Transformers And Rectifiers (India) Limited (TARIL)
Large CapIndustrials stocks · Large cap · NSE
Leading Indian manufacturer of Power, Distribution & Specialty Transformers and Reactors. Offers products from 5 kV-1,200 kV and 0.5 MVA-500 MVA, serving Utilities, EPC, Industrials, and Renewable Energy sectors. Operates 3 plants with 75,000 MVA capacity and has international presence in 40+ countries.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Mixed fundamentals, management trust is acceptable, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Bad · 0/100PAT -4% YoY · margin compression · Rev +8% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹572 Cr | +8.1% | -26.9% |
| EBITDA | ₹93 Cr | +5.7% | -21.2% |
| Operating margin | 16.0% | -100 bps | +100 bps |
| PAT | ₹64 Cr | -4.5% | -29.7% |
| PAT margin | 11.2% | -148 bps | -43 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
TARIL reported mixed Q1FY27 results with consolidated revenue up 8% YoY and EBITDA up 1% YoY, but PAT declined 5% YoY. Standalone performance was weaker due to lower capacity utilization at Changodar. Strong order inflow of ₹2,114 crore boosted the un-executed order book by 26% YoY to ₹6,630 crore.
Q1FY27 profitability was impacted by lower capacity utilization at the Changodar plant due to ongoing expansion. While revenue grew, margins contracted. However, strong order inflow and a robust order book provide good revenue visibility. Management expects improved utilization post-August 2026 and maintains FY27 growth and margin targets, supported by ongoing capex. The key is execution and margin recovery.
Order Book by Product (FY26)
Latest issuer-disclosed distribution across 6 reported categories.
Power & T&D Capex Cycle
Beneficiary of strong demand from renewables, grid expansion, electrification & infra spend.
Shift to High-Voltage & Niche Products
Increasing mix of EHV transformers driving higher margins & entry barriers.
Order Book Visibility
Healthy order book (~₹6,630 Cr) with strong inquiry pipeline ensures sustained growth.
Operating Leverage & Backward Integration
Improved capacity utilization & backward integration initiatives leading to faster EBITDA growth vs revenue.
Changodar Plant Expansion
Project Expansion likely to be over by August-26, anticipating improved utilization levels.
Backward Integration Capex
₹900–1,000 Cr capex progressing, commercial commissioning targeted by Q1 FY28 (after considering delay of up to one quarter).
Expanded Capacity Revenue Potential
Expanded transformer manufacturing capacity supports revenue potential of Rs. 5,000-Rs. 6,000 Crore.
Backward Integration Facilities (Phase I)
VPD CTC (8,000 MTPA, Q2FY27), RIP/OIP Bushings (3,000 No. PA, Q4FY27), Pressboard (5,000 MTPA, Q3FY27), Fabrication (25,000 MTPA, Q1FY28), CRGO (20,000 MTPA, Operational).
Global Grid Modernization
Expansion of transmission infrastructure and replacement of aging grid assets.
Renewable Energy Integration
Strong demand from wind & solar projects driving transformer demand.
India's Energy Transition
Demand driven by rapid power consumption growth, T&D investments, and large-scale renewable integration.
Shift to High-Voltage Products
Increasing mix of EHV transformers driving higher margins and entry barriers.
Raw Material Cost Volatility
High raw material cost volatility remains a key challenge.
Supply Chain & Lead Time Issues
Global supply chain disruptions and lead time issues.
Geopolitical Disruptions
Unforeseen geopolitical disruptions remain a key monitorable.
Raw Material Price Volatility
High raw material cost volatility and geopolitical uncertainties could impact profitability.
Execution Risk during Capex
Ongoing expansion activities at Changodar plant impacted Q1FY27 operational throughput and utilization.
Supply Chain Disruptions
Global supply chain and lead time issues could affect project execution.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY is crucial for assessing overall business growth and market trends. QoQ is also relevant to understand sequential momentum, especially given the explicit mention of Q1FY27 revenue impact due to expansion activities affecting operational throughput.
Order Inflow (Q1FY27)
₹2,114 crore
Un-executed Order Book (Q1FY27)
₹6,630 crore (26% YoY growth)
Bid Pipeline
₹23,000 crore Inquiries under Negotiation
Consolidated Revenue (Q1FY27)
₹572.34 crore (8% YoY growth)
FY27 Outlook
Targeting 25% revenue growth with EBITDA margin of 16% and PAT margin 9%-10%.
Changodar Plant Utilization
Anticipated to operate at improved utilization levels post-August 2026 after expansion.
Backward Integration Commissioning
Commercial commissioning of all facilities targeted by Q1 FY28 (after considering delay of up to one quarter).
Capex Funding
To be funded through QIP proceeds, leasing, internal accruals, and debt if required; ₹145 Cr QIP proceeds unutilized for backward integration.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Changodar Plant Utilization | Comparatively lower capacity utilization | Improved utilization levels post-August 2026. |
| Backward Integration Commissioning | Targeted by Q1 FY28 (after considering delay) | Timely commissioning of facilities. |
| FY27 Financial Targets | 25% revenue growth, 16% EBITDA margin, 9%-10% PAT margin | Achievement of stated FY27 targets. |
| Raw Material Stability | Well guarded against price volatility | Stable raw material prices and supply chain. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
49NeutralSMA20 -3.3% / mo · MACD +
Technical chart
TARILdaily · 1Y · AUTO+2.4%Daily technical trend read
Bearish setupTrend is weak — long-term uptrend intact. RSI 48.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 falling (~3.4% over last month) — short-term momentum negative.
- RSI(14) at 48 — falling, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 45% off 52W high · 34% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is within 1.8% of the 30-week proxy.
- The 30-week proxy changed +2.3% over 20 sessions.
- The moving-average structure does not confirm Stage 2 or Stage 4.
Valuation & score drivers
U-Score 54 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 54 · FAIR VALUE · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
FAIR VALUEWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Fair-value margin of safety is positive at 11.7%.
- Growth contributes 20/25 to the score.
- Quality contributes 15/20 to the score.
Main drags
- Valuation is weaker at 4/30; verify the latest quarterly trend.
- Cash flow is weaker at 3/10; verify the latest quarterly trend.
- Balance sheet is weaker at 9/15; verify the latest quarterly trend.
Blended valuation: PE, EV/EBITDA, FCF yield, and balance-sheet checks
For this sector, IndiaPulse uses a blended lens rather than relying on a single valuation ratio.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 75th percentile of the scored universe and 73rd percentile within Industrials. Main check: cash conversion is weak at 52/100.
Healthy Trust Lite: Promoter holding is 64.4%. Key concern: Operating cash flow is negative at ₹-105 Cr.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Industrials: 73rd pctile, median 68 · Large: 56th pctile, median 73
101 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 64.4%.
- ▸Promoter pledge is zero.
- ▸8 years of positive FCF.
- ▸ROCE is 23.3%.
Trust risks
- ▸Operating cash flow is negative at ₹-105 Cr.
- ▸1/4 latest quarters had positive YoY PAT growth.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 34.90
- P/B
- 5.96
- EV/EBITDA
- 22.76
- Market Cap
- 9033.00Cr
Profitability
- ROE
- 19.10%
- ROCE
- 23.30%
- ROA
- 10.09%
- Dividend Y
- 0.08%
Growth (CAGR)
- Revenue 5Y
- 28.00%
- EPS 5Y
- 106.00%
- Revenue 3Y
- 22.00%
- EPS 3Y
- 87.00%
Balance Sheet
- Debt/Equity
- 0.30
- Interest Coverage
- 7.05×
- Altman Z
- 7.13
- Book Value
- 50.50
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 8/5
- OCF
- -105.00 Cr
- EPS TTM
- 8.61
Shareholding
- Promoter Hold
- 64.36%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 23%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
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Peers
Business-comparable names in Industrials, ranked by similarity
Peers
Business-comparable peers in Industrials — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.