The Transformers & Rectifiers India (TARIL) shares plunged nearly 11% on Wednesday morning after the company announced its Q4FY26 and FY26 earnings on Tuesday. According to reports from Upstox, the shares traded 8.4% lower at ₹303.9 apiece on the NSE. The stock has declined nearly 50% in one year, reflecting broader investor concerns about the company's performance trajectory.
Despite the share price decline, the company delivered solid financial results for FY26. As reported by Upstox, revenue grew 23% YoY to ₹2,395 crore in FY26, while EBITDA jumped 17% YoY to ₹370 crore. The bottom line rose by 20% YoY to ₹225 crore. However, quarterly performance showed mixed results with Q4FY26 revenue jumping 16.2% YoY to ₹752.3 crore compared to ₹643.7 crore in the same period last year, but EBITDA margin contracted by 200 bps from 17.1% to 15.1% due to higher raw material costs.
The company significantly missed its order book guidance, which soured investor sentiment. According to Upstox, the total order book for FY26 stood at ₹5,005 crore, which came in significantly lower than the guidance given in Q3FY26 at ₹8,000 crore. The company also guided for ₹3,500 crore of order inflow for Q4FY26, but achieved ₹2,374 crore, leading to an overall miss on the order book guidance. Additionally, the company missed its revenue growth guidance of 25% YoY, with actual FY26 revenue growth at 23%.
Management attributed the order shortfall to strategic positioning rather than demand weakness. As reported by Upstox, MD and CEO Satyendra Mamora explained that "Strategically delaying new orders so that we can select orders with better margin, better payment terms and new orders are more aligned with our production cycle." The company's total production capacity stood at 33,000 MVA versus its planned expanded capacity of 75,000 MVA. To address capacity constraints, the company announced a capex investment worth ₹600 crore over the next 15 months and maintains a strong order pipeline of ₹23,000 crore.
