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

• Market Cap: ₹76.77B
• Dividend Yield: 0.07%
• Average Volume (3M): 64.04K
• Price to Earnings (P/E): 28.5
• Beta (1Y): 1.36
• Revenue Growth: 33.60%
• EPS Growth: 100.44%
• Country: IN
• Employees: 553
• Sector: Industrials
• Sector Strength: 72
• Industry: Electrical Equipment & Parts
• EPS (TTM): 2.50
• 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: ₹308.00
• Price Target Upside: -4.12% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: ₹265.00 ▼(-17.51% Downside)

The score is primarily supported by strong financial performance driven by rapid revenue growth and improved profitability, alongside a solid balance sheet. It is held back by negative free cash flow and a technically weak price trend (trading below major moving averages), with valuation further constrained by a relatively high P/E and minimal dividend yield.

Positive Factors

Revenue & Margin Expansion

Revenue jumped 59.37% YoY alongside improved gross and net margins, reflecting stronger tender wins, pricing and mix. This durable combination of volume growth and margin expansion increases sustainable earnings power, supports reinvestment in capacity, and boosts long-term competitiveness.

Strong Capital Structure

A low debt-to-equity ratio (0.23), high equity share (57.31%) and ROE of 17.11% indicate conservative leverage and efficient deployment of capital. This durable balance-sheet strength provides flexibility to fund large engineered orders, withstand cyclical utility capex swings, and pursue selective investments.

Contract-driven Manufacturing Model

The business model is focused on engineered transformer sales and bundled services to utilities and industrials under contracts and POs. Durable contractual revenues plus installation/servicing tails create customer stickiness, predictable order pipelines and aftermarket revenue beyond single equipment sales.

Negative Factors

Negative Free Cash Flow

Free cash flow is materially negative and operating cash flow converts only ~73% of reported net income, showing earnings aren’t fully cash-backed. Persisting cash deficits can force higher borrowing, restrict capital expenditure, and limit the firm's ability to finance working-capital for large contracts over the medium term.

Material Cost & Working-Capital Risk

The company’s margins and cash needs are structurally exposed to copper/aluminium/electrical steel price swings and tender-driven payment cycles. Such commodity and working-capital sensitivity can compress profits and elevate financing needs across quarters, creating recurring operational risk if commodity volatility persists.

Rising Liabilities to Monitor

Although current leverage is low, the reported rise in total liabilities is a structural concern. If liabilities continue to grow, refinancing and interest costs could increase, reducing financial headroom to bid on large projects or invest in capacity, and potentially pressuring liquidity in stressed market periods.

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

Strong income statement performance (revenue up 59.37% YoY and improved margins) and a solid balance sheet (low debt-to-equity at 0.23, ROE 17.11%) are partially offset by cash flow weakness, with negative free cash flow (₹-782.20 million) and subpar cash conversion (operating cash flow to net income at 0.73).

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: 321.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 321.25 is above the 20-day moving average (MA) of 250.39, above the 50-day MA of 269.12, and below the 200-day MA of 430.35, indicating a neutral trend. The MACD of -11.48 indicates Negative momentum. The RSI at 46.64 is Neutral, neither overbought nor oversold. The STOCH value of 84.46 is Negative, 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
BBL	73 Outperform	₹31.87B	21.67	―	1.27%	16.36%	21.58%
VOLTAMP	73 Outperform	₹77.60B	21.90	―	1.27%	15.87%	-4.28%
INDOTECH	68 Neutral	₹15.91B	16.39	―	―	34.48%	40.61%
TARIL	65 Neutral	₹76.77B	28.51	―	0.07%	33.60%	100.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
HIRECT	58 Neutral	₹23.31B	49.03	―	0.13%	35.05%	99.65%
KECL	49 Neutral	₹6.03B	83.16	―	―	-11.25%	-48.96%

Transformers and Rectifiers (India) Limited Corporate Events

Transformers and Rectifiers (India) Posts Strong Q3 FY26 Unaudited Results

Transformers and Rectifiers (India) Limited reported robust unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, with strong growth in revenue and profitability year-on-year. Standalone total income from operations for the quarter rose to ₹709.87 crore and net profit after tax to ₹71.03 crore, while consolidated operations generated ₹741.02 crore in revenue and ₹75.97 crore in net profit, driving higher earnings per share on both bases. The results, approved by the board on 8 January 2026 and published in leading English and Gujarati financial dailies, underscore the company’s improving financial performance and scale, reinforcing its market position in the transformer and power equipment segment and providing shareholders with evidence of sustained operational momentum.

Transformers and Rectifiers Schedules Q3 FY26 Earnings Call with Global Investor Access

Transformers and Rectifiers (India) Limited has scheduled an earnings conference call on 8 January 2026 at 4:00 p.m. IST to discuss its unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025. The call, hosted by Nuvama Wealth Management, will feature Managing Director Satyen Mamtora and Director – Finance C.S.S. Rajora, and is accessible to investors and analysts in India and key international markets, underscoring the company’s efforts to maintain transparent communication with stakeholders and engage the broader investment community on its financial performance and outlook.

Transformers and Rectifiers (India) Limited Secures Landmark HVDC Order

Transformers and Rectifiers (India) Limited has secured a significant order worth Rs. 53.33 crore from Power Grid Corporation of India Limited for the repair, erection, testing, and commissioning of a 397 MVA HVDC Converter Transformer. This order marks a milestone as TARIL becomes the first Indian private sector company to receive such an order, enhancing its position in the global HVDC transformer market. The contract aligns with India’s growing demand for HVDC technology driven by renewable energy integration, grid modernization, and transmission network expansion. This development supports the Indian government’s ‘Make in India’ initiative by providing a domestic source for HVDC transformers, which are crucial for efficient long-distance power transmission.

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.