Transformers and Rectifiers shares crack 28% in two days; co clarifies on World Bank's debarment notice
The company issued a clarification stating, "We wish to inform that Transformers and Rectifiers (India) Ltd has received a Notice of Uncontested Sanctions Proceedings dated November 4, 2025, from the World Bank in connection with Sanctions Case No. 788 relating to the Nigeria Electricity Transmission Project (IDA Credit Nos. 6185-NG and 6186-NG)."
- Nov 11, 2025,
- Updated Nov 11, 2025 10:41 AM IST
Shares of Transformers and Rectifiers (India) Ltd (TARIL) extended their sharp fall on Tuesday, slipping 10 per cent to a one-year low of Rs 282.80 on BSE. With this, the stock has lost nearly 28 per cent over the last two trading sessions, following a World Bank debarment notice.
The company issued a clarification stating, "We wish to inform that Transformers and Rectifiers (India) Ltd has received a Notice of Uncontested Sanctions Proceedings dated November 4, 2025, from the World Bank in connection with Sanctions Case No. 788 relating to the Nigeria Electricity Transmission Project (IDA Credit Nos. 6185-NG and 6186-NG)."
TARIL said the communication referred to an earlier Notice of Sanctions Proceedings dated July 30, 2025, which the company had not received. "Accordingly, the Company has initiated steps to contest the matter and will submit its reply to the World Bank, seeking an opportunity to review and address the allegations in detail," it added.
The proceedings have been initiated under the Sanctions Proceedings and Settlements in Bank-Financed Projects, issued by the World Bank on November 30, 2023.
Providing background, TARIL said it had received an order worth $24.74 million in FY20 for the supply of 70 transformers on a CFR basis to Nigeria. The order was executed in FY22, and as per the terms, 90 per cent payment was received under a letter of credit during the same year.
The company explained, "During shipment of last consignment, while it was being transported from Nigerian Port to its Storage, 3 Nos transformers got damage due to accident. Claim filed by TCN and Insurance was passed during FY22, but payment was received under the insurance during FY24 in staggered manner, due to shortage of USD in Nigeria. We manufactured new Transformers against the previous 3 Nos damaged and supplied them during FY25 end, against which balance payment of 10 per cent was released by World Bank and received during Q1 FY26."
The company clarified that the debarment relates to "certain alleged irregularities concerning a past supply order executed under a World Bank-funded project for Transmission Company of Nigeria Plc (TCN), Abuja."
It further noted that all required documents had been submitted during the World Bank's 2023 enquiry and since then, there had been no communication. "The Company believes that the findings referred to in the notice are not conclusive and do not constitute proof of any misconduct. The Company reiterates that it has acted in good faith and in compliance with all applicable laws and contractual obligations," it said.
TARIL added that it will "reply to World Bank for chance to represent the case and get the debarment uplifted. TARIL will represent its case with World Bank and prove that TARIL is not involved into any illegal or restricted transactions with any of the third party." The company also said it will work to "satisfy World Bank's requirement (a) and (b) as mentioned in page 2 of the notice, which would enable withdrawal of its ineligibility for participation in World Bank funded projects."
TARIL also said, "Just for clarification, the debarment is limited to participation in World Bank-funded projects. The Company currently has no ongoing or pending orders under such projects; therefore, this action has no material impact on its business operations, financial performance, or future outlook."
For the July–September quarter (Q2 FY26), TARIL reported flat revenue of Rs 460 crore on a year-on-year (YoY) basis. Margins declined, with EBITDA down 26 per cent YoY to Rs 52 crore and PAT falling 19 per cent to Rs 37 crore, mainly due to higher employee costs. In the corresponding quarter last year, the company had posted an EBITDA of Rs 80.97 crore and a PAT of Rs 46.02 crore.
As of September 2025, promoters held a 64.36 per cent stake in the smallcap firm.
Shares of Transformers and Rectifiers (India) Ltd (TARIL) extended their sharp fall on Tuesday, slipping 10 per cent to a one-year low of Rs 282.80 on BSE. With this, the stock has lost nearly 28 per cent over the last two trading sessions, following a World Bank debarment notice.
The company issued a clarification stating, "We wish to inform that Transformers and Rectifiers (India) Ltd has received a Notice of Uncontested Sanctions Proceedings dated November 4, 2025, from the World Bank in connection with Sanctions Case No. 788 relating to the Nigeria Electricity Transmission Project (IDA Credit Nos. 6185-NG and 6186-NG)."
TARIL said the communication referred to an earlier Notice of Sanctions Proceedings dated July 30, 2025, which the company had not received. "Accordingly, the Company has initiated steps to contest the matter and will submit its reply to the World Bank, seeking an opportunity to review and address the allegations in detail," it added.
The proceedings have been initiated under the Sanctions Proceedings and Settlements in Bank-Financed Projects, issued by the World Bank on November 30, 2023.
Providing background, TARIL said it had received an order worth $24.74 million in FY20 for the supply of 70 transformers on a CFR basis to Nigeria. The order was executed in FY22, and as per the terms, 90 per cent payment was received under a letter of credit during the same year.
The company explained, "During shipment of last consignment, while it was being transported from Nigerian Port to its Storage, 3 Nos transformers got damage due to accident. Claim filed by TCN and Insurance was passed during FY22, but payment was received under the insurance during FY24 in staggered manner, due to shortage of USD in Nigeria. We manufactured new Transformers against the previous 3 Nos damaged and supplied them during FY25 end, against which balance payment of 10 per cent was released by World Bank and received during Q1 FY26."
The company clarified that the debarment relates to "certain alleged irregularities concerning a past supply order executed under a World Bank-funded project for Transmission Company of Nigeria Plc (TCN), Abuja."
It further noted that all required documents had been submitted during the World Bank's 2023 enquiry and since then, there had been no communication. "The Company believes that the findings referred to in the notice are not conclusive and do not constitute proof of any misconduct. The Company reiterates that it has acted in good faith and in compliance with all applicable laws and contractual obligations," it said.
TARIL added that it will "reply to World Bank for chance to represent the case and get the debarment uplifted. TARIL will represent its case with World Bank and prove that TARIL is not involved into any illegal or restricted transactions with any of the third party." The company also said it will work to "satisfy World Bank's requirement (a) and (b) as mentioned in page 2 of the notice, which would enable withdrawal of its ineligibility for participation in World Bank funded projects."
TARIL also said, "Just for clarification, the debarment is limited to participation in World Bank-funded projects. The Company currently has no ongoing or pending orders under such projects; therefore, this action has no material impact on its business operations, financial performance, or future outlook."
For the July–September quarter (Q2 FY26), TARIL reported flat revenue of Rs 460 crore on a year-on-year (YoY) basis. Margins declined, with EBITDA down 26 per cent YoY to Rs 52 crore and PAT falling 19 per cent to Rs 37 crore, mainly due to higher employee costs. In the corresponding quarter last year, the company had posted an EBITDA of Rs 80.97 crore and a PAT of Rs 46.02 crore.
As of September 2025, promoters held a 64.36 per cent stake in the smallcap firm.