ABOUT THE COMPANY
Transformer and Rectifiers (India) Limited [TRIL] is a leading manufacturer of wide range of transformers including power transformers, rectifier transformer and distributor transformer. TRIL has evolved as a key player in the power transmission and distribution ecosystem. Its revenue has been majorly dependent on the domestic demand, comprising 92% of its revenue in FY24 and 8% through exports in FY24. The company is India’s second largest transformer manufacturer by capacity with a combined capacity of 40,000 MVA. The company is expecting to expand its capacity by 15,000 MVA to manufacture transformers for the renewable energy sector. As of FY25 company has an order book of ₹5,132 crore while the management targets to expand it to ₹8,000 crore in FY26, ensuring strong revenue visibility in the future.
Quick peer context:
| Company Name | Market Capitalization | Return On Capital Employed | Stock P/E Ratio |
| Transformer and Rectifiers (India) Limited [TRIL] | ₹ 14,827 Crores | 28.0 % | 57.2 |
| Voltamp Transformers | ₹ 7,276 Crores | 29.1 % | 22.4 |
| Shilchar Technologies | ₹ 5,102 Crores | 71.3 % | 31.0 |
Analysis of the Financial Statements
Revenue Growth Trend
The company has shown an extraordinary growth in sales in the past years. Its sales went from Rs 701 crores to Rs 2,017 crores from FY20 TO FY25. The same has been reflected through its stock prices, which nearly became 108x in the past 5 years. The robust order book of the company and the management target of expanding the order book to Rs 8,000 crores in FY26 shows us strong revenue visibility and the same for its stock prices.
| March 2020 | March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 701 CRORES | 742 CRORES | 1,158 CRORES | 1,396 CRORES | 1,291 CRORES | 2,017 CRORES |
Profitability & Margin Analysis
Operating Profit Margin of the company has shown a sharp increase in the past from 7% to 16% in the past 5 years, showing the management focus on cost efficiency and better profits, but while comparing its OPM with its peers it indicates that it has been made better for better profits. Voltamp Transformers Ltd has a OPM of 19% in FY25 while Shilchar Technologies Ltd OPM is 30% in FY25.
| March 2020 | March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 7% | 9% | 6% | 9% | 10% | 16% |
Balance Sheet Strength
Total Assets of the company have shown an increase from Rs 933 crores to Rs 2,187 crores in the past 5 years. Much of this increase is due to the investments made by the company which is Rs 268 crores as of March 2025 showing its investments for increasing its manufacturing capacity and its funds locked in the Capital Work in Progress which went from 0 to Rs 68 Crores in the 5 years.
| March 2020 | March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 933 CRORES | 925 CRORES | 1,109 CRORES | 1,187 CRORES | 1,170 CRORES | 2,187 CRORES |
Debt Profile
Company has reduced its debt in the past 5 years from RS 308 crores in March 2020 to Rs 283 crores in March 2025 while its peers Voltamp Transformers and Shilchar Technologies operate debt free. Reserves and surplus have increased significantly during the past 5 years standing at Rs 1,222 crores as of March 2025 indicating fuel for self-growth.
Reserves and Surplus:
| March 2020 | March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 323 CRORES | 330 CRORES | 343 CRORES | 381 CRORES | 540 CRORES | 1,222 CRORES |
Cash Flow Health
The Cash from Operating Activity has remained positive throughout the years and been growing at a steady phase, a very constructive sign for a company in investment phase. The cash conversion cycle of the company is 94 days, which is goof for such industry. The cash generated and the cash conversion cycle is a critical indicator of a healthy business model that generates real cash from its core activities.
Comparative Data with Key Competitors (Larsen & Toubro, Honeywell Automation India)
| Parameter | Voltamp Transformers | Shilchar Technologies | Transformers & Rectifiers (India) |
| Sales Growth (5-Yr CAGR) | 13% | 54% | 28% |
| Operating Profit Margin | 19% (Stable) | 31% (Improving) | 16% (Improving) |
| Debt-to-Equity | 0 (Low) | 0 (Low) | 0.21 (Low) |
| Reserves Growth | Strong (29% CAGR) | Strong (27% CAGR) | Strong (50%+ CAGR) |
| Cash Flow | Consistently Positive | Consistently Positive | Positive Improving |
Disclaimer: The article is for informational purposes only and not investment advice.