Transformers & Rectifiers (India) Limited Faces World Bank Debarment, Projects Strong Performance

Transformers & Rectifiers (India) Limited (TARIL), a leading transformer manufacturer, has recently received a Notice of Uncontested Sanctions Proceedings from the World Bank. This development relates to alleged irregularities in a past supply order for the Nigeria Electricity Transmission Project. Despite this setback, the company maintains that its overall business operations remain unaffected and projects strong financial performance.

Key Details of the World Bank Notice

Case Number: Sanctions Case No. 788
Project: Nigeria Electricity Transmission Project (IDA Credit Nos. 6185-NG and 6186-NG)
Notice Date: November 4, 2025
Previous Notice: July 30, 2025 (reportedly not received by TARIL)

Order Details and Timeline

Aspect	Details
Order Value	$24.74 Million
Order Received	FY2020
Order Execution	FY2022
Payment Received	90% in FY2022
Accident During Shipment	3 transformers damaged
Replacement Units Supplied	FY2025
Final Payment Received	Q1 FY2026

Company's Response and Impact

TARIL has stated its intention to contest the matter and will submit a reply to the World Bank. The company emphasizes that:

The debarment is limited to participation in World Bank-funded projects only.
TARIL currently has no ongoing or pending orders under such projects.
The company believes this action has no material impact on its business operations, financial performance, or future outlook.

Recent Business Developments

TARIL has secured a new order worth Rs. 103.45 Crore from Gujarat Energy Transmission Corporation Limited. This order involves the manufacturing of 54 various types of transformers, to be delivered by the next financial year.
The company anticipates revenue of approximately Rs. 2,600.00 crore with an EBITDA margin of around 16%.
TARIL expects strong order inflow, supported by a pipeline exceeding Rs. 8,000.00 crore.

Company's Stance

TARIL maintains that it has acted in good faith and in compliance with all applicable laws and contractual obligations. The company plans to:

Represent its case to the World Bank
Prove it is not involved in any illegal or restricted transactions
Satisfy the World Bank's requirements to potentially lift the debarment

Conclusion

While facing challenges with the World Bank debarment, Transformers & Rectifiers (India) Limited continues to secure domestic orders and maintain its position as the second-largest transformer manufacturing company in India based on capacity. The company's management remains committed to addressing the World Bank's concerns while focusing on its core business operations and growth. With strong financial projections and a robust order pipeline, TARIL appears poised for continued growth despite the current challenges.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.11%	-18.96%	-7.10%	-48.75%	-49.28%	+2,597.41%

Transformers & Rectifiers (India) Limited has submitted its monitoring agency report for the quarter ended December 31, 2025, regarding funds raised through Qualified Institutional Placement (QIP). The report, issued by India Ratings and Research Private Limited, confirms no deviation from the stated objectives of the QIP, maintaining the company's commitment to regulatory compliance and transparency.

QIP Details and Fund Utilization Progress

The company successfully raised ₹5,000.00 million through a QIP of 75,18,796 equity shares at ₹665.00 per share during June 10-13, 2024. As of December 31, 2025, ₹2,745.69 million has been utilized across various objectives:

Objective	Allocated Amount (₹ million)	Utilized Amount (₹ million)	Unutilized Amount (₹ million)
Capital Expenditure	1,450.00	0.00	1,450.00
Working Capital Requirements	1,250.00	1,244.11	5.89
Debt Repayment	613.80	602.61	11.19
General Corporate Purposes	1,574.35	757.19	817.16
Issue Related Expenses	111.85	141.78	(29.93)
Total	5,000.00	2,745.69	2,254.31

Deployment of Unutilized Funds

The remaining ₹2,254.31 million of unutilized proceeds have been strategically deployed across various investment instruments totaling ₹2,387.43 million (including returns and contributions from other sources):

Investment Type	Amount (₹ million)	Details
Fixed Deposits	1,150.00	Axis Bank and State Bank of India
Mutual Funds	200.00	HDFC Liquid Fund - Regular Plan Growth
Alternative Investment Funds	562.50	Neo AIF Special Credit and Secondaries Fund
Portfolio Management Services	469.44	Neo Yield Enhancer
Bank Balances	5.49	Current account balances

Timeline Revision and Issue Expenses

The company has revised the completion timeline for all QIP objectives from Fiscal 2025 to July 2026. Issue-related expenses amounted to ₹141.78 million, exceeding the originally planned ₹111.85 million. This increase has been ratified and approved by the Board of Directors.

Regulatory Compliance and Monitoring

The monitoring agency report was prepared in accordance with Regulation 32(6) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Regulation 173A of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The report was duly reviewed by the company's Audit Committee and submitted by Company Secretary Rakesh Kiri.

Transformers and Rectifiers (India) Limited continues to demonstrate strong regulatory compliance by providing comprehensive updates on its QIP fund utilization, ensuring transparency for stakeholders and investors.