Transformers & Rectifiers Shares Crash 11% After Q4 Results: Is TARIL Stock a Buy or Avoid Now?

Shares of Transformers and Rectifiers (India) Limited (TARIL) came under sharp selling pressure after the company announced its Q4 FY26 results, with the stock plunging nearly 11% in early trade. TARIL shares today fell as investors are concerned by recent fundamentals, which showed margin pressure and weak future visibility despite steady revenue growth.

TARIL Share Price Today

TARIL shares opened at Rs. 298 apiece on the NSE, down 10.5%, and slipped further 1% to an intraday low of Rs. 295. However, the stock recovered slightly later in the session.

At around 10:15 AM, TARIL stock was trading at Rs. 305, still down 8.49% (Rs. 28.30), despite some buying support.
The stock's recent performance has also been weak, with TARIL shares falling 36.81% over the last six months.

TARIL Q4 FY26 Results: Strong Revenue, Weak Profit Growth

TARIL reported a mixed set of earnings for Q4 FY26. Revenue from operations came in at Rs. 752.33 crore, rising 6.83% QoQ and 16.22% YoY.

Total income stood at Rs. 774.75 crore, up 9.14% QoQ and 18.24% YoY. However, profitability remained under pressure.
Profit before tax (PBT) was reported at Rs. 99.02 crore, up 3.18% QoQ and 7.48% YoY, while net profit (PAT) stood at Rs. 77.47 crore, up 9.06% QoQ but only 1.15% YoY, indicating limited bottom-line growth.

Margins Under Pressure

The key concern in the results was margin compression. Total expenses rose 10.07% QoQ to Rs. 675.73 crore, due to higher raw material costs and operational expenses. This cost pressure limited profitability growth and triggered a negative reaction in the stock price.

Should You Buy TARIL Shares Now? Brokerage View

Brokerage firm Nuvama has downgraded TARIL to 'reduce' and cut its target price to Rs. 295 from Rs. 334 earlier.
The brokerage in its recent report talked about several concerns which included:

• EBITDA margin fell to 15.3%, below guidance of 16-17%
• Gross margin declined to 31.7% from 34.9% YoY
• EBITDA dropped 9.7% YoY due to cost pressures and ESOP expenses
• Order inflows plunged 47% YoY
• Order book reduced to Rs. 50 billion, impacting visibility

As per the company's Growth Plans, TARIL has guided for FY27 revenue of around Rs. 32 billion with EBITDA margins of 15-17%. The company is also planning a capex of Rs. 6 billion, along with capacity expansion from 40,000 MVA to 75,000 MVA.

Nuvama mentioned "that the company is also eyeing opportunities from an HVDC pipeline of 10-12 projects, which could support long-term growth.TARIL stock currently presents a mixed outlook. While revenue growth remains strong, margin pressure, weak order inflows, and brokerage downgrades are weighing on sentiment. Short-term outlook remains cautious, while long-term investors may wait for clear signs of margin recovery and order book improvement before taking fresh positions."

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