Transformers & Rectifiers delivered robust financial performance in Q3 but witnessed significant stock price decline amid leadership transition. The company's shares fell sharply by 11.5% to ₹284.25 despite reporting strong earnings growth and margin expansion, reflecting investor concerns over management changes.

Financial Performance Highlights

The company demonstrated strong operational performance with consolidated revenue reaching ₹737.00 crores, representing a year-on-year growth of 32.00% from ₹559.00 crores in the corresponding quarter last year. Net profit surged 34.50% to ₹74.00 crores compared to ₹35.00 crores in the same period last year, showcasing effective execution and demand momentum.

Operational Excellence and Margin Expansion

Operating performance showed significant improvement with EBITDA rising 49.00% year-on-year to ₹125.00 crores from ₹84.00 crores in the previous year. EBITDA margins expanded to 17.00% from 15.00% in the corresponding quarter last year, indicating better operating leverage and improved efficiency in operations.

Leadership Transition Impact

Despite strong financial results, investor sentiment was weighed down by top management changes. Mukul Srivastava resigned as Chief Executive Officer effective January 7, 2026, due to personal reasons. The Board of Directors appointed Satyen J. Mamtora as Managing Director and Chief Executive Officer, who will now hold the combined designation.

Earnings Conference Call Disclosure

The company has made available the audio recording of its earnings conference call with analysts and investors held on January 8, 2026. The call discussed the unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, in compliance with SEBI listing regulations.

Order Book and Future Pipeline

The company maintains a strong business foundation with an unexecuted order book of ₹5,450.00 crores and new order inflow of ₹665.00 crores during the quarter. With inquiries under negotiation worth over ₹16,500.00 crores, the company is well-positioned for sustained growth despite current market volatility.

Transformers & Rectifiers (India) Ltd shares experienced a significant rally on Friday, surging 8% following the company's announcement regarding its upcoming quarterly results. The stock demonstrated strong momentum amid heightened investor interest and substantial trading activity.

Stock Performance and Trading Activity

The company's shares showed impressive performance during the trading session:

The stock's performance significantly outpaced the broader market, with the NSE Nifty 50 Index advancing only 0.62% during the same period.

Q3 FY26 Results Schedule

The rally was triggered by TARIL's regulatory filing announcing its board meeting schedule. The company confirmed that its board meeting will be held on Thursday, January 8, 2026, to consider and approve the unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025.

As part of insider trading prevention measures, the company announced that the trading window will open from January 11, 2026, for all connected or designated persons, their immediate relatives, and other insiders.

Major Order Win

In December 2025, TARIL achieved a significant milestone by securing a substantial order from Power Grid Corporation:

This HVDC converter transformer order represents a breakthrough for the company, establishing TARIL as the first Indian origin private sector company to receive such a specialized order.

Analyst Outlook

Market analysts maintain a cautiously optimistic view on the stock:

• Buy Ratings: 2 out of 5 analysts
• Hold Ratings: 3 out of 5 analysts
• Average Price Target: ₹407.50
• Implied Upside: 22.2%

The consensus price target suggests significant upside potential from current levels, reflecting analyst confidence in the company's growth prospects and recent business developments.