TD Power Systems
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
TD Power Systems is navigating a favorable growth trajectory, bolstered by management's optimistic outlook and strategic capacity expansions aimed at capitalizing on the burgeoning demand from AI data centers and grid stabilization projects. Recent earnings calls highlight a significant increase in order inflows, particularly from exports, which supports Vista's revenue growth expectations for FY27 and FY28. The company's proactive approach to enhancing its product offerings and expanding its global footprint positions it well within a fragmented market, where it can leverage improving pricing power. Despite a premium valuation, the anticipated revenue growth and stable margins align with Vista's forecast of INR 24 billion-plus in revenue for FY27, with potential for further increases. However, execution risks remain, particularly concerning high factory utilization and commodity price fluctuations. Over the next 12-24 months, key opportunities include the expansion into larger generator capabilities and the ongoing demand from industrial sectors, while watchpoints include the pressure on execution and the timing of capacity ramp-ups. Overall, TD Power Systems is well-positioned to benefit from structural tailwinds in the power equipment sector, despite facing challenges in execution and market volatility
Why We Like This Stock
- Management's raised revenue guidance reflects confidence in robust demand across generator verticals
- Strategic capacity expansions are set to enhance production capabilities, supporting future revenue growth
- The company is well-positioned to capitalize on the increasing demand from AI data centers and grid stabilization projects
Things To Watch Out For
- Execution pressure from high order inflows may impact operational efficiency
- Potential commodity price increases could affect margins and profitability
- The ramp-up of large generator capacity may face delays, impacting revenue projections
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,001 | 1,279 | 1,856 | 2,315 | 2,977 |
| Profit Before Tax (Cr.) | 162 | 232 | 326 | 442 | 562 |
| PBT Margin | 16.2% | 18.1% | 1756.5% | 19.1% | 18.9% |
| Net Profit (Cr.) | 115 | 177 | 238 | 321 | 408 |
| Earnings Per Share | 7.4 | 11.4 | 15.2 | 20.6 | 26.1 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Anand Rathi | ▲ Buy | 1,751 | 13-Aug-2026 |
Company Overview
Show Company Profile
TD Power Systems Limited, together with its subsidiaries, manufactures and sells AC generators and electric motors in India, Japan, the United States, Europe, and Turkey. The company offers steam turbine, gas turbine, hydro turbine, wind turbine, gas engine, and diesel engine generators; induction, traction, and synchronous motors; and spare parts. It also provides design and manufacturing services; spares and refurbishment services; and after sales services. The company serves the renewable energy industry comprising water, geothermal energy, wind, heat recovery, biomass, and waste-to-energy; sugar and ethanol industry; oil and gas industry; pulp, paper, and textiles industry; marine industry; steel industry; and thermal energy industry. TD Power Systems Limited was incorporated in 1999 and is headquartered in Bengaluru, India.