Synopsis: Atlanta Electricals and TARIL reflect two growth models in India’s transformer capex cycle, with Atlanta operating ~63,000 MVA capacity and a ₹2,451 crore order book enabling faster execution, while TARIL, with ~40,000 MVA capacity expanding to ~75,000 MVA and a ₹5,450 crore order book, offers deeper EHV-led growth visibility.
India’s power transmission capex cycle has brought transformer manufacturers back into sharp investor focus. Among the mid-to-large players, Atlanta Electricals and Transformers & Rectifiers India Ltd (TARIL) represent two distinct growth paths, one driven by fast scaling and execution velocity, and the other by deep technology, backward integration, and EHV (Extra High Voltage) dominance. A side-by-side comparison across recent performance and future strategy highlights where each company stands in the growth curve.
Transformers & Rectifiers India Limited, with a market capitalization of Rs. 7,676 crore, closed at Rs. 256 per equity share, up by 3.70 percent from its previous day’s close price. Atlanta Electricals Limited, with a market capitalization of Rs. 6,374 crore, closed at Rs. 829 per equity share, up by 2.34 percent from its previous day’s close price.
Q3 FY26 Performance
The Atlanta Electricals delivered a strong revenue performance in Q3FY26, with revenue rising to Rs. 472 crore, marking a sharp 79.5 percent year-on-year growth from Rs. 263 crore in Q3FY25 and a robust 48.9 percent quarter-on-quarter increase over Rs. 317 crore in Q2FY26. This growth indicates a clear acceleration in business momentum both compared to last year and the immediately preceding quarter.
Profitability also improved significantly. EBITDA increased to Rs. 94 crore, up 124 percent YoY from Rs. 42 crore and 67.9 percent QoQ from Rs. 56 crore, reflecting strong operating leverage. Net profit grew to Rs. 49 crore, registering a 122.7 percent YoY rise from Rs. 22 crore and a 63.3 percent QoQ increase from Rs. 30 crore, highlighting substantial improvement in margins and overall earnings quality.
Whereas, TARIL reported a strong top-line performance in Q3FY26, with revenue rising to Rs. 737 crore, reflecting a 31.8 percent year-on-year growth from Rs. 559 crore in Q3FY25 and a sharp 60.2 percent quarter-on-quarter increase over Rs. 460 crore in Q2FY26. This indicates a clear acceleration in demand and improved execution compared to both the previous year and the preceding quarter.
Profitability improved even more strongly. EBITDA grew to Rs. 125 crore, up 47.1 percent YoY from Rs. 85 crore and a robust 140.4 percent QoQ from Rs. 52 crore, highlighting significant operating leverage. Net profit increased to Rs. 76 crore, registering a 38.2 percent YoY growth from Rs. 55 crore and a 105.4 percent QoQ rise from Rs. 37 crore, underscoring substantial margin expansion and improved earnings quality.
Over the past three years, Atlanta has demonstrated strong growth, achieving a revenue CAGR of 28 percent and a profit CAGR of 90 percent, whereas TARIL has demonstrated strong growth, achieving a revenue CAGR of 20 percent and a profit CAGR of 147 percent.
A return on equity (ROE) of about 40.8 percent and a return on capital employed (ROCE) of about 50.2 percent, and debt to equity ratio at 0.46 demonstrate Atlanta’s financial position, whereas a return on equity (ROE) of about 23.4 percent and a return on capital employed (ROCE) of about 28 percent, and debt to equity ratio at 0.27 demonstrate TARIL’s financial position.
Manufacturing Capacity
Capacity is where the contrast is most visible. TARIL currently operates ~40,000 MVA capacity, which will expand to ~75,000 MVA by H1 FY27 with additions of 15,000 MVA at Changodar (Q1 FY27) and 22,000 MVA at Moraiya (Q2 FY27). Importantly, TARIL’s capacity is optimized for 400–765 kV transformers, reactors, and HVDC applications, which have longer execution cycles but higher technical entry barriers.
Atlanta Electricals already operates at a larger installed base of ~63,000 MVA which is expanded by four times in 18 months from 16,000 MVA, following the acquisition of BTW Atlanta Transformers, with scalability beyond this as utilization improves. This capacity is spread across multiple plants and voltage classes, allowing Atlanta to execute 33 kV to 220 kV orders at scale, while gradually increasing participation in 400 kV and selective 765 kV projects.
The emphasis is on parallel execution and faster order turnover rather than very high MVA single units. While TARIL’s capacity is technologically deeper, Atlanta’s is execution-oriented and more flexible, particularly for utility and renewable-linked projects.
Order Book
As of December 2025, TARIL’s unexecuted order book stood at ~Rs. 5,450 crore, with an order pipeline of Rs. 16,500+ crore and management guiding to ~Rs. 8,000 crore order book by FY26-end. TARIL is deliberately capping its order book to 18–24 months of execution, citing lessons from past overbooking. This discipline improves margin protection but limits near-term growth acceleration.
Atlanta Electricals, by contrast, operates with a shorter execution cycle, and its order book of ~Rs. 2,451 crore represents nearly 2x annual revenue of FY25 of Rs. 1,244 crore. A large part of Atlanta’s orders come from GETCO, Adani Green Energy and others. This allows Atlanta to recycle capacity faster, supporting higher revenue CAGR even with a smaller absolute order book.
Technology and Product Mix
TARIL’s strongest moat lies in technology depth. It is the first Indian-origin company to receive an HVDC converter transformer repair order from Power Grid, positioning it to qualify for indigenous HVDC manufacturing post-2027. TARIL also manufactures reactors, furnace transformers, STATCOM transformers, and specialty EHV equipment, and is among the very few Indian players capable of 1200 kV-class transformers.
Atlanta Electricals’ differentiation lies in product breadth rather than extreme specialization. Along with power and distribution transformers, Atlanta has strong exposure to inverter-duty, traction, renewable pooling, and industrial transformers, which aligns closely with near-term grid expansion and renewable integration. While Atlanta is entering the 400–765 kV space, it does not yet have TARIL’s HVDC or reactor depth.
Future Plans
TARIL’s growth strategy is heavily anchored in backward integration. The company is setting up CTC, pressboard, RIP bushing, and fabrication facilities between FY27 and FY28, which management expects to lift gross margins toward 35 percent by FY28 and materially reduce import dependence. Combined with capacity expansion, TARIL is targeting $1 billion (Rs. 8,000 crore) revenue by FY29, implying a 48 percent CAGR, with a mix of transformers and backward-integrated products.
Atlanta Electricals is following a different path, sweating existing assets harder and scaling execution. Its near-term growth is driven by utilization ramp-up at newly added facilities, faster order turnover, and operating leverage. Capital intensity is lower than TARIL’s backward integration program, which allows Atlanta to grow aggressively without waiting for long gestation projects to mature. The company plans to maintain the order book growth rate at 40 percent as it was historically.
Conclusion
TARIL is better positioned for technology-led, long-duration growth, especially in EHV, HVDC, and backward-integrated products, with margin expansion playing out over the next 2–3 years. However, its growth is constrained by longer execution cycles and deliberate order pacing.
Atlanta Electricals, on the other hand, is better positioned for faster, execution-driven growth in the current power capex cycle. Its higher effective capacity, shorter order cycles, and broader voltage mix make it more responsive to near-term demand from utilities and renewables, even if it lacks TARIL’s deep HVDC moat.
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