Transformers and Rectifiers shares jump 5% after stellar Q4FY25 results; second straight upper circuit

Shares of Transformers and Rectifiers (India) Ltd (TARIL) surged 5 percent to hit the upper circuit at ₹518.30 on Wednesday, April 9, 2025, following the announcement of strong Q4FY25 results. This marks the second consecutive session of upper circuit gains, driven by upbeat earnings, order inflow strength, and optimistic growth guidance for the upcoming fiscal year.

Q4FY25 Performance Surpasses Estimates

TARIL reported a more than two-fold jump in consolidated net profit to ₹94.20 crore for the quarter ended March 2025, compared to ₹39.93 crore in the same period last year. Revenue from operations rose 32.96 percent YoY to ₹683.42 crore. The company also delivered an EBITDA of ₹140 crore, with EBITDA margin expanding by 540 basis points YoY to 19.4 percent, reflecting strong operational efficiency.

Total expenses for the quarter increased by 24 percent YoY to ₹567.42 crore, in line with higher production and scale-up activities.

For the full financial year FY25, TARIL reported a net profit of ₹216.44 crore, significantly higher than ₹47.01 crore in FY24, marking a nearly four-and-a-half-fold increase. The company has proposed a 20 percent dividend ( ₹0.20 per share of face value ₹1), which will be declared at the upcoming AGM scheduled for May 13, 2025.

Growth Outlook and Analyst Commentary

According to Nuvama Institutional Equities, TARIL beat its Q4FY25 EBITDA and PAT estimates by 20 percent and 13 percent respectively, benefiting from a 32 percent YoY surge in sales and margin expansion. The brokerage highlighted a strong FY25 order inflow (OI) of ₹4,500 crore, taking the order backlog to ₹5,130 crore, with a healthy pipeline of ₹2,200 crore.

For FY26, the company has guided for an order book target of ₹8,000 crore, implying 56 percent YoY growth, and an operating margin between 16–17 percent. Over the medium term, TARIL is also aiming for $1 billion in annual revenues within the next three to four years, driven by strong sector tailwinds and company-specific strategic initiatives.

Nuvama has reiterated its ‘buy’ rating on the stock, assigning a target price of ₹725, citing the ongoing power transmission and distribution (T&D) capex super-cycle as a major growth catalyst.

Multibagger Stock in Focus

TARIL shares have delivered multibagger returns, soaring over 108 percent in the past year, despite some recent volatility. The stock declined over 3 percent in April after a 39 percent rally in March, following drawdowns of 13 percent in February and 22 percent in January. It hit a 52-week high of ₹650.23 on January 8, 2025, and a 52-week low of ₹220.88 on April 8, 2024, as per BSE data.

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