Synopsis: Transrail Lighting Limited has informed exchanges about an ongoing regulatory action at its premises. The company stated it is cooperating fully and will share further updates once there is more clarity on the situation.
The shares of this small-cap company majorly engaged in engineering, procurement and construction with primary focus on power transmission and distribution business, plunged over 7 percent after intimating exchange about the ongoing regulatory action.
With the market capitalization of Rs. 6,572 Crores, the shares of Transrail Lighting Limited were trading at an intraday low of 478 per share, falling nearly over 7 percent from its intraday high of Rs. 515 per share and is trading at a P/E of 14.8 whereas industry P/E stands at 31.5
Why did the share price dropped sharply:
Transrail Lighting has stated that officials from the Income Tax Department have conducted search and seizure operations in their offices and factories starting from March 24, 2026. This announcement has been officially made to the stock exchanges by the company. The company has also added that their team is fully cooperating with the authorities during this process.
However, there has been no announcement by the company on what they have found so far and if there would be any impact on their financials. The company has clearly stated that they would be able to provide more details later on once things become clearer. However, for now, things are still developing with the company continuing their normal operations.
About the company and Financials:
With over four decades of experience under their belt, Transrail Lighting Limited has emerged as a renowned EPC company around the world. Their core expertise lies in the field of power transmission and distribution. Based out of India, the organization has managed to develop a gigantic global presence across 60 countries and 6 continents. Their wide business portfolio includes the entire gamut of infrastructure development, including high-voltage transmission lines, substations, solar EPC projects, railways, and civil work.
The organization is renowned for their technical self-reliance, wherein the entire gamut of design, engineering, and manufacturing is under their control. Additionally, the organization has also established specialized tower testing stations for the highest structural integrity. This synergy between the manufacturing and construction phases has enabled the organization to offer a one-stop solution for clients, which promises maximum efficiency and quality.
Year on Year analysis: Revenue from operations has increased from Rs. 1358 Crores to Rs. 1796 Crores, up 32 percent. Operating profit has increased from Rs. 179 Crores to Rs. 227 Crores, up 26 percent and net profit has increased from Rs. 93 Crores to Rs. 110 Crores, up 18 percent
Quarter on Quarter analysis: Revenue from operations has increased from Rs. 1561 Crores to Rs. 1796 Crores, up 15 percent. Operating profit has increased from Rs. 184 Crores to Rs. 227 Crores, up 23 percent and net profit has increased from Rs. 91 Crores to Rs. 110 Crores, up 20 percent
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