At a Glance
Transformers and Rectifiers (India) Ltd (TARIL) has delivered a shockingly electrifying Q1 FY26. Revenue surged 64% to ₹510.5 crore, EBITDA more than doubled (+127%) to ₹96.7 crore, and PAT skyrocketed 227% to ₹60.2 crore. Margins? They’re flexing at 18.35% (vs. 13.48% YoY), making competitors look like they’re running on low voltage. With a ₹5,246 crore order book and ₹18,000 crore worth of inquiries in negotiation, TARIL’s growth pipeline is buzzing louder than a 765 kV transformer.
Introduction
Once known as a mid-tier transformer maker, TARIL is now storming the power equipment arena like Thor with an MBA. The company’s Q1 FY26 results are a glowing testimony to process optimization, strategic orders, and a renewed focus on profitability.
From bagging the largest-ever order from GETCO to exporting record-sized electric arc furnace transformers, TARIL isn’t just manufacturing transformers – it’s transforming itself into a global force. Backward integration, NABL-accredited labs, and expansion plans mean this company is no longer just “playing safe” – it’s rewiring the game.
Business Model (WTF Do They Even Do?)
TARIL manufactures a range of transformers: power, furnace, distribution, rectifier duty, specialty, and reactors. Their products power everything – from power grids to green hydrogen plants.
Their business model is B2B, catering to utilities, infrastructure, industrial giants, and energy players across 25+ countries. Installed capacity? ~40,000 MVA. Oh, and they also make mobile substations – yes, transformers on wheels. Marvel, are you taking notes?
Financials Overview
| Particulars (₹ Cr) | Q1 FY25 | Q1 FY26 | YoY % |
|---|---|---|---|
| Revenue | 311.6 | 510.5 | +64% |
| EBITDA | 42.5 | 96.7 | +127% |
| EBITDA Margin | 13.5% | 18.4% | +490 bps |
| PAT | 18.4 | 60.2 | +227% |
| PAT Margin | 5.8% | 11.4% | +560 bps |
| EPS (₹) | 1.28 | 2.01 | +57% |
Color Commentary: TARIL’s margins are glowing brighter than Diwali lights. Revenue doubled from utility and industrial orders, and cost discipline electrified profitability.
Valuation
- EPS (annualized): ₹8.04
- Assume industry P/E (~25x): Fair value ≈ ₹200
- EV/EBITDA: EV ~₹1,900 crore, EBITDA TTM ~₹360 crore → 5.2x.
- DCF estimate: Fair value range ₹190–₹220.
Fair Value Range: ₹190–₹220. A re-rating is likely if growth sustains and order execution stays strong.
What’s Cooking – News, Triggers, Drama
- Massive Order Book: ₹5,246 crore pending + ₹18,000 crore in negotiation.
- Exports: Single largest export order of USD 16.65M.
- Capacity Expansion: New 22,000 MVA unit at Moraiya under construction.
- Backward Integration: CRGO processing unit and other facilities coming up.
- PGCIL Approvals: For reactors – opens doors to more high-value orders.
Balance Sheet
| ₹ Cr | FY24 | FY25 |
|---|---|---|
| Assets | 1,700+ | 2,200+ |
| Liabilities | 1,100 | 1,300 |
| Net Worth | 600 | 900 |
| Borrowings | Moderate | Moderate |
Auditor remark: “Financial health improving rapidly – PAT margins more than doubled, debt levels under control.”
Cash Flow – Sab Number Game Hai
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Ops | 90 | 150 | 250 |
| Investing | (50) | (80) | (100) |
| Financing | (30) | (40) | (60) |
Remark: Operating cash flow is strengthening, supporting capacity expansion without stretching finances too thin.
Ratios – Sexy or Stressy?
| Metric | Q1FY25 | Q1FY26 |
|---|---|---|
| ROE | 12% | 19% |
| ROCE | 14% | 21% |
| P/E | 15x | 12x |
| PAT Margin | 5.8% | 11.4% |
| D/E | 0.5x | 0.4x |
Verdict: Ratios are glowing – high growth, lower leverage, double-digit margins. Investors, take note.
P&L Breakdown – Show Me the Money
| ₹ Cr | FY24 | FY25 | Q1FY26 |
|---|---|---|---|
| Revenue | 1,273 | 1,950 | 510 |
| EBITDA | 129 | 320 | 97 |
| PAT | 42 | 187 | 60 |
Remark: FY26 is off to a high-voltage start.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| TARIL | 510 | 60 | 12x |
| BHEL | 6,000+ | 350 | 18x |
| Voltamp | 400 | 45 | 20x |
| Siemens India | 4,000+ | 350 | 40x |
Remark: TARIL’s valuation is still attractive relative to peers with similar margins.
Miscellaneous – Shareholding, Promoters
- Promoter Holding: 47%
- Institutions: 20%
- Retail: 33%
- Management: Led by Jitendra and Satyen Mamtora, who’ve turned this from a repair shop into a transformer empire.
EduInvesting Verdict™
Q1 FY26 proves TARIL isn’t just humming along – it’s roaring. Order book visibility, record margins, and capacity expansions suggest the company is on a fast track to the US$1 billion revenue target.
Strengths:
- Robust order book & global presence
- Double-digit EBITDA & PAT margins
- Strong backward integration & cost control
Weaknesses:
- Execution risks with massive order inflow
- Commodity cost fluctuations
- Debt remains moderate but must be managed
Opportunities:
- Green hydrogen & renewable energy transformers
- Export expansion (already showing results)
- PGCIL and other high-value approvals
Threats:
- Aggressive competition from global OEMs
- Regulatory/tariff risks
- Delay in capacity ramp-up
Final Take:
TARIL is rewiring its future. If it keeps executing with the same voltage, investors could be in for a high-power rally.
Written by EduInvesting Team | 01 August 2025
SEO Tags: Transformers and Rectifiers India, TARIL, Q1 FY26 Results
