Stock Analysis: Transformers & Rectifiers India Ltd (₹522)
Powering India’s Grid Expansion with Strong Fundamentals and Strategic Growth
🏭 Company Overview
Transformers & Rectifiers India Ltd (TRIL) is a key player in India’s power infrastructure space, manufacturing a diverse range of transformers and reactors. Its products cater to power generation, transmission, distribution, and industrial sectors. With over 40,000 MVA of manufacturing capacity and a presence in 25+ countries, TRIL has firmly positioned itself as one of India's most significant transformer manufacturers.
📦 Product & Client Landscape
TRIL operates on a B2B model, offering:
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Power Transformers (up to 500 MVA / 1200 kV Class)
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Furnace, Rectifier & Specialty Transformers
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Series & Shunt Reactors
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Mobile Substations
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Earthing Transformers
Major clients include industry giants like Powergrid, NTPC, TATA Power, Siemens Energy, and JSW—ensuring both scale and trust.
🌍 Geographic Revenue Split
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Domestic Revenue: 92% (FY24), up from 85% in FY22
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Exports: 8%, with ambitions to hit 25% by FY26
📈 Financial Performance – FY25 (Standalone)
| Metric | FY25 | FY24 | Growth (%) |
|---|---|---|---|
| Revenue | ₹1,950 Cr | ₹1,275 Cr | +53% |
| EBITDA | ₹320 Cr | ₹128 Cr | +149% |
| EBITDA Margin | 16.12% | 10.0% | +612 bps |
| PAT | ₹187 Cr | ₹41 Cr | +325% |
| ROCE | 22.76% | 6.7% | — |
🧾 Order Book & Outlook
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Order Book (as of 9M FY25): ₹3,686 Cr
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Under Negotiation: ₹19,000+ Cr
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Order Inflow FY25: ₹4,504 Cr (Record High)
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Pending Orders (Mar 2025): ₹5,132 Cr
Order Book Mix
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By Product:
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Power Transformers: 66%
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Reactors: 27%
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Special Duty Transformers: 7%
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By Customer:
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Industrial: 47%
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Central Utilities: 43%
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State Utilities: 10%
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This diverse pipeline ensures 15–18 months of revenue visibility, underlining strong business continuity.
🏗️ Capacity Expansion & Integration
Capacity Growth
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+15,000 MVA addition for renewable energy (by Q4 FY25)
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+22,000 MVA EHV facility in Moraiya (by Feb 2026)
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Total Capacity by FY26: 75,000 MVA
Strategic Backward Integration
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Acquired Posco Poggenamp Electrical Steel Pvt Ltd (Dec 2024)
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In-house CRGO lamination (33% of RM cost)
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Technology & supply agreements in place (full benefits by Q4 FY26)
This move enhances margin profile, product quality, and cost efficiency.
💰 Capital Raising & Growth Plans
In June 2024, TRIL raised ₹500 Cr via QIBs at ₹665/share to fund:
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Capacity expansion
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Technology upgrades
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Working capital
Long-Term Vision:
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FY25 Revenue Target: ₹2,000 Cr
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FY28–29 Revenue Vision: US$1 Bn
This implies a CAGR of 30–35%+—backed by tangible capacity, order flows, and market tailwinds.
🔍 Valuation & Technicals
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ROCE: 26.7% (very efficient capital use)
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EV/CE: 13.9 (rich, but justified)
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PEG Ratio: 0.2 (undervalued for its growth)
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1-Year Return: +56.97%
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3-Year Outperformance: Beats BSE 500 consistently
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Technical Trend: Bullish (MACD, KST, Bollinger all aligned)
While valuation appears stretched, the growth momentum and backward integration edge offer strong long-term value.
🔑 Investment Highlights
✅ Record-Breaking FY25 – Revenues, EBITDA, PAT, and ROCE at all-time highs
✅ Robust Order Book & Visibility – ₹5,132 Cr backlog + ₹19,000 Cr pipeline
✅ Capacity-Backed Growth – 75,000 MVA capacity by FY26
✅ CRGO Backward Integration – Margins & quality up, dependency down
✅ Strong Client Mix – Industrial + Government Utilities
✅ Ambitious Yet Executable Roadmap – US$1 Bn revenue vision
⚠️ Risks & Watchpoints
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Execution Risk on large capacity expansions
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Input Cost Volatility despite backward integration (till FY26)
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Global Export Competitiveness – Yet to scale in foreign markets
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Valuation Premium may compress if growth falters
📌 Conclusion: Is TRIL a Buy?
Transformers & Rectifiers India Ltd is not just riding the infra wave—it is building the backbone for India’s energy future. With massive order inflows, a strategic eye on renewables, and backward integration kicking in, TRIL is shaping up as a transformative play on India’s power sector.
While valuations are elevated, growth justifies the premium—especially for long-term investors seeking exposure to infrastructure, electrification, and Make-in-India themes.
Disclaimer: This blog is for educational purposes only and not investment advice. Please consult a financial advisor before making investment decisions.
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