Transformers & Rectifiers (India) Ltd delivered impressive third quarter results for FY26, with consolidated net profit surging 35% year-on-year to ₹73.85 crore, compared to ₹54.73 crore in the corresponding period last year. According to the company's regulatory filing, revenue from operations witnessed a robust 32% annual increase to ₹737 crore for the December quarter, compared to ₹559 crore in Q3 FY25. Operating performance also improved significantly, with EBITDA rising 38% year-on-year to ₹129.24 crore, compared with ₹93.75 crore a year earlier, while EBITDA margins expanded to 17.54% from 16.76% in the corresponding quarter last year, indicating better operating leverage and improved efficiency.
Shares of Transformers & Rectifiers (India) Ltd declined sharply by 9.15% to ₹291.85 on the BSE on Thursday, despite the company reporting healthy earnings for the December quarter. According to reports from Mint, the stock opened at ₹324.35 against its previous close of ₹321.25 and touched an intraday high of ₹326.50 before falling to a low of ₹284. The stock's decline came as a surprise given the strong financial performance, with investor sentiment appearing to be weighed down by the significant top management change announced alongside the results and broader sector concerns affecting heavy electrical equipment companies.
The company announced that Mukul Srivastava has resigned as Chief Executive Officer, effective January 7, 2026, due to personal reasons, which appears to have significantly impacted investor sentiment despite the strong quarterly results. The board has appointed Satyen J Mamtora, the existing Managing Director, as the new CEO effective January 8, 2026. This sudden leadership change coinciding with the earnings announcement has overshadowed the positive financial performance, highlighting how critical management stability is for investor confidence in the power transmission and distribution sector.
Adding to the stock's decline, reports from Reuters indicated that the Finance Ministry is planning to scrap five-year-old restrictions on Chinese firms bidding for government contracts. Following these reports, shares of many heavy electrical equipment companies suffered significant losses, with BHEL falling 10.34%, Hitachi Energy India declining 5.88%, and ABB India dropping 4.86%. This broader sector weakness contributed to the negative sentiment around Transformers & Rectifiers shares, despite the company's strong operational performance and improved financial metrics.
Last month, Transformers and Rectifiers secured a significant ₹53.33 crore order from Power Grid Corporation of India Limited for repair, erection, testing, and commissioning of the 397 MVA HVDC converter transformer and related works. According to reports from Upstox, this HVDC converter transformer order makes TARIL the first Indian-origin private sector company to receive such an order, entering the unique club of HVDC transformer manufacturers globally. Prior to this, the company had received a ₹389.97 crore order from Gujarat Energy Transmission Corporation Ltd (GETCL) for manufacturing various types of transformers, with the company's total order book from GETCL standing at ₹493.42 crore. The robust order book provides strong visibility for future revenue growth and supports continued business momentum in the power transmission and distribution sector.
