Synopsis: InCred cut Transformers & Rectifiers India Limited’s target price, citing a 19% order intake decline, flat order backlog, and near-term uncertainty following a recent CEO change.
This Transformer stock, engaged in manufacturing power, distribution, furnace, rectifier transformers, and reactors up to 1200 kV class for power, transmission, and industrial sectors, is in focus after InCred cut the target to Rs. 200, which has a downside potential of 31.47.
With a market capitalization of Rs. 8,590.75 crore, the shares of Transformers & Rectifiers India Limited were currently trading at Rs. 286.45 per equity share, down nearly 1.85 percent from its previous day’s close price of Rs. 291.85.
InCred, a prominent brokerage firm, has recommended a “Reduce” rating on Transformers & Rectifiers India Limited, with a target price cut from Rs. 300 to Rs. 200 per share, indicating a downside potential of 31.47 percent from its previous day’s close price of Rs. 291.85.
The brokerage InCred has taken a cautious view on Transformers & Rectifiers India Limited, citing multiple near-term challenges that could impact growth visibility. As a result, InCred has maintained a “Reduce” rating, highlighting concerns around slowing order momentum and execution outlook.
Transformers & Rectifiers India Limited’s order intake declined by 19 percent year-on-year in 9M FY26, while the company’s order backlog has largely remained flat over the last three quarters. The backlog stood at Rs. 5,246 crore as of June 2025, increased marginally to Rs. 5,472 crore by September 2025, and slightly decreased to Rs. 5,450 crore by December 2025.
Additionally, the resignation of CEO Mr. Mukul Srivastava on January 7, 2026, due to personal reasons, has added near-term uncertainty. Although the Managing Director, Mr. Satyen J. Mamtora, has been appointed as CEO, leadership transition risks remain a concern for the brokerage.
Q3 FY26 Result
Coming into the quarterly results of Transformers & Rectifiers India Limited, the company’s consolidated revenue from operations increased by 31.71 percent YOY, from Rs. 559.36 crore in Q3 FY25 to Rs. 736.76 crore in Q3 FY26, and grew by 60.15 percent QoQ from Rs. 460.03 crore in Q2 FY26.
In Q3 FY26, Transformers & Rectifiers India Limited’s consolidated net profit increased by 36.93 percent YOY, reaching Rs. 75.97 crore compared to Rs. 55.48 crore during the same period last year. As compared to Q2 FY26, the net profit has increased by 103.40 percent, from Rs. 37.35 crore.
Order Book
As of December 2025, Transformers & Rectifiers India Limited reported a strong order book with Rs. 5,450 crore of unexecuted orders and Rs. 665 crore of new order inflows. The company has also entered the HVDC transformer segment, marking a strategic milestone. Additionally, inquiries worth over Rs. 16,500 crore are currently under negotiation, indicating strong future growth visibility.
Transformers & Rectifiers India Limited offers a diverse product portfolio, including single-phase power transformers up to 500 MVA and 1200 kV class, furnace transformers, rectifier and distribution transformers, specialty transformers for applications like locomotive traction, series and shunt reactors, mobile substations, earthing transformers, solar application transformers, and green hydrogen application transformers.
Transformers & Rectifiers India Limited serves a strong and diversified customer base, including Power Grid, NTPC, Adani Renewables, Tata Power, JSW, ReNew Power, Siemens Energy, GE, SAIL, Blue Star, Jindal Group, and several state utilities, reflecting its credibility across power and industrial sectors.
Transformers and Rectifiers India Limited (TARIL) was established in 1994 and is headquartered in Ahmedabad. The company is a leading player in the manufacturing of transformers and reactors in India and serves key segments such as power generation, transmission, distribution, and industrial sectors, operating on a B2B business model.
The company has an installed manufacturing capacity of around 40,000 MVA across its units and has established a strong global presence, exporting its products to over 25 countries, reflecting its technical capabilities and growing international footprint.
Transformers & Rectifiers India Limited’s revenue and net profit have grown at a CAGR of 23.54 percent and 193.02 percent, respectively, over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 28 percent and 23.4 percent, respectively. Transformers & Rectifiers India Limited has an earnings per share (EPS) of Rs. 8.97, and its debt-to-equity ratio is 0.27x.
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