Transformers and Rectifiers stock surges 13% on Q2 earnings; fresh price targets and more
TARIL shares rose over 13% to Rs 344 against the previous close of Rs 303.80. Market cap of the firm rose to Rs 10, 369 crore.
- Oct 14, 2026,
- Updated Oct 14, 2026 10:33 AM IST
Shares of Transformers and Rectifiers (India) Ltd (TARIL) zoomed over 13% in early deals on Wednesday after the firm reported its Q2 earnings. TARIL shares rose over 13% to Rs 344 against the previous close of Rs 303.80.
Quarterly revenue came at Rs 709 crore, reflecting a 66% YoY rise. Profit After Tax rose 338% YoY to Rs 75 crore. Its total order book stood at Rs 7,237 crore in Q2.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose over 100% to Rs 128.8 crore in Q2 from Rs 58.9 crore in the year-ago period. EBITDA margin rose to 17.4% from 12.8% a year earlier, reflecting improved operating efficiency. Q2 profit included an exceptional gain of Rs 131.5 crore.
For FY27, the company maintained its financial guidance, projecting revenue growth of 25%, an EBITDA margin of 16%, and a profit after tax (PAT) margin in the range of 9% to 10%.
Order inflows in H1 of FY27 surged 161% year-on-year to rS 3,283 crore. Meanwhile, the unexecuted order book expanded 32% from a year earlier to Rs 7,237 crore as of September 30, 2026, providing visibility into future execution. The company also reported an inquiry pipeline worth Rs 21,000 crore, comprising projects currently under negotiation.
H1FY27 earnings
Revenue from operations rose 35% YoY to Rs 1,268 crore during H1FY27. EBITDA came at Rs 185 crore during H1FY27, logging a growth of 47% YoY. Profit rose 62% to Rs 125 crore during H1FY27.
Q2FY27 performance reflects better execution, improved capacity utilisation, and operating leverage across manufacturing facilities.
Price targets
Antique Broking maintained a buy call on the TARIL stock with a target price of Rs 449.
With a strong tender pipeline of Rs 21,000 crore, a healthy order book of Rs 7240 crore (2.6x TTM sales) and disciplined execution, management has retained its FY27 guidance of 25% revenue growth, a 16% EBITDA margin and a 9–10% PAT margin.
"We have marginally tweaked our FY27E/FY28E/FY29E EPS estimates and maintain a BUY rating on the stock with a revised target price of Rs 449 (earlier Rs 447), based on an unchanged PE of 30x 1HFY29E EPS," said Antique.
Incred Equities maintained a reduce call on the stock with a price target of Rs 200.
The management aims for 90% utilisation by FY28F on 75,000 MVA of expanded capacity at Rs 0.7 mn/MVA. Rs 1.2 billion backward integration capex (CTC, pressboard, bushings, fabrication, CRGO, etc.), plus reactors and other components shall be 60% captive, so it should lift margins rather than growth.
"We see revenues peaking at Rs 60-65 billion, which makes the $ 1 bn target unrealistic without fresh organic capex or inorganic growth avenues which would likely need funding through a QIP, OFS and/or debt, in our view and therefore the math doesn't add up. Since our January 2026 downgrade to REDUCE, TARIL has stayed largely flat while high-voltage peers (CG Power, GV T&D, Hitachi Energy, Siemens Energy, etc.) have gained 15-60% YTD," said the brokerage.
About Transformers and Rectifiers
The Ahmedabad-based Company manufactures a comprehensive range of transformers including power, distribution, furnace, specialty, rectifier transformers and shunt reactors, solar application transformers, earthing transformers. TARIL’s product capabilities span 5 kV to 1,200 kV and 0.5 MVA to 500 MVA, serving utilities, EPC players, industrial customers and renewable energy sectors.
Shares of Transformers and Rectifiers (India) Ltd (TARIL) zoomed over 13% in early deals on Wednesday after the firm reported its Q2 earnings. TARIL shares rose over 13% to Rs 344 against the previous close of Rs 303.80.
Quarterly revenue came at Rs 709 crore, reflecting a 66% YoY rise. Profit After Tax rose 338% YoY to Rs 75 crore. Its total order book stood at Rs 7,237 crore in Q2.
Earnings before interest, tax, depreciation and amortisation (EBITDA) rose over 100% to Rs 128.8 crore in Q2 from Rs 58.9 crore in the year-ago period. EBITDA margin rose to 17.4% from 12.8% a year earlier, reflecting improved operating efficiency. Q2 profit included an exceptional gain of Rs 131.5 crore.
For FY27, the company maintained its financial guidance, projecting revenue growth of 25%, an EBITDA margin of 16%, and a profit after tax (PAT) margin in the range of 9% to 10%.
Order inflows in H1 of FY27 surged 161% year-on-year to rS 3,283 crore. Meanwhile, the unexecuted order book expanded 32% from a year earlier to Rs 7,237 crore as of September 30, 2026, providing visibility into future execution. The company also reported an inquiry pipeline worth Rs 21,000 crore, comprising projects currently under negotiation.
H1FY27 earnings
Revenue from operations rose 35% YoY to Rs 1,268 crore during H1FY27. EBITDA came at Rs 185 crore during H1FY27, logging a growth of 47% YoY. Profit rose 62% to Rs 125 crore during H1FY27.
Q2FY27 performance reflects better execution, improved capacity utilisation, and operating leverage across manufacturing facilities.
Price targets
Antique Broking maintained a buy call on the TARIL stock with a target price of Rs 449.
With a strong tender pipeline of Rs 21,000 crore, a healthy order book of Rs 7240 crore (2.6x TTM sales) and disciplined execution, management has retained its FY27 guidance of 25% revenue growth, a 16% EBITDA margin and a 9–10% PAT margin.
"We have marginally tweaked our FY27E/FY28E/FY29E EPS estimates and maintain a BUY rating on the stock with a revised target price of Rs 449 (earlier Rs 447), based on an unchanged PE of 30x 1HFY29E EPS," said Antique.
Incred Equities maintained a reduce call on the stock with a price target of Rs 200.
The management aims for 90% utilisation by FY28F on 75,000 MVA of expanded capacity at Rs 0.7 mn/MVA. Rs 1.2 billion backward integration capex (CTC, pressboard, bushings, fabrication, CRGO, etc.), plus reactors and other components shall be 60% captive, so it should lift margins rather than growth.
"We see revenues peaking at Rs 60-65 billion, which makes the $ 1 bn target unrealistic without fresh organic capex or inorganic growth avenues which would likely need funding through a QIP, OFS and/or debt, in our view and therefore the math doesn't add up. Since our January 2026 downgrade to REDUCE, TARIL has stayed largely flat while high-voltage peers (CG Power, GV T&D, Hitachi Energy, Siemens Energy, etc.) have gained 15-60% YTD," said the brokerage.
About Transformers and Rectifiers
The Ahmedabad-based Company manufactures a comprehensive range of transformers including power, distribution, furnace, specialty, rectifier transformers and shunt reactors, solar application transformers, earthing transformers. TARIL’s product capabilities span 5 kV to 1,200 kV and 0.5 MVA to 500 MVA, serving utilities, EPC players, industrial customers and renewable energy sectors.