Transformers & Rectifiers India Ltd (TARIL)
🎯 Key Takeaways
- TARIL is transitioning from a traditional transformer manufacturer to a strategic player in India's critical power infrastructure expansion, marked by its first nuclear power order and aggressive capacity expansion targeting 75,000 MVA by FY27. The company is executing a disciplined growth strategy with strong order book visibility and margin improvement through backward integration, aiming for ₹1 billion revenue by FY28.
- Revenue declined 26.9% QoQ to ₹572 in Q1FY27.
- ⚠️ 1) Execution delays in capacity expansion and backward integration could pressure margins and delay revenue targets. 2) Extended working capital cycle
- Market Cap
- ₹8,207
- P/E Ratio
- 31.3
- P/B Ratio
- 5.42
- ROE
- 17.1%
- ROCE
- 21.1%
- Debt/Equity
- 0.30
- Div Yield
- 0.09%
- Promoter
- 64.4%
📖 The Story
TARIL is transitioning from a traditional transformer manufacturer to a strategic player in India's critical power infrastructure expansion, marked by its first nuclear power order and aggressive capacity expansion targeting 75,000 MVA by FY27. The company is executing a disciplined growth strategy with strong order book visibility and margin improvement through backward integration, aiming for ₹1 billion revenue by FY28.
📰 What's Happening
TARIL secured its first nuclear power order for NPCIL's Kaiga Units 5 & 6, adding 1,400 MW capacity to India's PHWR program, validating its technological capabilities in critical infrastructure. The company reported a record ₹5,005 Cr order book and ₹2,509 Cr consolidated revenue (+24.2% YoY) in FY26, driven by wins including a ₹473 Cr GETCO order and ₹53 Cr HVDC transformer order from PGCIL. Management has committed ₹900-1000 Cr capex to scale capacity to 75,000 MVA by FY27 and is targeting ₹1 billion revenue by FY28 with 35%+ gross margins through backward integration by Q1 FY28.
Source: Stock Announcements
📊 Quarterly Results (₹ Cr)
| Metric | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|
| Revenue | 460 | 737 | 783 | 572 |
| Operating Profit | 44 | 117 | 111 | 87 |
| OPM % | 9.6% | 15.9% | 14.2% | 15.1% |
| Net Profit | 37 | 76 | 91 | 64 |
| EPS | ₹1.13 | ₹2.53 | ₹3.04 | ₹2.05 |
Revenue growth accelerated to 24.2% consolidated YoY in FY26, with standalone revenue rising 22.8% to ₹2,395 Cr, supported by strong order execution and capacity ramp-up. Operating performance remained stable with EBITDA margin holding at 15.4% standalone, while net profit grew to ₹91 Cr in Q4 2025 (Dec) from ₹37 Cr in Q3 2025 (Sep), indicating improving profitability. However, the extended working capital cycle of 199 days suggests execution pressure, though net-debt-free status is targeted within 18-24 months.
🔮 Management Outlook & What's Next
Management targets ₹1 billion revenue by FY28 with 35%+ gross margins, driven by backward integration (targeting 100% by Q1 FY28) and capacity expansion to 75,000 MVA by FY27. The company is leveraging its order book visibility and strategic investments to capture growth in nuclear, HVDC, and grid infrastructure segments, with a focus on margin improvement through vertical integration and scale.
Extracted from official company announcements. Not StockFin.ai's opinion.
🏦 Balance Sheet (₹ Cr)
| Item | Mar 2025 | Mar 2025 | Mar 2026 | Mar 2026 |
|---|---|---|---|---|
| Equity Capital | 30 | 15 | 30 | 30 |
| Reserves | 1,222 | 1,088 | 1,485 | 1,315 |
| Borrowings | 283 | 244 | 457 | 366 |
| Total Liabilities | 2,185 | 1,755 | 2,666 | 2,390 |
| Fixed Assets | 232 | 138 | 250 | 228 |
| Investments | 268 | 308 | 184 | 204 |
| Total Assets | 2,185 | 1,755 | 2,666 | 2,390 |
The balance sheet shows a stable equity base of ₹30 Cr with reserves growing to ₹1,485 Cr by March 2026, while borrowings remain low at ₹457 Cr, reflecting a conservative capital structure. Total assets have increased to ₹2,666 Cr, supporting expansion plans, and the company is funding growth through internal accruals and a ₹500 Cr QIP, with net-debt-free status targeted within 18-24 months.
💰 Cash Flow Statement (₹ Cr)
| Item | Mar 2025 | Mar 2026 |
|---|---|---|
| Operating | +157 | -105 |
| Investing | -625 | -7 |
| Financing | +472 | +116 |
| Net Cash Flow | +4 | +3 |
👥 Shareholding Pattern
| Category | Q2FY26 | Q3FY26 | Q4FY26 | Q1FY27 |
|---|---|---|---|---|
| Promoters | 64.4% | 64.4% | 64.4% | 64.4% |
| FII | 11.2% | 7.0% | 8.3% | 7.8% |
| DII | 6.0% | 4.2% | 1.8% | 1.5% |
| Public | 15.9% | 21.2% | 22.4% | 22.9% |
| # Shareholders | 1,79,367 | 2,06,060 | 2,11,907 | 2,15,267 |
FII holding increased to 8.33% in Q4FY26 from 7.01% in Q3FY26, indicating institutional confidence, while DII holding rose to 1.77% from 4.19% in Q3FY26, suggesting growing domestic institutional interest. Promoter holding remains stable at 64.36%, with public shareholding rising to 22.87% in Q1FY27 from 15.86% in Q2FY26, reflecting broadening retail and institutional participation.
⚖️ Peer Comparison — Capital Goods - Electrical Equipment
| Company | MCap (₹ Cr) | P/E | ROCE | ROE | D/E |
|---|---|---|---|---|---|
| ABB | 1.45 L Cr | 48.5 | 26.5% | — | 0.00 |
| BHEL | 1.44 L Cr | 59.1 | 11.6% | — | 0.30 |
| POWERINDIA | 1.38 L Cr | 119.7 | 29.9% | — | 0.00 |
| CGPOWER | 1.36 L Cr | 108.9 | 21.3% | — | 0.00 |
| SIEMENS | 1.33 L Cr | 40.7 | 14.2% | — | 0.00 |
| GVT&D | 1.07 L Cr | 82.3 | 99.4% | — | 0.00 |
| APARINDS | 71,581 | 60.6 | 33.0% | — | 0.16 |
| WAAREEENER | 68,892 | 18.0 | 33.2% | — | 0.17 |
| SUZLON | 54,284 | 17.3 | 44.5% | — | 0.05 |
| THERMAX | 39,223 | 62.5 | 12.5% | — | 0.41 |
🔗 Peer Stock Analyses
⚠️ Risk Factors
1) Execution delays in capacity expansion and backward integration could pressure margins and delay revenue targets. 2) Extended working capital cycle (199 days) may strain liquidity during scaling. 3) High promoter concentration (64.36%) creates governance risk if strategic shifts occur. 4) Nuclear sector entry, while strategic, carries regulatory and execution complexities not typical of core transformer business.
📋 Recent Filings
- Announcement2026-09-28Transformers & Rectifiers India Ltd announced the closure of its insider trading window effective October 1, 2026, until 48 hours after reporting Q2 a…
- 🟡 Board Meeting2026-09-21Transformers & Rectifiers India held its 32nd AGM on September 21, 2026 via video conference, with 79 shareholders participating remotely. Chairman Ji…
- 🟡 voting results2026-09-21At the 32nd AGM on September 21, 2026, shareholders approved all four resolutions with overwhelming support, including adoption of audited financials,…
- 🔴 Announcement2026-09-15Transformers & Rectifiers India announced an in-person investor meeting in Ahmedabad with JP Morgan's India Conference Industrials Tour, scheduled for…
- 🔴 Announcement2026-09-14Transformers & Rectifiers India Ltd announced an in-person investor meeting in Ahmedabad hosted by Goldman Sachs on September 14, 2026, to discuss its…
- 🔴 Announcement2026-09-10Transformers & Rectifiers India announced the incorporation of Maxwell Grid Transformers (UK) Private Limited, a wholly owned subsidiary in the United…
- 🔴 Announcement2026-08-31Transformers & Rectifiers India Limited (TARIL) announced a landmark order to supply generator transformers for NPCIL's Kaiga Units 5 & 6 nuclear powe…
- 🟡 voting results2026-08-29Transformers & Rectifiers India announced a postal ballot to seek shareholder approval for reallocating Qualified Institutions Placement proceeds and …
- 🟡 Board Meeting2026-08-29The 32nd AGM of Transformers & Rectifiers India Ltd is set for 21 September 2026 at 11:00 a.m. IST via video conferencing, with e-voting from 18-20 Se…
- 🔴 Announcement2026-08-29Transformers and Rectifiers India Limited (TARIL) announced a landmark order from Megha Engineering and Infrastructures Limited (MEIL) for generator t…
🧠 Analyst's Read
TARIL is positioning itself as a key enabler of India's power infrastructure growth with strong order book visibility and a clear path to ₹1 billion revenue by FY28, but must successfully execute its capex and integration plans to sustain margin expansion. Watch for progress on backward integration milestones and nuclear project execution timelines as near-term catalysts.
Based on filing content and financial data. Not a recommendation.
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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-09-30.
Editorial & Data Transparency Notice
This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.
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