Transformers and Rectifiers Jumps 14% as Q2 Profit Soars 135%: What Next?
- October 14, 2026
- Posted by: Neeraj Pandey
- Category: News
Transformers and Rectifiers Q2 FY27: net profit Rs 80 crore (+135%), revenue Rs 739 crore (+61%), EBITDA margin 17.35% (from 11.35%). Unexecuted order book Rs 7,237 crore (+32%). Stock closed Rs 304 on 13 Oct; headline says it jumped 14% on 14 Oct.
Quick Answer
Transformers and Rectifiers reported a Q2 FY27 net profit of Rs 80 crore, up 135% from Rs 34 crore, on revenue of Rs 739 crore, up 61%. The EBITDA margin rose to 17.35% from 11.35%, and the unexecuted order book stood at Rs 7,237 crore, up 32%. The stock closed at Rs 304 on 13 October before the results, and your headline says it jumped 14% on 14 October, which is about Rs 347 on my calculation. Sources differ on Q2 order inflow, so check the filing.
Transformers and Rectifiers is a Gujarat-based maker of power and distribution transformers, and its Q2 numbers beat a low base. The company said higher utilisation at its Changodar and Moraiya plants drove revenue, and a new transformer plant is close to starting.
This guide explains the Q2 FY27 numbers, the order book, the expansion plan, the valuation questions and the risks. Where I calculate a figure myself, I label it.
The shares of Transformers and Rectifiers were already up about 3% on 13 October ahead of the results, so part of the good news may have been priced in before the 14% jump.
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Transformers and Rectifiers Q2 FY27 Results
| Metric | Q2 FY27 | Q2 FY26 | Change |
|---|---|---|---|
| Revenue from operations | Rs 739 crore | Rs 460 crore | +61% |
| EBITDA | Rs 128 crore | Rs 52 crore | About 2.5 times (my calculation) |
| EBITDA margin | 17.35% | 11.35% | +6.0 percentage points |
| Net profit | Rs 80 crore | Rs 34 crore | +135% |
| Net profit margin | About 10.8% | About 7.4% | My calculation |
| Half year (H1 FY27) | H1 FY27 | H1 FY26 | Change |
|---|---|---|---|
| Revenue from operations | Rs 1,312 crore | Rs 989 crore | +33% |
| Net profit | Rs 141 crore | Rs 101 crore | +39% |
From these figures, Q1 FY27 revenue was about Rs 573 crore and net profit about Rs 61 crore (my calculation), so Q2 revenue grew about 29% from Q1. A year earlier, Q2 profit had fallen 19% according to a Business Standard headline, which means the base was low.
Risk: A 135% Q2 profit rise on a low base can look better than the underlying trend. Check whether Transformers and Rectifiers can hold margins in the next quarters.
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Transformers and Rectifiers Order Book and Order Inflow: What the Numbers Say
| Item | Figure | Note |
|---|---|---|
| Unexecuted order book | Rs 7,237 crore | Up 32% from Rs 5,472 crore |
| Execution period | 18 to 24 months | Management view |
| Pipeline of enquiries | About Rs 21,000 crore | Mostly domestic utility and industrial projects, plus exports |
| Q2 order inflow | Rs 3,283 crore or Rs 1,169 crore | Sources differ |
The order book is about 2.4 times annualised Q2 revenue (my calculation: Rs 7,237 crore divided by Rs 2,956 crore), which gives visibility for about two years.
Data conflict: One report gives Q2 order inflow as Rs 3,283 crore, and another gives Rs 1,169 crore, up 97% year on year. I could not reconcile them, so verify in the company filing.
Capacity Expansion at Transformers and Rectifiers
The CEO credited improved utilisation at the Changodar and Moraiya plants for the revenue growth. The transformer manufacturing expansion is nearing completion, with commercial production expected around Diwali, and management says it is well placed to scale in H2 FY27.
| Plant item | Status |
|---|---|
| Changodar and Moraiya utilisation | Improved in Q2 |
| New transformer capacity | Nearing completion |
| Commercial production | Expected around Diwali |
| H2 FY27 plan | Scale manufacturing |
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What Next for Transformers and Rectifiers: Risks
| Risk | Why it matters |
|---|---|
| Low base | Q2 FY26 profit fell 19%, so growth looks higher |
| Margin sustainability | 17.35% is well above 11.35% a year ago |
| Execution | New plant start-up may slip |
| Order data | Inflow figures differ across sources |
| Price after the jump | A 14% rise leaves less room for error |
The results article I used gave no valuation figures, so I cannot say whether Transformers and Rectifiers is undervalued or overvalued after the jump.
Risk: Power equipment demand depends on utility and industrial spending. A slowdown in orders would hit Transformers and Rectifiers quickly.
What to Watch Next for Transformers and Rectifiers
- Start of commercial production at the new plant around Diwali
- Order inflow and order book in the Q3 update
- Whether the EBITDA margin stays above 15%
- Conversion of the Rs 21,000 crore enquiry pipeline
- The share price after the 14% jump
Conclusion
Transformers and Rectifiers delivered Q2 profit up 135%, margins near 17% and an order book of Rs 7,237 crore, and the stock jumped 14%. The base was low and order inflow data conflict, so watch the new plant and the next margin print.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
What were the Transformers and Rectifiers Q2 FY27 results?
Ans. Net profit was Rs 80 crore, up 135%, revenue was Rs 739 crore, up 61%, and the EBITDA margin was 17.35%.
Why did Transformers and Rectifiers jump 14%?
Ans. The headline links the jump to the Q2 profit rise of 135%, strong margins and a growing order book.
What is the Transformers and Rectifiers order book?
Ans. The unexecuted order book was Rs 7,237 crore, up 32% year on year, to be executed over 18 to 24 months.
What was the Q2 order inflow?
Ans. Reports differ: Rs 3,283 crore in one and Rs 1,169 crore in another. Check the filing.
When will the new plant start?
Ans. Commercial production is expected around Diwali.
What was the share price before the results?
Ans. The stock closed at Rs 304 on the NSE on 13 October, up 3.12%.
What are the risks?
Ans. A low base, margin sustainability, plant start-up delays, conflicting order data and a higher price after the jump.
Is this article investment advice?
Ans. No. It is educational. Speak to a SEBI registered adviser before investing.
