TD Power Systems Limited has released the transcript of its earnings conference call for the quarter and year ended March 31, 2026. The call, held on May 15, 2026, provided detailed insights into the company's financial performance and future outlook.

Financial Performance

On a stand-alone basis, the company reported a total income of INR17.37 billion for the year ended March 31, 2026, compared to INR12.88 billion in the previous year, marking a 35% increase. Profit after tax (PAT) rose by 42% to INR2.18 billion from INR1.53 billion in the same period last year. The EBITDA margin stood at 18.14%, including other income but excluding exceptional and treasury income, compared to 17.46% in the prior year.

On a consolidated basis, total income increased by 44% to INR18.78 billion from INR13.02 billion. Consolidated PAT grew by 36% to INR2.36 billion from INR1.73 billion. The company maintains a strong cash position of INR1.99 billion.

Operational Highlights

The order book for the manufacturing segment stands at INR19.73 billion, comprising INR16.77 billion from the generator business, INR2.47 billion from the railway business, and INR0.29 billion from Turkey. Export and deemed exports, excluding railway orders, account for approximately 76% of the order book.

Order inflow during the quarter was INR6.66 billion, a 61% increase on a quarter-on-quarter basis. For the full year, order inflow reached INR22.38 billion, a 51% increase compared to the previous year's INR14.78 billion. Export order inflow, including deemed exports, was INR5.28 billion during the quarter, constituting 80% of the total.

Guidance and Outlook

The company has revised its revenue guidance for FY27 to INR2,400-plus crores. Management indicated a high probability of further increasing this guidance to match the strong order inflow observed in Q4 and expected throughout the current financial year. Capacity additions are expected to enable the company to address revenue potential up to INR32 billion by FY28.

Management noted that market conditions remain buoyant across all segments, driven by factors such as AI data centers, grid stabilization, and a push towards renewables. While a one-off liquidated damages penalty in Turkey impacted consolidated margins, the company expects gross margins to revert to historical averages of 33%–34%.

Segmental Updates

• Steam Turbine: The market is growing steadily at 10%–12%.
• Gas Turbine and Gas Engine: Massive growth continues with large volume orders, including deliveries to projects like SpaceX.
• Hydro: The segment is expected to see high-value order wins in the current and upcoming quarters.
• Motors: The business remains a focus area, with manufacturing lines being separated to improve execution.
• Railway: Orders are secured from the U.S., Europe, and Russia alongside the domestic market.

TD Power Systems has expressed strong confidence in scaling its revenue target to Rs 2400 crores, citing robust demand signals from its customer base. The company noted that customers are planning to double or triple their capacities over the next few years, providing a solid foundation for this ambitious growth objective.

Demand Outlook and Capacity Strategy

The company highlighted that demand for large generators is expected to rise from FY28 onwards. However, TD Power Systems indicated it will exercise caution when it comes to expanding its own capacities, signalling a measured and disciplined approach to growth rather than aggressive capital deployment.

Margin Guidance and Forex Tailwinds

On the profitability front, TD Power Systems expressed confidence in maintaining operating margins within a band of 17.75% to 18.75% for the current fiscal year. The company acknowledged the presence of margin pressures but noted that these are being offset by strong forex tailwinds, which are providing a meaningful cushion to overall profitability.

The combination of a clear revenue target, a defined demand outlook for large generators, and a stable margin guidance underscores TD Power Systems' confidence in navigating the current business environment. The company's focus on customer-driven capacity planning and prudent internal expansion reflects a balanced growth strategy.