A Goldman Sachs-backed transformer stock hit the 5 percent upper circuit after the company announced plans to achieve an order book of Rs.8,000 crore by FY26. The ambitious target, revealed during its latest earnings call, has sparked strong investor interest.
Price Movement
In Friday’s trading session, Transformers & Rectifiers India Ltd‘s share price reached an intraday high of Rs.544.60 per share, rising 5 percent from its previous close of Rs.518.70 per share. Over the past year, the stock has delivered over 48 percent returns.
Order Book Outlook
Transformers & Rectifiers Ltd in its recent conference call update, outlined ambitious growth plans, targeting an order book of Rs.8,000 crores by the end of next year. As of 31st March, the company reported a current order book of Rs.5,132 crores, with Q4 order inflows at Rs.2,144 crores and a total of Rs.4,504 crores for FY25. Additionally, inquiries under negotiation exceed Rs.22,000 crores, indicating a strong pipeline and sustained business momentum.
Moreover, as part of its financial strategy, the company is also aiming for a 200-day working capital cycle. Over the next three years, it plans to achieve revenue of $100 crores and a profit after tax (PAT) margin of 10 percent. For FY26, the focus will shift to enhancing margins further through improved operational efficiency.
Recent Quarterly Results
Transformers and Rectifiers (India) Ltd delivered a strong financial performance in Q4FY25, with revenue rising 21 percent sequentially from Rs.559 crores in Q3FY25 to Rs.676 crores. Compared to the same quarter last year, revenue grew by 32 percent from Rs.512 crores. Net profit surged 70 percent quarter-on-quarter, reaching Rs.94 crores from Rs.55 crores, and jumped 129 percent year-on-year from Rs.41 crores.
For the full FY24-25, the company posted robust growth, with revenue increasing 56 percent from Rs.1,294 crores to Rs.2,019 crores. Net profit soared 359 percent, rising from Rs.47 crores to Rs.216 crores, reflecting strong operational efficiency and improved margins.
Capacity Expansion Plans
Transformers and Rectifiers (India) Ltd is set to commence Phase 1 of its 15,000 MVA capacity expansion in May 2025, as part of its broader target to achieve $1 billion in revenue over the next three years. The company also plans to add another 22,000 MVA in EHV transformer capacity by February 2026, which will take its total installed capacity beyond 75,000 MVA. To support this ambitious growth, a capital expenditure of Rs.550 crores is planned, along with full backward integration, expected to be completed by Q1 FY27.
Products and Services
Transformers and Rectifiers (India) Ltd (T&R) specializes in the design, manufacturing, and servicing of a wide range of transformers catering to diverse industrial and utility needs. Its product portfolio includes power transformers up to the 1,200 kV class, distribution transformers, furnace transformers, rectifier transformers, specialty transformers, as well as reactors and instrument transformers.
Shareholding Pattern
As of the March 2025 shareholding pattern, promoters of Transformers & Rectifiers India Ltd hold a 64.36 percent stake in the company. Foreign Institutional Investors (FIIs) own 11.33 percent, while Domestic Institutional Investors (DIIs) and retail investors hold 7.22 percent and 17.07 percent, respectively. Notably, Goldman Sachs owns 2.64 percent stake.
Written by – Siddesh S Raskar
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