Transformers & Rectifiers Shares Surge 10% After PM-DHARA Scheme Approval

Shares of Transformers & Rectifiers (India) Ltd. (TARIL) experienced a notable increase of more than 10% on October 1, 2025, following the Union Cabinet's approval of the ambitious ₹1.86 lakh crore PM-DHARA scheme. This government initiative aims to significantly enhance India’s power transmission infrastructure, spotlighting companies involved in transformer manufacturing as key beneficiaries.

The PM-DHARA scheme, which stands for PM-Developing Harmonized and Accelerated Renewable-energy Access, focuses on boosting intra-state transmission lines and integrating 50 GWh of battery storage capacity. These measures are designed to facilitate the dispatch of up to 135 GW of renewable energy, supporting India’s broader objective to achieve 500 GW of renewable energy capacity by 2030.

Within the total budget, ₹1.36 lakh crore is allocated specifically for strengthening intra-state transmission infrastructure. This large-scale investment is expected to drive extensive modernization and expansion of electricity networks across various states. Manufacturers of transmission equipment, including transformers, stand to gain from this push as utilities upgrade their grids to accommodate increased renewable energy inflows.

Following the announcement, TARIL’s stock price climbed sharply, reaching an intraday high of ₹298.70, marking a 10.5% jump. Despite this bounce, the share price remains well below its 52-week peak of ₹501.25, recorded in October 2025. The stock’s 52-week low is ₹224.30, touched in February 2026. Over the past year, the shares have declined by over 40%, although they have offered extraordinary returns exceeding 2,000% over a five-year period.

From a technical perspective, analysts like Jigar S Patel, Senior Manager of Technical Research at Anand Rathi Share and Stock Brokers, suggest that TARIL shares are currently in a consolidation phase. Patel points out that the stock is likely to trade sideways unless it breaks through critical support or resistance levels. Immediate support is identified between ₹280 and ₹285, which aligns with the 200-week exponential moving average, while the major resistance level stands at ₹325. A solid move above ₹325 could indicate renewed buying interest, whereas a drop below ₹280 might weaken the stock’s technical setup.

On the operational front, TARIL has been expanding its manufacturing capabilities in response to growing demand. The company increased its installed capacity from 40,000 MVA to over 75,000 MVA. In the fiscal year 2026, production reached a record 33,763 MVA, up from 29,118 MVA the previous year. Furthermore, TARIL is advancing backward integration efforts by developing in-house facilities for critical components such as core transformer components (CTC), pressboard, RIP bushings, and fabrication services. These efforts aim to fulfill approximately 80% to 85% of raw material needs internally, reducing dependency on external suppliers.

As of the end of FY26, TARIL’s unexecuted order book stood at ₹5,005 crore, with ongoing negotiations for inquiries exceeding ₹23,000 crore. The June quarter of 2026 saw a remarkable 218% year-on-year increase in order inflows, totaling ₹2,114 crore and pushing the overall order book to ₹6,630 crore by June 30.

Order momentum has continued into the current fiscal year. Notably, on August 14, TARIL secured a significant order from APTRANSCO for transformer manufacturing, with deliveries spread over 13 months. On August 29, the company received another major contract from Megha Engineering and Infrastructures, scheduled for execution over 35 months. This latter contract marks TARIL’s entry into the nuclear power sector, as it involves supplying generator transformers for the Nuclear Power Corporation of India Limited’s (NPCIL) Kaiga Units 5 and 6 project in Karnataka. These two reactors each have a capacity of 700 MWe, representing a substantial project milestone for TARIL.

Transformers & Rectifiers has demonstrated resilience and growth potential within the electrical equipment industry, especially as India intensifies its focus on renewable energy and grid modernization. The PM-DHARA scheme’s implementation could provide significant tailwinds for the company and others in the transmission equipment sector, given the scale of the planned infrastructure investments.

About the Author
Pranati Deva is a Senior Sub Editor at LiveMint with over ten years of experience in financial journalism. She specializes in stock markets, major listed companies, currencies, and commodities, providing timely and insightful market analysis. Her background includes work with CNBC-TV18, Business Standard, and EconomicTimes.com, where she focused on data-driven reporting and live market coverage. Pranati holds degrees from the Symbiosis Institute of Media and Communications and Hansraj College, University of Delhi.