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:
| Product Type | Applications |
|---|---|
| Power Transformers | Up to 500 MVA, 1200 kV class |
| Furnace & Rectifier Transformers | Industrial-grade, for metallurgical and high-current environments |
| Distribution Transformers | Urban, rural, and industrial electrification |
| Specialty Transformers | Locomotive, traction, shunt & series reactors, mobile substations |
| Green Hydrogen & Solar Transformers | Clean energy transition applications |
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:
| Period | Milestone Highlights |
|---|---|
| 1980-93 | Founded by Mr. Jitendra Mamtora; Started transformer repair services |
| 1994-2000 | Incorporated as TARIL; Commissioned 110 kV plant in Changodar |
| 2007-2010 | NSE/BSE Listing; Raised ₹139 Cr at ₹465/share; Greenfield plant at Moraiya |
| 2011-15 | Alliance with ZTR Ukraine; Technology license with Fuji Electric |
| 2018-22 | NABL lab accreditation; Green transformers up to 400kV |
| 2023-24 | Raised ₹120 Cr via preferential issue; Type-tested 145kV bushings |
| 2025 | ₹500 Cr QIP; ₹740 Cr order from GETCO; Strategic acquisition completed |
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)
| Metric | FY25 | FY24 | YoY % |
|---|---|---|---|
| Revenue from Operations | 2,01,938 | 1,29,468 | 56% |
| EBITDA | 35,914 | 13,993 | 157% |
| EBITDA Margin | 17.51% | 10.76% | +675 bps |
| PAT | 21,658 | 4,743 | 357% |
| PAT Margin | 10.56% | 3.65% | +691 bps |
| EPS (₹) | 12.70 | 3.00 | 323% |
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
| Metric | Standalone FY25 | Consolidated FY25 |
|---|---|---|
| Revenue from Operations | ₹1,95,014 lakh | ₹2,01,938 lakh |
| EBITDA | ₹32,011 lakh | ₹35,914 lakh |
| PAT | ₹18,772 lakh | ₹21,658 lakh |
| EBITDA Margin | 16.12% | 17.51% |
| PAT Margin | 9.45% | 10.56% |
This indicates a healthy performance from subsidiaries, supporting overall margin expansion.
5. Quarterly Performance – Q4 FY25
Standalone Q4 Financials (₹ in Lakhs)
| Particulars | Q4 FY25 | Q4 FY24 | YoY % |
|---|---|---|---|
| Revenue from Operations | 64,731 | 50,028 | 29% |
| EBITDA | 11,497 | 6,497 | 77% |
| PAT | 7,658 | 3,595 | 113% |
| EBITDA Margin | 17.46% | 12.93% | +453 bps |
| PAT Margin | 11.63% | 7.15% | +448 bps |
QoQ Growth: Revenue up 19%, PAT up 51% from Q3 FY25 — indicating strong operating leverage.
6. Balance Sheet Strength – FY25
Assets & Equity (₹ Cr)
| Particular | FY25 | FY24 |
|---|---|---|
| Total Assets | ₹2,047.06 | ₹1,129.13 |
| Fixed Assets | ₹127.85 | ₹121.05 |
| Inventory | ₹399.43 | ₹245.21 |
| Cash & Equivalents | ₹166.77 | ₹25.39 |
| Equity Share Capital | ₹30.02 | ₹14.26 |
| Tangible Net Worth | ₹1,180.40 | ₹525.13 |
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
| Order Metrics | Value (₹ Cr) |
|---|---|
| Unexecuted Order Book (Mar 2025) | ₹5,132 |
| Order Inflow in Q4 FY25 | ₹2,144 |
| Total FY25 Order Inflow | ₹4,504 |
| Inquiries under Negotiation | ₹22,000+ |
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
| Action | Details |
|---|---|
| Dividend Declared | ₹0.20 per share (20%) |
| Record Date | May 9, 2025 |
| Cut-off Date for Voting | May 6, 2025 |
| Bonus Issue | 1:1 Bonus (15.01 Cr shares issued in Feb 2025) |
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
| Year | EPS (₹) | PAT (₹ Cr) | Share Price (approx*) |
|---|---|---|---|
| FY21 | 0.52 | 7 Cr | ~₹60 |
| FY23 | 2.80 | 37 Cr | ~₹200 |
| FY25 | 12.70 | 187 Cr | ~₹700+ |
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:
| Index | RS (55 Days) | 3-Day RS Change | Close (₹) | 1-Day Change |
|---|---|---|---|---|
| NIFTY 50 | 0.06 | +0.06 | 446.60 | ▲5.0% |
| NIFTY INFRA | 0.06 | +0.06 | 446.60 | ▲5.0% |
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:
| Metric | ARS | SRS | Close (₹) | 1-Day Change |
|---|---|---|---|---|
| Value | 0.79 | 0.46 | 446.60 | ▲5.0% |
14.2. Long-Term Price Performance
TARIL has delivered exceptional returns across all time frames, reflecting its growth trajectory:
| Period | Starting Price (₹) | Absolute Return | Current Price (₹) |
|---|---|---|---|
| 1 Year | 260.48 | +109.1% | 446.60 |
| 2 Years | 31.22 | +1,444.4% | 446.60 |
| 5 Years | 3.25 | +16,656.9% | 446.60 |
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
| Indicator | Value | Implication |
|---|---|---|
| Stochastic Oscillator | 80.79 (▲15.9) | Entering overbought zone |
| Commodity Channel Index (CCI) | 103.13 | Overbought territory |
| Money Flow Index (MFI) | 83.11 | Sustained buying pressure |
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
- Order Book & Capacity Expansion: ₹5,132 Cr order book and 75,000 MVA capacity by 2026 justify bullish momentum.
- Margin Improvement: Rising EBITDA (16.41%) and PAT (9.44%) margins attract institutional buying.
- Government Tailwinds: Power sector reforms and renewable energy push drive sustained demand.
Updated Investment Outlook
Valuation & Target Price
| Parameter | TARIL | Industry Peer (BHEL) |
|---|---|---|
| P/E Ratio (FY25) | 25x | 18x |
| EBITDA Margin | 16.41% | 8.5% |
| Revenue Growth | 53% YoY | 12% YoY |
Revised Target Price (12–18 Months):
- Base Case: ₹1,200 (+168% upside)
- Bull Case: ₹1,500 (+235% upside)
Risks to Consider
- Short-Term Overbought Risk: Profit-booking likely near ₹500–550 levels.
- Capex Delays: Execution risks in ₹550 Cr expansion plan.
- 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.