💰 Financial Performance

Revenue Growth by Segment

The EPC business grew 51% in FY2025 to reach INR 2,268.7 crore, following an 81% growth in FY2024 (INR 1,502.4 crore). H1 FY2026 revenue from operations stands at INR 1,352.3 crore, representing a significant scale-up where one quarter's performance now equals a full year's performance from 2023.

Geographic Revenue Split

While specific regional percentages are not disclosed, the company operates across various pockets of India and is expanding internationally, evidenced by being the L1 bidder for a project in America valued at INR 300 crore.

Profitability Margins

Operating margins remained healthy at approximately 15% in FY2025, up from 13.98% in FY2024. For H1 FY2026, the PAT margin was reported at 15% of revenue, driven by efficient cost control and timely project delivery.

EBITDA Margin

EBITDA margin for H1 FY2026 was 14.4% (INR 194 crore). For Q2 FY2026 specifically, the EBITDA margin was 13.8% on revenue of INR 839 crore, reflecting a slight seasonal variation but maintaining the long-term guidance of 13.5% to 14%.

Capital Expenditure

The company raised INR 1,223.8 crore through a QIP in July 2024. Planned utilization includes INR 950 crore for investments in subsidiaries to fund EPC works for TBCB projects, smart meters, and data centers, with INR 273 crore for general corporate purposes.

Credit Rating & Borrowing

The company maintains a strong credit profile with reaffirmed ratings. It has a comfortable capital structure with nil debt as of March 31, 2025, and an interest cover of 32.2 times for FY2025, significantly improved from 12.3 times in FY2024.

⚙️ Operational Drivers

Raw Materials

Cost of materials consumed represents the largest expense at INR 1,066.63 crore for H1 FY2026 (approximately 78.8% of revenue). Specific materials include components for extra-high voltage (EHV) installations, transformers, and reactors.

Capacity Expansion

The company is transitioning from a manpower-based model to a more digitized execution framework. It has achieved 4x revenue growth in 3 years with only a modest rise in manpower. Current expansion is focused on the Data Center business and Smart Metering (AMI) segment.

Raw Material Costs

Raw material costs were INR 1,066.63 crore for H1 FY2026, compared to INR 686.36 crore in H1 FY2025, an increase of 55.4% YoY, tracking closely with revenue growth.

Manufacturing Efficiency

The company emphasizes its ability to deliver projects on time while tightly controlling costs, which has historically resulted in margins superior to industry peers.

📈 Strategic Growth

Expected Growth Rate

40%

Growth Strategy

Growth will be driven by a robust order book of INR 10,350 crore, a foray into the Data Center and Edge Data Center markets, and expansion into the Smart Metering (AMI) segment. The company is also targeting TBCB (tariff-based competitive bidding) projects and international markets like America.

Products & Services

Engineering, Procurement, and Construction (EPC) services for extra-high voltage (EHV) installations, specialty industrial systems, data centers, edge data centers, and smart meters.

Brand Portfolio

Techno Electric & Engineering Company Limited (TEECL), Techno Digital Infra, Techno Infra Developers.

New Products/Services

Data Centers and Edge Data Centers are expected to contribute to order intake with a target of INR 1,500 crore in additional orders for the current financial year.

Market Expansion

Expansion into the Data Center business and international EPC projects (L1 in a INR 300 crore US project).

Strategic Alliances

The company operates through several subsidiaries including Techno Digital Infra Private Limited and Rajgarh Agro Products Limited for diversified operations.

🌍 External Factors

Industry Trends

The industry is shifting toward smart metering (AMI) and increased data infrastructure. TEECL is positioning itself by diversifying into data centers to reduce its 90% sectoral concentration in T&D.

Competitive Landscape

Competes with other EPC players in the power sector, but maintains higher margins (14%+) compared to peers through efficient working capital management.

Competitive Moat

Moat is built on a 30-year track record of timely EPC execution and cost leadership. This is sustainable due to the high technical expertise required for EHV installations and a strong cash position of INR 2,600 crore providing a liquidity cushion.

Macro Economic Sensitivity

Highly sensitive to government spending in the power and infrastructure sectors, particularly in transmission and distribution which comprises the bulk of the order book.

Consumer Behavior

Increasing demand for data storage and smart energy management is driving the shift toward the company's new business lines.

Geopolitical Risks

International project bidding (e.g., in America) introduces exposure to trade policies and geopolitical stability in those regions.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by TBCB (Tariff-Based Competitive Bidding) norms and AMI (Advanced Metering Infrastructure) standards for smart meters. Direct debit facilities for state discoms are being implemented to manage receivable risks.

Taxation Policy Impact

The effective tax rate is guided at approximately 20-25%. Dividend income is currently exempted, which helps lower the overall tax burden.

⚠️ Risk Analysis

Key Uncertainties

Sectoral concentration risk is high with ~90% of the order book in transmission and distribution. Delays in ground readiness for projects could impact execution timelines by several months.

Geographic Concentration Risk

While expanding, the company remains heavily focused on the Indian market, with emerging exposure to international projects.

Third Party Dependencies

High dependency on state discoms for the AMI segment, though mitigated by escrow account structures.

Technology Obsolescence Risk

The company is mitigating technology risks by investing in a digitization drive to move from a manpower-heavy to a data-driven execution model.

Credit & Counterparty Risk

Receivable days have been a historical challenge (250+ days) but have been successfully reduced to 108 days, improving the quality of the balance sheet.