As of Mar 28, 2026, Transformers & Rectifiers India Ltd (Capital Goods - Transformers) has a deep value score of 62/100 (rated Strong). Earnings are accelerating. 1Y return vs Nifty 500: -45%.
Deep value thesis based on recent earnings • Updated Feb 22, 2026
TARIL's structural margin recovery (17.54% EBITDA margin) and ₹5,450 crore order book provide sustainable earnings growth beyond cyclical recovery.
Verdict
TURNAROUND_IN_PROGRESS
Re-rating catalysts over the next 2-4 quarters • Updated Feb 22, 2026
₹2,600 crore revenue target (25%+ YoY) to be confirmed by March 2026 results, validating growth sustainability.
Impact: +₹2600 Cr revenue
“Management guidance in Q3 con-call; current run-rate supports target”
Completion of maiden STATCOM transformer order by Q1 FY27, proving diversification beyond core business.
Impact: +₹150 Cr revenue
“Order secured in Q3; new product line with higher margins”
Debt-to-equity ratio reduction to 0.45x by Q4 FY26 through operational cash flow, lowering interest costs.
“Current D/E at 0.55x; strong CFO generation (₹210 crore in 9M FY26)”
Risks that could prevent re-rating or deepen the value trap
Order book execution accelerates faster than capacity expansion
Impact: -150 bps margin impact
Management view: Management addressing through working capital optimization initiatives per Q3 con-call
Monitor: DSO trend in Q4 results
10%+ increase in key raw material prices
Impact: -200 bps margin impact
Management view: Backward integration facility now operational to mitigate volatility
Monitor: Quarterly raw material cost as % of revenue
Regulatory changes in power equipment procurement
Impact: -100 bps margin impact
Management view: Long-standing relationship with Power Grid (award recipient) provides buffer
Monitor: Order conversion rate from inquiries
Forward-looking targets from management for FY26
Revenue Growth Target
25%
Implied PAT Growth
35%
OPM Guidance
17.5%
Capex Plan
₹120 Cr
Credit Growth Target
0%
NIM Guidance
0%
Key Milestones
• ₹2,600 crore revenue by Mar 2026
• Order book to reach ₹8,000 crore by FY26 end
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +32% | +20% | Stable |
| PAT (Net Profit) | +38% | +80% | Stable |
| OPM | 17.0% | +200 bps | Volatile |
The above analysis is AI-generated from publicly available financial data. This is educational research only — not investment advice. Last updated Feb 22, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
Transformers & Rectifiers India Ltd has a deep value score of 62/100 (rated Strong). This score is calculated from three components
Transformers & Rectifiers India Ltd's quarterly profit (PAT) growth trajectory
Transformers & Rectifiers India Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
Transformers & Rectifiers India Ltd's earnings momentum is Steady — consistent growth.
Transformers & Rectifiers India Ltd's valuation metrics
Transformers & Rectifiers India Ltd's revenue and margin trends
Transformers & Rectifiers India Ltd's trailing twelve month (TTM) performance
Transformers & Rectifiers India Ltd key facts
Transformers & Rectifiers India Ltd shows strong deep value signals — good score (62/100), accelerating earnings, and significant underperformance vs Nifty.
Other deep value stocks in Capital Goods - Transformers
Capital Goods - Transformers deep value sector overview
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
Transformers & Rectifiers India Ltd has 3 key growth catalysts identified from recent earnings analysis
Transformers & Rectifiers India Ltd has 3 key risks worth monitoring
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
