TD Power Systems Limited (533553) Q2 25/26 earnings summary

Executive summary

• Consolidated total income for H1 FY26 rose 42% year-over-year to INR 8.33 billion, with profit after tax up 45% to INR 1.108 billion.

• Achieved highest revenue and PAT since inception, with strong growth in exports and diversified order inflow across global markets.

• Order inflow for H1 FY26 reached INR 9.16 billion, up 39% year-over-year, with 76–84% from exports.

• Major production milestones reached, including first 56 MW 2-pole generator for ADNOC and robust performance in hydro and gas engine segments.

• Standalone and consolidated unaudited financial results for the quarter and six months ended September 30, 2025, were approved, with a limited review by statutory auditors.

Financial highlights

• Q2 FY26 total revenue: ₹4,556 million, up 47% YoY; H1 FY26: ₹8,295 million, up 42% YoY.

• Stand-alone total income for H1 was INR 7.64 billion, up 33% year-over-year, and profit after tax increased 37% to INR 989 million.

• EBITDA margin for H1 was 18.42%, slightly higher than 18.04% in the prior year.

• Gross profit margin declined by 250 basis points due to product mix but is expected to normalize in Q3 and Q4.

• Gross cash balance maintained at INR 1.93 billion.

Outlook and guidance

• FY26 revenue guidance raised to INR 18 billion, with FY27 initial guidance above INR 20 billion.

• Export order inflow remains the primary growth driver, supported by energy transition trends and strong demand in renewables, gas, hydro, and data center segments.

• Third plant to be fully operational by early Q4 FY26, enabling capacity for increased orders.

• Order booking run rate at INR 550 crore per quarter expected to sustain into next year.

• Upside potential exists if India-U.S. trade deal materializes; otherwise, Turkey facility will be used for U.S. exports.