TARAPUR - Tarapur Trans
📢 Recent Corporate Announcements
Tarapur Transformers reported a significant year-on-year increase in Q3 FY26 revenue to ₹50.75 Lacs, up from ₹9.95 Lacs. However, the company posted a net loss of ₹24.27 Lacs for the quarter, compared to a profit of ₹241.39 Lacs in the previous year, which was primarily driven by a large exceptional gain. The company is currently pursuing a ₹8.66 Crore recovery through NCLT against Choudhary Global Limited. Operational performance remains weak as expenses continue to exceed revenue from core operations.
- Revenue from operations increased by 410% YoY to ₹50.75 Lacs in Q3 FY26.
- Net loss for the quarter stood at ₹24.27 Lacs versus a profit of ₹241.39 Lacs in Q3 FY25.
- Nine-month total comprehensive loss reached ₹61.18 Lacs compared to a profit of ₹1,615.01 Lacs YoY.
- Recovered ₹35 Lacs from a previously written-off debt with Deekay Iron and Steel Pvt Ltd.
- Ongoing IBC application filed with NCLT Mumbai for recovery of ₹8.66 Crores from a debtor.
Tarapur Transformers Limited has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The certificate, issued by Bigshare Services Private Limited, covers the period from October 1, 2025, to December 31, 2025. The Registrar and Share Transfer Agent confirmed that no dematerialization requests were received during this quarter. This is a standard administrative filing required by all listed companies in India to track the conversion of physical shares to electronic form.
- Compliance certificate submitted for the quarter ended December 31, 2025.
- Registrar Bigshare Services Pvt. Ltd. confirmed zero dematerialization requests were received during the period.
- The filing covers the three-month period from October 1, 2025, to December 31, 2025.
- The report confirms adherence to SEBI (Depositories and Participants) Regulations, 2018.
Tarapur Transformers Limited has announced the closure of its trading window for all designated persons and insiders starting January 1, 2026. This closure is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, ahead of the declaration of the company's Unaudited Financial Results for the quarter ending December 31, 2025. The window will remain closed until 48 hours after the financial results are made public. The specific date for the board meeting to approve these results will be communicated at a later date.
- Trading window closure effective from Thursday, January 1, 2026
- Closure pertains to the Unaudited Financial Results for the quarter ending December 31, 2025
- Window to remain closed until 48 hours after the official result declaration
- Applies to all Insiders, Designated Persons, and their immediate relatives
Financial Performance
Revenue Growth by Segment
Revenue fell from INR 3.4 Cr in FY23 to INR 0.2 Cr in FY24, representing a 94.1% decline. For Q2 FY26, total income from operations was INR 0.0752 Cr, a 93.8% decline from INR 1.21 Cr in Q1 FY26. The company operates in a single segment: manufacturing and repairs of Transformers.
Geographic Revenue Split
Not disclosed in available documents. Operations are primarily centered in Maharashtra with units in Boisar and Wada.
Profitability Margins
Net Profit Margin surged to 1313.82% in FY25 from -124.33% in FY24, a variance of -1156.72%. This surge is largely attributable to exceptional items and provision reversals rather than core operations. PAT margins were -781.1% in FY24 compared to -657.6% in FY23.
EBITDA Margin
Not explicitly disclosed, but the company reported a profit of INR 16.15 Cr for FY25 compared to a net loss of INR 1.25 Cr in FY24. ROCE improved to 161.03% in FY25 from -4.49% in FY24.
Capital Expenditure
The company previously developed manufacturing facilities at Wada with an outlay of INR 43 Cr (INR 430 million) to produce transformers ranging from 1 kVA to 5000 kVA.
Credit Rating & Borrowing
The company is rated 'CRISIL D/CRISIL D Issuer Not Cooperating', indicating default status. Adjusted debt/adjusted networth was -2.3 times in FY24, and the interest coverage ratio was -0.15 times.
Operational Drivers
Raw Materials
Power and distribution transformer components including CRGO steel, copper, and transformer oil. Specific cost percentages are not disclosed.
Capacity Expansion
Current facilities at Wada are designed to manufacture transformers ranging from 1 kVA to 5000 kVA. No specific expansion timeline is provided.
Raw Material Costs
Not disclosed as a specific percentage of revenue, but management identifies input availability and prices as critical factors influencing operations.
Manufacturing Efficiency
Manufacturing efficiency is currently low as evidenced by the significant drop in revenue from INR 3.4 Cr to INR 0.2 Cr and a current ratio of only 0.52.
Strategic Growth
Growth Strategy
The company aims to leverage its long-term presence (since 1988) and strong brand name to target the growing infrastructure and renewable energy sectors. Strategy includes resolving legal contingencies to recover bad debts, such as the INR 8.665 Cr claim against Choudhary Global Limited.
Products & Services
Manufacturing and repair of power and distribution transformers ranging from 1 kVA to 5000 kVA.
Brand Portfolio
Tarapur
Market Expansion
Targeting utilities, industrial, commercial, and renewable energy sectors driven by the growing Indian economy.
Strategic Alliances
Bilpower Ltd holds a controlling stake of 41.46% in the company.
External Factors
Industry Trends
The industry is evolving with a focus on renewable energy and infrastructure growth. The company is positioned as a long-term player but faces high volatility and credit adequacy risks.
Competitive Landscape
The company faces a volatile market with competition in the transformer manufacturing and repair segment.
Competitive Moat
The company's moat is based on its brand name and presence since 1988. However, sustainability is threatened by its 'Default' credit rating and lack of management stability.
Macro Economic Sensitivity
Highly sensitive to global and domestic demand/supply conditions and government regulations affecting the power sector.
Consumer Behavior
Demand is driven by utility and industrial sector requirements for power distribution infrastructure.
Geopolitical Risks
Global demand conditions are cited as a factor that could influence operations.
Regulatory & Governance
Industry Regulations
Operations are influenced by government regulations and changes in laws affecting the power and manufacturing sectors.
Taxation Policy Impact
Subject to changes in government tax laws and regulations.
Legal Contingencies
The company has filed an application under Section 7 of IBC, 2016 with NCLT Mumbai against Choudhary Global Limited for an outstanding amount of INR 8.665 Cr. In FY25, INR 0.4315 Cr was recovered.
Risk Analysis
Key Uncertainties
Management volatility and frequent director changes pose a high risk to operational stability. Credit risk is critical given the CRISIL D rating.
Geographic Concentration Risk
Manufacturing and repair units are concentrated in Maharashtra (Boisar and Wada).
Third Party Dependencies
High dependency on Bilpower Ltd, which maintains a controlling 41.46% stake.
Technology Obsolescence Risk
The company manufactures transformers up to 5000 kVA; failure to upgrade technology for higher capacity or more efficient units could lead to obsolescence.
Credit & Counterparty Risk
Significant exposure to Choudhary Global Limited (INR 8.665 Cr), which is currently under litigation for recovery.