Transformers and Rectifiers Q2 Profit More Than Doubles; Order Book Hits Rs 7,237 Crore

Transformers and Rectifiers India (TARIL), the Ahmedabad-based maker of power and distribution transformers, reported a sharp jump in September-quarter earnings after market hours on Tuesday, as better plant utilisation and a growing order pipeline fed through to the bottom line.

Consolidated net profit for Q2 FY27 came in at roughly Rs 80-81 crore, more than double the Rs 34-37 crore of the same quarter last year, a rise of about 135%. Revenue from operations climbed about 61% to Rs 739 crore from Rs 460 crore. The shares had closed 3.12% higher at Rs 304 on the NSE ahead of the announcement.

Margins tell the bigger story

Revenue growth alone does not explain a profit that more than doubled. The real swing came from operating leverage. Consolidated EBITDA rose to about Rs 128 crore from Rs 52 crore a year earlier, and the EBITDA margin widened to 17.35% from 11.35% in Q2 FY26.

On a standalone basis, EBITDA was Rs 113.90 crore, roughly three times the year-ago figure, with the margin improving by 736 basis points to 16.1%. Management attributed the improvement to higher utilisation at its Changodar and Moraiya plants in Gujarat.

For the first half of FY27, consolidated net profit rose 39% to Rs 141 crore, while revenue grew 33% to Rs 1,312 crore.

A long runway of orders

TARIL's unexecuted order book stood at Rs 7,237 crore as of September 30, up 32% from Rs 5,472 crore a year earlier. The company says this backlog is executable over the next 18 to 24 months, which gives it unusually clear revenue visibility for a capital-goods supplier.

The pipeline beyond that is also sizeable. TARIL says it is negotiating on inquiries worth around Rs 21,000 crore, of which it has historically converted 10% to 15%. About four-fifths of current bids are for domestic projects and the rest for exports.

New capacity arrives around Diwali

The next leg of growth depends on capacity. The company's transformer manufacturing expansion at Changodar is nearly complete, and commercial production is expected to begin around Diwali. Management said this positions it to scale output meaningfully in the second half of FY27. During the quarter it also completed dynamic short-circuit testing on three transformer units, a certification step that matters for winning large utility contracts.

TARIL has kept its FY27 guidance unchanged, targeting revenue growth of 25% or more and a profit-after-tax margin of 9% to 10%.

Why this matters for India's power build-out

Transformers sit at the heart of India's grid expansion. Every new solar park, wind farm, transmission corridor and data centre needs step-up and step-down equipment, and state utilities and Power Grid Corporation have been placing large orders as renewable capacity scales up. Manufacturers with spare capacity and tested designs are in a strong bargaining position, which is visible in TARIL's widening margins.

The risks are familiar for the sector: copper and electrical steel prices can squeeze margins quickly, large orders can slip on project delays, and new capacity needs to ramp up smoothly to deliver the promised second-half growth. With a backlog worth nearly ten times this quarter's revenue, however, demand is not the immediate constraint. Execution is.

This is an original summary based on public reporting. See our editorial policy for how we source, write, and correct our stories.