TDPOWERSYS - TD Power Systems

📊 NSE: TDPOWERSYS 🏢 Electric Equipment 📅 Last Updated: 12/14/2025 14:13

💰 Financial Performance

Revenue Growth by Segment

Standalone H1 FY25 revenue grew 33% to INR 764 Cr from INR 577 Cr. Consolidated H1 FY25 revenue grew 42% to INR 833 Cr from INR 589 Cr, driven by robust demand in the core AC generator manufacturing segment.

Geographic Revenue Split

Exports accounted for 65% of sales in 9M FY25, up from 40-50% four years ago. H1 FY25 order inflow was 76% from direct and deemed exports and 24% from the domestic market.

Profitability Margins

Operating Profit Margin was 16.67% in Fiscal 2025 (standalone). Net Profit Margin was 11.87% in Fiscal 2025. Operating margin improved to 17.8% in 9M FY25 compared to 17.5% in Fiscal 2024.

EBITDA Margin

Operating margin (EBITDA proxy) improved to 17.8% in 9M FY25 from 16.6% in FY23. Management expects improved EBITDA margins in FY26 through operational efficiency and higher top-line leverage.

Capital Expenditure

Planned annual capex of INR 40-60 Cr for spares and non-core equipment manufacturing. Total ongoing capex is estimated at INR 140 Cr to support capacity expansion.

Credit Rating & Borrowing

CRISIL A+/Stable (upgraded from CRISIL A/Positive). Standalone entity is debt-free with an interest coverage ratio of 34.14x as of March 31, 2023.

⚙️ Operational Drivers

Capacity Expansion

Current facilities include 3 units in Bengaluru (one dedicated to large generators) and 1 facility in Turkey. Planned capex of INR 40-60 Cr per annum is focused on setting up manufacturing capacity for spares and non-core equipment.

Manufacturing Efficiency

Operating margins are sustained at 16-18% through economies of scale arising from increasing scale and cost-optimization measures.

📈 Strategic Growth

Expected Growth Rate

12-14%

Growth Strategy

Growth will be achieved by launching large 50-150 MW generators (UK design center) by Jan 2026, ramping up the motor and traction segments, and expanding export presence to 110 countries. Management targets INR 1,500 Cr consolidated revenue in FY26.

Products & Services

AC generators (up to 200 MW), Motors, Traction Motors, Turbine-generator islands (up to 52 MW), and Spares.

Brand Portfolio

TDPS

New Products/Services

50-150 MW large generators (testing Jan '26) and Traction motors for export markets.

Market Expansion

Supplying to 110 countries with a focus on Europe and North America through dedicated sales offices; ramping up the motor segment to diversify revenue streams.

Market Share & Ranking

Leading manufacturer of AC generators in the 1-50 MW segment in India.

Strategic Alliances

Long-term relationships with multinational OEMs including Siemens Ltd, Voith Hydro, General Electric, and Triveni Turbine Ltd.

🌍 External Factors

Industry Trends

Industry is seeing 'turbocharged' demand in gas turbine segments and growth in renewables and data centers, particularly in export markets.

Competitive Landscape

Competes with large global corporations; maintains edge through shorter delivery times and competitive pricing.

Competitive Moat

Market leadership in the 1-50 MW segment with over 6,900 generators supplied since inception. Sustainable through a global service network and high-efficiency product validations.

Macro Economic Sensitivity

Demand for capital goods is inherently correlated with global and domestic economic growth; slowdowns in end-user capex directly impact order inflows.

Consumer Behavior

Shift toward renewable energy and data centers is driving increased demand for specialized AC generators in the export market.

Geopolitical Risks

Multi-country export operations (110 countries) entail exposure to legal obligations, regulatory complexities, and trade barriers.

⚖️ Regulatory & Governance

Industry Regulations

Subject to pollution norms, manufacturing standards, and transnational legal/regulatory complexities for multi-country export operations.

Environmental Compliance

Management systems for environment, health, and safety are in place; specific ESG costs are not disclosed.

Taxation Policy Impact

Effective tax rate of approximately 25% based on Fiscal 2025 current tax of INR 52.50 Cr on PBT of INR 209.16 Cr.

Legal Contingencies

Provision of INR 3.05 Cr for interest to MSMED vendors in Fiscal 2025; INR 3 Cr provision for diminution in value of investment in DF Power Systems subsidiary.

⚠️ Risk Analysis

Key Uncertainties

Cyclical demand in end-user industries (cement, sugar, oil & gas) and high customer concentration (70-75% from top 10) are the primary business risks.