TD Power Systems Limited (TDPS), a leading manufacturer of AC generators and electric motors, has reported robust financial results for the first half of fiscal year 2026, showcasing significant growth and raising its revenue guidance for the current and upcoming fiscal years.

Financial Highlights

For the six-month period ended September 30, 2025, TDPS reported:

The company's performance was driven by strong demand across various segments, particularly in the gas turbine and gas engine businesses.

Order Book and Inflow

TDPS reported a robust order book for its manufacturing segment, standing at ₹15.87 billion. The order inflow for H1 FY26 was ₹9.16 billion, marking a 39% increase from ₹6.58 billion in the previous year. Notably, 76% of the H1 order inflow came from exports, underlining the company's strong international presence.

Segment-wise Performance

The company's order book is diversified across several segments:

• Generator Business: ₹12.35 billion
• Motor Business: ₹3.16 billion
• Railway Business: ₹3.16 billion
• Spares & Aftermarket: ₹0.07 billion
• Turkey Business: ₹0.29 billion

International Market Traction

Managing Director Nikhil Kumar highlighted the exceptionally high demand in the gas turbine and gas engine business, particularly from US and European markets. The company is experiencing a significant uptick in orders from these regions, contributing to its strong performance.

Capacity Expansion

TDPS is on track to commission its third plant fully by the end of December 2025. This expansion is expected to enhance the company's production capabilities and support its growth trajectory.

Financial Position

TDPS maintains a strong financial position with a cash balance of ₹1.93 billion, providing it with the flexibility to invest in growth opportunities and manage working capital requirements.

Future Outlook

Based on the surge in orders and positive market conditions, TDPS has revised its revenue guidance:

• FY26 (Current Year): Raised to ₹18 billion
• FY27 (Next Year): Initial guidance of over ₹20 billion

The company expects to maintain a quarterly order inflow rate of approximately ₹5.50 billion, indicating sustained growth momentum.

Management Commentary

Nikhil Kumar, Managing Director of TD Power Systems, stated, "We are experiencing extremely high demand in our gas turbine and gas engine business, particularly from US and European markets. Our decision to expand capacity with the third plant has proven to be strategically sound, positioning us to capture more market share in this high-demand environment."

As TD Power Systems continues to strengthen its position in the global market, the company remains focused on execution and maintaining close customer relationships to capitalize on the growing opportunities in the power generation equipment sector.

Note: This article is based on the Q2 and H1 FY26 earnings conference call held on October 31, 2025.

TD Power Systems Ltd (TDPS) shares hit a record high following the release of its September quarter results, with the stock gaining over 7% in a single day and 15% for the week. The company's robust performance and upward revision of its full-year revenue guidance have sparked investor interest.

Q2 FY26 Financial Highlights

TDPS reported impressive growth across key financial metrics for the quarter ended September 30, 2025:

The company's revenue saw a significant 30% year-over-year increase, reaching ₹395.58 crore. EBITDA grew by 22% to ₹74.38 crore, while net profit rose by 25% to ₹50.78 crore compared to the same quarter last year.

Revised Revenue Guidance

TD Power Systems has revised its full-year revenue guidance upward for FY26:

• Previous Guidance: ₹1,500 crore
• Revised Guidance: ₹1,800 crore

This 20% increase in revenue projection is attributed to steady order inflows from both domestic and international markets.

Order Book and Market Position

As of September 30, 2025, TDPS reported a robust order book of ₹1,587 crore, indicating strong business momentum. The company expects continued strength in its Gas engine and Gas turbine segments, which have been key drivers of growth.

Stock Performance

The positive financial results and upward guidance revision have had a significant impact on TDPS's stock performance:

• 7% surge following Q2 results announcement
• 15% gain for the week
• 64% increase year-to-date
• Consistent positive annual returns since 2019

The stock has shown remarkable long-term appreciation, rising from ₹26 at the end of 2018 to current levels of ₹737.25, representing a gain of over 2,700% in less than seven years.

Dividend Announcement

The Board of Directors has declared an interim dividend of ₹1 per equity share (face value ₹2) for the financial year ending March 31, 2026. The record date for dividend eligibility is set for November 6, 2025.

Management Commentary

Nikhil Kumar, Managing Director of TD Power Systems, commented on the results, stating, "Our strong performance this quarter reflects the growing demand for our products and our ability to execute efficiently. The upward revision in our revenue guidance underscores our confidence in the company's growth trajectory and the robust order inflows we are experiencing across markets."

Conclusion

TD Power Systems' impressive Q2 FY26 results, coupled with its optimistic revenue guidance for the full year, have reinforced investor confidence in the company's growth prospects. The stock's stellar performance and the company's strong order book suggest that TDPS is well-positioned to capitalize on opportunities in the power generation equipment sector.

As the company continues to strengthen its market position and expand its operations, investors and industry observers will be keenly watching TDPS's performance in the coming quarters to see if it can maintain this growth momentum.