TARIL removed from World Bank debarment list

Transformers and Rectifiers India Limited has informed stock exchanges that it is no longer on the World Bank list of debarred entities. The update follows an earlier notice in which the company was declared ineligible for World Bank funded projects linked to an old Nigeria supply contract. The World Bank has now given the company time until January 12, 2026 to file a detailed response.

The case, identified as Sanctions Case No. 788, concerns a USD 24.74 million supply order for 70 transformers for the Nigeria Electricity Transmission Project. TARIL received the order in FY20 and completed it in FY22. The company received 90 per cent of the payment in that year. The matter began after three transformers were damaged during transport from the Nigerian port to storage. TARIL settled the insurance claim in FY24 and produced three replacement units. The final 10 per cent payment was cleared in Q1 FY26.

TARIL’s first disclosure on November 10, 2025 noted that the company had not received an earlier communication from the World Bank. It said it was contesting the allegations and noted that the action was not material because the company has no ongoing World Bank funded work. TARIL said it has acted in good faith and in compliance with all laws.

A second filing on November 14, 2025 confirmed that the company’s name had been removed from the debarment list on the World Bank website. TARIL said it will continue to follow disclosure rules and will report any further developments.

The company also released its Q2 FY26 consolidated results. Revenue from operations was stable at Rs 460.03 crores compared to Rs 461.54 crores in Q2 FY25. Profitability weakened. EBITDA fell to Rs 65.44 crores from Rs 80.97 crores. The EBITDA margin moved to 13.81 per cent from 17.11 per cent. Profit After Tax declined by 19 per cent to Rs 37.45 crores. The PAT margin was 7.90 per cent compared to 9.72 per cent a year earlier. TARIL said that employee benefit expenses rose by Rs 3.74 crores due to ESOP costs.

The half year picture was stronger. Consolidated revenue for H1 FY26 reached Rs 989.36 crores, rising from Rs 783.54 crores in H1 FY25. H1 PAT increased to Rs 105.00 crores from Rs 66.89 crores. Earnings Per Share for the period was Rs 3.37 compared to Rs 2.22 last year. The results suggest that a firm Q1 performance helped balance a softer Q2. Standalone figures show the same pattern.

The company reported a steady operational outlook supported by an unexecuted order book of Rs 5,472 crores. New orders in Q2 were worth Rs 592 crores, and inquiries under negotiation exceed Rs 18,700 crores.