Que: India is witnessing a sharp rise in transformer demand driven by renewable integration and infrastructure expansion. How do you assess the scale and sustainability of this demand surge?

Ans: India’s transformer demand is being driven by a structural transformation of the power ecosystem rather than a short-term cycle. The country’s target of 500 GW non-fossil capacity, transmission corridor expansion, rail electrification, data centre growth, urbanisation, and industrial electrification are collectively creating sustained demand for power and EHV transformers. This is reflected in our own visibility at TARIL, where we closed FY26 with an unexecuted order book of around INR 5,005 crore and inquiries under negotiation exceeding INR 23,000 crore, indicating strong multi-year demand visibility.

We believe demand, particularly in the 220 kV, 400 kV, 765 kV and higher voltage classes, will remain robust for at least the next decade as India strengthens its grid to manage renewable variability and rising electricity consumption.

Que: Are there specific segments that you see as future growth engines?

Ans: The key growth engines are clearly emerging in ultra-high voltage transformers and reactors, renewable evacuation infrastructure for solar and wind corridors, HVDC and STATCOM applications, and specialised industrial transformers such as furnace, rectifier and converter duty transformers. TARIL has already demonstrated capability in these areas, including manufacturing EAF transformers up to 253 MVA, executing STATCOM transformer orders, and securing a landmark HVDC transformer repair order from PGCIL.

As grids become more decentralised and complex, demand is increasingly shifting toward higher capacity, technically superior, and customised transformers.

Que: What policy or regulatory interventions would further strengthen domestic manufacturing capabilities in this sector?

Ans: India has made commendable progress under Make in India, but to evolve into a global transformer manufacturing hub, further focus is needed on faster approvals for capacity expansion, strengthening domestic testing infrastructure, and incentivising localisation of key components such as CRGO steel, bushings, CTC and pressboard. Stable raw material supply chains and expanded certification facilities for EHV equipment will also significantly improve industry execution timelines.

At TARIL, we are proactively investing in backward integration across CTC, bushings, pressboard and fabrication, with a target to become fully backward integrated by FY28.

Que: How is TARIL innovating to meet the evolving requirements of solar, wind, and hybrid energy projects?

Ans: Renewable projects demand transformers capable of handling load fluctuations, higher efficiency requirements, compact footprints, and faster delivery timelines. At TARIL, we have strengthened our design and manufacturing capabilities to cater specifically to solar and wind evacuation transformers, reactors for voltage stabilisation in renewable-heavy grids, and transformers compatible with hybrid and storage-linked projects. We are also focusing on ester oil-based and green transformer solutions. Our Changodar facility has received PGCIL approval for reactor testing.

Que: Are grid modernisation and digitalisation trends influencing transformer design and deployment?

Ans: Grid modernisation is significantly influencing transformer design and deployment. Utilities today are seeking digitally enabled transformers with online monitoring systems, predictive diagnostics, lower losses, and remote health monitoring. These features are becoming essential, especially in renewable-heavy and EHV transmission networks where reliability and uptime are critical. At TARIL, these digital and efficiency requirements are now integrated into our design philosophy as standard features.

Que: EPC projects in the power sector are expanding rapidly. What opportunities does this present for companies like TARIL?

Ans: The rapid expansion of EPC activity across transmission, renewables, railways, metros, and industrial corridors presents strong opportunities for manufacturers with scale, engineering depth, and execution capability. TARIL has increased its manufacturing capacity from 40,000 MVA to 75,000 MVA, positioning us well to cater to this rising EPC-led demand.

We are consciously selective in order booking, prioritising better margins, stronger payment terms, and alignment with our production cycles.

Que: What structural shifts do you anticipate in the global power equipment market as countries accelerate their energy transition goals?

Ans: Globally, the power equipment industry is witnessing localisation of manufacturing, significant investments in grid strengthening, and rising demand for high-efficiency, high-voltage, and digitally integrated equipment. Indian manufacturers with proven EHV capabilities, scale, and cost competitiveness are well positioned to serve global markets. TARIL’s recent export of one of the world’s largest rated EAF transformers reflects this opportunity.

We believe the next decade will be a defining phase where transformer manufacturers will play a central role in enabling the global energy transition.