Transformers & Rectifiers (India) Limited has issued a clarification to BSE Limited regarding the recent increase in trading volume of its securities, stating that the surge is purely market-driven and not due to any undisclosed information.

BSE Surveillance Inquiry

The company received an email from BSE Surveillance on February 10, 2026, with reference number L/SURV/ONL/PV/APJ/2025-2026/914, seeking clarification on the increased volume movement in its securities. BSE's inquiry was part of routine surveillance activities to understand unusual trading patterns.

Company's Response and Compliance Status

In its response, Transformers & Rectifiers emphasized its commitment to regulatory compliance and transparency:

Market-Driven Volume Movement

The company attributed the increased trading volume to market conditions beyond its control. Management stated that they have neither control nor knowledge of the underlying reasons for the volume surge. The response emphasized that all disclosures of events, information, announcements, and updates that impact company operations have been shared with stock exchanges as required.

Regulatory Framework

The clarification was provided under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation mandates listed companies to disclose material events and information that could impact their securities' trading.

Official Communication

The response was signed by Rakesh Kiri, Company Secretary and Compliance Officer, on February 10, 2026. The company requested BSE to take the clarification on record and expressed confidence that the explanation addresses the exchange's concerns regarding the volume movement.

Transformers & Rectifiers India Limited delivered exceptional financial performance in Q3FY26, marking a clear inflection point in operational momentum with strong revenue growth and margin expansion. The company's strategic focus on execution discipline and capacity optimization has yielded significant results during the quarter.

Financial Performance Highlights

The company demonstrated robust financial performance across key metrics during Q3FY26. On standalone basis, revenue from operations reached ₹704.21 crores compared to ₹428 crores in Q2FY26, driven by improved supply chain normalization, higher plant utilization, and timely project execution across key segments.

The EBITDA margin expansion to 16.19% was primarily driven by better operating leverage, higher share of execution from healthy margin orders, and early benefits of cost optimization initiatives. This performance validates management's confidence in achieving strong second-half results for the financial year.

Strategic HVDC Order Achievement

A particularly significant milestone during the quarter was securing an exceptional HVDC repair order from PowerGrid Corporation of India Limited. This achievement holds strategic importance as it makes TARIL the first Indian origin company to receive an HVDC repair order, underscoring the company's technological capabilities, engineering credibility, and trust from marquee customers.

This order reinforces TARIL's position in the high voltage and advanced transformer segment while opening new long-term opportunities in the HVDC ecosystem. Upon successful completion and commissioning of this repair work, the company expects to qualify for manufacturing transformers using its own indigenous HVDC technology.

Capacity Expansion and Backward Integration Progress

The company is making steady progress on its comprehensive expansion and backward integration strategy, which represents a critical pillar for long-term competitiveness, margin sustainability, and supply chain resilience. Six backward integration facilities are planned with execution progressing as per schedule.

Current Manufacturing Capacity

Backward Integration Timeline

Civil work for all backward integration facilities has commenced, and equipment orders are firmly in place. These initiatives will significantly enhance in-house value addition, reduce external dependencies, and improve cost efficiency over the medium term. The RIP bushing facility will initially target 245 KV bushings with approximately 7,000 units in the first year, later expanding to 400 KV capacity.

Order Book and Market Outlook

Management adopted a deliberate strategy during the first half of FY26 to moderate fresh order intake, aligning new orders with extended delivery schedules and ensuring optimal capacity planning. This strategic approach is now yielding positive results with strong order inflow expected during the second half.

The company maintains a robust and diversified order pipeline of approximately ₹16,500 crores across domestic and international markets. Management expects to close FY26 with an order book of around ₹8,000 crores, supported by strong tender activity and customer demand.

Full Year Guidance and Long-term Vision

For FY26, management remains confident of delivering at least 25% revenue growth over FY25, targeting revenues of approximately ₹2,600 crores along with EBITDA margins around 16-17%. This confidence is underpinned by strong execution visibility, healthier order mix, benefits from operating leverage, and structural improvements across the organization.

Looking ahead to FY29, the company maintains its ambitious target of achieving $1 billion (approximately ₹8,000 crores) in revenue. This growth trajectory will be supported by expanded manufacturing capacity, backward integration benefits, and the growing transformer industry demand, which is expanding at 15% CAGR in India compared to 6.7% globally.

The company continues to strengthen its governance framework and internal processes, with management highlighting the achievement of declaring audited financial results within eight days of quarter close, reflecting disciplined processes and commitment to best-in-class disclosure standards.