Shares of Transformers and Rectifiers (India) Ltd (TARIL) experienced a significant downturn on Wednesday, closing down 7.10% at Rs 309.55. The sharp decline followed the company's announcement of its March 2025 quarter (Q4 FY26) financial results, which fell short of market expectations and the company's own full-year guidance.
Q4 Performance Fails to Meet Projections
According to an analysis by Nuvama Institutional Equities, TARIL recorded a 16% year-on-year (YoY) execution growth in Q4 FY26. However, this growth was overshadowed by the company's inability to meet several key financial parameters. The firm's order book stood at approximately Rs 5,000 crore, considerably below the guided Rs 8,000 crore, largely due to a substantial 47% YoY decrease in order inflows.
Revenue for the quarter was reported at Rs 2,500 crore, falling short of the anticipated Rs 2,600 crore. Furthermore, the EBITDA margin came in at 15.3%, missing the guided range of 16–17%. Adding to the concerns, cash flow from operations (CFO) turned negative, reporting a deficit of Rs 110 crore.
Outlook and Analyst Reactions
Looking ahead, TARIL has provided guidance for FY27, projecting revenues of Rs 3,200 crore and an EBITDA margin between 15–17%. The company also plans a capital expenditure of Rs 600 crore over the next 15 months.
Following the disappointing results, Nuvama downgraded TARIL's stock to a 'Reduce' rating. The brokerage cited a stagnant backlog, which is only about twice FY26 sales, coupled with persistent margin pressures and weak order inflows, all of which are expected to limit future earnings visibility. Consequently, Nuvama revised its target price for the stock down to Rs 295 from an earlier Rs 334, cutting its FY27E/28E EPS by 20% and 13% respectively.
Technical Analysis Points to Bearish Trend
From a technical standpoint, analysts remain cautious regarding TARIL's near-term share price trajectory. AR Ramachandran, a Sebi-registered research analyst at Tips2trades, indicated that the stock displays a bearish pattern on daily charts, with strong resistance identified at Rs 333. He warned that a daily close below the support level of Rs 298 could potentially trigger a further decline towards Rs 233 in the short term.
Transformers and Rectifiers (India) Ltd specializes in manufacturing power, distribution, and specialty transformers, with a product range spanning from 5 MVA to 1000 MVA and up to the 1200 kV class.