TARIL vs Voltamp Transformers: Who is dominating India’s transformer sector?

SYNOPSIS: The article explores two transformer manufacturers with solid Q3 FY26 performance, along with strong order books and sectoral demand, with one delivering sharper profit growth while the other maintains steadier execution and margins.

The Indian power transformer market, which generated Rs. 16,063 crore in revenue in FY22, is projected to reach Rs. 28,744 crore by FY30. This growth is expected to be propelled by expanding power generation capacity, investments in transmission and distribution infrastructure, and the need to meet the nation’s rising energy demand. India manufactures a wide range of power and distribution transformers, including specialised variants used in furnaces, electric traction systems, and rectifiers.

Within this evolving industry landscape, Voltamp Transformers Limited and Transformers & Rectifiers (India) Limited (TARIL) have emerged as two players shaping the domestic transformer market. While both companies operate in similar domains, they differ in product specialisation, financials, and order book. This article explores their key differentiators, examining how each company is leveraging industry opportunities and strengthening its position in the fast-growing transformer sector.

Price Movement

With a market cap of Rs. 7,929 crores, shares of Transformers and Rectifiers (India) Limited tumbled nearly 4 percent to Rs. 261.5 on BSE. The stock has delivered negative returns of around 31 percent in one year, but has gained by just over 1 percent in the last one month. Additionally, the stock is currently trading at a discount of nearly 56 percent from its 52-week high of Rs. 594.8 on BSE, recorded on 23rd April 2025.

Meanwhile, shares of Voltamp Transformers Limited moved up by nearly 1 percent on BSE to Rs. 8,010.5 on Monday. The stock has delivered positive returns of around 25 percent in one year, and has gained by about 10 percent in the last one month. Further, the stock is currently trading at a discount of nearly 21 percent from its 52-week high of Rs. 10,078.75 on BSE, recorded on 10th July 2025.

Company Overview & Product Portfolio

Transformers and Rectifiers (India) Limited (TARIL), a prominent player in the manufacturing of transformers & reactors in India, offers a diverse product portfolio that includes single-phase power transformers of up to 500 MVA and 1200 kV class, furnace transformers, and rectifier and distribution transformers. It also manufactures specialty transformers designed for applications such as locomotive traction, along with series and shunt reactors, mobile substations, earthing transformers, solar application transformers, and green hydrogen application transformers.

TARIL operates on a B2B business model, catering primarily to the power generation, transmission, distribution, and industrial sectors. The company has an installed manufacturing capacity of around 40,000 MVA across its units.

Voltamp Transformers Limited (VTL) specialises in the design, manufacture and supply of both oil-filled and dry-type transformers. It serves a wide range of sectors – including Power, Oil & Gas, Petrochemicals, Steel, Cement, Data Centres, Green Energy and Commercial Infrastructure. Its clientele spans quality-focused corporates, utilities, PSUs, EPC contractors and global engineering firms.

Voltamp offers a comprehensive, energy-efficient, and customizable range of transformers and related services. The company’s product portfolio includes Oil-Filled Power and Distribution Transformers with capacities of up to 160 MVA and voltage levels ranging from 11 kV to 220 kV. As of FY25, it operates four state-of-the-art manufacturing facilities in Gujarat, with a total installed capacity of 14,000 MVA.

It also manufactures Dry-Type Transformers with capacities of up to 10 MVA and voltage ratings between 3.3 kV and 33 kV. Additionally, Voltamp provides Compact Substations with ratings up to 2.5 MVA in the 33 kV class, along with Ring Main Units (RMUs) rated at 12 kV and 630 Amps, catering to diverse power distribution requirements.

Order Book

As of 31st December 2025, TARIL reported an order book of Rs. 5,450 crores, down from Rs. 5,472 crores reported in September 2025. It achieved an order inflow of Rs. 665 crore, and is currently engaged in negotiations for inquiries exceeding Rs. 16,500 crores (down from Rs. 18,700+ crore from September 2025).

Voltamp Transformers began FY26 with an opening order book of Rs. 938 crores (7,904 MVA). From April 2025 onwards, the company secured fresh orders worth Rs. 1,981 crores (16,768 MVA).

Management continues to adopt a selective approach toward order intake, prioritising profitability, execution visibility, and strong cash flows. While the enquiry pipeline remains healthy, a recent sharp rise in copper prices has slowed order finalisation by customers and corporates.

Financial Performance

For Q3 FY26, TARIL reported a consolidated revenue from operations of Rs. 736.76 crores, reflecting a sequential growth of over 60 percent QoQ compared to Rs. 460 crores in Q2 FY26, and a year-on-year increase of around 32 percent from Rs. 559.4 crores recorded in Q3 FY25.

Net profit stood at Rs. 76 crores, indicating an impressive rise of more than 103 percent QoQ from Rs. 37.35 crores in Q2 FY26, and a significant growth on a year-on-year basis by nearly 37 percent from Rs. 55.5 crores reported in Q3 FY25.

Between FY22 and FY25, TARIL’s revenue grew at a 3-year CAGR of over 20 percent, while net profit surged at a CAGR of about 149 percent. On the other hand, for Q3 FY26, Voltamp Transformers reported a consolidated revenue from operations of Rs. 630 crores, reflecting a sequential growth of over 30 percent QoQ compared to Rs. 483 crores in Q2 FY26, as well as an increase of around 30 percent YoY from Rs. 484 crores recorded in Q3 FY25.

Net profit stood at Rs. 99 crores, indicating a rise of more than 25 percent QoQ from Rs. 79 crores in Q2 FY26, and a significant growth on a year-on-year basis by nearly 36 percent from Rs. 73 crores reported in Q3 FY25. Between FY22 and FY25, Voltamp’s revenue grew at a 3-year CAGR of nearly 20 percent, while net profit surged at a CAGR of about 35 percent.

In a nutshell, both transformer manufacturers are benefiting from strong sector tailwinds, but they differ in scale, product breadth, and growth profiles. One stands out for faster earnings expansion and capacity scale, while the other offers steadier profitability, disciplined order intake, and consistent execution. The choice between them ultimately depends on an investor’s preference for higher growth momentum versus stability and margin resilience.

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