Transformers & Rectifiers (India) Ltd (TARIL) shares price continued their steep decline on Tuesday, November 11, slipping 10% to a 52-week low of ₹282.20 on the NSE. The stock hit a 10% lower circuit, extending the 20% fall recorded on Monday. Over the last two trading sessions, TARIL share price has lost nearly 27%. As of 12:42 pm, the stock price was trading at ₹286.55 per share, down by 8.58%.
The sell-off followed the company’s Q2 FY26 results announced after market hours on Friday and its disclosure about receiving a World Bank debarment notice on Monday night.
The company reported Revenue from Operations of ₹460.03 crore in Q2 FY26, nearly flat compared to ₹461.54 crore in Q2 FY25, but lower than ₹529.33 crore in Q1 FY26. For the first half of FY26 (H1 FY26), total revenue stood at ₹989.36 crore against ₹783.54 crore in H1 FY25, showing a year-to-date improvement.
EBITDA for the quarter was ₹65.44 crore, down 19% from ₹80.97 crore in Q2 FY25, with the EBITDA margin contracting to 13.81% from 17.11%. On a half-yearly basis, EBITDA was ₹173.94 crore versus ₹127.19 crore a year earlier, with the margin rising to 16.99% from 15.91%.
Profit After Tax (PAT) declined 19% year-on-year to ₹37.45 crore from ₹46.02 crore, and was lower than ₹67.54 crore in Q1 FY26. The PAT margin stood at 7.90%, compared with 9.72% in Q2 FY25. For H1 FY26, PAT rose to ₹105 crore from ₹66.89 crore in H1 FY25, improving the margin to 10.26% from 8.37%.
TARIL disclosed that it received a Notice of Uncontested Sanctions Proceedings from the World Bank dated November 4, 2025, concerning Sanctions Case No. 788 related to the Nigeria Electricity Transmission Project (IDA Credit Nos. 6185-NG and 6186-NG). The notice refers to an earlier communication dated July 30, 2025, which the company had not received.
The company has initiated steps to contest the matter and will submit a detailed reply to the World Bank, seeking a chance to review and respond to the allegations.
The matter involves a supply order worth $24.74 million, received in FY20, for 70 transformers under a World Bank–funded project for the Transmission Company of Nigeria Plc (TCN). The order was executed in FY22, and 90% of the payment was received under a Letter of Credit during the same year.
During shipment of the final consignment, three transformers were damaged in transit due to an accident. The insurance claim was approved in FY22 and settled gradually by FY24 because of foreign exchange shortages in Nigeria. TARIL manufactured and supplied replacement transformers in late FY25, after which the remaining 10% payment was released by the World Bank and received in Q1 FY26.
The company clarified that the debarment pertains to alleged irregularities linked to this earlier project. It had already provided all required documentation during the World Bank’s 2023 inquiry and had not received any further correspondence until recently.
TARIL emphasised that the findings in the notice are preliminary and not proof of wrongdoing. The company stated that it has acted lawfully and in full compliance with contractual and regulatory requirements. It intends to represent its case before the World Bank and meet the specified conditions to have the debarment lifted.
The company noted that the debarment is limited to World Bank-funded projects and confirmed that it currently has no active or pending contracts under such projects. Hence, this action will not materially impact its business operations, financial performance, or outlook.
The disclosure was made voluntarily in the spirit of transparency. TARIL reaffirmed its commitment to maintaining high standards of integrity, governance, and compliance, and stated that it will keep the exchanges and stakeholders informed about further developments.
Transformers & Rectifiers India Ltd reported steady Q2 FY26 revenue performance but saw pressure on operating margins. The company’s stock has witnessed a sharp decline following the World Bank notice and results announcement. However, TARIL maintains that the issue is historical, non-material, and will not affect its ongoing operations or financial stability.
The sell-off followed the company’s Q2 FY26 results announced after market hours on Friday and its disclosure about receiving a World Bank debarment notice on Monday night.
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