Transformer Titans: How TARIL Shattered Records in FY25 and Set a $1 Billion Revenue Target!

Introduction

In the dynamic world of power infrastructure and energy distribution, few companies have delivered a performance as electrifying as Transformers and Rectifiers (India) Limited (TARIL) in FY25. With record-breaking financials, a strong order book, and visionary leadership, TARIL is rapidly transforming into a global powerhouse.

This blog post provides a detailed breakdown and expert analysis of TARIL’s Q4 FY25 financial performance, concall insights, balance sheet movements, order pipeline, and future growth strategies, based on the company’s April 2025 investor presentation, January 2025 earnings call, and board meeting outcome.

1. Corporate Snapshot: Powering India and the World

Headquartered in Ahmedabad, TARIL is one of India’s leading transformer manufacturers. With an installed capacity of ~40,000 MVA across three state-of-the-art facilities, the company boasts a diversified portfolio catering to:

• Power & distribution sectors
• Renewable energy
• Railways and metros
• Green hydrogen and solar
• Mobile substations and reactors

Product Portfolio Includes:

TARIL exports to 25+ countries, signaling its growing global relevance in the energy equipment manufacturing space.

2. Milestones: Charting TARIL’s Growth Trajectory

TARIL’s journey from a repair shop in the 1980s to a ₹2,000+ crore revenue company is marked by strategic expansions and technological collaborations:

3. FY25 Financial Performance: A Record-Breaking Year

Let’s dive into the FY25 numbers, which clearly show TARIL’s growth and efficiency across the board.

Consolidated Financial Highlights (₹ in Lakhs)

Key Takeaway: EBITDA and PAT margins have both doubled, driven by premium product mix, cost controls, and backward integration strategies.

4. Standalone vs Consolidated Comparison

This indicates a healthy performance from subsidiaries, supporting overall margin expansion.

5. Quarterly Performance – Q4 FY25

Standalone Q4 Financials (₹ in Lakhs)

QoQ Growth: Revenue up 19%, PAT up 51% from Q3 FY25 — indicating strong operating leverage.

6. Balance Sheet Strength – FY25

Assets & Equity (₹ Cr)

Debt Position:

• Long-Term Borrowings: ₹77.83 Cr (Up YoY)
• Short-Term Borrowings: ₹182.21 Cr (Down YoY)
• Debt to Equity: 0.21 (FY25) — healthy capital structure.

7. Order Book: Strong Visibility Ahead

Highlight: Highest-ever single order of ₹740 Cr from GETCO, indicating TARIL’s growing dominance in utility-scale projects.

8. Strategic Capex and Expansion Plans

TARIL’s aggressive forward-looking investments are a key growth pillar.

Capex Plans:

• Phase 1 Expansion: +15,000 MVA capacity by May 2025
• EHV Transformer Capacity Add-on: +22,000 MVA by Feb 2026
• Total Post-Expansion Capacity: >75,000 MVA
• New Capex: ₹550 Cr for backward integration in 15 months
• Target: 100% backward integration by Q1 FY27

9. Chairman’s Vision: Building a $1 Billion Business

Mr. Jitendra Mamtora shared the following in the investor call:

“We have achieved Phase 1 of our $1 Billion revenue journey. Our backward integration projects, including CRGO and other critical component facilities, will boost our margins significantly. Our aim is to be a fully backward-integrated organization by FY27.”

10. Key Concall Insights – January 2025

From the Q3 FY25 Concall, key takeaways include:

• FY26 Revenue Guidance: ₹3,500+ Cr
• Order Book: ₹3,686 Cr as of Dec 2024
• Inquiries in Pipeline: ₹19,000 Cr
• Backward Integration Impact: +4% PAT margin
• People Strategy: Upskilling across engineering, sales, and digital

Quote from CFO (Mr. Chanchal Rajora):

“Our focus on CPIR—Cash, Payables, Inventory, and Receivables—is helping us manage working capital efficiently.”

11. Dividends, Bonus Shares & Board Actions

Leadership Reappointments:

• Mr. Jitendra Mamtora reappointed as Chairman (Jan 2026–2029)
• Mrs. Karuna Mamtora reappointed as Executive Director (Apr 2026–2029)
• Revised remuneration packages approved for top directors

12. Sustainability and Innovation

TARIL is aligning its product development with India’s green goals:

• Green Hydrogen Transformers
• Solar Application Transformers
• Mobile substations for rapid deployment in renewable zones

13. Shareholder Value Creation

3-Year PAT CAGR: 122.5%
EBITDA Growth FY21–FY25: +438%

14. Technical Analysis & Price Performance

The technical indicators for TARIL reveal strong bullish momentum, aligning with its robust fundamental performance. Below is a detailed breakdown of key technical metrics and their implications:

14.1. Relative Strength & Momentum

Increasing Relative Strength vs. Benchmarks

TARIL has shown improving relative strength (RS) against the NIFTY 50 and NIFTY Infrastructure indices over 55 days, signaling outperformance:

Key Takeaway:

• The stock is gaining momentum against both broader market and sectoral indices.

Absolute & Sectoral Relative Strength (ARS/SRS)

Both ARS and SRS are above zero, confirming dual strength in absolute and sectoral performance:

14.2. Long-Term Price Performance

TARIL has delivered exceptional returns across all time frames, reflecting its growth trajectory:

Key Highlight:

• 16,656% return over 5 years positions TARIL as one of India’s top multi-bagger stocks.

14.3. Technical Indicators: Bullish Signals

Bullish Reversal & Momentum Scores

• PSAR Indicator: Signals a bullish reversal with the PSAR value rising to ₹470.95 (vs. previous ₹363.10).
• Momentum Scores (1M/3M/6M): All in bullish zones:
  • 1M: 98
  • 3M: 85
  • 6M: 83

Interpretation:

• While overbought signals (Stochastic, CCI, MFI) suggest short-term caution, the PSAR bullish reversal and strong momentum scores indicate long-term upside potential.

14.4. Price Action & Key Levels

• 52-Week Low vs. Current Price:
  • 52-Week Low: ₹221.28
  • Current Price: ₹446.60 (+146.1% from low)
• Gap-Up Performance: Recent price surged 13.5% (Previous Close: ₹187.00 → Current: ₹446.60).

Integration with Fundamental Analysis

Why Technicals Align with Fundamentals

1. Order Book & Capacity Expansion: ₹5,132 Cr order book and 75,000 MVA capacity by 2026 justify bullish momentum.
2. Margin Improvement: Rising EBITDA (16.41%) and PAT (9.44%) margins attract institutional buying.
3. Government Tailwinds: Power sector reforms and renewable energy push drive sustained demand.

Updated Investment Outlook

Valuation & Target Price

Revised Target Price (12–18 Months):

• Base Case: ₹1,200 (+168% upside)
• Bull Case: ₹1,500 (+235% upside)

Risks to Consider

1. Short-Term Overbought Risk: Profit-booking likely near ₹500–550 levels.
2. Capex Delays: Execution risks in ₹550 Cr expansion plan.
3. CRGO Price Volatility: Global steel price fluctuations may impact margins.

Conclusion: A Technically Charged Growth Story

TARIL’s fundamental strength (record orders, margin expansion) and technical momentum (bullish indicators, multi-year breakouts) create a compelling investment case. While short-term overbought signals warrant caution, long-term investors should view dips as buying opportunities.

Final Rating: ✅ BUY (Hold for 3–5 Years)

15. Analyst Verdict: A Power Stock with Billion-Dollar Ambitions

TARIL’s:

• Strong financials
• Expanding margins
• Aggressive Capex
• Strategic backward integration
• Large order book pipeline
• Global expansion
• Dividend + bonus rewards

…make it a top contender in the Indian power infra sector.

16. Conclusion: What Lies Ahead?

TARIL is not just powering transformers — it’s transforming India’s energy backbone. With FY25 marking an inflection point, and the company’s leadership eyeing $1 Billion+ revenue by FY27, investors and analysts alike are keeping a keen eye on this electrifying stock.

📈 Pro Tip: TARIL’s focus on high-margin orders, CRGO backward integration, and balance sheet strength position it well for robust shareholder returns over the next 2–3 years.