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Shares of Transformers & Rectifiers gained as much as 12% in early trading on Wednesday, October 14 in reaction to its September quarter results that were reported after market hours on Tuesday.
Here are five reasons that contributed to the upmove seen in the stock today:
One, the company delivered results that were very strong on a year-on-year basis. The company's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and its Profit After Tax (PAT) more than doubled in value on a year-on-year basis.
Net profit increased by 135% to ₹79.8 crore from ₹33.9 crore last year, while EBITDA jumped 149.6% year-on-year to ₹128.6 crore.
Two, the company reported a significant jump in its margins from the same quarter last year, with EBITDA margin jumping to 17.4% from 11.2%, a growth of 620 basis points from the base quarter.
Three, the company's order book momentum continues to remain strong with order inflow rising 97% in the September quarter to ₹1,169 crore. This has taken the overall order book figure to ₹7,237 crore as on September 30, which is a 32% growth from September 30, 2025.
Four, the company's results were well above what the street was anticipating. The company's net profit for the quarter beat estimates by ₹13 crore, revenue beat expectations by nearly ₹135 crore, EBITDA was higher than expectations by nearly ₹30 crore, while margins were expected to be 16%, but turned out to be 17.4% at the end of the quarter.
Lastly, the company's management reiterated its financial year 2027 targets of 25% revenue growth, 16% EBITDA margin and PAT margin of 9% to 10%. The second quarter EBITDA margin was well above the management's guidance.
The manufacturing expansion at Changodar is nearing completion and commercial production is likely to begin close to Diwali, according to the management, who said this in the earnings call. Power transformers currently form 56% of the overall topline, while exports contribute to 8% of topline and 15% of the overall order book.
Shares of Transformers & Rectifiers are trading 11.2% higher on Wednesday at ₹338. This is the fourth straight day of gains for the stock, which has now turned positive on a year-to-date basis.
