TD Power Systems Limited

TDPOWERSYS

Sector: ManufacturingSub-sector: Electrical Equipment
Qtr Score Rank 7 / 57 (Top 89 percentile)Growth Score Rank 17 / 51 (Top 69 percentile)

Quarterly Score

Trend: Improving
Strong improvement - Recent 3Q avg 9.10 vs 4Q avg 8.70 (+0.40)

Showing the latest 12 quarterly points (newest to oldest).

Score context (latest 12 quarters)

Q1FY25
8.5

No additional context available.

Q2FY25
9.0

No additional context available.

Q3FY25
8.5

No additional context available.

Q4 FY2025
8.8

Management provided a base revenue guidance of INR 15 billion for FY26 (with strong upward potential) and a vision for INR 19-20 billion by FY27. Order inflow guidance for FY26 is set at INR 16-17 billion, with EBITDA margins expected to expand to 18-18.25%.

Rationale

  • Record-breaking order inflow of INR 4.13 billion in Q4 (up 41% YoY and 43% QoQ), taking the total order book to INR 14.79 billion, providing over 1x revenue visibility for the next year.
  • Significant shift toward high-margin exports, which now constitute 68% of order inflow, driven by structural tailwinds in AI data centers, U.S. fracking, and European grid stabilization.
Q1 FY2026
9.0

Maintained FY26 revenue guidance of INR 15 billion and FY27 at INR 18 billion, with management indicating a likely upward revision in the next quarter due to strong order pipelines in US/Europe data center and AI markets.

Rationale

  • Delivered exceptional financial performance with 36% YoY revenue growth and 40% consolidated PAT growth, driven by strong execution across gas engine and steam turbine segments.
  • Order inflow grew 32% YoY to INR 3.92 billion in Q1, with an order book of INR 14.68 billion providing nearly 1x revenue visibility for the current fiscal target.
Q2 FY2026
9.0

Management raised FY26 revenue guidance to INR 1,800 Cr and provided initial FY27 guidance of over INR 2,000 Cr. Order inflow rate is currently sustaining at ~INR 550 Cr per quarter.

Rationale

  • Exceptional financial growth with Consolidated H1 revenue up 42% YoY (INR 8.33B) and PAT increasing 45% YoY (INR 1.108B).
  • Material guidance raise to INR 18 billion for FY26 (from previous lower estimates) and a floor of >INR 20 billion for FY27, backed by a surge in gas turbine/engine demand for data centers/AI.
Q3 FY2026Latest
9.3

Maintained FY26 revenue guidance to 'cross INR 1,800 crores'. Issued an upward FY27 revenue guidance of 'INR 2,200-plus crores,' stating it is a conservative estimate with an 'extremely high probability to increase our guidance further,' supported by expected quarterly production ramp-up to INR 575-600 crores from Q1 FY27. Total manufacturing segment order book stands at INR 18.45 billion.

Quarter summary

  • Successful commissioning of the third manufacturing plant on December 18, 2025, providing a significant boost to production capacity.
  • Robust and sustained global demand for gas turbine and gas engine generators, driven by data centers and grid stabilization, with prime mover customers providing demand visibility until 2030.

Rationale

  • Exceptional Order Inflow & Backlog: Q3 FY26 order inflow was an all-time record at INR 6.56 billion, an increase of 61% YoY. 9-month export order inflow grew 62% YoY to INR 12.05 billion, comprising 79% of total inflow. The pending order for Generators & Motors (excluding railways) has more than doubled in the past 24 months, indicating strong demand and future revenue visibility.
  • Robust Growth in Revenue & Profitability: Stand-alone total income for 9M FY26 grew 32% YoY to INR 11.94 billion, with PAT growing 41% YoY to INR 1.54 billion. Consolidated total income grew 36% YoY to INR 12.8 billion and PAT grew 37% YoY to INR 1.66 billion.

Future Growth Prospects

Growth score: 8.5Visibility: 80%Updated: 01 Mar 2026, 08:31 am

Catalysts (next 12-24 months)

Total triggers: 5Visible per view: 1 / 2 / 3Slides: 5

Swipe or use arrows to browse all triggers.

capexQ4 FY26 onwardsImpact: revenueQty: 600 ₹ Cr/quarter

Third plant capacity ramp-up

Timeline

  • announcedQ1 FY26 · ar

    Phase-wise commissioning for this facility is on track, starting Q1 Fiscal 2026.

  • in progressQ4 FY26 onwards · concall

    In Q4, we'll ramp up to INR 550 crores to INR 575 crores per quarter production and sales and then move to around INR 600 crores per quarter in Q1 onwards.

Show full timeline (3)
  • commissionedDec 18, 2025 · concall

    We declared our third plant as operational on 18th December

    Fully operational from mid-Jan 2026 as per Q2 concall (Oct 31, 2025)

Supporting evidence

• Q4/FY26-Q1/FY27 · concall · In Q4, we'll ramp up to INR 550 crores to INR 575 crores per quarter production and sales and then move to around INR 600 crores per quarter in Q1 onwards.

productFY28 onwardsImpact: revenue

New large generator (50-150MW) product development

Timeline

  • in progressFY26 · ar

    development of larger generators in the 40–45 MW range, with deliveries scheduled to begin in Fiscal 2026.

  • announcedFY28 onwards · concall

    major thrust area for the company in FY '28 onwards.

Show full timeline (3)
  • in progressnext couple of weeks · concall

    one customer acquisition, which is in the U.S. market for gas turbine... will be converted into a machine order by the next couple of weeks

Supporting evidence

• FY28 onwards · concall · investments will take place for 2-pole generator production and for motors, which will be a major thrust area for the company in FY '28 onwards.

orderbooknext couple of weeksImpact: revenue

New US market gas turbine OEM acquisition

Timeline

  • in progressQ3 FY26 · concall

    one customer acquisition, which is in the U.S. market for gas turbine, which is right now in engineering order stage.

  • in progressnext couple of weeks · concall

    will be converted into a machine order by the next couple of weeks

Supporting evidence

• Q3/FY26 · concall · We do have one customer acquisition, which is in the U.S. market for gas turbine... will be converted into a machine order by the next couple of weeks

geonext two-three yearsImpact: revenue

Hydro segment growth from refurbishment

Timeline

  • announcedQ3 FY26 · concall

    in the last quarter, we have received a big order for the refurbishment business

  • in progressnext two, three years · concall

    good visibility at least for the next two, three years in the hydro segment

Supporting evidence

• FY27 · concall · Hydro, we have achieved excellent order inflow in this segment and next year will be the highest in the history of the company for hydro.

productFY28 onwardsImpact: revenueQty: 150 ₹ Cr

Motors business growth (railways, 2-pole)

Timeline

  • in progressFY26 · concall

    This year, we will still be on track to achieve around INR 150 crores top line.

  • announcedFY28 onwards · concall

    investments will take place for 2-pole generator production and for motors, which will be a major thrust area for the company in FY '28 onwards.

Show full timeline (3)
  • in progressnext year · concall

    Railways, we have orders from the U.S. market, Europe market and Russian markets. We'll be supplying all three markets next year, and one includes India then 4 markets.

Supporting evidence

• FY26 · concall · Our motor business is growing at the rate we mentioned earlier. This year, we will still be on track to achieve around INR 150 crores top line.

Variant perception

Non-consensus view
Consensus

Management states FY27 guidance is conservative and has high probability of upward revision, suggesting consensus may be underestimating growth potential.

Upside
  • FY27 guidance of INR 2,200-plus crores is conservative with high probability of further increase.
Show more (1)
  • Ability to pass on increased copper prices to customers with 'absolutely no problem'.
Downside
  • Increased factory expenses in Q3 due to new manpower and one-off shifting charges for new plant.
Show more (1)
  • Disappointment over no India-US trade deal, potentially impacting direct exports.
base case80% conf
Growth: 22.2

Quick takeaway

FY27 revenue guidance of INR 22 Billion from strong order booking pipeline.

Risk watch: Sustained high factory expenses due to new manpower and shifting costs.

Show details (2 drivers, 2 risks)

Drivers

  • FY27 revenue guidance of INR 22 Billion from strong order booking pipeline.
  • Ramp-up of third plant capacity to ~INR 600 Cr/quarter by Q1 FY27.

Risks

  • Sustained high factory expenses due to new manpower and shifting costs.
  • Geopolitical tensions impacting trade deals and export duties.
upside case70% conf

Quick takeaway

Higher-than-expected order inflows from new US gas turbine OEM.

Risk watch: Intense global competition in generator markets.

Show details (2 drivers, 2 risks)

Drivers

  • Higher-than-expected order inflows from new US gas turbine OEM.
  • Favorable forex movement boosting export-driven margins further.

Risks

  • Intense global competition in generator markets.
  • Unexpected slowdown in data center investments.
downside case30% conf

Quick takeaway

Significant delays in ramp-up of new plant production.

Risk watch: Global economic slowdown impacting overall demand.

Show details (2 drivers, 2 risks)

Drivers

  • Significant delays in ramp-up of new plant production.
  • Inability to fully pass on commodity price increases to customers.

Risks

  • Global economic slowdown impacting overall demand.
  • Increased tariffs or unfavorable trade policies impacting exports.

Story of the Stock - Top Strategies

Latest Fiscal Years: FY26, FY25, FY24Top strategies (ranks 1-3) per year
Curated from latest transcripts
Fiscal YearFY26
#1Impact: HIGH

Capacity Expansion and Debottlenecking

Increased production capacity to INR 2,500 Cr, supporting strong demand and growth.

Third plant fully commissioned in Q3 FY26, with ramp-up in Q4 FY26.
Show more

The company is expanding its production capacity through debottlenecking and utilizing existing infrastructure, aiming to meet increasing demand and avoid capacity constraints.

Impact: 2500 Cr

Evidence

"The third plant will be fully commissioned in this quarter and it will be fully in production and we will see a ramp-up in our production and sales in Q4 further compared to what we're expecting in Q3."
"And there is a lot of scope for us to push this number even beyond INR 2,400 crores, INR 2,500 crores."
"We have created 25% extra space in each building so that we can expand capacity, we can put in more machines up to 25% in the existing buildings."
#2Impact: HIGH

Focus on Export Markets and Diversified Product Range

Exports are the key driver for growth, with a diversified product range serving global markets.

Ongoing, with continued focus in FY26 and FY27.
Show more

The company is leveraging its diversified product portfolio and focusing on export markets, particularly driven by the energy transition and demand in sectors like data centers.

Evidence

"The order inflow from exports continue to be the driver for growth."
"The company has a diversified product range serving global markets for steam turbines, gas turbines, gas engine, geo-thermal, motor, and other special applications and wide range of global OEM's approx. 45 spread over all business segments."
"The key driver for growth is EXPORT – i.e. the energy transition towards more renewables and gas driven power plants, oil and gas, grid stabilisation units, hydro, large data centre, Ukraine, waste heat recovery plants, and railway order from Germany and US."
#3Impact: HIGH

Strategic Use of Turkey Facility for US Market

Mitigating tariff impacts by utilizing Turkey facility for US market, maintaining cost competitiveness.

Preparation ongoing, decision to be made by end of August FY26.
Show more

To counter potential US tariffs, the company is preparing to shift production to its Turkey facility to serve the US market, aiming to maintain a cost advantage and protect market share.

Impact: 15 %

Evidence

"And then the Turkey facility will be used for the US market for all our direct exports to the US market. So we're preparing ourselves for that is all I can say."
"So that's where it is. So at the moment, everyone is just keeping the status quo."
"And if we don't have a trade deal, then we will fall back on Turkey and that's what our customers also have told us."
"So, let's say, our product is 100. European or other products will be something like 125 or something like that, i.e., 25% more before tariffs. And then you have a 15% tariff on European products, it goes to something like 150. Our 100 should be somewhere in the region of 125 or 130, at the maximum. So, we still maintain an arbitrage of around 20."
Fiscal YearFY25
#1Impact: HIGH

Export Market Focus

Export business is the key driver for growth, with a diversified product range serving global markets.

Ongoing, with significant growth expected in the next financial year.
Show more

The company is focusing on export markets due to larger opportunities and more sustainable demand, covering a wide range of global OEMs and business segments.

Evidence

71% of order inflow in 9M FY'25 is from Export.
The order inflow from exports continue to be the driver for growth.
The company has a diversified product range serving global markets for steam turbines, gas turbines, gas engine, geo-thermal, motor, and other special applications and wide range of global OEM's approx. 45 spread over all business segments.
#2Impact: HIGH

Capacity Expansion and Automation

Third manufacturing facility in Bengaluru to be operational by H2 FY'26, with capacity expansion and automation to meet demand.

Third plant coming on stream in FY'26, with capacity expansion and automation planned.
Show more

The company is investing in new facilities and automation to enhance efficiency and meet the growing demand across various sectors.

Evidence

With the third plant coming on stream in FY’26, the company is in a position to fulfil any increase in orders from any of the sectors that it is present in.
We have implemented advanced automation and robotics in our manufacturing processes to enhance efficiency, accuracy, and consistency.
The new plant is going to be just as much automation as possible. We are going to have more robotics, more automation, more efficiency, and we are going to use all our knowledge, all our experience to put up the most modern and most beautiful factory that we can think of.
#3Impact: HIGH

Focus on High-Growth Segments (Data Centers, AI, Renewables)

Significant increase in volumes for gas engine and gas turbine generators driven by demand from Data Centers, Peaking and Fracking Applications.

Demand for data centers and AI is expected to continue for many years.
Show more

The company is capitalizing on the growing demand in sectors like data centers, AI, and renewable energy, which require reliable and efficient power generation solutions.

Evidence

Significant increase in volumes for gas engine and gas turbine generators from our customers based in Europe and the US, driven by rising demand mainly for Data Centers, Peaking and Fracking Applications.
The key driver for growth is EXPORT – i.e. the energy transition towards more renewables and gas driven power plants, oil and gas, grid stabilisation units, hydro, large data centre, Ukraine, waste heat recovery plants and railway order from Germany and US.
The company is in a position to fulfil any increase in orders from any of the sectors that it is present in.
Fiscal YearFY24
#1Impact: HIGH

Focus on High-Margin Segments and Operational Leverage

Margins to grow 3-4% more than sales growth due to operational leverage, leading to better margins.

Show more

The company is focusing on higher-margin segments and leveraging operational efficiencies to improve profitability. This strategy is expected to drive margin growth.

Impact: 3 %

Evidence

Margins will grow faster than sales due to operational leverage.
Margin growth will be 3% to 4% more than the sales growth due to operational leverage.
We're going to have better margins for sure.
#2Impact: HIGH

Expansion of Manufacturing Capacity

Investing INR120 crores over two years to build capacity up to INR1,700-1,800 crores.

Investments from October this year, spread over 2 years. First phase operational around October or November next year. Second phase operational in FY'26.
Show more

The company is investing in a third manufacturing unit to increase capacity and meet growing demand. This expansion is expected to improve operational leverage and contribute to growth.

Impact: 120 Cr

Evidence

We are putting up a third unit. Construction we are going to start very quickly and we will spend -- as we have mentioned earlier, we are going to spend INR120 crores for that plant.
And we will spend this investment over 2 years this financial year and next financial year.
So we are looking at something like INR1,700 or INR1,800 crores total capacity potential once the third plant is up and running full stream.
#3Impact: HIGH

Diversification into New Segments and Products

Motor business to grow significantly, contributing 8-10% of sales in FY25 and 15% in FY26.

Motor business to grow until the -- it could reach something like 8%, 10% of our sales in this -- in FY25, and it could be 15% in the following years in FY26.
Show more

The company is expanding its product portfolio into new segments like motors and is seeing strong demand. This diversification is expected to drive growth and improve market presence.

Impact: 8 %

Evidence

The Motors business segment is as in terms of market size is many times larger than the generator business in terms of market size. So the opportunity size is very huge.
So we have given projections that this will grow until the -- it could reach something like 8%, 10% of our sales in this -- in FY25, and it could be 15% in the following years in FY26.
This will be a key part of our -- the motor business will be a key part of our growth -- is a key part of our growth plan and will play an increasing role in the product mix of the company in the future.

Business Segments

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