TRANSFORMERS AND RECTIFIERS INDIA

Poised to ride India’s rising power needs

Gujarat-based Transformers and Rectifiers (TARIL) is the country’s leading manufacturer of transformers of the 1200 kV class. It has a wide range of transformers like power and distribution transformers, furnace transformers, rectifier transformers and special transformers. The company has strong in-house design and technical expertise along with technical collaboration/JV ties for 765 kV transformers and reactors, along with a diversified customer base in India and a presence across 25 countries.

Around 45% of its revenues comes from utilities like SEB, PGCIL and Railways, while 55% comes from industries for renewables and exports, including third-party exports.

TARIL was dull and listless in performance for several years, but has now started doing very well on the financial front. Sales, which was moving in a narrow groove of Rs 732 crore (fiscal 2014) and Rs 742 crore (fiscal 2021), shot up to Rs 2,017 crore in fiscal 2025, while operating profit which was more or less stagnant between Rs 42 crore (fiscal 2014) and Rs 71 crore (fiscal 2022), zoomed to Rs 327 crore in fiscal 2025, and net profit which was hovering at single digits between Rs 5 crore (fiscal 2014) and Rs 8 crore (fiscal 2021), took a big jump to Rs 216 crore in fiscal 2025. Though the first half of 2026 was not that encouraging, the situation has started improving from Q3FY26, and its future prospects going ahead are all the more promising. Consider:

NEW TECH

• The transformer rectifier market is poised for explosive growth. According to research anlaysts, this market will hit the $ 2 billion mark by 2026, driven by a rise in industrial automation, and is expected to reach $ 2.70 billion by 2032, exhibiting a CAGR of 4.6 per cent in this period. The transformer rectifier market is experiencing increased adoption of energy-efficient and compact models, driven by their ability to lower power consumption and save space. Additionally, the rising demand for renewable technologies is fuelling the need for advanced transformer rectifiers that can seamlessly integrate with solar and wind-power systems. At the same time, increasing renewable energy integration is unlocking new growth prospects.

POWER THIRST

• According to a study, by 2027 the world's electricity consumption is expected to rise by about 8,300 terra watt hours (TWh), with emerging economies making the largest contribution. As far as India is concerned, its 1,700 TWh electricity demand is expected to increase by more than 20% by 2027 due to industrialisation, the ambitions of an expanding middle class, and modernisation and expansion of the country's electrical grid to support this growth. With growth rates much higher than the global average, the nation is one of the most vibrant and quickly expanding power transmission markets in the world. All these developments will be highly beneficial to a leading transformer company like TARIL.
• The company has acquired a controlling interest in a cold-rolled, grain-oriented (CRGO) steel processing facility -- a crucial, strategic decision made this year. As CRGO electrical steel makes up almost a third of transformer raw material, dependable transformer performance depends on its consistency and quality. The company's market position, operational effectiveness and supply chain management will be greatly improved by this acquisition.
• TARIL is establishing a fully automated radiator facility. Phase I of this facility is already operational, and the entire project is expected to be completed by the next fiscal year. This facility can manufacture radiators for applications up to 765 kV, significantly advancing the company's backward integration strategy and expanding its capabilities.

CAPACITY BOOST

• Additionally, the company has chosen to add 22,000 kVA to its extra high-voltage transformer capacity. Commercial production is expected to start in February 2026. With this expansion, the company will be able to produce more than 75,000 kVA.
• The company has secured a Rs 53.33 crore order for the repair, creation, testing and commissioning of a 397 MVA HVDC converter transformer and related works from Power Grid Corporation. With this order, TARIL will enter the exclusive club of HVDC transformer manufacturers globally. This opens up major opportunities for the company in the HVDC segment. In fact, TARIL is the first Indian-origin private sector company to receive such an order.

SHARES CLIMB

• The earlier listless performance and is disappointing show for Q2FY26 have brought down the share price of TARIL from Rs 650.23 in January 2025 to Rs 230 in the second week of December 2025. But investor sentiment is turning positive and the future prospects seem to be highly encouraging. The share price, instead of falling further from the recent low of Rs 230, has started recovering to reach Rs 296. The company's performance has started improving and will improve further on account of the factors mentioned earlier. Fundamentally, the company is very strong and the outlook is bullish. According to some research analysts, the price will shoot up to Rs 500 within a year or so.

PERFORMANCE INDICATORS (Rs. in crore)

GRAUER & WEIL (INDIA)

Uncrowned king of surface coating

Mumbai-headquartered Grauer & Weil, a small-cap commodity chemicals company, is a trail-blazer in surface finishing with a track record spanning almost six decades. Popularly known as Growel, it is the only company in India – and one of the very few in the world — that offers all types of substrates across various industry segments. The company’s broad business segments are three – surface finishing (which accounts for the lion’s share of around 83% of revenue), engineering (13%) and shopping malls (4%). Broadly speaking, the manufacturing activity has five divisions – (a) chemicals, (b) engineering, (c) paints, (d) lubricants, and (e) realty.

The company’s main plant is located at Pune in Maharashtra, and manufactures a wide range of finishing and waste-water treatment equipment, tailor-made to meet the specific surface finishing requirements of every industry. By now, the company has commissioned 300+ plants of varied types worldwide. Its solutions address the surface finishing and protection needs of various sectors, including automobiles, aerospace, defence, fasteners, hardware, electronics, electricals, white goods, jewellery, PSUs and railways.

Growell has been performing extremely well on the financial front all these years. During the last 12 years, its sales turnover has more than trebled from Rs 380 crore in fiscal 2024 to Rs 1,134 crore in fiscal 2025, with operating profit also more than trebling from Rs 61 crore to Rs 189 crore and the profit at net level shooting up more than 5 times from Rs 30 crore to Rs 157 crore. But due to some headwinds, the company’s growth has stopped in the current year so far and sales as well as earnings during the first quarter of fiscal 2026 have declined, presenting a negative trend. However, the management is confident that the trend will reverse, going ahead. Consider:

HIGH QUALITY

• All its divisions are above-average and turn out highquality products. The chemicals division offers a plethora of solutions under one roof, including electroplating, and speciality chemicals, zinc flake coatings, and phosphating and anodizing processes to address surface finishing and protection needs across a range of industries. Its paints division offers a spectrum of high-performance customised coating solutions for industrial solutions. Its six strategically located manufacturing plants across India are equipped to produce an extensive array of surface coatings.
• The company delivers comprehensive solutions for manufacturing and supplying fully automated surface treatment plants and water as well as wastewater treatment equipment. The engineering division in Pune is primarily engaged in conceptualising and installing different types of equipment for meeting the surface finishing requirements of various industries.

PRODUCT MENU

• The electroplating chemical division has a wide basket of products and the chemicals manufactured by the company find applications in various industries like automobiles, home fittings, consumer durables, and gems & jewellery. Growel benefits from a well-diversified product portfolio in its chemical segment.
• The engineering division is involved in manufacturing and providing turnkey solutions for electroplating plants, effluent treatment plants and other engineering products.
• The diversified revenue has helped the company reduce its dependency on — as well as tide over any downturn in — a particular business segment.
• Growel is strong in R&D and is working towards cutting-edge technologies in the areas of surface coatings, electrical paints and metal working fluids, which will allow it to maintain its leader ship in the years to come. It is also constructing a new R&D centre in Vasai near Mumbai, which is expected to be operational in fiscal 2026.

FINE FETTLE

The company’s financial position is very strong, with reserves at the end of September 2025 standing at Rs 952 crore – more than 121 times its equity capital of Rs 45 crore, that too after a 1:1 bonus issue made in fiscal 2024. The company’s debt is on the decline – from Rs 25 crore in fiscal 2024, it has come down to just 12 crore, and the interest burden is negligible at around Rs 4 crore. Due to the dropping sales and earnings in the current year so far, the share price has declined to Rs 75. But the trend is expected to reverse going ahead and the share price will then start moving upwards once again.

PERFORMANCE INDICATORS (Rs. in crore)