TARIL share price: Why shares of this power infrastructure company slipped 11% after Q4 results

The Transformers & Rectifiers share price plunged nearly 10% on Wednesday morning after the company announced its Q4FY26 and FY26 earnings on Tuesday. The shares traded 8.4% lower at ₹303.9 apiece on the NSE.

The company announced its quarterly earnings post-market hours on Tuesday. The company’s revenue grew 23% YoY to ₹2,395 crore in FY26, and the EBITDA jumped 17% YoY to ₹370 crore. The bottom line rose by 20% YoY to ₹225 crore.

However, on a quarterly basis, the company’s earnings displayed little improvement compared to the previous year. The Q4FY26 revenue jumped 16.2% YoY to ₹752.3 crore as compared to ₹643.7 crore in the same period last year and rose 6.8% sequentially from ₹704 crore in Q3FY26. On the operational front, the company’s EBITDA jumped 4.6% YoY to ₹116 crore as compared to ₹111.7 crore in the same period last year. Despite the steady increase in EBITDA, the margin contracted by 200 bps from 17.1% to 15.1% in Q4FY26.

This was primarily due to 20% YoY jump in the cost of raw materials. Consequently, the company’s profit after tax remained largely unchanged at ₹77.31 crore as against ₹76.5 crore in Q4FY25.

What soured the investor sentiment?

Beyond the quarterly earnings, the company missed the guidance on multiple fronts, which led to investor disappointment on Wednesday. The company’s total order book for FY26 stood at ₹5,005 crore, which came in significantly lower than the guidance given in the Q3FY26 at ₹8,000 crore. The company also guided for ₹3,500 crore of order inflow for Q4FY26, but achieved ₹2,374 crore, which led to an overall miss on the order book guidance. Alongside, the company also missed on the revenue growth guidance of 25% YoY, as the FY26 revenue growth stood at 23%.

What led to the miss on guidance?

The management highlighted that the shortfall in order inflow was a strategic decision, rather than a lack of demand. Commenting on the Q4 and FY26 results, MD and CEO, Satyendra Mamora said, “Strategically delaying new orders so that we can select orders with better margin, better payment terms and new orders are more aligned with our production cycle”.

How do they plan to fill the gap?

The company's total production capacity stood at 33,000 MVA vs its planned expanded capacity of 75,000 MVA. The company continues to maintain a strong order pipeline of ₹23,000 crore. Despite the healthy order backlog, the company aims to profile orders with healthy and better margin structure, favourable payment terms and alignment with its production cycle. To fulfil the healthy demand, the company has also announced a capex investment worth ₹600 crore over the next 15 months.