Despite a challenging first quarter, Transrail Lighting Ltd expects to maintain its annual revenue growth guidance of 20-22%. According to CEO Randeep Narang in an interview with Mint, the company anticipates catching up on the slower start over coming quarters. "We are going to catch up on this and maintain a 20% guidance. There is an upside – we may do more, but 20-22% is what we are wanting to achieve," Narang stated. The confidence stems from India's strong power transmission investment cycle driven by rising electricity demand and renewable energy integration.
Narang estimates the domestic transmission market opportunity at ₹9.5 trillion through 2032, with approximately ₹5 trillion being the addressable market after excluding segments such as original equipment manufacturers. This translates to an annual opportunity of roughly ₹1 trillion. "Even a 5% share of that is ₹5,000 crore. Our order intake plan is ₹10,000-12,000 crore, so we are very well-placed," Narang explained. International markets present another avenue with an estimated opportunity of ₹60,000-70,000 crore.
The first quarter faced significant disruptions linked to the West Asia crisis, which slowed supplies to Transrail's factories and vendors. According to Narang, changes in light diesel oil prices affected the availability of steel, aluminium and zinc used to manufacture towers and conductors as suppliers held back production in anticipation of better prices. The slowdown impacted the entire industry, with competitors growing less than 5% in Q1, some achieving 3-4% growth. "All our competitors grew less than 5% in Q1. Some grew 3%, some 4%. It impacted everybody," Narang noted.
The company is taking a measured approach in competitive segments, with railway order book expected to remain around ₹400-500 crore and civil around ₹800-900 crore. Narang emphasized the strategy of "go slow and make money" in civil and railway EPC segments due to intense competition. In newer areas like data centres and battery energy storage systems (BESS), Transrail is building teams and developing capabilities without immediately targeting revenue, with no expected revenue from these businesses this financial year.
The company reported strong FY26 performance with 30% growth in revenue from operations to ₹6,780 crore and 23% increase in net profit to ₹404 crore. According to LKP Securities analysts, strong domestic and global T&D capex cycle, healthy order visibility, disciplined bidding, improving balance sheet and ongoing capacity expansion are expected to support long-term growth. However, shares have declined about 27% to ₹408.85 since the beginning of 2026, compared with a 12.8% fall in the benchmark Sensex over the same period.
