Synopsis: Transformers shares fell 12% after Q4 results. Its Revenue rose 15.6% YoY to ₹782.67 crore, while net profit declined 2.9% to ₹91.39 crore, along with the management’s views on the results and overall performance.
The shares of a Small-Cap company specialising in the design, manufacturing, and supply of a wide range of high-performance power, furnace, and rectifier transformers are in focus as they have declined by 12 percent in the day’s trade following their Q4 results.
With a market capitalization of Rs. 9,195.58 crores in the day’s trade, the shares of Transformers and Rectifiers (India) Ltd declined upto 12 percent, making a low of Rs. 292.90 per share compared to its previous closing price of Rs. 333.20 per share.
What Happened
Transformers and Rectifiers (India) Ltd, engaged in the design, manufacturing, and supply of a wide range of high-performance power, furnace, and rectifier transformers, is in the spotlight today as it has announced its Q4 results and management views as follows:
Its Revenue from operations rose by 15.6 percent YoY from Rs. 676.48 Crores in Q4FY25 to Rs. 782.67 Crores in Q4FY26, and it rose by 6.2 percent QoQ from Rs. 736.76 Crores in Q3FY26 to Rs. 782.67 Crores in Q4FY26.
Its Net Profit YoY decreased by 2.9 percent from Rs. 94.19 Crores in Q4FY25 to Rs. 91.39 Crores in Q4FY26, and on a QoQ basis, it rose by 20.2 percent from Rs. 75.97 Crores in Q3FY26 to Rs. 91.39 Crores in Q4FY26. The earnings per share (EPS) for the quarterly period stood at Rs. 3.04, compared to Rs. 3.14 in the previous year’s quarter.
The company demonstrates strong capital efficiency and profitability, with a Return on Capital Employed (ROCE) of 23.3% and Return on Equity (ROE) of 19.1%, indicating effective use of both invested capital and shareholder funds.
Its low debt-to-equity ratio of 0.30 reflects a conservative capital structure, reducing financial risk. Additionally, a PEG ratio of 0.40 suggests the stock may be undervalued relative to its growth potential. Over the past five years, the company has delivered exceptional profit growth with a CAGR of 106%.
Management Commentry
Mr Jitendra Mamtora stated that the company’s expansion is underway, with the 15,000 MVA Changodar capacity expected in Q2 FY26 after a slight delay, and a new 22,000 MVA addition planned at Moraiya. Total capacity is projected to reach around 75,000 MVA, while FY26 revenue is targeted at about ₹2,500 crore as part of the US$1 billion growth journey.
He also highlighted a ₹600 crore capex plan over the next 15 months and the ongoing development of four backward integration facilities. The company aims to achieve full backward integration by Q1 FY27–28, though timelines have been slightly pushed due to project delays and late equipment arrival.
Mr Satyen Mamtora shared that the company secured ₹244 crore in new orders during the quarter, while selectively delaying additional orders to focus on better margins and payment terms. The order pipeline remains strong, with ₹23,000+ crore inquiries under negotiation and a healthy unexecuted order book of around ₹5,005 crore as of March 31, 2026. Notably, the company won a landmark HVDC transformer repair order from PGCIL and a ₹473 crore order from GETCO.
He also highlighted that FY26 saw the highest-ever production of about 33,000 MVA, with stable EBITDA and PAT margins. The organisation is well-prepared to handle future execution and working capital demands, positioning itself strongly for upcoming growth opportunities.
CA Mehul Shah, CFO, stated that the reported Q4 FY26 revenue of ₹752 crore and full-year revenue were ₹2,395 crore. EBITDA stood at ₹117 crore in Q4 and ₹370 crore for FY26, with margins of 15.1%, while PAT was ₹77 crore in Q4 and ₹225 crore for the year, with margins of around 9–10%. The growth was driven by faster execution of major orders, improved production planning, and stronger internal controls.
He added that the company expects continued momentum supported by government infrastructure initiatives like Budget 2026 and Viksit Bharat 2047. The Changodar and Moraiya expansions are likely to contribute from FY28, and the backward integration facilities are also expected to be fully operational by Q1 FY28.
Company Overview & Others
TARIL is a leading manufacturer of transformers and reactors in India, offering a wide and specialised product portfolio. Its range includes single-phase power transformers up to 500 MVA and 1200 kV class, furnace transformers, rectifier and distribution transformers, as well as specialty transformers for applications such as locomotive traction.
The company also produces series and shunt reactors, mobile substations, earthing transformers, and solutions for emerging sectors like solar and green hydrogen. It serves key segments including power generation, transmission, distribution, and various industrial sectors.
With a total installed manufacturing capacity across units of around 75,000 MVA and a presence in over 40 countries, the company has established a strong global footprint, backed by its engineering capabilities and diverse product offerings.
As of 31st March 2026, the company’s order book stood at Rs. 5,005 crores, with a Q4 order inflow of Rs. 244 crores. Additionally, inquiries under negotiation remained strong at over Rs. 23,000 crores, indicating a robust pipeline for future growth.
The company has a strong lineup of domestic customers, including Power Grid Corporation of India, NTPC Limited, Danieli, Adani Renewables, Jindal Steel & Power, Tata Power, ReNew Power, and JSW Group. It also includes organizations like Torrent Power, GE T&D India Limited, Jindal SAW Limited, SAIL, Siemens Energy, Conco, Hawker Siddeley, and others.
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