Transformers and Rectifiers soars 14% on strong Q2; stock up 28% in October

Transformers and Rectifiers (TRIL)'s order book provides comfortable revenue visibility, while the Changodar expansion positions it to service a larger opportunity pipeline, says ICICI Securities.

Transformers and Rectifiers (India) share price movement

 

Share price of Transformers and Rectifiers (India) (TRIL) surged 14 per cent to ₹346.95 on the BSE in Wednesday’s intraday deals amid heavy volume after the company reported strong September quarter (Q2FY27) performance, with revenue growing 60.7 per cent and profit after tax (PAT) more-than-doubled year-on-year (YoY).

 

Thus far in the month of October, the stock price of TRIL, one of India’s leading manufacturers of power, distribution and specialty transformers and reactors, zoomed 28 per cent.

 

At 09:30 AM, TRIL quoted 13 per cent higher at ₹344, compared to a 0.06 per cent decline in the BSE Sensex. The average trading volume at the counter jumped more than two-fold with a combined 19.95 million shares changing hands on the NSE and BSE.

 

TRIL – Q2 results

 

TRIL reported a strong Q2FY27 performance, with revenue growing 60.7 per cent year-on-year (YoY) to ₹739.4 crore, aided by a low base of ₹460 crore in Q2FY26. EBITDA increased 149.9 per cent YoY to ₹128.8 crore, with earnings before interest, tax, depreciation and amortization (EBITDA) margin expanding 621 bps YoY and 110 bps QoQ to 17.4 per cent (vs. 11.2 per cent in Q2FY26 and 16.3 per cent in Q1FY27). PAT grew 117.9 per cent YoY to ₹81.4 crore.

 

Order inflows stood at ₹1,169 crore, up 97 per cent YoY), taking the unexecuted order book to ₹7,237 crore, up 32 per cent YoY, with an inquiry pipeline of ~₹21,000 crore.

 

“Inquiry pipeline under negotiation stood at approximately ₹21,000 crore; historical win ratio remains in the range of 10 per cent–15 per cent. The current bidding pipeline comprises approximately 80 per cent domestic opportunities and 20 per cent export opportunities, with a balanced mix of government and private customers across utilities and industrial segments,” TRIL said in a press release.

 

The current order book provides comfortable revenue visibility, while the Changodar expansion positions TRIL to service a larger opportunity pipeline across markets. Alongside capacity enhancement, the company is strengthening its global customer engagement through its UK subsidiary, particularly across the US and European markets. 

 

“Our entry into the nuclear power sector through the NPCIL Kaiga Units 5 & 6 project, along with recent orders from Damodar Valley Corporation and Gujarat Energy Transmission Corporation Limited, reflects the confidence customers place in our engineering and manufacturing capabilities. As India advances towards Viksit Bharat 2047, a resilient power grid, greater energy security and strong domestic manufacturing will be essential,” the management said. CHECK Stock Market LIVE Updates

ICICI Securities view on TRIL

 

According to analysts at ICICI Securities, TRIL’s Q2FY27 performance improved significantly, supported by better execution, higher capacity utilisation and operating leverage across manufacturing facilities, leading to a sharp recovery in EBITDA margin. The order book of ₹7,237 crore provides revenue visibility over the next 18–24 months, while the ₹21,000 crore inquiry pipeline, comprising 80 per cent domestic and 20 per cent export opportunities, offers scope for further order inflows.

 

The Changodar expansion is nearing completion, with commercial production expected around Diwali. Management remains on track to achieve FY27 guidance (revenue growth of 25 per cent, EBITDA margin of 16 per cent); timely capacity ramp-up and sustained margin performance remain key monitorables, the brokerage firm said. Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.