Transformers and Rectifiers (India) Limited (TARIL) is a leading Indian manufacturer of power, distribution, furnace, and specialty transformers. Established in 1994 and headquartered in Ahmedabad, it operates three state-of-the-art plants with a total capacity of 75,000 MVA. TARIL serves domestic and global markets, emphasizing backward integration, automation, and sustainable energy solutions. With a strong order book (₹5,132 Cr) and robust financials, it aims to achieve $1 billion revenue by 2028.
In this article we are going to discuss the summary of the management commentary that was delivered on Q4FY25 performance.
Financial Performance (FY ’25 vs. FY ’24)
| Metric | FY ’25 (Standalone) | FY ’24 (Standalone) | Growth (YoY) |
|---|---|---|---|
| Revenue (INR Crores) | 1,950 | 1,274 | +53% |
| EBITDA (INR Crores) | 320 | 125 | +149% |
| EBITDA Margin (%) | 16.12% | 10.03% | +609 bps |
| PAT (INR Crores) | 187 | 41 | +325% |
| PAT Margin (%) | 9.45% | 3.24% | +621 bps |
| Debt-to-Equity Ratio | 0.2 | 0.84 | Improved |
| ROCE (%) | 22.76% | 6.7% | +1,606 bps |
| ROE (%) | 23.13% | 0.95% | +2,218 bps |
Quarterly Performance (Q4 FY ’25 – Standalone)
| Metric | Q4 FY ’25 |
|---|---|
| Revenue (INR Crores) | 647 |
| EBITDA Margin (%) | 17.1% |
| PAT Margin (%) | 11.6% |
Operational & Order Book Metrics
| Metric | FY ’25 | FY ’24 | Growth |
|---|---|---|---|
| Production (MVA) | 29,118 | 16,425 | +77% |
| Order Inflow (INR Crores) | 4,504 | – | Record High |
| Unexecuted Order Book (INR Cr) | 5,132 | – | 15–18 months visibility |
Operational Highlights:
- The company have achieved the highest-ever production in the company’s history, manufacturing 29,118 MVAs up from 16,425 MVAs in FY ’24.
- The company’s total order inflow now for FY ’25 stood at INR 4,504 crores, the highest in its history.
- This robust inflow has resulted in an unexecuted order book of INR 5,132 crores as of March 31, 2025, ensuring clear revenue visibility for the next 15 months to 18 months.
Largest single order in our company’s history
The company secured a landmark order of INR740 crores from GETCO in March 2025, the largest single order in our company’s history and probably the largest by GETCO as well.
QIP
The company also raised INR500 crores via QIP, executed in record time. The capital will be instrumental in furthering our backward integration plans and expanding its manufacturing capacities.
Q4 ’25 highlights
- Q4 saw successful completion of dynamic short-circuit testing of 500 MVA, 400 kV, a key technical achievement that reinforces our engineering progress.
- The company also completed short-circuit testing with an 8.8 MVA inverted duty transformer, meeting the latest CEA specifications.
- Record number of transformers tested in December 2024, both in terms of MVA and in total units, underscoring our internal capability and streamlined operations.
- During Q4, the company entered into technological tie-up to accelerate its backward integration journey. This collaboration enhanced company’s in-house capabilities, reduced its dependency on external sources, and improved supply chain resilience.
- The company completed acquisition of a controlling stake in a CRGO processing unit by achieving 100% backward integration in one of the most critical raw materials, which constitutes of 32%-35% of transformer cost input.
Future Outlook
Looking ahead, company’s focus remains firmly on consolidation, global expansion and sustainable profitability.
Company’s long-term vision is to become a US$1 billion revenue company within next 3 years remains intact, and it is confident of achieving it through consistent execution and customer-centric innovation and robust financial discipline.
Question and Answer Session Highlights
The margin in the fourth quarter in particular is quite healthy and surprisingly robust. Is this operating margin of almost over 19% for the fourth quarter on a consolidated basis? Chanchalji, is this representative of the picture ahead in terms of the margins?
Sir, quarter 4, there are a couple of orders that we have executed were at very, very excellent margins. And that’s why this quarter 4 margin is looking a little bit robust. But on the futuristic side, the margins what we are showing on a yearly basis will be the guided margins that is 16% to 17% level.
As we move to the journey of $1 billion, which means from little over INR2,000 crores in the year gone by. So by ’28, we are seeing turnover more than quadruple. And I assume given the operating leverage and the other benefit that will accrue, our profit should grow at a rate faster in that journey.
As I guided always, our target is to reach to a 10% PAT level. And we are basically targeting that. And as you said correctly, the margins will improve as well as the resource will improve drastically.
On your improvement in working capital this year compared to last year. So how do you see this is sustainable or what is the sustainable working capital we can think when you talk about $1 billion revenue?
The working capital what we are showing here, if you have been actually hearing us, we are targeting at the level of around 120 days working capital. And I’m pleased to say that we are quite on that track. And it’s a sustainable working capital for throughout the year.
But on our other side, our target is to reach 200 days levels. And as the revenue will increase and the margin will build up and resource will build up, this is going to be a very, very sustainable target.
on the product innovation side, I mean, the high voltage transformers, any innovation we have done during the year. Can you talk about something on that front, which came high in value and margin accredited for us?
we are actually all — into all kinds of the transformers right now. Yes, for this year, we are targeting that we wanted to get into the HVDC segment, and pretty soon we will be into that line. Otherwise, if you say about the HV transformers, we have the capability to make up to 1,200 kV transformers and no transformer has been built more than that so far now.
can you split the capex for ‘26-’27?
Firstly, our target is to become the 100% backward integrated and for that Board has allocated INR550 crores, which will be used for the backward integration as well as to the organic growth what we are eyeing for 22,000 MVA in this year. So that will be come up.
As far as the customer breakup is concerned, in our present order book around 45% is the utility business and around 55% is the EPC and other businesses comps. As far as the product is concerned, 70% of our product is on the 220 kVA plus and 30% is on the other transformer sides.
What is the export share of the order book?
Not only order book, basically if I could tell you in revenue around 15% to 17% is the export shares. And order book is also around 15%. And as you have been hearing us that we have targeted to remain around 15% on the export order book size.
We don’t want to increase more than that because the opportunities are very, very high in India, and margins and payment terms are much, much better now in India.
If you can give some light on the kind of capacity transformers India is building up in the next two, three years and the kind of demand – demand you already mentioned. Will there be any refurbishment of old transformers and those orders along with this?
Anupam, the old transformers are going to be replaced. The transformers which are older than 35 years, they are going to be replaced. But they are not plenty, because we have started building 400 kV line since last only two decades and 765 kV only since last 15 years. So, there are not going to be many transformers for repairs of 400 kV or 765 kV, but in the years to come, it is going to be.
since we have started the CRGO steel plant, what kind of an inventory will need to keep and how the cost impact or cost benefit one should see based on the steel price movement?
We have already tied up with the couple of mines for the long term, mills for the long-term supplies. So, we’ll be not keeping the inventory much into our facilities. They are going to supply us on monthly basis to us. So, there is no such inventory built up is required.
And more than the margins and these things, this acquisition will improve us the quality as well as the operational efficiency and delivery time, which will automatically end up increasing our margins.