Despite securing a record ₹6,630 crore order book and entering the nuclear power sector, Transformers and Rectifiers (TARIL) stock has declined 45% from its 52-week high of ₹552 to current levels around ₹302. According to reports from Equitymaster.com, this significant price disconnect makes the stock worth careful examination, as it trades at a PE multiple of 36 which is slightly below the industry average of 37.
TARIL's order book strength is genuinely impressive, standing at ₹6,630 crore and representing a 26% year-on-year increase. As reported by Equitymaster.com, the company's quarterly order inflow of ₹2,110 crore is substantial for its size, while the enquiry pipeline of around ₹23,000 crore is close to nine times annual revenue. The company recently secured its first nuclear power sector order from Kaiga Units 5 and 6, consisting of two indigenous 700 MWe pressurized heavy water reactors that will add 1,400 MW to the facility.
Despite strong order fundamentals, TARIL's earnings performance has been pressured by expansion activities. According to Equitymaster.com, revenue grew 8.1% year-on-year in the June quarter but fell about 27% sequentially. Net profit also declined year-on-year and dropped roughly 31% from the March quarter. The company is undergoing its largest expansion in history, increasing total capacity from about 40,000 MVA to nearly 75,000 MVA across Changodar and Moraiya facilities, which has temporarily reduced output and spread fixed costs over fewer units.
TARIL has set an ambitious revenue target of approximately $1 billion (₹8,300 crore) by FY28-FY29, representing a nearly fourfold increase over FY26 revenue. As reported by Equitymaster.com, a ₹900-1,000 crore backward integration plan is projected to lift margins by 200-300 basis points starting in Q1FY28. The company manufactures power transformers ranging from 5 MVA to 1,000 MVA and operates across power generation, transmission, distribution, and industrial sectors, with key clients including Power Grid and state transmission utilities.
