Transformers and Rectifiers Soar 14% on Strong Q2; October Gains 28%

Transformers and Rectifiers Posts Impressive Q2 Results, Driving Stock Surge

The robust performance of Transformers and Rectifiers (India) has captured investor attention, with shares surging significantly following strong quarterly results.

Strong Q2 Performance Drives Stock Surge

Transformers and Rectifiers (India) (TRIL) saw its share price soar by 14% to ₹346.95 during intraday trading on the BSE, buoyed by impressive financial results for the September quarter. The company reported a staggering 60.7% year-on-year growth in revenue, reaching ₹739.4 crore, compared to ₹460 crore in the same quarter last year. This surge in revenue was complemented by a more than doubling of profit after tax (PAT), which rose to ₹81.4 crore, marking a 117.9% increase from the previous year.

The company’s EBITDA also saw a significant boost, increasing by 149.9% year-on-year to ₹128.8 crore, with the EBITDA margin expanding to 17.4%. This improvement reflects better operational efficiency and higher capacity utilization across its manufacturing facilities.

Order Book and Future Prospects

TRIL’s order inflows also demonstrated robust growth, reaching ₹1,169 crore, a 97% increase year-on-year. The company’s unexecuted order book now stands at ₹7,237 crore, up 32% year-on-year, providing a strong revenue visibility for the next 18 to 24 months. Additionally, the inquiry pipeline is estimated at approximately ₹21,000 crore, with a mix of 80% domestic and 20% export opportunities.

The management highlighted that the current order book and inquiry pipeline position TRIL favorably for future growth, especially with the ongoing Changodar expansion, which is expected to enhance capacity and service a larger market. The company is also making strides in the nuclear power sector, securing projects with the Nuclear Power Corporation of India Limited (NPCIL), which underscores its engineering capabilities.

Market Sentiment and Analyst Outlook

The stock’s impressive performance in October, with a 28% increase, reflects strong market sentiment and investor confidence in TRIL’s growth trajectory. Analysts at ICICI Securities have noted that the company’s improved execution and operational leverage have significantly contributed to its recovery in EBITDA margins. They anticipate that the ongoing expansion and the healthy order book will support TRIL’s revenue growth target of 25% for FY27, alongside maintaining an EBITDA margin of 16%.

As the company approaches the completion of its Changodar expansion, expected around Diwali, stakeholders will be closely monitoring its capacity ramp-up and margin performance. The strategic focus on both domestic and export markets, particularly in the energy sector, positions TRIL to capitalize on India’s growing demand for power infrastructure.

Key Highlights

• TRIL’s revenue surged 60.7% YoY to ₹739.4 crore in Q2FY27.
• Profit after tax more than doubled, reaching ₹81.4 crore.
• EBITDA increased by 149.9% YoY, with a margin of 17.4%.
• Order inflows rose 97% YoY, with a current order book of ₹7,237 crore.
• Inquiry pipeline stands at approximately ₹21,000 crore, indicating strong future prospects.
• Stock price has increased by 28% in October, reflecting positive market sentiment.

Investor Note: The strong quarterly performance and positive outlook for Transformers and Rectifiers (India) make it a stock to watch. Investors should consider the company’s growth potential in the context of India’s expanding energy infrastructure and its strategic initiatives in both domestic and international markets.