TD Power Systems reported a significant 74% year-on-year increase in standalone revenue for Q1 FY27, reaching ₹6.3 billion. The company also saw an 81% jump in profit after tax to ₹853 million. Management highlighted a buoyant market and outlined plans for substantial capacity expansion, targeting over ₹40 billion by FY29-30 to meet growing demand in segments like data centers and renewables.
TD Power Systems Reports Strong Q1 FY27 Earnings
TD Power Systems Limited announced robust financial results for the first quarter of Fiscal Year 2027 (Q1 FY27), ending June 30, 2026. The company’s standalone total income surged by 74% to INR6.3 billion, compared to INR3.63 billion in the same period last year. Profit after tax and comprehensive income also saw a substantial increase of 81%, rising to INR853 million from INR471 million in the prior year’s quarter.
Key Financial Highlights and Order Book
The company’s EBITDA margin stood at 19.34% for the quarter, an improvement from 18.7% in the previous year. The manufacturing segment’s order book is robust at INR22.08 billion, with the generator and motor business forming the largest component at INR19.29 billion. Order inflow for the quarter was strong at INR7.34 billion, a 87% increase quarter-on-quarter. Exports contributed significantly, accounting for 93% of quarterly order inflows.
Capacity Expansion and Market Outlook
Looking ahead, TD Power Systems sees a highly positive market outlook driven by demand in sectors like AI data centers, grid stabilization, and renewables. The company is planning significant capacity enhancements. An initial investment of around INR500 million for debottlenecking is expected to support capacity for FY28. Further capacity additions are planned to reach over INR40 billion by FY29-30. Management expressed confidence in meeting market demand, highlighting that the current capacity is sufficient for FY28, estimated at around INR22 billion, with further debottlenecking investments planned.
Segment Performance and Guidance
The steam turbine market continues steady growth, while gas engines and gas turbines are experiencing massive, ongoing growth. The hydro segment is set for a busy year, with significant refurbishment business anticipated. The company is not taking fresh orders in the railway segment and will re-evaluate its sustainability. TD Power Systems has revised its guidance for FY27 to INR2,600 crore, with potential to exceed this figure.
Operational and Strategic Initiatives
The company is closely monitoring market dynamics and is adapting its capacities to meet evolving product demands. While execution delays are noted in some project areas, the company is committed to meeting its market guidance. Discussions are ongoing regarding potential large generator segment opportunities, with announcements expected in August. The company is also focused on maintaining strong customer relationships and ensuring business continuity.
Source: BSE
