Transformers and Rectifiers (India) reported mixed Q1 FY27 results with consolidated net profit declining 5% YoY to ₹64.29 crore compared to ₹67.46 crore in the corresponding quarter of the previous fiscal year. However, the company achieved revenue growth of 8% YoY to ₹572.34 crore during the quarter, up from ₹529 crore in Q1 FY26. Sequentially, profit dropped 31.09% quarter-on-quarter from ₹89.28 crore in the preceding quarter, while revenue declined 26.87% QoQ from ₹782.67 crore in March quarter of FY26. The revenue growth was moderated by lower capacity utilisation at the Changodar manufacturing facility due to ongoing expansion activities, with the expansion expected to be completed by August 2026. EBITDA margin contracted by 130 basis points YoY to 19.2% from 20.5% in the June quarter of the previous fiscal year, reflecting pressure on operational efficiency.
The company faced significant cost pressures during the quarter, with raw material costs rising 33% YoY to ₹456 crore, accounting for 91% of total expenditure. Total expenses increased more than 9% year-on-year to over ₹501 crore for the June quarter. According to the company's statement, a sharp reduction in the value of finished goods inventory amounting to ₹70.1 crore helped contain the increase in overall expenses. The company attributed the profit decline to higher raw material costs arising from geopolitical tensions and availability of critical raw materials, which remain key factors to monitor going forward.
The company achieved a record unexecuted order book of ₹6,630 crore, marking a 26% YoY jump, providing healthy revenue visibility with the order book being executable over the coming 18-24 months. TARIL secured new order inflows of ₹2,114 crore during the quarter, up 218% YoY, while maintaining a robust enquiry pipeline of approximately ₹23,000 crore with a historic win ratio of 10-15%. As per the company's regulatory filing, this reflects sustained customer demand and provides strong visibility for future growth. The company's EBITDA stood at ₹110 crore in Q1 FY27, marking a marginal YoY rise from ₹109 crore in the corresponding quarter of the previous fiscal year, though EBITDA margin contracted to 19.2% from 20.5% in the June quarter of the previous fiscal year.
Transformers and Rectifiers (India) shares settled nearly 5% lower on Tuesday after weak June quarter earnings, with the stock falling as much as 6.73% during the day to an intraday low of ₹311.15 per share on the NSE, its lowest level in more than a month. It later recovered some losses and settled at ₹317.55, down 4.81%. According to Vishnu Kant Upadhyay, AVP at Master Capital Services, the stock has turned weak after falling below its ascending trendline and both the 21-day and 55-day exponential moving averages, indicating a shift in momentum. "If selling pressure persists, the stock could drift towards its immediate support near the ₹290 level. On the higher side, the ₹345-350 zone will act as immediate resistance," he added. The stock has fallen 37.79% in the last 12 months and risen 11.55% year-to-date, with total traded volume at 4.48 times its 30-day average.
TARIL continues to make steady progress on strategic growth initiatives including the expansion of Changodar manufacturing facility with an investment of approximately ₹150 crore, backward integration projects worth ₹900-1,000 crore, and development of three greenfield manufacturing facilities at Chiyada. According to the company's filing, these initiatives will strengthen manufacturing capabilities across critical transformer components, enhance operational efficiencies and support future growth. The company is also prioritizing high-margin order execution and scaling its backward integration units for CTC and bushings, which are expected to provide 150-200 bps of margin relief once fully operational. Recently in July, TARIL secured ₹2,400 crore worth order inflow, keeping its FY27 growth guidance intact.
