Mukul Agrawal Stock in Focus After Tata Mutual Fund to Invest ₹100 Cr via Preferential Allotment

Synopsis: A mutual fund giant is set to invest ₹100 crore in a railway equipment maker backed by ace investor Mukul Agrawal, even as the company crosses the ₹999 crore revenue milestone.

Tata Mutual Fund is set to pick up a ₹100 crore stake in Hind Rectifiers Limited, a company already on the radar of ace investor Mukul Agrawal, who holds a 1.45% stake in the firm. The investment comes on the back of a strong FY26 performance, with the company nearing the ₹1,000 crore revenue mark for the first time in its history.

With a market cap of Rs. 2,955 Crore, the shares Hind Rectifiers Ltd. are trading at a price of Rs.844.60 per share i.e. 12% down from its previous closing price of Rs.946.35. It currently trades at a P/E of 73.8.

Tata Mutual Fund Picks Up Stake via Preferential Allotment

The board of Hind Rectifiers has sought shareholder approval to issue 10,86,366 equity shares to Tata Mutual Fund (Small Cap Fund) on a preferential basis at ₹920.50 per share, aggregating to ₹100 crore. The fund’s entry into the stock signals growing institutional interest in the company’s long – term growth story, particularly its deep presence in the Indian Railways ecosystem.

The preferential allotment comes at a time when the company is executing a clear transformation from a component supplier to a vertically integrated system solutions provider  –  a shift that is expected to significantly expand its revenue potential per locomotive over the coming years.

Revenue Crosses ₹999 Crore in FY26

EBITDA rose 19.6% YoY to ₹84.1 crore, with a margin of 8.4%. Profit after tax, excluding minority interest, came in at ₹45 crore, up 21.3% YoY, with a margin of 4.5%. Operating cash flow strengthened sharply to ₹85.8 crore, a jump of 141% YoY, reflecting improved working capital discipline and stronger execution. On a standalone basis, PAT for FY26 stood at ₹57.7 crore, up 54.7% YoY, with revenue growing 44.8% to ₹949.2 crore.

Order Book Remains Healthy

The company closed FY26 with an order backlog of ₹845.5 crore. Fresh order inflows during the year stood at ₹858.4 crore. Railway transformers continue to dominate the order mix, accounting for 52.6% of the backlog, followed by railway electronics at 23.6%.

The sustained spending by Indian Railways on electrification, rolling stock modernisation, and safety systems continues to provide long – term revenue visibility for the company.

Backward Integration and Global Expansion

During FY26, the company operationalised its CTC copper conductor facility at its Sinnar plant, with an installed capacity of around 350 tonnes per month. The ₹56 crore project, funded through internal accruals and term loans, reduces dependence on external vendors and opens up opportunities for external sales.

The company also completed the acquisition of Elventive France  –  formerly BeLink Solutions  –  establishing a manufacturing and R&D base in Europe with capabilities in robotics, EMS, and printed electronics.

About the Company 

Hind Rectifiers Limited is a Mumbai –  based manufacturer of power conversion systems catering to the railway and industrial sectors. With 68 years of operations, the company runs two manufacturing plants in Nashik and R&D centres in Mumbai and Hyderabad, serving over 500 clients across 30 countries.

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