The Heavy Electrical Equipment industry in India is a key sector, fulfilling the needs of the energy sector through the manufacture of equipment like boilers, turbines, generators, and switchgears. The Indian electrical equipment market is projected to grow by USD 76.24 billion from 2024 to 2028, at a CAGR of 14.3%. This growth is closely linked to the country’s power capacity addition program.

Price Movement

With a market capitalization of Rs 12,800.57 crore, the shares of Transformers & Rectifiers India Ltd were trading at Rs 852.25 per share, increasing around 4 percent as compared to the previous closing price of Rs 822.60 apiece.

Matter Explanation

The company considered and approved issuing bonus shares of the company in the ratio of 1:1, where 1 equity share with a face value of Rs 1 apiece being held, will receive 1 additional share with a face value of Rs 1 per share as on the record date. The record date of the bonus issue is 14 Feb 2025.

Financial Insight

In Q3FY25, the company reported ₹545 crore in standalone revenue, a 49% YoY increase. EBITDA surged 136% to ₹87 crore with a 15.69% margin, while PAT soared 276% to ₹50 crore, achieving a 9.12% margin, highlighting strong operational and financial growth.

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Order Book

As of December 31, 2024, the company’s unexecuted order book stands at ₹3,686 crores, with ₹19,000 crores in inquiries under negotiation or bidding. Q3FY25 saw ₹631 crores in new orders, down from ₹1,000+ crores in Q2, reflecting a strategic shift toward high-margin projects with better payment terms.

Strategic Developments

The company achieved 100% backward integration by acquiring a controlling stake in a CRGO processing unit, reducing raw material costs by 4%. It secured three technological tie-ups to enhance capabilities and supply chain efficiency and progressed in PGCIL approval after a successful 500 MVA short-circuit test.

Capacity Expansion

The company’s 15,000 MVA capacity expansion project is on track for completion by Feb-Mar 2025, with order intake starting in Q1 FY26. It targets ₹3,500 crore in revenue in FY25 and aims to reach $1 billion in revenue within the next 3-4 years.

Market Position and Outlook

The management is optimistic about India’s energy sector growth, driven by infrastructure development opportunities. The company aims to sustain profitability by adopting a selective approach to order inflow, focusing on high-yield and quick-payment projects to strengthen financial performance and long-term stability.

Company Profile

Transformers and Rectifiers (India) Limited is an India-based company, which manufactures power, furnace, and rectifier transformers. The Company is a manufacturer of a range of transformers, which provides to both the domestic and the international market.

Written by Abhishek Singh

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