Transformers and Rectifiers share hit circuit after a strong Q4 show; check targets

Shares of Transformers and Rectifiers (India) hit an upper circuit during the trading session on Wednesday after the company reported a strong set of performance in the March 2025 quarter. The company announced its quarterly earnings on Tuesday, after the market hours.

TARIL said its consolidated net profit more than doubled to Rs 94.20 crore in the quarter that ended March 2025. The company clocked a 32.96 per cent year-on-year (YoY) growth in its revenue from operations at Rs 683.42 crore, Ebitda came in at Rs 140 crore for the reported quarter.

Following the announcement of results, shares of Transformers and Rectifiers (India) were locked in upper circuit of 5 per cent at Rs 518.30 on Wednesday, with its total market capitalization hitting Rs 15,500 crore mark. The stock had settled at Rs 493.65 on Tuesday. Despite the recovery, the stock is still 20 per cent below its 52-week high at Rs 650.23 hit in January this year.

TARIL beat Q4FY25E ebitda and PAT by 20 per cent and 13 per cent on the back of a 32 per cent YoY jump in sales and operating margin expansion of 540 bps YoY to 19.4 per cent, said Nuvama Institutional Equities. FY25 OI grew 1.2 times to Rs 4,500 crore, taking the backlog to Rs 5,130 crore, while the pipeline ballooned to Rs 2,200 crore, implying a long growth runway, it said.

"FY26 guidance targeted order book of Rs 8,000 crore (up 56 per cent YoY) and OPM of 16–17 per cent. Also targeting $1 billion annual revenue in three–four years, it added, retaining ‘buy’ on sector tailwinds coupled with company-level strategic initiatives to capitalise on the ongoing power T&D capex super-cycle," Nuvama added. It has a target price of Rs 725 on the stock.

The company board of directors also approved the reappointment of Jitendra U Mamtora as Chairman and Wholetime Director for a further 3 years from the expiry of his present term (effective from January 1, 2026.) It company board also approved a dividend of 20 paise per equity share of Rs 1 each. All the proposals remain subject to shareholders' approval.

TARIL registered stellar results with consolidated revenue booking for the quarter was at Rs 670 crore, up 32 per cent YoY, while Ebitda of Rs 130 crore, up 83 per cent YoY, was supported by strong Ebitda margin of 19.4 per cent, helped by the execution of better margin orders & operating leverage. PAT was also robust at Rs 94.2 crore, up 126 per cent YoY, said Antique Stock Broking.

"TARIL is undertaking an ambitious capacity expansion program, which will not only make it India's largest transformer manufacturer, but also one amongst a few that has control over key inputs through backward integration. Given the unprecedented demand tailwinds & stellar FY25 gone by, we maintain our positive stance," it said with 'buy' rating with a target price of Rs 711.