TARIL Q3 FY2025 Results: ₹19,000 Cr Pipeline & $1B Target

Investment Thesis

Transformers & Rectifiers India Ltd (TARIL) is a leading manufacturer of power and industrial transformers with a strong growth trajectory, robust order book, and strategic backward integration initiatives. The company has demonstrated exceptional revenue growth of 49% YoY, driven by strong execution, rising demand for power infrastructure, and new product innovations.

Key Performance Highlights

Revenue Growth: 49% YoY

Stock P/E: 75.2x

Valuation Considerations

Despite its impressive fundamentals, the stock trades at a high P/E of 75.2x, making it expensive relative to industry peers. Investors should assess valuation risks alongside its long-term growth potential, strong market position, and upcoming capacity expansions.

Q3 FY2025 Financial Performance

Standalone Results (₹ in Lakhs)

Metric	Q3 FY25	Q3 FY24	YoY Change	Q2 FY25	QoQ Change
Revenue from Operations	54,531	36,530	+49%	44,593	+22%
EBITDA	8,696	3,677	+136%	7,565	+15%
EBITDA Margin (%)	15.69%	10.00%	+569 bps	16.53%	-84 bps
Profit After Tax (PAT)	5,055	1,344	+276%	4,218	+20%
PAT Margin (%)	9.12%	4.00%	+520 bps	9.00%	+12 bps

Consolidated Results (₹ in Lakhs)

Metric	Q3 FY25	Q3 FY24	YoY Change	Q2 FY25	QoQ Change
Revenue from Operations	55,936	36,935	+51%	46,154	+21%
EBITDA	9,376	4,011	+134%	8,097	+16%
EBITDA Margin (%)	16.50%	10.81%	+569 bps	17.11%	-61 bps
Profit After Tax (PAT)	5,552	1,576	+252%	4,602	+21%
PAT Margin (%)	9.77%	4.25%	+552 bps	9.72%	+5 bps

Order Book Highlights

Total Order Book: ₹3,686 Cr

New Orders in Q3: ₹631 Cr

Export Orders: ₹161 Cr

Orders Under Negotiation: ₹19,000+ Cr

Key Clients: Power Grid Corporation of India (PGCIL), State Transmission Utilities (STUs), Industrial Clients

Growth Drivers & Expansion Plans

Capacity Expansion Initiatives

Order booking for new manufacturing capacity to begin in Q4 FY25
New fully automated radiator manufacturing facility under approval with PGCIL
Expansion to support revenue target of $1 billion within 3 years

Backward Integration & Cost Efficiency

Acquisition of Posco Poggenamp Electrical Steel Ltd., a CRGO processing unit
Ensuring 100% in-house sourcing of core raw materials
Technology agreements for 3 critical components to be operational by December 2025
CRGO contributes 30-35% of total raw material cost, improving cost control

New Product Development & Technological Advancements

Electric Arc Furnace Transformers

Successfully exported 220/253 MVA EAF Transformer, among the highest rated globally

Green Energy & Grid Stability Products

STATCOM Transformers (193 MVA single-phase) to enhance grid efficiency
Green Hydrogen & Solar Application Transformers for renewable projects
Mobile Substations catering to emergency power needs

Competitive Landscape

TARIL is the 2nd largest transformer manufacturer in India by installed capacity (40,000 MVA)

Competitor	Market Position	Key Strengths
Siemens India	Large MNC, diversified	Technology leadership, strong global presence
CG Power	Large domestic player	High-voltage transformer expertise
Hitachi Energy (ABB)	Strong industrial focus	Global technology partnerships
Bharat Bijlee	Niche player	Specialty transformers for railways

TARIL differentiates itself through in-house CRGO steel processing, high-end testing infrastructure, and specialized power solutions.

Financial Metrics & Valuation

Key Financial Indicators

Market Cap: ₹12,037 Cr

Current Price: ₹802

52-Week High/Low: ₹1,300 / ₹275

Stock P/E: 75.2x (Expensive)

Additional Financial Metrics

Book Value: ₹73.5

ROCE: 14.8%

ROE: 9.33%

Debt: ₹244 Cr

Reserves: ₹1,088 Cr

Growth Performance

Dividend Yield: 0.02%

3-Year Sales Growth:

Key Takeaways

Revenue Growth

49% YoY

Order Pipeline

₹19,000+ Cr

Target Revenue

$1 Billion

Transformers & Rectifiers India Ltd (TARIL)