Transformers and Rectifiers shares rebound 21% from record lows; analysts weigh in

Shares of Transformers and Rectifiers (India) Ltd (TARIL) surged 16.04 per cent on Friday to close at Rs 277.50, recovering 20.65 per cent from an intraday all-time low of Rs 230 hit yesterday. Despite the rebound, the stock remains down 44.94 per cent over the past six months.

Earlier this month, TARIL secured a Rs 53.33 crore order for an HVDC converter transformer and related works. Prior to that, it won a Rs 389.97 crore contract to manufacture transformers.

The stock had fallen sharply following weak quarterly results and a World Bank debarment. For Q2 FY26, TARIL reported revenue of Rs 460 crore, flat year-on-year (YoY). EBITDA declined 26 per cent to Rs 52 crore, and profit after tax fell 19 per cent to Rs 37 crore. EBITDA and PAT margins dropped 380 basis points (bps) and 180 bps YoY to 11 per cent and 8 per cent, respectively, largely due to higher employee costs.

Last month, the World Bank debarred TARIL from participating in its projects over alleged corruption and fraud linked to a $486 million project in Nigeria. The company later announced that the World Bank had removed its name from the list of debarred firms and granted an extension until January 12, 2026, to submit an explanation in the case.

Technically, analysts say TARIL's stock is showing signs of a rebound after a correction. Support is around Rs 230-241 and it could rise to Rs 295-333 in the near term.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, noted, "TARIL has seen a rise in both price and trading volume after an extended correction, suggesting a possible pause in the ongoing bearish trend. Support lies in the Rs 230-240 range, while resistance levels are seen between Rs 300-340 and extending to Rs 385, relevant for both short- and medium-term perspectives."

Sebi-registered independent analyst AR Ramachandran said, "TARIL appears bullish on daily charts, with strong support at Rs 241. A daily close above Rs 283 could push the stock towards a near-term target of Rs 333."

Ravi Singh, Chief Research Officer at Mastertrust, added that the stock looked strong on charts, with potential to reach Rs 295 soon. He suggested that investors may consider fresh entries at current levels, keeping a stop loss of Rs 265.

As of September 2025, promoters held a 64.36 per cent stake in the smallcap firm.