TARIL shares crash 11% after Q4 results, dividend announcement: What’s spooking investors?

Shares of Transformers and Rectifiers (India) crashed more than 11% to Rs 295 on Wednesday after the company reported a 5% year-on-year (YoY) decline in consolidated net profit to Rs 89 crore for the fourth quarter of the financial year 2026, while announcing a dividend of Rs 0.25 per share.

The company announced the outcome of its board meeting in the post-market hours of Tuesday. WhileTARIL’s consolidated net profit declined, the company’s revenue from operations increased nearly 16% YoY to Rs 783 crore during the January-March quarter of FY26.

TARIL reported an order book of nearly Rs 5,005 crore with FY26 inflows at Rs 2,374 crore. Total income grew 18% YoY to Rs 805 crore, while total expenses increased nearly 21% YoY to Rs 686 crore.

On a standalone basis, the firm’s net profit gained a little over 1% YoY to Rs 77.5 crore, while revenue from operations increased 16% YoY to Rs 752 crore during the quarter under review. Net profit margin, however, contracted 170 basis points to 10%, while the EBITDA margin declined 200 basis points to 15.1%.

Net profit for the entire financial year 2026 gained more than 20% YoY to Rs 225.43 crore, while revenue from operations increased around 23% YoY to Rs 2,395.49 crore. EBITDA, meanwhile, rose 17% YoY to Rs 370 crore.

What TARIL’s management said

“FY26 has been a year of strong and consistent performance for TARIL. Our ability to deliver robust revenue growth along with sustained profitability reflects the strength of our execution capabilities and disciplined operational approach. The healthy order inflows and strong order book provide us with clear visibility for the coming periods. As we continue to scale our capacities and enhance our technological capabilities, we remain focused on improving efficiencies, strengthening margins, and delivering long-term value,” said Satyen J. Mamtora, Managing Director & CEO of TARIL.

The company added that it continues to benefit from improvements in manufacturing efficiency, supply chain optimisation and project execution. “In line with its growth plans, the company is undertaking a planned capex investment of approximately Rs 600 crore over the next 15 months to enhance capacity and support future demand,” it said.

Along with the Q4 results, TARIL announced a dividend of Rs 0.25 (25%) per equity share with a face value of Re 1 each. The record date to determine the eligibility of shareholders set to receive the payment is yet to be announced.

TARIL share price

TARIL shares dropped to an intraday low of Rs 295 apiece on NSE on Wednesday. The company has a market capitalisation of nearly Rs 9,150 crore.

In the longer term, the stock has rallied over 830% in three years and more than 3,350% in five years.

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