Shares of Transformers and Rectifiers (India) Ltd (TARIL) experienced a remarkable surge of 5 percent, reaching ₹518.30 on April 9, 2025. This impressive rise marks the second consecutive day of hitting the upper circuit limit, driven by robust earnings, strong order inflows, and a positive outlook for the next fiscal year.

Stellar Q4FY25 Financial Performance

In its latest quarterly results, TARIL showcased exceptional growth, reporting a consolidated net profit of ₹94.20 crore for the quarter ending March 2025. This figure represents a significant increase from ₹39.93 crore during the same quarter last year. Revenue from operations also saw a remarkable growth of 32.96 percent year-over-year, totaling ₹683.42 crore.

• EBITDA stood at ₹140 crore, demonstrating an impressive EBITDA margin expansion of 540 basis points year-over-year, now at 19.4 percent.
• Total expenses rose by 24 percent year-over-year, amounting to ₹567.42 crore, reflecting higher production and operational scaling.

For the complete fiscal year of FY25, TARIL reported a staggering net profit of ₹216.44 crore, a sharp increase from ₹47.01 crore in FY24—nearly a four-and-a-half-fold growth. The company is also set to declare a 20 percent dividend (₹0.20 per ₹1 share) at its Annual General Meeting on May 13, 2025.

Positive Growth Projections and Expert Insights

Analysts at Nuvama Institutional Equities noted that TARIL outperformed their Q4FY25 estimates for both EBITDA and Profit After Tax (PAT) by 20 percent and 13 percent, respectively. This success was fueled by a 32 percent year-on-year increase in sales and enhanced profit margins.

• The brokerage firm highlighted a robust FY25 order inflow of ₹4,500 crore, contributing to an order backlog of ₹5,130 crore and a promising pipeline worth ₹2,200 crore.
• For FY26, TARIL aims for an order book target of ₹8,000 crore, indicating a 56 percent year-on-year growth with operating margins projected between 16–17 percent.

Furthermore, TARIL is targeting $1 billion in annual revenues over the next three to four years, leveraging strong sector trends and strategic initiatives.

Nuvama has maintained its ‘buy’ rating on TARIL shares with a target price of ₹725, citing the ongoing power transmission and distribution capital expenditure super-cycle as a significant growth driver.

A Multibagger Stock Worth Watching

TARIL’s stock has delivered impressive multibagger returns, soaring by over 108 percent in the past year, despite experiencing some fluctuations. After a 39 percent rally in March, the stock saw a decline of over 3 percent in April, following drops of 13 percent in February and 22 percent in January.

• The stock reached a 52-week high of ₹650.23 on January 8, 2025, while the 52-week low was recorded at ₹220.88 on April 8, 2024, according to BSE data.

Investors looking for promising stocks may find TARIL’s strong performance and optimistic outlook particularly appealing. As the company continues to grow and adapt to market demands, it stands out as a noteworthy opportunity in the energy sector.