TARIL Plans Transformer CapEx of 37,000 MVA and Backward Integration
Transformers and Rectifiers (India) Limited (TARIL) has outlined its expansion plans during its FY26 earnings call.
The company is investing INR 600 crore in capital expenditure, structured as a 15-month deployment roadmap. The plan includes 3 major components:
- Structural Capacity Expansion at Moraiya & Changodar plants
- Comprehensive Backward Integration
- Testing and related Infrastructure facilities
TARIL’s Transformer Capacity to reach 75,000 MVA
TARIL plans to increase its transformer manufacturing capacity from the current 40,000 Mega Volt Ampere (MVA) to ~75,000 MVA (closer to 77,000 MVA). To achieve this, TARIL is undertaking capacity expansion at its Changodar and Moraiya plants.
The ~15,000 MVA capacity expansion at Changodar facility is delayed by 4 months and is now expected to be completed by Q2 FY27. This expansion is expected to be entirely for producing high-margin, high-complexity Extra High Voltage (EHV) transformers and specialized green energy reactors.
The Moraiya plant will see a ~22,000 MVA capacity expansion, with completion projected by Q3 FY27.
TARIL’s Plans for Backward Integration
TARIL has planned major backward integration initiatives for improving profitability and reducing dependence on external sources.
In-House Component Manufacturing: The company is setting up production lines for high-value components that were previously outsourced or imported. These components include radiator panels, corrugated tanks, and specialty insulation elements.
Conductor & Copper Processing: TARIL is building localized capabilities to insulate and process copper conductors directly instead of outsourcing.
Management expects that achieving 100% backward integration by Q1 FY28 will eliminate external production reliance and structurally expand baseline EBITDA margins.
Testing Infrastructure & Technological Capabilities
High Voltage Direct Current (HVDC) and Extra High Voltage (EHV) products require stringent quality compliance before being accepted by major global grid operators. The company is building advanced Ultra-High Voltage Testing Laboratories and also upgrading specific assembly floors with cleanroom-grade atmospheric controls required to fulfill advanced contracts, such as their recent landmark HVDC repair order from the Power Grid Corporation of India (PGCIL)
In addition to its expansion plans, TARIL recently secured an export order worth USD 16.26 million (approximately Rs. 150 crore) for the supply of transformers from a US-based company, PDC AK LPIV, LLC. The company also reported a strong financial performance for FY26, with revenue of Rs. 2,508.80 crore and a profit of Rs. 272.17 crore.
