The fact that you get a TO indication means you are closer to the 025º
TO the beacon than the 025º FROM the beacon. The 025º TO the beacon is the 025
+ 180 = 205 radial so another way of expressing this would be to say you must
be between the 115 radial and the 295 radial to the south west of the beacon.
The needle deflection to the right, which looks like a 'fly right'
command, would make sense for an aircraft attempting to do what the indicator
suggests, that is attempting to fly 025º to the station. This means it would
make sense for an aircraft between the 205 radial and the 295 radial heading
north east. The actual heading is irrelevant but, as it happens, supports the argument.
Easier with a diagram!