Transformers & Rectifiers India Limited faces significant downside pressure as InCred has cut its target price by 33.33% to ₹200 per share, despite the company reporting strong quarterly results. The brokerage firm has maintained a 'Reduce' rating, citing multiple near-term challenges that could impact growth visibility and execution outlook.

Brokerage Downgrade Details

InCred's revised target price represents a substantial downside potential of 31.47% from the previous day's closing price of ₹291.85. The shares were trading at ₹286.45, down 1.85% from the previous close, with a market capitalization of ₹8,590.75 crore.

Key Concerns Driving Downgrade

The brokerage highlighted several factors contributing to their cautious stance:

• Order Intake Decline: 19% year-on-year decrease in order intake during 9M FY26
• Stagnant Order Backlog: Remained largely flat over the last three quarters
• Leadership Transition: CEO Mukul Srivastava's resignation on January 7, 2026, due to personal reasons
• Execution Uncertainty: Near-term challenges affecting growth visibility

The order backlog progression shows minimal growth, standing at ₹5,246 crore in June 2025, increasing marginally to ₹5,472 crore by September 2025, and slightly decreasing to ₹5,450 crore by December 2025.

Strong Q3 FY26 Financial Performance

Despite the brokerage concerns, Transformers & Rectifiers India Limited delivered robust quarterly results:

The consolidated revenue from operations increased significantly, demonstrating strong operational performance across both year-on-year and quarter-on-quarter comparisons.

Order Book and Strategic Developments

As of December 2025, the company maintains a substantial order book with ₹5,450 crore of unexecuted orders and ₹665 crore of new order inflows. A significant strategic milestone was achieved with the company's entry into the HVDC transformer segment.

The company has inquiries worth over ₹16,500 crore currently under negotiation, indicating potential future growth opportunities. The diverse product portfolio includes single-phase power transformers up to 500 MVA and 1200 kV class, furnace transformers, rectifier and distribution transformers, and specialty transformers for various applications.

Company Profile and Performance Metrics

Established in 1994 and headquartered in Ahmedabad, Transformers & Rectifiers India Limited operates as a leading manufacturer of transformers and reactors. The company serves a diversified customer base including Power Grid, NTPC, Adani Renewables, Tata Power, JSW, ReNew Power, Siemens Energy, GE, SAIL, Blue Star, and Jindal Group.

The company's strong financial metrics reflect its operational efficiency and growth trajectory over the past five years, despite current near-term challenges highlighted by the brokerage downgrade.

Transformers & Rectifiers (India) Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showcasing strong operational performance across both standalone and consolidated metrics. The results were reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on January 8, 2026.

Quarterly Performance Highlights

The company delivered impressive quarterly results with substantial growth in revenue and profitability. On a standalone basis, total income from operations reached ₹709.87 crores for Q3FY26, marking a significant improvement from ₹440.81 crores in the previous quarter and ₹554.36 crores in the corresponding quarter of the previous year.

Consolidated Financial Performance

The consolidated results demonstrated even stronger performance metrics, reflecting the overall group's robust operational efficiency. Consolidated revenue for the quarter reached ₹741.02 crores compared to ₹473.95 crores in the previous quarter and ₹568.32 crores in the same quarter last year.

Nine-Month Performance Analysis

The nine-month performance for the period ended December 31, 2025, showed consistent growth trajectory across key financial parameters. Standalone total income reached ₹1,677.59 crores compared to ₹1,327.67 crores in the corresponding period of the previous year, representing a growth of 26.4%.

Key Financial Indicators

The company maintained a stable equity share capital of ₹30.02 crores throughout the reporting periods, reflecting consistent capital structure management. The earnings per share performance showed remarkable improvement, with nine-month standalone EPS reaching ₹4.93 compared to ₹3.75 in the previous year, while consolidated EPS stood at ₹5.83 versus ₹4.06 in the corresponding period.

Regulatory Compliance and Disclosure

The financial results were published in compliance with Regulation 47 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company published the results in leading newspapers including The Economic Times, Financial Express (English), and Financial Express (Gujarati). Complete detailed financial results are available on stock exchange websites and the company's official website at www.transformerindia.com .