Transrail Lighting Ltd Management Discussions

GLOBAL ECONOMY

In CY 2024, the global economy demonstrated a degree of stability even while navigating a series of challenges related to economics, international relations, and governmental strategies. According to information from the International Monetary Funds (IMF), World Economic Outlook report, the rate of global Gross Domestic Product (GDP) growth showed steadiness, reaching 3.3%. The pace at which economies expanded differed considerably across the world. Growth in more established nations experienced a downturn, whereas developing economies, particularly in Asia, generally maintained a stable pattern of expansion.

In CY 2024, the global economic landscape faced persistent difficulties, including ongoing geopolitical tensions like the Ukraine conflict and Red Sea disruptions, along with international supply chain issues, trade disputes, and investment shifts influenced by climate policy. Global inflation showed a positive trend, projected at 5.7% for 2024, down from 6.7% previously. Developed economies are expected to reach their targets sooner, averaging 2.6% in 2024, while emerging markets will see a slower decline.

Leading central banks responded by cutting interest rates significantly. December 2024 saw the largest coordinated G10 cuts since the pandemic, totalling 825 basis points for the year, marking a substantial easing not seen since 2009.

Outlook

The global economy is predicted to maintain a steady expansion path, with growth rates anticipated at 2.8% for 2025 and 3.0% for 2026. This favourable outlook is supported by solid economic performance in the United States and notable progress within key emerging markets.

Global price increases are generally slowing, though some areas face persistent high inflation. Global inflation is projected to decline to 4.3% in 2025 and 3.6% in 2026. Developed economies are expected to achieve their inflation targets sooner than others. Monetary policies will likely differ across regions, reflecting varying economic circumstances.

(Source: World Economic Outlook, IMF)

INDIAN ECONOMY

Indias economy demonstrated a consistent pattern of expansion and stability throughout the financial year 2024-25, confirming its position as a major global economy showing strong growth. According to the Second Advanced Estimate (SAE) from the National Statistical Office (NSO), the real Gross Domestic Product (GDP) was projected to grow by 6.5% in FY 2024-25. This follows the significant growth rate of 9.2% reported in the First Revised Estimates for the preceding financial year. This sustained upward trend highlights the nations solid economic foundation, effective government policies, a dynamic services sector, and considerable domestic spending, all contributing to a favourable view of Indias potential for long-term economic progress.

Indias economic stature continues its upward climb, with the nation now holding the position of the worlds fifth-largest economy by nominal Gross Domestic Product (GDP) and the third-largest when assessed by purchasing power parity (PPP). Ambitious national targets have been set to achieve a $ 5 trillion economy by FY 2027-28 and a $ 30 trillion economy by 2047. These aims are to be accomplished through substantial infrastructure investments, ongoing governmental reforms, and the widespread adoption of technological advancements. Reflecting this commitment, the capital investment budget for the upcoming financial year (2025-26) has increased to

Rs. 11.21 lakh crore, representing 3.1% of GDP.

Integral to this accelerated growth trajectory and increasing economic self-sufficiency have been significant governmental reforms and considerable capital allocated towards both physical and digital infrastructure. Government initiatives such as Make in India and the Production-Linked Incentive (PLI) scheme have also played a crucial role.

Outlook

Indias economy is on a strong growth path, with a projected rate of 6.2% in FY 2025-26. Forecasts suggest India will become the worlds third-largest economy by 2030, propelled by infrastructure investment, increased private sector capital expenditure, and expanding financial services. Ongoing reforms are expected to support this long-term economic progress.

This positive outlook is reinforced by several factors: favourable demographics, rising capital investment, proactive government initiatives, and robust consumer demand. Improved rural spending, aided by easing inflation, further contributes to this growth. The governments focus on capital expenditure, sound fiscal management, and measures boosting business and consumer confidence are creating a supportive environment for investment and consumption.

Programmes like Make in India 2.0, ease of doing business reforms, and the Production-Linked Incentive (PLI) scheme aim to strengthen infrastructure, manufacturing, and exports, positioning India as a key global manufacturing player. With inflation anticipated to meet targets by late 2025, a more accommodating monetary policy is likely. Infrastructure development and supportive policies will facilitate capital formation, while rural demand benefits from initiatives such as the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).

The Union Budget 2025-26 presents a growth-focussed financial strategy addressing immediate and future economic needs. By increasing disposable income, prioritising infrastructure, and promoting domestic manufacturing, the budget seeks sustained growth while ensuring fiscal responsibility.

INDUSTRIAL OVERVIEW

Global Transmission and Distribution (T&D) Sector

In 2024, the global power sector experienced significant growth, driven by increased electricity demand and a substantial expansion of renewable energy capacity. Global electricity demand rose by 4.3%, surpassing the 3.3% growth in global GDP. This surge was primarily attributed to higher demand for cooling, increased consumption by industry, the electrification of transport, and the growth of data centres and artificial intelligence.

(Source: IEA, IEA)

Renewable energy sources accounted for over 90% of the total power capacity expansion globally in 2024, with 585 GW of capacity additions. This growth was led by solar and wind energy, reflecting the global shift towards cleaner energy sources.

(Source: IRENA, Carbon Brief)

Africas power transmission infrastructure is experiencing steady growth, with the market valued at $1.3 billion in 2024 and projected to expand at a CAGR of 2.8% through 2034. This growth is driven by increasing electricity demand, efforts to integrate renewable energy sources, and regional interconnectivity initiatives. Significant investments are being made to address the continents power deficits and to support economic development.

(Source: Global Market Insights Inc.)

The United States is undertaking substantial modernisation of its power grid to accommodate the growing adoption of renewable energy and to enhance grid reliability. Federal initiatives, such as the Infrastructure Investment and Jobs Act, have allocated significant funding towards upgrading transmission lines and integrating smart grid technologies. These efforts aim to support the transition to cleaner energy sources and to meet the increasing electricity demand from sectors like electric vehicles and data centres.

(Source: Grand View Research)

According to the IEA, energy investments in the Middle East region are expected to reach $ 175 Billion by 2024, with clean energy comprising 15% of the total allocation. These nations have committed to net-zero targets, with the UAE and Oman targeting 2050 and Saudi Arabia, Bahrain, and Kuwait aiming for 2060. The UAE has pledged a 19% reduction in emissions from 2019 levels by 2030 and allocated $ 30 Billion toward climate-focussed investments under COP28.

Technological advancements played a pivotal role in the sectors evolution. The adoption of high-voltage direct current (HVDC) and flexible alternating current transmission systems (FACTS) enabled efficient long-distance electricity transmission, facilitating the integration of renewable energy sources. Additionally, the global electric power transmission and distribution equipment market reached $ 294.8 billion in 2024 and is projected to reach $ 422.7 billion by 2033, exhibiting a CAGR of 3.88% during 2025-2033.

(Source: GlobeNewswire, IMARC)

Investment in grid infrastructure saw a notable increase. Forecasts indicate that aggregate utility investments are expected to reach new records of $ 192 billion in 2025, $ 196.5 billion in 2026, and $ 197 billion in 2027. These increases are driven by federal legislation supporting infrastructure investment, state-level energy transition plans, and incentives, as well as growing demand from data centres due to the expansion of artificial intelligence and cloud computing.

(Source: S&P Global)

Outlook

Global electricity demand is expected to continue its upward trajectory, with an average annual growth rate of 3.4% projected through 2026. This increase will be driven by an improving economic outlook, contributing to faster electricity demand growth in both advanced and emerging economies.

(Source: IEA)

Renewable energy is anticipated to play a crucial role in meeting this growing demand. The share of renewables in the global electricity sector is forecast to expand from 30% in 2023 to 46% in 2030, with solar and wind energy accounting for almost all this growth. This rapid expansion is expected to have a spillover effect, helping decarbonise other sectors where power is used for industrial processes, heating buildings, and charging electric vehicles.

(Source: IEA)

The global T&D sector is expected to continue its growth trajectory, driven by ongoing electrification, renewable energy integration, and technological innovation. The market is projected to reach $ 505.28 billion by 2034, growing at a CAGR of 3.91% from 2025 to 2034.

(Source: Precedence Research)

Technological advancements will continue to shape the sector. The integration of smart grids, managed by digital systems and artificial intelligence, is essential for optimising operations and ensuring grid resilience. However, these systems are expensive, and achieving net-zero emissions by 2050 will require an annual investment in smart grids to double to $ 600 billion. (Source: MarketWatch)

Indian Transmission and Distribution (T&D) Sector

India stands as the worlds third-largest producer and consumer of electricity. As of March 31, 2025, the countrys installed power generation capacity reached 475.2 GW. The power sector is a vital component of national infrastructure, significantly contributing to economic growth and improving living standards across the country. (Source: PIB)

A major achievement in the sector has been the attainment of universal household electrification, which has considerably enhanced the quality of life for citizens. This is reflected in the rise of per capita electricity consumption, which increased by 45.8% from 957 kWh in FY 2013-14 to 1,395 kWh in FY 2023-24.

In the initial seven months of FY 2024-25, Indias electricity demand grew by 4.7% year-on-year. This growth rate was slower compared to the 9.9% observed in the first four months, partly due to heavy rainfall and a higher statistical base from the previous year. However, demand is expected to accelerate in the latter half of FY 2024-25, with overall growth for the fiscal year projected to be between 5.5% and 6.0%, driven by anticipated economic recovery and increased government capital expenditure.

India stands as the worlds third-largest producer and consumer of electricity. As of March 31, 2025, the countrys installed power generation capacity reached 475.2 GW.

Government funding underscores a strong commitment to the power sectors advancement. The Ministry of Power received an allocation of Rs. 21,847 crore in the Union Budget 2025-26, an increase from Rs. 20,502 crore in FY 2024-25. Similarly, the Ministry of New and Renewable Energy saw its allocation rise significantly to Rs. 26,549 crore from

Rs. 19,100 crore, highlighting a strong focus on cleaner energy sources.

Indias transmission and distribution (T&D) sector marked key achievements. As of March 31, 2025, transmission lines totalled over 494,732 circuit kilometres (ckm). Following network upgrades and policy efforts, energy deficits dropped to a historic low of 0.1% in FY 2024-25. Nearly all homes now have electricity, with over 99% of households connected.

Indias transmission network measured 491,871 circuit kilometres (ckm) by January 2025, showing a 3% compound annual growth rate from 413,407 ckm in March 2019. Adding 6,327 ckm in FY 2024-25 brought the total to 491,871 ckm. Transformation capacity reached 1,302 GVA as of January 2025. FY 2024-25 saw key transmission enhancements: 6,327 ckm of lines (220kV and above) and 51,500 MVA capacity added. These upgrades help meet demand and ensure smooth power flow. As of May 2024, 33 transmission projects were being bid by PFC Consulting Ltd. (PFCCL) and REC Power Development and Consultancy Ltd. (RECPDCL). Most are in the northern region, 35% in Rajasthan.

Indias transmission and distribution (T&D) sector marked key achievements. As of March 31, 2025, transmission lines totalled over 494,732 circuit kilometres (ckm).

Transformation capacity reached 1,302 GVA as of January 2025. FY 2024-25 saw key transmission enhancements: 6,327 ckm of lines (220kV and above) and 51,500 MVA capacity added.

Notable projects include the Leh-Ladakh HVDC line (5 GW renewable evacuation), Khavda and the Raigarh-Pugalur corridor.

Private sector participation under tariff-based competitive bidding contributed 25% of new infrastructure. Inter-regional capacity reached 120 GW, supporting energy flow. National Infrastructure Pipeline plans include 150,000 ckm lines and 500 GVA capacity by 2025. The government approved 50.9 GW of Inter-State Transmission System (ISTS) projects worth Rs. 60,676 crore to connect 280 GW of variable renewable energy to ISTS by 2030. 42 GW is complete, 85 GW under construction, 75 GW in bidding, and 82 GW pending approval.

(Source: Pib.gov.in)

Between FY 2019-20 and FY 2023-24, Indias transmission sector received approximately Rs. 2.1 trillion investment. State-owned entities took the biggest share at 66%. Central government companies had 22%, and private players contributed 12%.

Substation

India achieved a remarkable addition of 86,433 MVA in transformation (substation) capacity in FY 2024-25, representing a 22.2% increase from the 70,728 MVA added in FY 2023-24. This performance stands in stark contrast to the transmission line sector, which experienced its lowest achievement in several years during the same period.

Substation Capacity from 2015-16 to 2024-25 (in MVA) as on March 31, 2025

(Source: ICED, Niti Aayog)

The 86,433 MVA of substation capacity added in FY 2024-25 accounted for nearly 77% of the planned addition of 112,435 MVA. The shortfall primarily occurred in the 765kV segment, where only 21,000 MVA was added, which is less than half of the 48,000 MVA that was planned.

Substation capacity addition: FY 2023-24 and FY 2024-25

(MVA)

Note:

*FY 2024-25 achievement as % of target; **FY 2024-25 (actual) over FY 2023-24 (actual) No HVDC line addition in FY 2023-24 and FY 2024-25 Target/planned addition for ISTS and InSTS not available

In FY 2024-25, central government agencies, primarily the Power Grid Corporation of India Ltd (PGCIL) and the Damodar Valley Corporation (DVC), commissioned 32,460 MVA of substation capacity, reflecting a 64.6% increase from the 19,720 MVA added in FY 2023-24. However, this group achieved only 62.9% of the planned 51,645 MVA addition, primarily due to delays in commissioning critical 765kV substations.

Of total 86,433 MVA of new substation capacity in FY_2024-25, about 45% was integrated into the interstate transmission system (ISTS), while 55% was allocated to intrastate (InSTS) grids. The 39,335 MVA added to the ISTS represented a 23.6% growth over the 31,820 MVA commissioned in FY 2023-24, while the InSTS network saw a 21% increase in capacity additions year-on-year.

(Source: T&D Indian)

Outlook

Indias power sector anticipates significant capacity additions, with approximately 210.1 GW projected to be added between 2022 and 2027. According to the National Electricity Plan (Generation), this expansion is expected to raise the total installed electricity generation capacity to around 609.346 GW by the end of March 2027, further increasing to 900.42 GW by FY 2031-32. The renewable energy sector is poised for considerable growth. The government aims to tender 50 GW of renewable capacity annually up to FY 2027-28.

Energy demand continues to grow steadily, driven by Indias rising population, increasing electrification rates, and higher per capita electricity consumption. India remains strongly committed to sustainability, with an ambitious target to exceed 500 GW of installed capacity from non-fossil fuel sources by 2030. This goal represents a significant step towards building a future-ready power system.

(Source: Indiabudget.gov.in, Mondaq)

The transmission sector is set for increased investment, projected to be between Rs. 3.0 and Rs. 3.2 trillion during FY_2025-2029. This growth is primarily driven by the expansion of renewable energy projects needed for the 500 GW target by 2030. The T&D sector in India is expected to grown at a CAGR of 7 to 8%.

(Source: Crisil & Goldman Sachs reports)

Capacity addition targets outlined in the Central Electricity Authoritys National Electricity Plan (Volume II: Transmission) include 114,687 ckm of transmission lines and 776,330 MVA of substation capacity for FY_2022-2027. For the subsequent period, FY 2027-2032, plans involve adding approximately 76,787 ckm of lines and 497,855 MVA of transformation capacity (220kV and above). These targets are based on the Plans review of the FY_2017-2022 period and its strategies for the coming decade.

Transmission lines and transformation capacity under ISTS and intra-state

Transmission project connectivity targets are being pursued through the Tariff Based Competitive Bidding (TBCB) process, with central government agencies responsible for issuing tenders open to both government and private entities. For additions to the Intra-State Transmission System (InSTS) lines by 2027, the top ten states are expected to contribute approximately 72%. Gujarat is projected to lead with nearly 23% of these additions, followed by Uttar Pradesh at 17%, and Tamil Nadu at 9%.

Indian Civil Construction Sector

In FY 2024-25, Indias civil construction sector experienced significant growth, driven by substantial public and private investments in infrastructure and energy projects. The construction industry expanded by 7.8% in real terms in 2024, The governments commitment to infrastructure development was evident in the Union Budget 2024-25, which allocated a record Rs. 11.21 trillion for infrastructure spending, representing 3.1% of GDP. This investment aimed to stimulate economic growth and job creation across the country.

(Source: Reuters)

The construction market in India is set for substantial growth and is expected to reach Rs. 25.31 trillion by 2025, with an annual growth rate of 11.2%. From 2020 to 2024, the market achieved a CAGR of 14.2%, reflecting a steady upward trend.

(Source: GlobeNewswire)

Over 200 projects worth $ 15 Billion are planned for the next five years which will focus on bridges, tunnels, and elevated roads.

Outlook

Indias civil construction sector is expected to continue its growth trajectory. India Ratings and Research (Ind-Ra) anticipates the Engineering, Procurement, and Construction (EPC) sector to achieve revenue growth of 10%-12% year-on-year in FY 2025-26, driven by a healthy order book and increased infrastructure spending.

(Source: NBMCW)

Looking ahead, the Construction sector is expected to maintain this momentum with a forecasted CAGR of 8.8% from 2025 to 2029, ultimately reaching Rs. 39.10 trillion by 2029.

(Source: GlobeNewswire)

However, the sector may face headwinds, including modest capital spending hikes and potential slowdowns in government spending. Analysts have expressed concerns over the modest hike in capital spending announced in the annual budget, which could impact the pace of infrastructure development.

(Source: Reuters)

Indian Railways Sector

By the end of FY 2024-25, Indian Railways achieved a total revenue of Rs. 2.78 lakh crore ($ 32.07 billion). This marks an increase from the Rs. 2.56 lakh crore ($ 30.76 billion) reported in FY 2023-24. The network successfully laid 5,100 km of track during the fiscal year, contributing to a total passenger count of 648 crore, an increase of 52 crore from the previous year.

In FY 2024-25, traffic revenue is estimated at Rs. 2,78,600 crore ($ 32.07 billion), accounting for 99.4% of total revenue. Within this, freight revenue is projected to be

Rs. 1,80,000 crore ($ 20.7 billion), representing 66% of traffic revenue, while passenger revenue is expected to reach

Rs. 80,000 crore ($ 9.21 billion), up from Rs. 70,693 crore ($_8.77 billion) in FY 2023-24.

Additionally, Indian Railways is advancing its technological capabilities in signalling and telecommunications, with 15,000 km being converted to automatic signalling and 37,000 km set to be equipped with KAVACH, the domestically developed Train Collision Avoidance System. This focus on technology aims to enhance safety and efficiency across the network.

The Government of India has introduced several initiatives for the railway sector in recent months. Notably:

- In the_Union Budget 2025-26, the government allocated_Rs. 3.02 lakh crore_($ 34.7 billion) to the Ministry of Railways, an increase from_Rs. 2.52 lakh crore_($ 30.3 billion) in FY 2024-25

- Effective_November 1, 2024, Indian Railways revised its ticket booking rules, reducing the_Advance Reservation Period (ARP)_from_120 days_to_60 days

Outlook

The Indian railway network is expanding rapidly and is projected to become the third-largest globally in the next five years, capturing 10% of the global market. The government has announced two key initiatives to attract private investment: allowing private operators to run passenger trains and redeveloping railway stations nationwide. These projects could generate over $ 7.5 billion in investments within five years.

To accommodate the growing population, Indian Railways plans to introduce 3,000 new trains over the next four to five years, increasing passenger capacity from 800 crore to 1,000 crore.

Additionally, the Adarsh Station Scheme, initiated in 2009-10, aims to modernise railway stations based on identified needs for enhanced passenger amenities. Currently, 1,253 stations have been earmarked for development, with 1,215 already upgraded.

(Source: IBEF)

Poles and Lighting

The overall lighting market in India was valued at $ 4.60 billion in 2024 and is projected to reach $ 7.21 billion by 2033, growing at a CAGR of 5.10% from 2025-2033. This growth is attributed to rapid urbanisation, increasing government initiatives promoting energy-efficient light-emitting diode (LED) adoption, rising consumer demand for smart lighting solutions, expanding infrastructure projects, and a growing focus on sustainability.

(Source: IMARC Group)

The street lighting poles and columns market was valued at $ 2.5 billion in 2024 and is forecasted to grow at a CAGR of 7.5% from 2026 to 2033, reaching $ 4.5 billion by 2033. This growth is driven by the increasing demand for durable and corrosion-resistant lighting infrastructure and the growing demand for smart city infrastructure.

(Source: LinkedIn)

The smart pole market in India generated a revenue of $_557.4 million in 2023 and is expected to reach $_2,541.9 million by 2030, growing at a CAGR of 24.2% from 2024 to 2030. This expansion is driven by the integration of advanced technologies, including sensors, communication devices, and energy-efficient lighting solutions, in urban infrastructure.

(Source: Grand View Research)

The solar street lighting market reached $ 1.07 billion in 2024 and is projected to hit $ 3.54 billion by 2033, exhibiting a CAGR of 14.21% during 2025?€“2033. This growth is driven by government initiatives like the Atal Jyoti Yojana (AJAY) and the Smart Cities Mission, aiming to promote solar street lighting across the country.

(Source: IMARC)

COMPANY OVERVIEW

Transrail Lighting Limited (Transrail or "the Company") is a prominent engineering, procurement, and construction (EPC) company. With over four decades of experience, it delivers comprehensive turnkey solutions globally. The company specialises in the integrated manufacturing of lattice structures, conductors, and monopoles, positioning it as a trusted partner in the power transmission and distribution sector.

Operations are organised across key verticals, which are Power Transmission and Distribution, including Transmission lines, substations, distribution networks, and underground cabling; Civil Construction, Poles and Lighting Railways and Solar EPC. Transrail excels in design, testing, manufacturing, material supply, construction, and commissioning within these business areas, ensuring high quality for clients.

The company has a global footprint of 59 countries across the Americas, Europe, Africa, and Asia, making it a recognised international player. Transrail holds ISO 9001:2015, ISO 14001:2015, ISO 27001:2013, and ISO 45001:2018 certifications, along with external CE and NABL validations, underscoring its commitment to quality, environmental management, security, and occupational health and safety. An integrated management system policy confirms dedication to compliance and the safety of employees and stakeholders, prioritising environmental protection and safe working conditions.

Leveraging industry leading design and engineering software such as PLS Tower, PLS Poles, BOCAD, STAAD PRO, and Autocad 3D enhances design capabilities and supports innovative solutions. With a solid track record and dedication to excellence, Transrail Lighting Limited is well placed to continue its legacy of innovation and reliability in the EPC industry.

BUSINESS OVERVIEW

Power Transmission & Distribution (Domestic)

During the year, Domestic Business Revenue continued to show growth trend with 16% increase in revenue from

Rs. 1,332 crore in FY 2023-24 to Rs. 1,550 crore in FY 2024-25. During FY 2024-25, Domestic Business has accomplished following:-

- Secured Orders worth Rs. 5,273 crore which involves 800kV HVDC Transmission Line, Ten 765kV DC Transmission Lines; Eight 400kV DC Transmission Lines etc.

- Successfully commissioned 765kV DC Transmission Line at Khavda & 400kV DC TL at Neemuch; 220kV/ 33kV GIS Substation at Dholera; 400kV AIS Bay Extension and 220kV GIS Bays Banka Substation amongst others

- L1 Bidder for Rs. 1,100 crore worth Bids

- Tower Manufacturing Plant at Deoli, Wardha has been awarded an A Grade by Power Grid Corporation of India (POWERGRID), recognising our high standards in quality, safety, and operations

- Received special appreciation awards from POWERGRID for our role in commissioning Two Double Circuit Transmission Line projects of 400kV and 765kV

- This year more than 2,800 km of HTLS Conductor has been supplied to various clients

TRANSRAIL continues to be the preferred Business Partner delivering timely T&D Projects across the country for the Central, State and Private Power Utilities. We are in the process of expanding our capacity of Tower Manufacturing (Greenfield + Brownfield) and Conductor Manufacturing (Brownfield) which should prepare us for the growth we envisage.

Power Transmission & Distribution (International):

During the year, International business revenue continued to show substantial growth and it increased by 45% from previous year to Rs. 3,016 crore in FY 2024-25. This revenue is mainly contributed by SAARC, South East Asia and Africa region. Our projects mainly include Power transmission lines, distribution networks, substations and underground cabling.

Your Company successfully completed projects / supplies in Bangladesh, Philippines and Oman in the last year.

During the year, new order worth Rs. 3,329 crore were added across various countries including Kenya, Ethiopia, Philippines, Oman and Jamaica. One of the major additions in the previous year is 3 lots of 400kV & 220kV Transmission lines and substation projects in Kenya with a cumulative value of more than Rs. 1,500 crore. Your Company has also now entered in the Solar EPC by securing its first order in Jamaica for an 80MW DC ground-mounted Solar PV Project including an associated substation.

International Business is well positioned to deliver on its substantial unexecuted order book of Rs. 6,508 crore and to continue its momentum of growth on the back of diligent planning and efficient execution. The Company is also well poised to grow it range and reach in the International market by adding more orders in the current year.

Civil Construction:

Revenue from Civil Business achieved a strong performance in the financial year 2024-25 with revenue of Rs. 448 crore as compared to Rs. 376 crore in FY 2023-24, growth by 19% year-on-year. We secured a new project to construct a flyover bridge in Udaipur, valued at Rs. 116 crore. This strengthens Civil Businesss position in the bridges and elevated roads sector.

The project of Kosi River Bridge which is one of the longest river bridges in India spanning over 10.2 Km in length with a value of close to Rs. 1,000 crore is progressing as planned with approximately 76% of the physical work completed.

Rs. 448 crore

Civil Business revenue in FY 2024-25, up 19% from last year.

During the year, new order worth Rs. 3,329 crore were added across various countries including Kenya, Ethiopia, Philippines, Oman and Jamaica.

Further, the cooling tower projects in Yadadri and Udangudi are nearing completion stage of which one cooling tower has been handed over and commissioned at Yadadri which notably is Indias second-tallest NDCT tower, reaching a height of 199 metres.

Poles and Lighting:

Transrail has continued to have a prominent market position as a holistic pole and lighting service provider with a turnover of Rs. 193 crore for the financial year 2024-25. This revenue comprises a balanced mix of high masts, poles, solar, LED, sports lighting and SITC jobs. The poles and lighting factory at Silvassa has done highest ever production of 12,740 MT.

The year was marked by a prestigious order worth Rs. 92 crore for supply of Steel Pipe Mast for Mumbai-Ahmedabad High Speed Rail (Bullet Train) Project.

Railways:

Transrails Railway business continued the accretive growth with crossing Rs. 100 crore revenue mark in FY 2024-25. These include the scope of work involving Track linking, Overhead Electrification and S&T works.

During the FY 2024-25, it secured three contracts in Overhead Electrification (OHE) segment for construction of 778 TKM worth more than Rs. 300 crore.

Business Strategies/Growth Drivers Financial Overview

The Company achieved a turnover of Rs. 5,307 crore for the year ended March 31, 2025. This is compared to a turnover of Rs. 4,076 crore for the previous year. These figures are reported on both a standalone and consolidated basis.

Turnover for the year ended March 31, 2025 increased by 30.20% on both a standalone and consolidated basis when compared with the previous year. With a promising order book and good market potential across all the business verticals we operate in, your Company is well-positioned for future growth.

(Debtors Turnover = Revenue from Operations/Trade Receivables) (Inventory Turnover = Revenue from Operations/Inventories)

(Interest Service Coverage Ratio = Profit Before Depreciation and Amortisation, Interest and Tax/Interest) (Current Ratio = Current Assets/Current Liabilities) (Debt Equity Ratio = Total Debt /Total Equity including all reserves) (Operating Profit Margin % = EBITDA/Revenue from Operations) (Net Profit Margin % = Net Profit after Tax/Total Income) (Return on Net Worth % = Net Profit After Tax/Average Net Worth (Total Equity including all reserves)

Change in debt equity ratio - Change is due to expanded equity base of the company from funds raised through IPO& Pre IPO placement of equity share at a premium and also due to the profit earned during the year.

Change in Return on net worth - Change is due to expanded equity base due to funds raised through IPO, Pre IPO placement and profit earned during the year though it is partly offset by increase in profit compared to last year.

RISK MANAGEMENT

Transrail works predominantly in the Engineering

Procurement and Construction (EPC) business with major focus on power T&D. We have developed robust risk management processes. With our projects spread across 20+ countries, the Company faces various risks associated with turnkey projects, whose long-term success largely depends on the existence of an effective risk identification and management system.

Our risk management framework works at various levels across the Company and requires periodic reviews of its systems to ensure they are in line with current internal and external environments. Some of the enterprise-level risks identified by the Company and the mitigation measures being implemented are:

1. Geopolitical Risks: Unexpected political unrest or changes in some of the geographies, is a risk which can impact the execution / progress of our projects and may also result in disruption to supply chain.

Mitigation: At the outset, before bidding for any job the Company follows a rigorous risk assessment and bids only when the country risk is within the acceptable limits. Further we mitigate the risk by ensuring secure funding mechanism in most cases. We also monitor ongoing projects and develop suitable mitigation strategies addressing the feasibility of operating in the country, strategic sourcing options, and evaluating the impact of disruption and work out strategies to overcome such risks.

2. Risk of reduction in Order Intake: Infrastructure investment slowdown can lead to lower order intake and lower revenue.

Mitigation: The Company primarily operates in Power T&D segment which is a very high priority sector for most countries. Also, our wide global presence helps it minimise the impact on business during a slowdown in investment in a country or region. It has a significant presence in several underdeveloped and emerging economies, where infrastructure investment remains a key priority for sustainable growth. Moreover, we have also diversified into other business areas like Railways, Civil, Solar EPC and Pole & lighting all of which provide ample growth opportunities in the future.

3. Commodity Price Variations: The Company deals with various commodities such as steel, aluminium, zinc, cement etc., which constitute a major portion of its direct costs for activities like tower and conductor manufacturing and construction activities. Commodity prices and availability are subject to fluctuations driven by supply-demand dynamics, competition, production trends and taxation policies. In the absence of adequate hedging, rising input costs under fixed-price contracts could impact profitability.

Mitigation: As a part of its Risk Management Policy, the Company has a dedicated framework to manage commodity risk. The Company currently manages such risk through the price escalation clause in some of the Contracts whereby the fluctuation in the input cost is passed on to the Client. In case of firm price contracts, the Company mostly enters into a Commodity Forward Contract to hedge its price risk or pass on a back-to-back firm price contract to its vendor/contractor. Further, the risk of fluctuation in commodities that cannot be hedged is mitigated by building adequate contingencies based on market trends and experience.

4. Execution Risk: The Company faces execution challenges such as manpower challenges, topographic changes, Right of Way (RoW) dependencies, approvals and clearances from difference agencies, working in difficult terrains, etc.

Mitigation: The Company closely monitors the risks for each project and deploys suitable strategies to effect timely mitigation. Company engages various technologies to assess terrains and soil conditions at project sites. We also work in close coordination with our client to proactively resolve such matters.

5. Interest Rate Fluctuation Risk: Volatility in interest rates impacts the profitability of the Company.

Mitigation: The Company closely reviews its borrowing levels to ensure reduction in working capital intensity & improvement in cash flows.

6. Foreign Currency Fluctuation Risk: With operations in many countries, the business of the Company is subject to the risk of fluctuations in foreign currency exchange rate and may impact profitability.

Mitigation: The Company has a risk management framework for monitoring and mitigating the risk of fluctuation in the currency exchange rates. Such risks are monitored regularly and necessary actions are taken to mitigate them in line with the Risk Management Policy of the Company. International tenders are generally quoted in hard currencies (like USD, EUR etc.) and in some cases typically the onshore portion of the contract is quoted in local currencies to maintain a natural hedge.

7. Environment, Health & Safety: Environment, health and safety risk impacting employees and workers.

Mitigation: EHS is integrated into the KRAs of various teams, with onsite safety officers, regular audits by the Corporate Safety Audit team, review of audit results in monthly EHS Steering Committee meetings, and provision of trainings to promote proactive accident prevention.

8. Succession Planning Risk: Risk of inadequate succession planning for key personnel posing challenges to long-term sustainability and growth.

Mitigation: Top talent and critical positions are identified annually in the organisational management review. The leadership pipeline has been strengthened and proper processes are implemented for hiring and retaining the best talent. Additionally, the Company periodically reviews the succession plan for its senior management team to ensure continuity in leadership.

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9. Cyber Security Risk: Cyber-attacks and threats may impact the security of IT infrastructure and critical IT assets of the Company.

Mitigation: The Company has implemented robust cybersecurity measures to safeguard its IT infrastructure. Antivirus protection and firewall systems are in place to prevent cyber threats. Recommendations from external IT security audits are regularly implemented to enhance the overall security framework. Network devices, server operating systems and hardware are upgraded periodically.

HUMAN RESOURCES

Transrail believes that its Human Capital is the true force for transforming lives, aligning with the companys vision for making significant positive change. People are central to our developmental strategies, with key objectives focussed on their growth, continuous learning, and enhancing their potential.

The Human Resource function played a vital role this year. It supported the businesses by creating a future talent pipeline and building capabilities through core competencies. On the capabilities front, the focus has been on developing subject matter expertise in new business areas such as solar EPC. This focus led to bringing in talent through lateral hiring for key roles, ensuring the company builds a strong, lasting talent pipeline to support business growth and introduce new capabilities.

Our advanced Graduate Development Program offers young people in the country a chance to contribute to Transrails nation-building vision. A group of aspiring graduate and postgraduate Engineers, Chartered Accountants, and Cost and Management Accountants were onboarded through this initiative. This program helps build bench strength through a talent pipeline that fuels growth across all our businesses. These initiatives highlight our Core Competencies in new talent and develop the Leadership of Tomorrow.

With rapid growth in our international business, internal job posting (IJP) processes opened up opportunities for our existing talent pool. This created many opportunities for employees to benefit from the growth in the international business.

As of March 31, 2025, we had a total strength of more than 2,100 employees.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

We have implemented an Internal Control mechanism that aligns with our developing needs. This mechanism operates through the ERP system, SAP, and other procedures to incorporates effective Internal Controls which safeguards the Companys resources, ensure operational efficiency, monitor systems, and comply with laws and regulations. The Internal Control systems are tailored to the nature, size, and complexity of the business at both the entity and process level. It ensures integrated, objective, and reliable financial information.

The Internal Audit department conducts audits at various locations, covering all major functions with focus on operational areas and Internal Control systems. This comprehensive approach ensures that all Company operations are audited on regular basis. The department provides assurance across all areas of risk, including strategic, commercial, safety, operational, compliance, and financial risks in all business segments of the Company. The management and the Audit Committee of the Board of Directors receive periodic recommendations on process improvements and implementation status reports. The Audit Committee periodically reviews the adequacy of the Internal Control system, provides guidance, and directs further action, if necessary, including benchmarking best practices externally.

Throughout FY 2023-24, the internal audit findings & implementation status of actions taken with respect to recommendations against audit findings were shared with the Audit Committee through presentations. The Internal Control system includes a whistle-blower mechanism, which encourages directors, employees, and third parties to report genuine concerns, misconduct, or fraud without fear of unfair treatment or punishment.

CAUTIONARY STATEMENT

Within this document are forward-looking statements, which concern the expected future events and financial and operating results of Transrail Lighting Limited. Such statements naturally depend on assumptions and are subject to inherent risks and uncertainties.

There is a notable risk that these assumptions, predictions, and forward-looking statements will not turn out to be accurate. Readers are advised not to place undue reliance on them, as various factors could cause actual future results and events to differ significantly from what is presented. Therefore, this document is governed by its disclaimer and is fully qualified by the assumptions, qualifications, and risk factors detailed in the managements discussion and analysis found in Transrail Lighting Limiteds Annual Report for FY 2024-25.