TD Power Systems Sees Strong Demand Across AI Data Centres, Grid Stabilisation and Renewables; TDPS Revises FY27 Guidance to Rs. 2,400 Crore-Plus on Strong Order Visibility

TD Power Systems Sees Strong Demand Across AI Data Centres, Grid Stabilisation and Renewables; TDPS Revises FY27 Guidance to Rs. 2,400 Crore-Plus on Strong Order Visibility

The Electrical Post 

TD Power Systems Ltd. (TDPS) is witnessing robust growth momentum across its key business segments, driven by rising demand from AI data centres, grid stabilisation initiatives, conventional power generation and renewable energy applications. Speaking during the Q4 FY26 earnings conference call, Managing Director Nikhil Kumar highlighted that market conditions remain highly buoyant, with the company focused on execution amid a rapidly expanding order pipeline.

For FY26, TDPS delivered strong financial performance, with standalone total income rising 35% year-on-year to Rs. 1,737 crore from Rs. 1,288 crore in the previous year. Profit after tax and comprehensive income increased 42% to Rs. 218 crore, while EBITDA margin improved to 18.14% from 17.46% in FY25.

On a consolidated basis, total income stood at Rs. 1,878 crore, registering a 44% increase over Rs. 1,302 crore in the previous year. Consolidated profit after tax grew 36% to Rs. 236 crore, while the company maintained a strong cash position of Rs. 199 crore.

TDPS closed FY26 with a manufacturing order book of Rs. 1,973 crore, comprising Rs. 1,677 crore in the generator business, Rs. 247 crore in the railway segment, Rs. 20 crore in spares and aftermarket operations, and Rs. 29 crore from Turkey. Export and deemed exports, excluding railway orders, continued to account for approximately 76% of the business.

Order inflows remained exceptionally strong during the year. Quarterly order inflows reached Rs. 666 crore, representing a 61% increase compared with the corresponding period last year. For the full year, order inflows rose 51% to Rs. 2,238 crore from Rs. 1,478 crore in FY25.

Export markets continue to dominate the company's growth story. Export and deemed export orders accounted for 80% of quarterly order inflows at Rs. 528 crore, while full-year export inflows climbed 76% to Rs. 1,733 crore from Rs. 985 crore in the previous year. Overall, exports represented 79% of total order inflows in FY26, while domestic orders contributed 21%.

A notable highlight for the year was the 66% growth in pending orders for generators and motors compared with FY25, reflecting sustained demand visibility across industrial and energy sectors.

According to Kumar, the structural drivers supporting TDPS' growth remain firmly in place. The rapid expansion of AI data centres, increasing investments in grid stabilisation, conventional power generation requirements and the global transition towards renewable energy continue to create substantial opportunities for the company.

"The basic factors driving growth continue to play out—AI data centres, grid stabilisation, basic power generation and the push towards renewables, which is driving demand for geothermal, hydro and waste-to-energy applications," Kumar said.

The company expects strong order inflows to continue, with management currently concentrating on execution capabilities to support growth.

Among the individual business segments, steam turbines continue to perform in line with expectations, with annual growth estimated at 10–12%, supported by captive power plants, biomass facilities and waste heat recovery projects.

The gas turbine and gas engine business remains one of the fastest-growing segments for TDPS. Kumar noted that growth momentum has continued unabated, supported by capacity additions undertaken by engine and turbine manufacturers globally.

The company is receiving large-volume orders, and demand visibility remains strong not only for FY27 but also extending into FY28. Incremental capacity additions by turbine and engine manufacturers are translating into higher generator requirements for TDPS.

One of the notable projects being serviced by the company includes supply to projects associated with SpaceX, highlighting TDPS' increasing participation in global high-technology and infrastructure applications.

Hydro is expected to emerge as another major growth driver. Kumar indicated that FY27 could become one of the strongest years for TDPS in the hydro segment, with the company actively participating in refurbishment projects both in India and overseas. The business is expected to generate several high-value order wins during the current and upcoming quarters.

The motors business remains a strategic focus area for the company. However, management acknowledged that during FY26, priority was given to high-volume generator opportunities due to strong export demand.

To strengthen execution capabilities, TDPS is now separating manufacturing lines for motors and generators. The move is expected to improve operational focus and support the stabilisation of the motor business, with management anticipating improved traction in the coming years.

In the railway segment, the company continues to maintain a diversified market presence, with orders secured from the United States, Europe, Russia and India. TDPS expects supplies to all four markets during the next financial year, providing geographical diversification and reducing dependence on any single region.

Despite geopolitical uncertainties, the company stated that its Indian manufacturing operations remain largely insulated from disruptions in the Middle East, as it does not source raw materials from the region and most contracts are executed on an ex-works basis. However, one contract in Turkey faced challenges due to shipping delays, leading to liquidated damages on a project.

Looking ahead, TDPS has revised its FY27 revenue guidance upward to Rs. 2,400 crore-plus, with Kumar expressing confidence that the company may further enhance guidance if the pace of order inflows witnessed in Q4 FY26 continues throughout the current financial year.

For industry observers, TDPS' commentary underscores the growing role of specialised generator manufacturers in supporting emerging themes such as AI infrastructure, grid flexibility, renewable integration and global energy transition initiatives, positioning the company favourably for sustained growth over the medium term.
 

Published at : Sep 17, 2026 12:57 PM (IST)

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