International Small-Scale Engineering Company, Transrail Lighting, Pioneering Electrical Project Construction Across the Globe
In a significant development for the power sector, Transrail Lighting, a key player in the transmission and distribution (T&D) segment, has seen impressive growth over the past few years. With a presence in 59 countries, including 27 in Africa, 16 in Asia, seven in North America, five in South America, and four in Europe, the company is well-positioned to capitalise on the growing demand for T&D infrastructure.
According to a report from CRISIL, India's transmission and distribution EPC market is expected to grow from $13.5 billion in 2024 to around $21 billion by 2039. This growth is expected to be driven by increased investment in the Asia-Pacific region, including India, which is projected to reach $127 billion by 2029. Power Grid Corporation's CMD forecasts that India's transmission lines network will increase from 485,000 circuit km in 2024 to 648,000 circuit km by 2032.
Transrail Lighting specialises in projects related to transmission lines, AIS and GIS substations, underground cabling, rural electrification, 800kV HVDC lines, and HTLS conductors. The company's in-house design, manufacturing, testing, and installation facilities contribute 65-70% of the contract value in various projects.
The company's financial performance has been robust. Net profits expanded at the rate of 50% over FY22-25 to ₹327 crore in FY25. Transrail Lighting's revenue grew at a compounded annual rate of 23% between FY22 and FY25, while EBITDA grew at a faster CAGR of 35% over the same period. As of June 30, 2025, Transrail Lighting had an order-book of ₹14,654 crore, which is 2.8x the FY25 revenues of the firm.
In Q1 of FY26, Transrail Lighting's revenue grew 81% year on year to ₹1,660 crore, while net profits rose 105% to ₹106 crore. The company's order-book is composed of 60% domestic projects and 40% international contracts, making it well-diversified.
The Indian government's commitment to infrastructure development is also a positive factor for Transrail Lighting. In FY26, the government allocated ₹11.21 lakh crore for infrastructure development, representing a 10% increase year on year.
Transrail Lighting's stock, listed in December 2024, is up over 74% from the upper end of the IPO price band (₹410-432). The company's stock currently trades at ₹763, which is 20 times its likely per share earnings for FY26.
However, specific information about which African countries Transrail Lighting identified as their largest markets from FY22 to FY25 could not be found in the search results.
It is worth noting that among small- and mid-sized EPC companies, the likes of Vikran Engineering, SPML Infra, and Techno Electric & Engineering trade at 25-40 times forward earnings. Transrail Lighting, with its strong financial performance and expanding market opportunities, appears to be a competitive player in this sector.
This article was published on September 6, 2025.
