TARIL: Order Book Crosses Rs 7,237 Crore

Transformers and Rectifiers (India) (NSE : TARIL) Limited manufactures power, distribution, furnace and specialty transformers, and reactors. It operates three integrated facilities in Gujarat with a combined capacity of 75,000 MVA, covering voltage classes from 5 kV to 1,200 kV. What happened: In Q2FY27, revenue grew 60.7% year on year to Rs 739.4 crore. EBITDA more than doubled to Rs 128.7 crore and margin expanded from 12.8% to 17.4%. Net profit rose 116.8% to Rs 81.3 crore. The order book stood at Rs 7,237 crore as of Q2FY27, providing about two years of revenue visibility. Management guides for FY27 revenue of Rs 3,200 crore, up 25 to 28%, with EBITDA margin around 16%. Why it matters: The order pipeline exceeds Rs 21,000 crore. High-voltage transformers of 400 kV and above now make up 55 to 60% of the order book. TARIL supplies data centres in India and abroad and won a contract from Power Corporation of India for 400 kV+ generator transformers. It established a UK subsidiary in September 2026 to build a European manufacturing base. What I am watching: TARIL is building in-house component facilities to cover 80 to 85% of raw material needs, up from 10 to 15%. This is expected to lift EBITDA margins by 200 to 300 basis points, with the full benefit arriving by FY29. The Changodar plant begins commercial production in Q3FY27. ROCE stands at 23.3% and the stock trades at 31 times earnings against a five-year median of 38.6. My stance: Solid execution shows up in margins and profit growth. The order book, component plan and UK expansion point in the right direction. At 31 times earnings, the stock trades below its five-year median and offers room if execution holds. I do not hold a position in TARIL at the time of writing. This is not investment advice.