Transformers & Rectifiers (India) sizzles after World Bank lifts debarment

Transformers & Rectifiers (India) hit the upper circuit of 10% at Rs 318.25 after announcing that the World Bank has removed the company from its debarred list.

The lender has also given TARIL more time, until 12 January 2026, to submit its response in the ongoing sanctions case.

The World Bank had earlier barred TARIL for four years, until June 2029, following allegations of bribery in connection with a World Bank-funded project in Nigeria. TARIL had been restricted from participating in any Bank-funded projects during this period.

The debarment relates to alleged irregularities in a past supply order executed for the Transmission Company of Nigeria (TCN), Abuja. TARIL said it had already submitted all requested documents during a 2023 inquiry and had received no further communication until the recent notice.

The company maintains that the findings are not conclusive and do not indicate any wrongdoing. It also noted that the debarment applied only to World Bank-funded projects and has no impact on current operations, as the company has no active orders under such programmes.

TARIL said it will now work to clear its name completely and meet all compliance requirements. The development boosted investor sentiment and sent the stock sharply higher.

Headquartered in Ahmedabad, 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.

On a consolidated basis, revenue from operations stood at Rs 460 crore in Q2 FY26, nearly unchanged from Rs 462 crore in Q2 FY25. Profit after tax (PAT) fell 19% YoY to Rs 37.5 crore in Q2 FY26, with PAT margin narrowing to 7.9%, down from 9.7% last year.

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