TD Power Systems Q1 FY27 Profit Jumps 81% YoY

Total Income: ₹6.3 billion for Q1 FY27, a 74% increase from ₹3.63 billion in Q1 FY26.
EBITDA Margin: 19.34% for the quarter (including other income, excluding exceptional and treasury income), compared to 18.7% in the same period last year.
Profit After Tax (PAT): ₹853 million for the quarter, an 81% increase from ₹471 million in Q1 FY26.
Cash Position: The company maintains a strong cash position of ₹2.4 billion.

Sales: ₹6.43 billion for Q1 FY27, a 71% increase from ₹3.76 billion in Q1 FY26.
Profit After Tax (PAT): ₹860 million for the quarter, a 72% increase from ₹500 million in Q1 FY26.

Management described the market as "very buoyant" across all business segments. Key demand drivers cited were:

AI data centers
Grid stabilization
Basic power generation push towards renewables (driving demand for geothermal, hydro, waste-to-energy)

Management noted a "tremendous shortage of power generation equipment, specifically in gas turbines, gas engines, transformers and generators."

The company has sufficient capacity for FY28, estimated at around ₹22 billion.
Plans debottlenecking investments of approximately ₹500 million to increase output for FY28.
Actively assessing the need for another round of capacity addition for generators below 100 MW, with details to be provided in the next earnings call.
Long-term goal is to increase capacity to ₹40 billion and above for FY29 and FY30.
Anticipated total capex for FY27 is ₹50 crores.

Steam Turbine Market: Steady growth of 10-12% in captive power plants, biomass, and waste heat recovery.
Gas Engines and Gas Turbines: Continues to see "massive" growth with large volume orders and strong upward forecasts.
Hydro: Expects one of its highest years, active in refurbishment business in India and abroad, with high-value orders expected in the current quarter.
Motors: Remains a key area, with teams working to increase footprint.
Railways: Not accepting fresh orders; will review segment sustainability at year-end. Production capacity will be reallocated to generators and motors post-completion of Indian railway contracts.
Turkey Subsidiary: Has €3-3.5 million worth of orders for execution in FY27. No significant pipeline for next year; facility will be maintained as a "service backup" for the European market.

Revised FY27 revenue guidance to ₹26 billion (₹2,600 crores), with a "small chance" of exceeding this number.

Large Generator Segment: The company is "close to signing agreements" for opportunities in the large generator segment (above 100 MW), which are described as "over and above the current business." An announcement is expected in August 2026.
Management clarified that revenue from large generators would not impact FY27 guidance, as it takes 18-20 months to manufacture them.

Employee base has scaled from 1,750 to 2,600, contributing to a 20% QoQ increase in employee expense.
Service business contributes 5-6% of overall sales and is growing at the same rate as overall sales.
Working capital is expected to remain in line with current levels due to significant growth. The increase in other current liabilities is attributed to customer advances and provisions for taxation.

Pricing: Price variation clauses with customers have been implemented. Margin maintenance is managed through a combination of pricing, cost reductions, product mix, and exchange rates.
Demand Elasticity: Management expressed high confidence in demand sustainability, noting that power plant costs form a very small percentage (<5%) of overall project costs for data centers, making demand highly inelastic.
Market Share: The company does not disclose specific market share numbers but focuses on deepening relationships with existing major OEM customers rather than significant new client additions.
Domestic Market: Demand in India remains subdued (~10-12% growth), supported by metals and other sectors but with no "explosive growth." Management is skeptical about large-scale hyperscaler data center development in India due to constraints on gas and water availability.
Fundraise: Management declined to comment on specifics ahead of a scheduled Board meeting, noting only that a notification had been issued to the exchange.