Transformers and Rectifiers' stock surged more than 18% on October 14, 2026, after the company reported strong financial results for the second quarter of the fiscal year 2026-27. Investors reacted positively to a 135% jump in net profit and notable margin expansion, signaling robust business performance.
- Net profit increased by 135% to ₹80 crore in Q2 FY 2026-27.
- Revenue from operations grew 61% to ₹739 crore compared to the previous year.
- EBITDA margins expanded by 600 basis points to 17.35%.
- Stock price rose 18.6% to an intraday high of ₹360.80.
- Trading volume surged nearly 10 times the one-week average.
What caused the sharp rise in Transformers and Rectifiers' stock price?
The stock price increase was driven by the company’s strong quarterly earnings report. Transformers and Rectifiers posted a consolidated net profit of ₹80 crore in Q2 FY 2026-27, up from ₹34 crore in the same quarter last year. This 135% growth in profit attracted significant investor interest.
Additionally, the company’s revenue from operations rose 61% to ₹739 crore, supported by higher utilization rates at its Changodar and Moraiya plants. Operating profits also increased substantially to ₹128 crore from ₹52 crore, contributing to improved margins.
How did the company’s margins improve during the quarter?
Transformers and Rectifiers expanded its EBITDA margins by 600 basis points, reaching 17.35% compared to 11.35% in the previous year’s quarter. This margin growth reflects better cost control and operational efficiency, likely due to increased production and optimized plant utilization.
What does the company’s management say about future prospects?
Satyen Mamtora, the Managing Director and CEO, stated that the company is well positioned to scale up manufacturing capabilities in the second half of FY 2026-27. The management attributes the revenue growth to improved utilization levels at key plants, indicating confidence in sustaining and enhancing performance.
How has the stock performed over recent years?
Transformers and Rectifiers shares have delivered impressive returns over the long term. In the last five years, the stock has gained more than 2,249%. Over the past three years, investors have seen returns exceeding 305%. However, the stock experienced a decline of about 26% over the last year.
In 2026 alone, the stock has risen 14.7% year-to-date and gained 22% in the past month. The recent rally includes a 22% return in the last five trading sessions. The stock reached a 52-week high of ₹495.95 in October 2025 and a low of ₹224.05 in February 2026.
What was the trading activity like on the day of the rally?
On October 14, 2026, trading volumes surged to over 2.97 crore shares, nearly 10 times the one-week average volume of approximately 30.7 lakh shares. This high trading activity supported the sharp price increase and reflected strong investor interest.
What is the current market capitalization of Transformers and Rectifiers?
As of October 14, 2026, the company’s market capitalization stood at ₹10,591 crore, reflecting its significant presence in the stock market and investor confidence following the strong quarterly results.
