TARIL enters nuclear power supply chain with Kaiga transformer order

Transformers and Rectifiers (India) Limited, or TARIL, has secured its first order in the nuclear power segment, marking an entry into a specialised area of India's power-equipment supply chain.

The company will supply generator transformers to Megha Engineering and Infrastructures Limited for Nuclear Power Corporation of India Limited's Kaiga Units 5 and 6 project in Karnataka. The transformers will form part of the electrical infrastructure required to evacuate electricity generated by the proposed nuclear units and connect it with the transmission network.

Kaiga Units 5 and 6 comprise two indigenous 700 MWe Pressurised Heavy Water Reactors, which together are expected to add 1,400 MW of nuclear generation capacity at the Kaiga site. The project is part of India's domestic 700 MWe reactor programme, intended to expand nuclear generation while supporting indigenous technology and manufacturing capability.

TARIL did not disclose the value of the order or its delivery schedule. As a result, the immediate revenue contribution cannot be assessed. However, the contract is strategically relevant because it gives the Ahmedabad-based transformer maker a reference project in nuclear power, where equipment specifications, testing standards and execution requirements are generally stringent.

Managing Director and Chief Executive Officer Satyen Mamtora said, 'We are proud to mark our entry into the nuclear power sector with this order for NPCIL.' He added that the award validated the company's technology and engineering capabilities for critical power applications.

The order extends TARIL's exposure beyond its established utility, transmission, industrial, transport and renewable-energy markets. The company manufactures power transformers, reactors, distribution transformers and specialised transformer products, with capabilities across high-voltage applications. Nuclear generation projects require not only generation equipment but also reliable evacuation infrastructure, making generator transformers a critical link between the power station and the grid.

The development comes when TARIL is seeking to improve utilisation of its expanded manufacturing base and raise the share of higher-value power-transformer and specialised equipment orders. In its July 2026 investor presentation, the company said power transformers accounted for about 80 per cent of its unexecuted Order Book of Rs 6,630 crore as of June 30, 2026. That order book was stated to be executable over 18 to 24 months.

TARIL has also been expanding capacity and investing in backward integration for components and materials, including conductor, insulation, bushings, fabrication and electrical-steel processing. Management has positioned these investments as measures to improve supply reliability, reduce dependence on external vendors and support margins over time. The company expects the broader backward-integration programme to be commercially commissioned by the first quarter of FY28, subject to execution timelines.

Near-term execution remains an important consideration. In the latest reported quarter, net sales rose 8.1 per cent year-on-year to Rs 572.34 crore, while profit after Tax declined 4.7 per cent to Rs 64.29 crore. Management attributed operational pressure partly to disruption from expansion work at its Changodar facility, and expects utilisation to improve after the project's completion.

The nuclear-sector entry adds a new potential demand avenue, but the financial impact will depend on the order value, delivery milestones and TARIL's ability to execute alongside its existing utility and industrial order book. The company's shares closed at Rs 303.60 on August 28, 2026, down 39.63 per cent over one year and below their 52-week high of Rs 535.40.

Disclaimer: The article is for informational purposes only and not investment advice.