Hind Rectifiers Ltd

Dear Stakeholders,

There are years that mark change, and then there are years that spark transformation. 2024–2025 was one such year for Hind Rectifiers Ltd (Hirect). This was not just a continuation of our growth, it was a definitive leap into a future defined by scale, strength, and purpose. As I reflect on this pivotal year, I do so with immense gratitude, for the trust you've placed in us and for the collective effort of every individual who contributed to this journey.

A Sector on the Move, and So Are We

India's rail infrastructure is rapidly evolving. The Union Budget 2025–2026 allocated Rs.2.65 lakh crore for the railways, including Rs.57,693 crore for rolling stock and Rs.6,150 crore for electrification. These investments are creating significant demand for efficient, high-quality components and we are well positioned to meet it. India produced 1,400 locomotives this year, surpassing the combined output of the US and Europe. This underscores the opportunity and the responsibility for suppliers like us. From Traction Transformers & Motors to Propulsion Systems and Control Systems, our products power the systems that move India.

Engineering for India and the World

This year, we crossed a major milestone by commissioning our first globally compliant rail product, now being exported to Germany and the United States. The successful integration test of our indigenous Propulsion System for Indian Railways, now in field trials, highlights our engineering depth and market readiness. We also earned ‘approved source' status for Traction Motors and commissioned HVAC systems for LHB coaches. Our latest battery charger for semi-high-speed trains is another example of R&D translating into real-world deployment.

A Strong Year Financially

Our revenue rose by 27% to Rs.656.8 crore from Rs.518.2 crore in 2023-2024, driven by broad-based demand across railway, power, and industrial segments. EBITDA improved to Rs.71.8 crore, and margins expanded to 10.9% from 8.7%, reflecting improved cost control and higher-value contracts.

Profit after tax grew more than three times to Rs.37.1 crore, with a net margin of 5.7%. Return on Equity improved to 26.2%, and Return on Capital Employed rose to 25.6%, showing robust capital efficiency and strong business fundamentals.

Our order book reached an all-time high of Rs.893 crore as of March 2025, up from Rs.534 crore last year and Rs.307 crore the year before. This includes a landmark Rs.200 crore order and additional contracts worth over Rs.170 crore. It reflects both increased customer confidence and sharper alignment with future-ready opportunities.

Backed by R&D and Integration

Our R&D centers in Mumbai & Hyderabad are currently developing 42 products across propulsion, control, charging, and clean energy systems. R&D is no longer a support function but a business driver that is shaping our future. Among our key breakthroughs this year: An indigenously developed Propulsion System has been commissioned and is undergoing field trials Development of our first rail product conforming to global standards for exports to Germany and the USA

Design and commissioning of HVAC systems for LHB passenger coaches Development of new products for semi high-speed trains like Pantry Systems, Underslung Battery Chargers, Single Phase Inverters Strategic upgrades to existing products—including Hotel Load Converters, Auxiliary Converters, and Propulsion Systems—to improve cost efficiency, localization, and quality Alongside, we have continued to invest in backward integration. These efforts are improving quality control, reducing third-party dependencies, and shortening lead times.

Your Company is steadily progressing from being a component supplier to becoming a comprehensive provider of power electronic systems for locomotives and other rail mobility platforms. Our aim is to deliver a full suite of critical systems which will significantly enhance our share of wallet per locomotive. This evolution positions us to capture greater value, improve margins, and deepen customer partnerships.

In Gratitude

The year 2024-2025 was not just a financial milestone but a turning point in our journey. I extend my heartfelt gratitude to our employees, customers, shareholders, and partners. Your continued support powers our momentum and anchors our ambition. Together, we are shaping the next phase of India's industrial and mobility future.