At a Glance
Transformers & Rectifiers India Ltd (TRIL) delivered a Q1 FY26 revenue of ₹527 crore (↑64% YoY) and PAT of ₹60 crore (↑235% YoY). Margins zapped higher, OPM at 17%. The company is riding the power sector capex boom like a Tesla on steroids. Stock at ₹518 trades at a mind-numbing P/E of 73, proving investors are betting big on this electrifying growth story.
Introduction
Once a small transformer manufacturer, TRIL has morphed into an EPS-generating powerhouse. This quarter’s results scream growth—sales doubled in two years, profits skyrocketed, and margins stayed juicy. However, with a sky-high P/E and falling promoter stake, the market’s expectations are hotter than a transformer core in overload mode.
Business Model (WTF Do They Even Do?)
TRIL designs and manufactures power, furnace, rectifier transformers, reactors, and even mobile substations. Their clientele? Power utilities, industrial giants, oil & gas, and renewables.
The business is B2B, order-driven, and heavily dependent on government tenders and industrial capex cycles. As India electrifies everything from rural grids to EV chargers, TRIL is riding the wave—but it’s still a cyclical, capital-intensive play.
Financials Overview
Q1 FY26:
- Revenue: ₹527 Cr (↑64% YoY)
- EBITDA: ₹88 Cr (↑2× YoY), OPM 17%
- PAT: ₹60 Cr (↑235% YoY)
- EPS: ₹2.24
FY25 Snapshot:
- Revenue: ₹2,017 Cr (↑56% YoY)
- PAT: ₹216 Cr (↑359% YoY)
- Margins: OPM 16%, PAT 10.7%.
Commentary: Stellar growth, improved working capital (Debtor days 85 vs 174), and margin expansion. This is not just luck; it’s execution.
Valuation
At ₹518, market cap ₹15,534 Cr, P/E 73.4. Rich? Definitely. Justified? Only if growth sustains.
Fair Value Range
- P/E Method:
Peer avg P/E ~40. Applying 40× FY26E EPS (₹9):
→ Fair Price ≈ ₹360 - EV/EBITDA:
FY25 EBITDA ₹327 Cr, EV/EBITDA ~20× sector avg:
→ Fair Value ≈ ₹400 - DCF (Quick Check):
Assume 20% growth, 10% WACC → FV ≈ ₹420
Fair Value Range: ₹360 – ₹420
(Current price ₹518 suggests investor euphoria.)
What’s Cooking – News, Triggers, Drama
- Strong Order Book: Power grid investments boosting transformer demand.
- New Business Heads: Appointed heads for SS & CS divisions to scale operations.
- Promoter Stake Dip: Now at 64.4% (↓10.6% in 3 years).
- Trigger: Govt push for renewable energy grid upgrades could fuel multi-year demand.
Balance Sheet
| Particulars (₹ Cr) | Mar 23 | Mar 24 | Mar 25 |
|---|---|---|---|
| Assets | 1,187 | 1,170 | 2,187 |
| Liabilities | 806 | 629 | 965 |
| Net Worth | 381 | 540 | 1,222 |
| Borrowings | 330 | 256 | 283 |
Auditor Remark: Balance sheet doubled, borrowings steady – expansion funded mostly by equity and reserves.
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating CF | 2 | 28 | 157 |
| Investing CF | -8 | -22 | -625 |
| Financing CF | 17 | -10 | 472 |
Remark: Positive operating cash, aggressive investing – company is spending to grow.
Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 15% | 16% | 23.4% |
| ROCE | 15% | 15% | 28% |
| P/E | 45 | 60 | 73.4 |
| PAT Margin | 3% | 3.6% | 10.7% |
| D/E | 0.6 | 0.5 | 0.2 |
Comment: Ratios glowing – but P/E hotter than a burning transformer coil.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 1,396 | 2,017 | 2,227 |
| EBITDA | 121 | 327 | 373 |
| PAT | 42 | 216 | 263 |
Remark: Revenue doubled, PAT exploded – management deserves a medal.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| ABB India | 12,268 | 1,889 | 61 |
| CG Power | 10,559 | 996 | 103 |
| BHEL | 28,339 | 520 | 155 |
| TRIL | 2,227 | 263 | 73 |
Remark: TRIL’s growth is strong, but valuations already price in perfection.
Miscellaneous – Shareholding, Promoters
- Promoters: 64.4% – down from 75% (dilution trend).
- FIIs: 10.9% – increased sharply (smart money loves growth).
- DIIs: 6% – steady.
- Public: 18.7% – retail frenzy evident.
Promoter Bio: Founded by visionary engineers, TRIL is now scaling under new professional leadership. The only thing rising faster than the stock is investor expectations.
EduInvesting Verdict™
Transformers & Rectifiers India Ltd is delivering electrifying results, literally and figuratively. With booming power infra demand and margin expansion, the company’s fundamentals look solid. However, the valuation is already baking in a perfect growth story.
SWOT
- Strengths: Strong order book, improved margins, healthy ROE.
- Weaknesses: High P/E, promoter stake dilution.
- Opportunities: Renewables, grid modernization, exports.
- Threats: Cyclical demand, raw material volatility, execution risks.
Conclusion:
TRIL is on a growth voltage surge, but at current valuations, even a small operational hiccup could short-circuit the stock price. The fundamentals are bright, but the P/E tells you—handle with insulated gloves.
Written by EduInvesting Team | 01 August 2025
SEO Tags: Transformers & Rectifiers, Power Equipment Stocks, Q1 FY26 Results, Heavy Electrical Industry Analysis
