Transformers and Rectifiers Jumps 14% as Q2 Profit Soars 135%: What Next?

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

1. Start of commercial production at the new plant around Diwali
2. Order inflow and order book in the Q3 update
3. Whether the EBITDA margin stays above 15%
4. Conversion of the Rs 21,000 crore enquiry pipeline
5. 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.

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.