TD Power Systems reports a 74% rise in first-quarter income driven by strong overseas demand, raising its FY27 revenue forecast amid expanding orders and new project prospects.
TD Power Systems said its first-quarter profit and sales continued to benefit from robust overseas demand, with total income rising 74% year on year to INR6.3 billion. The Indian manufacturer also lifted its earnings before interest, tax, depreciation and amortisation margin to 19.34% from 18.7%, suggesting it has so far been able to preserve pricing power even as costs remain in focus.
The strongest support came from exports. Order inflows climbed 87% from the previous quarter to INR7.34 billion, and the company said 93% of that came from overseas customers. Its order book stood at INR22.08 billion, giving it visibility for the months ahead, while exports and deemed exports made up 57% of the total. Reuters reported that management now expects revenue of about INR2,600 crores in FY27, above an earlier target, with further upside possible if current demand holds.
Nikhil Kumar, the managing director, said the business is seeing steady demand across gas turbines, gas engines and hydro equipment, and that annual order inflows could remain close to INR700 crores a quarter. He also said the company is close to agreements that would open up work in generators above 100 MW, a segment that would sit above its current core business, although any meaningful revenue contribution would come later because such projects take 18 to 20 months to build. Earlier updates from the company also pointed to a planned spend of about INR50 crores on debottlenecking, with capacity targeted at around INR32 billion by FY28.
Not all parts of the business are growing at the same pace. Domestic order inflow remains relatively weak, the railway unit is no longer taking new business, and the Turkey operation appears likely to remain a small back-up facility rather than a major growth driver. Kumar also said working capital needs will rise as the company grows, which could increase the need for external funding. Even so, TD Power Systems ended the quarter with cash of INR2.4 billion, giving it room to push ahead with expansion plans.
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