Transformers and Rectifiers (India) slumps as Q2 profit declines 19% YoY

Transformers and Rectifiers (India) hit a lower limit of 20% at Rs 314.20 after the company reported a soft set of numbers for Q2 FY26.

On a consolidated basis, revenue from operations stood at Rs 460 crore, nearly unchanged from Rs 462 crore in Q2 FY25. Profit after tax (PAT) fell 19% YoY to Rs 37.5 crore, with PAT margin narrowing to 7.9%, down from 9.7% last year. Profit before tax (PBT) declined 29% YoY to Rs 45.3 crore, compared with Rs 64.1 crore in Q2 FY25.

Operating performance weakened, with EBITDA falling 19% YoY to Rs 65.4 crore, compared with Rs 81 crore last year, as total operating expenses rose 4% YoY to Rs 408.5 crore. The EBITDA margin contracted to 13.8%, from 17.1% in the previous year, reflecting cost pressures from wage inflation.

Employee benefit expenses more than doubled to Rs 26 crore from Rs 12 crore in Q2 FY25, marking a 116% YoY jump, while material costs eased slightly by 2% to Rs 315 crore. Other expenses rose 15% to Rs 67 crore.

On the operational front, the company reported an unexecuted order book of Rs 5,472 crore, along with new order inflow of Rs 592 crore during the quarter. It is also evaluating over Rs 18,700 crore worth of inquiries under negotiation.

Headquartered in Ahmedabad, Transformers and Rectifiers (India) Ltd (TARIL) is a leading manufacturer of transformers and reactors. It caters to power generation, transmission, distribution, and industrial sectors on a B2B model. Its product portfolio spans single-phase power transformers up to 500 MVA and 1200 kV, furnace, rectifier, and distribution transformers, as well as specialty units for locomotive traction, solar applications, green hydrogen, and mobile substations. With an installed capacity of around 40,000 MVA, TARIL serves clients across more than 25 countries.

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