other Heavy Electrical Equipment companies had filed for the quarter by 6 November 2026. Their median revenue growth was 21.8%, compared with Transrail Lighting's revenue decline of 36.2% from Q2 FY26, and all 16 peers grew faster than the company.

Of the 16 peers compared for profit, nine reported higher profit. The data therefore showed that Transrail Lighting's revenue performance was below the peer median, while fewer than half of the peers reported higher profit for the quarter.