Transformers and Rectifiers shares rally 8% after receiving order worth up to Rs 100-500 crore from MEIL

Shares of Transformers and Rectifiers rallied nearly 8% on Monday to day’s high of Rs 326 on NSE after the company received a project order of Rs 100 crore to Rs 500 crore from Megha Engineering and Infrastructures Limited (MEIL).

According to an exchange filing, the company said it has received a project order from MEIL for the manufacturing of transformers and related work. The order will be executed in accordance with the terms and conditions stipulated in the project order.

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The company said the order is to be executed over the next 35 months. It classified the order as a large order, with a value of Rs 100 crore to Rs 500 crore, excluding GST, in line with its policy.

The promoter, promoter group and group companies have no interest in the entities that awarded the orders, the company said. It added that the order is in the normal course of business and does not fall under related-party transactions.

Transformers and Rectifiers further said it is committed to delivering high-quality products and services and has established itself as a leading transformer manufacturer in the country over the years.

In another filing with the exchange, the company said that it marks a strategic entry into India’s Nuclear Power Sector with the landmark NPCIL order for Transformers and Reactors.

The company received this large order for the supply of Generator Transformers for the Nuclear Power Corporation of India Limited’s (NPCIL) Kaiga Units 5 & 6 nuclear power project in Karnataka, and it marks TARIL’s first order in the nuclear power sector, adding a new and strategically important segment to the Company’s growing portfolio of critical power infrastructure projects.

Kaiga Units 5 & 6 comprise two indigenous 700 MWe (Megawatt Electrical) Pressurised Heavy Water Reactors (PHWRs) being developed by NPCIL at Kaiga, Karnataka. The project is part of India’s indigenous 700 MWe PHWR programme, supporting the country’s efforts to expand nuclear power capacity while strengthening domestic technology and manufacturing capabilities. And together, these two will add 1,400 MW of nuclear generation capacity at the Kaiga site.

The generator transformers will form a critical part of the electrical infrastructure of the project, supporting the evacuation of power generated by the nuclear power units and its integration with the transmission network.

“We are proud to mark our entry into the nuclear power sector with this order from NPCIL. Nuclear energy will play an important role in supporting India’s long-term energy security and clean energy ambitions, and we are pleased to contribute our transformer manufacturing capabilities to this critical national infrastructure,” said Satyen Mamtora, Managing Director & CEO, Transformers and Rectifiers (India).

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The order further strengthens TARIL’s positioning in the critical and high-value power infrastructure segment, as India continues to invest in expanding generation and transmission capacity.

With its entry into the nuclear power sector, TARIL aims to leverage its established expertise in high-voltage transformer manufacturing to support the requirements of critical power generation and transmission infrastructure and participate in India’s expanding nuclear energy ecosystem.

Over the past month, Transformers and Rectifiers shares have risen 5.45%, while the stock has declined 36.22% over the past year. In the longer term, the stock has surged 441% in three years and nearly 2,136% in five years.

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