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Transformers and Rectifiers (India) Limited
(TARIL)
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Rating:67Neutral
Price Target:
₹357.00
▲(20.98% Upside)
Action:Reiterated
Date:10/19/26
The score is driven by strong growth and improving profitability/leverage, supported by positive technical trend signals and upbeat, guidance-backed earnings-call commentary with a large order pipeline. The primary constraint is weak cash-flow conversion (negative operating and free cash flow) alongside elevated working capital, with valuation also relatively expensive at ~32x earnings and a very low dividend yield.
Positive Factors
Strong revenue and margin expansion
TARIL has materially expanded revenue and profitability over the cycle, showing stronger operating scale and improved returns on its manufacturing base. This creates greater capacity to reinvest in expansion, support customers across the transformer lifecycle, and build more durable earnings power.
Negative Factors
Weak earnings-to-cash conversion
Recent profits have not converted into cash, reducing internally generated funding for expansion and increasing sensitivity to working-capital needs. If negative operating and free cash flow persist while the business scales, liquidity management and external funding requirements could become more important.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue and margin expansion
TARIL has materially expanded revenue and profitability over the cycle, showing stronger operating scale and improved returns on its manufacturing base. This creates greater capacity to reinvest in expansion, support customers across the transformer lifecycle, and build more durable earnings power.
Read all positive factors
Transformers and Rectifiers (India) Limited (TARIL) vs. iShares MSCI India ETF (INDA)
Market Cap
₹94.49B
Dividend Yield0.08%
Average Volume (3M)510.66K
Price to Earnings (P/E)30.8
Beta (1Y)1.85
Revenue Growth27.23%
EPS Growth21.70%
CountryIN
Employees553
SectorGeneral
Sector StrengthN/A
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)10.21
Shares Outstanding300,165,830
10 Day Avg. Volume865,676
30 Day Avg. Volume510,658
Financial Highlights & Ratios
PEG Ratio1.09
Price to Book (P/B)4.89
Price to Sales (P/S)2.96
P/FCF Ratio-28.36
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)11.4
Revenue Forecast (FY)₹32.70B
Transformers and Rectifiers (India) Limited Business Overview & Revenue Model
Company Description
Transformers and Rectifiers (India) Limited (TRIL), along with its affiliated companies, is a prominent Indian manufacturer and seller of various transformer types. Their product portfolio encompasses power transformers, which include models for g...
How the Company Makes Money
TARIL primarily makes money by executing customer orders for electrical power equipment, with revenue recognized from the sale (and delivery/commissioning, where applicable) of manufactured products. Its key revenue streams typically include: (1) ...
Transformers and Rectifiers (India) Limited Earnings Call Summary
Earnings Call Date:Oct 13, 2026
(Q2-2027)
| % Change Since: |
Next Earnings Date:Feb 08, 2027
Earnings Call Sentiment Positive
The call was strongly positive, supported by substantial year-on-year growth in revenue, EBITDA and margins; a 32% larger order book; 97% year-on-year order inflow growth; major wins in nuclear, transmission and reactor segments; ongoing capacity expansion; and reaffirmed FY27 guidance. The principal challenges were elevated working capital, continued raw material availability issues, and the time required to qualify for HVDC and develop the BESS business. The positive operating and order-book developments significantly outweighed the stated challenges.Positive Updates
Strong Q2 Revenue and EBITDA Growth
Q2 FY27 revenue from operations was INR709 crores, up 66% year-on-year and 27% quarter-on-quarter. EBITDA was INR114 crores, up 203% year-on-year and 53% quarter-on-quarter, while EBITDA margin improved to 16.1% from 8.8% in Q2 FY26 and 13.3% in Q1 FY27, supported by improved capacity utilization and operating leverage.
Negative Updates
Elevated Working Capital Cycle
Standalone net working capital days were approximately 154 days as of 30 September 2026, comprising inventory days of approximately 93 days, receivable days of around 117 days, and payable days of approximately 56 days. Inventory stood at approximately INR654 crores and trade receivables at around INR1,053 crores, including INR825 crores of current receivables. Management is targeting a reduction toward approximately 110 days to 120 days, with an internal reference to approximately 130 days.
Read all updates
Q2-2027 Updates
Positive
Negative
Strong Q2 Revenue and EBITDA Growth
Q2 FY27 revenue from operations was INR709 crores, up 66% year-on-year and 27% quarter-on-quarter. EBITDA was INR114 crores, up 203% year-on-year and 53% quarter-on-quarter, while EBITDA margin improved to 16.1% from 8.8% in Q2 FY26 and 13.3% in Q1 FY27, supported by improved capacity utilization and operating leverage.
Read all positive updates
Company Guidance
Management maintained FY27 guidance of growth of 25% and beyond, 9% to 10% PAT margin and INR3,200 crores, while targeting capacity utilization of about 90%; working capital cycle days are targeted at roughly 130 days, should be below 120 days, with a goal of between 110 days and 120 days this year. The INR7,237 crores order book is executable over the next 18 months to 24 months, while the INR21,000 crores of inquiries comprise 80% domestic orders and 20% export orders. Backward integration is expected to deliver around 200 basis points to 300 basis points margin expansion, gradually across FY28 and FY29, with the full effect seen by FY29; the CTC plant will be commissioned by Diwali, commercially manufacture by quarter four this year, and begin market sales from Q1 next year, with around 60% captive consumption. The Company expects to reach $1 billion in late part of FY 2029 or early FY 2030, with no additional capex, and expects to be fully able to do HVDC and converter transformers within next 18 months.Transformers and Rectifiers (India) Limited Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
38
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 28.31B | 25.09B | 20.19B | 12.95B | 13.73B | 11.45B |
| Gross Profit | 7.84B | 6.78B | 6.35B | 3.60B | 2.78B | 2.05B |
| EBITDA | 5.09B | 4.44B | 3.62B | 1.40B | 1.30B | 734.01M |
| Net Income | 3.04B | 2.64B | 2.14B | 444.97M | 407.38M | 139.87M |
Balance Sheet | ||||||
| Total Assets | 30.17B | 26.66B | 21.85B | 11.68B | 11.86B | 11.09B |
| Cash, Cash Equivalents and Short-Term Investments | 2.25B | 2.92B | 4.09B | 53.34M | 52.49M | 122.47M |
| Total Debt | 5.81B | 4.57B | 2.83B | 2.56B | 3.30B | 3.25B |
| Total Liabilities | 13.32B | 11.23B | 9.13B | 6.05B | 7.85B | 7.46B |
| Stockholders Equity | 16.53B | 15.15B | 12.52B | 5.54B | 3.93B | 3.57B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -2.61B | -782.20M | 133.09M | 181.06M | -66.28M |
| Operating Cash Flow | 0.00 | -1.52B | 1.11B | 291.43M | 283.89M | 18.92M |
| Investing Cash Flow | 0.00 | -119.70M | -4.72B | -224.38M | 91.62M | -80.11M |
| Financing Cash Flow | 0.00 | 1.67B | 5.09B | -98.47M | -448.79M | 172.13M |
Transformers and Rectifiers (India) Limited Technical Analysis
Positive
295.10
Price Trends
296.65
Positive
308.07
Positive
299.17
Positive
Market Momentum
6.50
Negative
55.59
Neutral
24.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TARIL, the sentiment is Positive. The current price of 295.1 is below the 20-day moving average (MA) of 303.03, below the 50-day MA of 296.65, and below the 200-day MA of 299.17, indicating a bullish trend. The MACD of 6.50 indicates Negative momentum. The RSI at 55.59 is Neutral, neither overbought nor oversold. The STOCH value of 24.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:TARIL.
Transformers and Rectifiers (India) Limited Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | ₹104.97B | 33.12 | ― | 0.96% | 17.84% | -2.60% | |
69 Neutral | ₹29.87B | 30.37 | ― | 0.35% | 21.99% | 28.73% | |
67 Neutral | ₹94.49B | 30.82 | ― | 0.08% | 27.23% | 21.70% | |
65 Neutral | ₹28.39B | 25.36 | ― | 1.39% | 26.44% | -11.83% | |
59 Neutral | ₹273.97B | 149.09 | ― | 0.50% | 9.56% | -29.50% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | ₹35.34B | 82.24 | ― | 0.14% | 41.95% | -3.11% |
* General Sector Average
IN:TARIL
Transformers and Rectifiers (India) Limited
315.95
-136.49
-30.17%
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Transformers and Rectifiers (India) Limited Corporate Events
TARIL Posts Earnings Call Recording for September 2026 Results
Oct 13, 2026
Transformers and Rectifiers (India) Limited has released the audio recording of its earnings conference call held on 13 October 2026 with analysts and investors. The call covered unaudited standalone and consolidated financial results for the quar...
Transformers and Rectifiers (India) Blocks Insider Trading Ahead of Mid-Year Results
Sep 28, 2026
Transformers and Rectifiers (India) Limited has announced that its trading window for dealing in the company’s securities will be closed from 1 October 2026 until 48 hours after the announcement of its unaudited standalone and consolidated f...
Transformers and Rectifiers (India) to Meet Investors at JP Morgan India Conference
Sep 15, 2026
Transformers and Rectifiers (India) Limited has announced that its management will meet a group of investors in Ahmedabad on 15 September 2026 during JP Morgan’s India Conference Industrials Tour. The interaction is positioned as an in-perso...
Transformers and Rectifiers (India) Plans Investor Meet in Ahmedabad Hosted by Goldman Sachs
Sep 14, 2026
Transformers and Rectifiers (India) Limited has scheduled an in-person management interaction with a group of investors in Ahmedabad, hosted by Goldman Sachs. The meeting is being conducted under SEBI’s Listing Obligations and Disclosure Req...
Transformers and Rectifiers (India) Sets Up UK Subsidiary Maxwell Grid Transformers
Sep 10, 2026
Transformers and Rectifiers (India) Limited has announced the successful incorporation of Maxwell Grid Transformers (UK) Private Limited as its subsidiary in the United Kingdom. The move follows earlier board approval for investment in the UK unit...
TARIL Wins Landmark NPCIL Order, Enters India’s Nuclear Power Sector
Aug 31, 2026
Transformers and Rectifiers (India) Limited (TARIL), a major manufacturer of high‑voltage transformers and reactors, has built a strong presence across India’s power generation, transmission, renewable energy, railways, steel, and infr...
TARIL wins landmark NPCIL Kaiga order, enters nuclear power transformer market
Aug 29, 2026
Transformers and Rectifiers (India) Limited (TARIL), a major player in India’s transformer and reactor manufacturing industry, provides a wide portfolio of high-voltage equipment for critical power infrastructure across generation, transmiss...
Transformers and Rectifiers (India) Seeks Shareholder Nod to Reallocate QIP Proceeds
Aug 29, 2026
Transformers and Rectifiers (India) Limited has launched a postal ballot process to seek shareholder approval for changing and reallocating the use of funds raised through its Qualified Institutions Placement, as well as revising the timeline for ...
Transformers and Rectifiers (India) Bags Large Transformer Order from MEIL
Aug 29, 2026
Transformers and Rectifiers (India) Limited has secured a large domestic purchase order from Megha Engineering and Infrastructures Limited for the manufacturing of transformers and related work. The contract, classified as a large order under the ...
Transformers and Rectifiers (India) Plans Investor Meet at Kotak Manufacturing Forum 2026
Aug 17, 2026
Transformers and Rectifiers (India) Limited has scheduled an investor and analyst meeting at the Kotak Manufacturing Forum 2026 on Thursday, 20 August 2026, to be held in person. The interaction will be based solely on publicly available informati...
Transformers and Rectifiers (India) Bags Large APTRANSCO Transformer Order
Aug 14, 2026
Transformers and Rectifiers (India) Limited has received a Letter of Intent from Transmission Corporation of Andhra Pradesh Limited (APTRANSCO) for the manufacturing and supply of transformers and related work. The contract, classified by the comp...
Transformers and Rectifiers (India) Secures Extension for 32nd AGM
Aug 4, 2026
Transformers and Rectifiers (India) Limited operates in the electrical equipment sector, supplying transformers and rectifier solutions to power and industrial customers. Listed on both BSE and NSE, the company serves the Indian infrastructure and...
Transformers and Rectifiers (India) Releases Q1 FY27 Earnings Call Transcript
Jul 25, 2026
Transformers and Rectifiers (India) Limited has released the official transcript of its Q1 FY27 earnings conference call held on July 21, 2026 with analysts and investors. The call focused on discussing the unaudited standalone and consolidated fi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.