TARIL || Consistently Performing Stocks #35
What has led to the consistency?
Every week I study the business of one stock as part of my research activities as a SEBI registered RA. The primary objective of this post is to understand the business in the context of its performance over the last 5 years and how they are able to perform consistently. Most of the research below is based on past Annual Reports and recent Quarterly Investor presentations. This is an educational post and not a recommendation to buy the stock.
Let’s start ⬇️
Today, we will look at the key fundamentals & business of Transformers & Rectifiers (India) Ltd.
Key Fundamental Metrics of TARIL
What Has Led to This Consistency
Company Overview
Established in 1981 as Triveni Electric Company and restructured as TARIL in 1995, Transformers & Rectifiers India Limited has evolved into India's third-largest transformer manufacturer.
It holds 50% market share in furnace transformers segment with ₹2,227 crores revenue and 40,000 MVA manufacturing capacity. It has 3 facilities in Gujarat serving 25+ countries through 12,000+ installations.
Product Segments include:
Power transformers (utility and industrial applications up to 1000 MVA, 1200 kV class)
Distribution transformers (grid infrastructure, energy-efficient designs, packaged substations)
Furnace transformers (electric arc furnace, submerged arc furnace, specialized rectifier applications)
Specialty products (reactors, mobile substations, testing transformers, metro rail applications)
TARIL operates engineered-to-order manufacturing, generating project-based revenue through advance payments, progress billing, and commissioning settlements.
Policy & Demand Tailwinds
India’s National Electricity Plan (Transmission) launched on October 14, 2024 underlines the grid build-out needed to reach ~500 GW RE by 2030, reinforcing multi-year demand for EHV transformers and reactors.
In FY25, PGCIL (India’s central transmission utility) lifted its capex target to ₹18,000 crore, signaling stronger procurement of transformers/reactors by central utilities.
Several States are actively tendering Green Energy Corridor packages slated to complete by 2025–26, providing near-term visibility for network equipment.
On June 10, 2025, India extended the inter-state transmission (ISTS) charge waiver for storage to June 2028, sustaining grid-side investment momentum that typically pulls transformer demand.
CRGO Steel Processing Control
TARIL completed the acquisition of a controlling 51% stake in Posco-Poggenamp Electrical Steel (PPESPL) on February 3, 2025, securing India’s largest dedicated CRGO processing capability.
TARIL's 24,000 MT annual CRGO processing facility eliminates external supplier dependency and ensures consistent material quality → Supply security
Backward integration through Posco Poggenamp controls magnetic steel properties enabling superior transformer efficiency for critical utility applications → Quality control
A capex outlay of ~₹550 crore over 15 months is planned to establish multiple backward-integration lines, with a stated goal to be 100% backward-integrated by Q1 FY26-27.
Exclusive CRGO processing capability guarantees material availability during peak demand cycles.
Ultra-High Voltage Regulatory Barriers
TARIL maintains exclusive regulatory approvals and specialized testing infrastructure for world's highest voltage transformer manufacturing.
TARIL's 1200 kV transformer represents world's highest AC voltage capability, creating unmatched technical credibility with global utilities → Technology leadership
Moraiya facility houses India's largest private testing laboratory with international validation from KEMA Netherlands creating customer confidence → Testing monopoly
Ultra-high voltage segment limited to 3-4 qualified manufacturers globally enabling significant pricing premiums and protected market access → Pricing power
Steel Industry Customer Lock-In
TARIL holds 50% market share in India's furnace transformer segment with proven global leadership in specialized applications.
TARIL's proprietary furnace designs include world's largest transformers manufactured globally, handling extreme electrical loads across Russia, Mexico, and Iran
International furnace installations spanning 156 MVA Russia project to 253 MVA transformers validate technical superiority over competitors
TARIL's proven reliability in steel manufacturing ensures 15+ year customer relationships with repeat orders from major global players → Customer retention
Technology Breadth & Adjacencies
In FY25, TARIL won its maiden order for 193 MVA single-phase STATCOM transformers, entering a grid-stability adjacency with favorable policy support.
It also received an order for a 420 kV three-phase reactor using synthetic ester insulating fluid from Power Grid, signaling competence in newer, sustainability-aligned dielectrics.
On February 18, 2025, TARIL disclosed ₹166.45 crore orders from Hyosung T&D India for single-phase coupling transformers for TBCB projects, widening participation in advanced transmission schemes.
Exports & Global References
In FY25, TARIL exported a 220/253 MVA EAF transformer—among the largest ratings manufactured globally—advancing its heavy-industrial credentials.
The company also reported an order for a 175 MVA EAF transformer from ArcelorMittal Mexico, demonstrating repeatability at marquee global steel sites.
On June 20, 2025, TARIL secured a USD 16.65 million export order (12 transformers) from Jindal Energy Botswana, broadening the international order book.
Consistency Formula
CRGO steel processing control → Cost & Quality edge
Ultra High-voltage Credentials → Pricing power & Access
Visible Demand Runway & Strong Orderbook → Sustained Revenues
That’s all for this week.
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Disclaimer: Anand Ganapathy K is a SEBI-registered Research Analyst with SEBI registration number INH000016630. This post is purely for learning purposes to understand more about the business. It does not recommend buying or selling stocks mentioned in this newsletter. Securities market investments carry market risks. Kindly review all related documents before investing.