Transformers and Rectifiers (India) Limited (TARIL) AI Stock Analysis

• Market Cap: ₹125.78B
• Dividend Yield: 0.08%
• Average Volume (3M): 64.04K
• Price to Earnings (P/E): 48.1
• Beta (1Y): 0.81
• Revenue Growth: 33.60%
• EPS Growth: 100.44%
• Country: IN
• Employees: 553
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 1.15
• Shares Outstanding: 300,165,830
• 10 Day Avg. Volume: 37,462
• 30 Day Avg. Volume: 64,039
• PEG Ratio: 0.20
• Price to Book (P/B): 12.08
• Price to Sales (P/S): 7.49
• P/FCF Ratio: -193.39
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹275.00
• Price Target Upside: 16.16% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: ₹328.00 ▲(38.54% Upside)

The overall stock score is primarily influenced by strong financial performance, despite concerns over cash flow management. Technical analysis indicates bearish momentum, and the valuation suggests the stock is expensive with a low dividend yield. These factors collectively result in a moderate overall score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for TARIL's products and services, enhancing its market position and potential for future expansion.

Profitability

Improved profitability margins suggest efficient cost management and pricing power, which can sustain long-term financial health and competitive advantage.

Balance Sheet Strength

A strong balance sheet with low leverage provides financial stability and flexibility, enabling TARIL to invest in growth opportunities and weather economic downturns.

Negative Factors

Cash Flow Challenges

Negative free cash flow indicates that capital expenditures exceed cash generated from operations, which could strain liquidity and limit investment capacity.

Liabilities Increase

Rising liabilities could impact TARIL's financial stability if not managed carefully, potentially leading to higher interest expenses and reduced financial flexibility.

Earnings Conversion

Inadequate conversion of earnings to cash flow may indicate inefficiencies in working capital management, affecting the company's ability to fund operations and growth.

Transformers and Rectifiers (India) Limited Business Overview & Revenue Model

Company Description

Transformers and Rectifiers (India) Limited, together with its subsidiaries, manufactures and sells transformers in India. The company provides power transformers, such as generator transformers, unit and station auxiliary transformers, interconnecting transformers, small and medium power transformers, and trackside transformers for railways; and rectifier transformers, including 6 and 12/24 pulse transformers with IPT, as well as transformers for bridge construction. It also offers distribution transformers, including energy efficient transformers, transformers with packaged substations, copper and aluminium wounds, hermitically sealed type transformers, and transformers with corrugated cooling fins. In addition, the company provides furnace transformers consisting of arc furnace and submerged arc furnace transformers, ladle refining furnace transformers, induction furnace transformers, and DC arc furnace transformers; specialty transformers, including testing and earthing transformers and transformers having multiple secondaries; and shunt and series reactors. It also engages in the exporting activities. The company was formerly known as Triveni Electric Company Limited and changed its name to Transformers and Rectifiers (India) Limited in March 1995. Transformers and Rectifiers (India) Limited was founded in 1981 and is headquartered in Ahmedabad, India.

How the Company Makes Money

TARIL generates revenue primarily through the sale of its electrical equipment, including transformers and rectifiers, to utilities, industries, and government projects. The company's revenue model is driven by both product sales and after-sales services, such as maintenance and repairs. Key revenue streams include large contracts with state electricity boards and private sector companies for bulk orders, as well as ongoing service agreements that provide a steady income. Additionally, TARIL benefits from strategic partnerships with major players in the energy sector, enhancing its market presence and enabling access to larger projects, which further contribute to its earnings.

Transformers and Rectifiers (India) Limited Financial Statement Overview

Summary

Transformers and Rectifiers (India) Limited shows strong revenue growth and profitability with improved margins. The balance sheet is solid with a favorable debt-to-equity ratio. However, cash flow management is a concern due to negative free cash flow, which could impact liquidity.

Income Statement

Transformers and Rectifiers (India) Limited has demonstrated strong revenue growth with a significant increase from ₹12,672.69 million in 2024 to ₹20,193.80 million in 2025, marking a 59.37% growth rate. Gross profit and net profit margins have improved to 31.43% and 10.60% respectively, showcasing enhanced profitability. The EBIT and EBITDA margins have also shown strength, standing at 14.87% and 17.94%, indicating efficient operational performance.

Balance Sheet

The company has a solid equity base with a debt-to-equity ratio of 0.23, reflecting prudent leverage management. Return on equity has improved to 17.11%, highlighting effective use of equity in generating profits. The equity ratio is at 57.31%, indicating a strong capital structure with more than half of the assets financed by equity. However, the increase in total liabilities requires monitoring to maintain financial stability.

Cash Flow

Operating cash flow has improved, but free cash flow remains negative at ₹-782.20 million, signaling potential cash flow challenges. The operating cash flow to net income ratio is at 0.73, suggesting that earnings are not fully converting to cash. The free cash flow to net income ratio is negative, indicating that capital expenditure exceeds operating cash flow, which could impact future cash reserves if not addressed.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.61B	20.19B	12.95B	13.73B	11.45B	7.33B
Gross Profit	3.75B	6.35B	3.60B	2.78B	2.05B	1.76B
EBITDA	1.68B	3.62B	1.40B	1.30B	734.01M	677.56M
Net Income	771.97M	2.14B	444.97M	407.38M	139.87M	70.59M
Balance Sheet
Total Assets	0.00	21.85B	11.68B	11.86B	11.09B	9.25B
Cash, Cash Equivalents and Short-Term Investments	69.91M	4.09B	53.34M	52.49M	122.47M	11.23M
Total Debt	0.00	2.83B	2.56B	3.30B	3.25B	2.64B
Total Liabilities	0.00	9.13B	6.05B	7.85B	7.46B	5.75B
Stockholders Equity	5.63B	12.52B	5.54B	3.93B	3.57B	3.43B
Cash Flow
Free Cash Flow	250.40M	-782.20M	133.09M	181.06M	-66.28M	904.35M
Operating Cash Flow	250.40M	1.11B	291.43M	283.89M	18.92M	964.30M
Investing Cash Flow	0.00	-4.72B	-224.38M	91.62M	-80.11M	-69.62M
Financing Cash Flow	0.00	5.09B	-98.47M	-448.79M	172.13M	-930.84M

Transformers and Rectifiers (India) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 236.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TARIL, the sentiment is Negative. The current price of 236.75 is below the 20-day moving average (MA) of 287.59, below the 50-day MA of 400.14, and below the 200-day MA of 468.48, indicating a bearish trend. The MACD of -44.40 indicates Positive momentum. The RSI at 20.57 is Positive, neither overbought nor oversold. The STOCH value of 2.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:TARIL.

Transformers and Rectifiers (India) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDOTECH	74 Outperform	₹16.95B	20.13	―	―	34.48%	40.61%
BBL	73 Outperform	₹34.01B	23.13	―	1.21%	16.36%	21.58%
VOLTAMP	73 Outperform	₹74.52B	22.89	―	1.27%	15.87%	-4.28%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HIRECT	58 Neutral	₹31.89B	74.14	―	0.14%	35.05%	99.65%
TARIL	56 Neutral	₹125.78B	48.10	―	0.08%	33.60%	100.44%
KECL	49 Neutral	₹7.08B	99.48	―	―	-11.25%	-48.96%

Transformers and Rectifiers (India) Limited Corporate Events

TARIL Releases Revised Q2 Financial Presentation

Transformers and Rectifiers (India) Limited has released a revised investor presentation for the second quarter of the 2025-26 financial year, correcting typographical errors in the previous version. This update, which includes unaudited standalone and consolidated financial results, is part of the company’s commitment to transparency and accuracy in its financial disclosures, potentially impacting investor confidence and market positioning.

TARIL Releases Q2 2025-26 Financial Results

Transformers and Rectifiers (India) Limited has released its investor presentation for the second quarter of the 2025-26 financial year, detailing the unaudited standalone and consolidated financial results for the period ending September 30, 2025. This disclosure, in compliance with SEBI regulations, is significant for stakeholders as it provides insights into the company’s financial performance and operational strategies, potentially impacting its market position and investor confidence.

Transformers and Rectifiers (India) Limited to Participate in Investor Conference

Transformers and Rectifiers (India) Limited announced its participation in the ‘Antique Flagship Investor Conference’ in Mumbai on August 21, 2025. This event, organized by Antique Broking Limited, will include group and one-on-one meetings, providing an opportunity for TARIL to engage with investors and stakeholders. The company has assured that no unpublished price-sensitive information will be shared during the meetings.