Shares of Transformers & Rectifiers India (TRIL), a leading transformer manufacturer, were locked in a 20% lower circuit in Monday’s session, November 10, falling to the lowest level since October 2024. Today’s drop also marked the eighth straight day of decline, resulting in a cumulative fall of 31%, the worst sustained crash the shares have seen in the recent past.
Today’s crash in the shares followed the company’s September quarter results announcement post-market hours on Friday, with numbers coming below Street estimates. The company’s net profit during the reporting quarter dropped to ₹34 crore, a 24% YoY decline from ₹45 crore reported in the same period last year.
Revenue from operations remained flat at ₹460 crore compared with ₹462 crore in the year-ago quarter. At the operating level, EBITDA stood at ₹51.3 crore, a 27% drop from ₹70 crore in the September 2024 quarter, with margins contracting by 398 basis points YoY to 11.15%.
Its margins were impacted by a sharp rise in employee benefit expenses, which soared 116% YoY to ₹26.05 crore.
Apart from the poor financial performance, the World Bank has debarred the company from participating in World Bank-financed projects for engaging in alleged corruption and fraud tied to a $486 million project to improve Nigeria’s electric grid, CNBC-TV18 reported.
Looking at the company’s H1FY26 performance, net profit improved by 57% to ₹105 crore, while revenue from operations jumped to ₹989.36 crore from ₹783.54 crore. Its operating margins stood at 17% compared with 15.91% in the same quarter last year.
Meanwhile, the company also shared an update on order inflows, which stood at ₹592 crore in Q2, taking the unexecuted order book to ₹5,472 crore. It also mentioned that order inquiries under negotiation were at ₹18,700 crore.
TRIL shares now trade at a 52% discount to the record price
The recent crash has brought the stock to trade at a 52% discount from its record price of ₹648.90, touched earlier this year. In the current month, the stock has already lost 30% of its value. However, over the long term, the stock has still delivered strong returns, gaining 1,000% over three years and 6,600% over five years.
The company’s shares have shown a consistent upward trend since July 2022 without any significant corrections, providing substantial returns to shareholders. During this period, the stock price has surged from ₹14.65 to ₹405, resulting in an impressive return of 2,664%.
TRIL serves a wide range of sectors, including power generation, transmission and distribution, railways, renewable energy, infrastructure, and industrial manufacturing. The company has a strong domestic presence in India and has successfully expanded globally, exporting products to several countries across Asia, Africa, the Middle East, and beyond.
Its diverse product range includes power transformers up to 500 MVA & 1200 kV Class, furnace transformers, rectifiers, distribution transformers, and specialty transformers.
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