loader2
Login Open ICICI 3-in-1 Account

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

Hidden Gems : Transformers Rectifiers India Ltd

ICICIdirect Research 27 Jun 2025 DISCLAIMER

TARIL is a leading manufacturer of transformers. It has a wide range of transformers, like Power & Distribution Transformers, Furnace Transformers, Rectifier Transformers & Special Transformers. It has strong in-house design & technical expertise, along with technical collaboration/JV relationship for 765 kV Transformers & Reactors.

The power sector in India is undertaking substantial capacity addition (500 GW by 2030) which has created significant demand for transformers. TARIL is encashing this by expanding its manufacturing capacity from 40000 MVA currently to 75000 MVA in FY26E thus riding the industry tailwinds.

TARIL secured orders worth ₹4504 crore in FY25 doubling the orderbook YoY to ₹5132 crore. TARIL further has order prospects of ₹22000 crore of which it aims to secure orders worth ~₹6400 crore in FY26E taking order book to ~₹8000 crore.

Its Revenues grew 56% YoY to ₹2019 crore, as a result of backward integration initiatives its EBITDA margins expanded 580 bps in FY25 to 16.2% and PAT jumped 4.6x to ₹219 crore.
Going ahead, TARIL aims to earn revenue of ₹3500 in FY26E and ₹8600 crore in FY28E, it aims to maintain EBITDA and PAT margins at 15-17% and 10% respectively.

With strong backlog and sectoral outlook, we expect the company to deliver solid growth profile in earnings over FY25-FY27E which lead to ROCE reaching 31.6% by FY27E. This we believe will keep the valuations high. We assign a BUY rating with target of ₹640 (38x FY27 EPS).

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere