Transformers & Rectifiers India Limited (TARIL), a leading transformer manufacturer, reported its Q2 FY26 financial results, showcasing resilience amid temporary challenges. The company posted quarterly revenue of INR 460.00 crores, with EBITDA at INR 65.00 crores.

Key Financial Highlights

Operational Challenges and Mitigation

TARIL faced temporary operational challenges during the quarter, primarily due to:

1. Shortage of key raw materials, particularly CTC (Continuously Transposed Conductor)
2. Heavy rainfall affecting manufacturing sites and project deliveries

The company has taken steps to address these issues:

• Importing CTC to mitigate supply shortages
• Working with authorities to resolve customs clearance delays for imported materials
• Rescheduling project deliveries in coordination with customers

Expansion and Integration Plans

TARIL continues to execute its capacity expansion and backward integration projects:

• Moraiya facility expansion progressing as planned
• Changodar expansion slightly delayed due to monsoon, expected to be operational next quarter
• CTC plant (1,500 tons/month capacity) to be operational by September 2026
• RIP bushing plant production to start in June 2026
• Tank manufacturing unit to be operational by August 2026

These initiatives are expected to improve cost efficiency and margins by 200-250 basis points in the coming year.

Order Book and Future Outlook

• Current Order Book: INR 5,500.00 crores
• Strong pipeline of opportunities exceeding INR 8,000.00 crores
• Focus on orders with 16-18 month execution timelines for better profitability
• Targeting 70% capacity utilization by the end of FY26

Management Commentary

Satyen Mamtora, Managing Director of TARIL, stated, "Despite short-term challenges, the fundamentals of our business remain strong. We are confident in achieving at least 25% revenue growth over FY25, with a target of around INR 2,600.00 crores and an EBITDA margin of approximately 16%."

Chanchal Rajora, newly appointed Director of Finance, added, "Our financial position remains robust, supported by steady operating cash flow and a conservative leverage profile. We expect a significant rebound in H2 FY26, driven by normalization of supply conditions and improved plant utilization."

World Bank Project Clarification

The company addressed concerns regarding a World Bank project in Nigeria, completed in 2022:

• The project is not related to any current orders or inquiries
• TARIL has received full payment for the project
• The company is not currently pursuing World Bank-funded projects
• Focus remains on the domestic market, with exports limited to 15% of business

In conclusion, while TARIL faced some short-term operational challenges in Q2 FY26, the company maintains a positive outlook for the full year, supported by a strong order book and ongoing expansion initiatives. The management's focus on profitability, backward integration, and strategic order intake positions TARIL for sustainable growth in the coming quarters.

Transformers & Rectifiers (India) Limited (TARIL), a leading transformer manufacturer, has received a significant update regarding its status with the World Bank. The company has been removed from the World Bank's list of debarred firms and individuals, opening the door for its participation in World Bank-funded projects once again.

Key Developments

1. Removal from Debarred List: The World Bank has officially removed TARIL from its list of debarred firms and individuals, as confirmed in the company's recent disclosure to the stock exchanges.

2. Extension for Response: TARIL has been granted an extended deadline until January 12, 2026, to submit its explanation in an ongoing sanctions case with the World Bank.

3. Significant Order Value: The case involves an order valued at USD 24.74 million, highlighting the potential impact on the company's business operations.

Implications for TARIL

The removal from the World Bank's debarred list may allow TARIL to:

• Participate in World Bank-funded projects
• Potentially expand its business opportunities in the global market
• Improve its standing in the international business community

Company's Response

In its regulatory filing dated November 14, 2025, TARIL stated:

"We will continue to adhere to all disclosure requirements and keep the exchange informed of any further material developments."

About Transformers And Rectifiers (India) Limited

TARIL is a prominent player in the transformer manufacturing industry:

The company's removal from the World Bank's debarred list and the extension granted for responding to the sanctions case represent crucial developments for TARIL. These changes may potentially impact the company's future projects and its position in the global transformer manufacturing industry. Investors and industry observers will likely keep a close watch on how TARIL navigates this situation and its potential participation in World Bank-funded projects.