Techno Electric & Engineering Company (TECHNOE) Q2 25/26 earnings summary

Executive summary

• Revenue for H1 FY2026 reached INR 13,523 million with EBITDA of INR 1,940 million (14.4% margin), and PAT of INR 2,220 million (15.2% margin); Q2 revenue was INR 8,386 million, EBITDA INR 1,154 million (13.8% margin), and PAT INR 1,233.98 million (13.9% margin).

• EPS for H1 was INR 21.21, up 123.6% YoY; Q2 EPS was INR 10.61, up 134.6% YoY.

• Order book stands robust at INR 99,570 million as of 30 Sep 2025, with additional contracts and L1 positions exceeding INR 1,150 crore.

• Data center business scaling with Chennai 36 MW hyperscale facility commissioned, Gurugram operational, and Noida and Kolkata projects underway.

• Operational momentum across EPC, Data Centers, and Smart Metering led to improved financial performance.

Financial highlights

• Other income for H1 was INR 1,050 million; Q2 other income was INR 470 million.

• Cash and liquid investments at INR 2,600 crore (INR 225/share); zero debt on books and AA long-term stable credit rating.

• PAT margin for Q2 at 13.93%; H1 PAT margin at 15.2%.

• Order intake for FY2026 expected at INR 3,000 crore, with bids in pipeline for INR 1,500 crore.

• Company achieved 4x revenue growth in three years with modest manpower increase.

Outlook and guidance

• FY2026 revenue target of INR 3,500 crore remains on track, with H1 typically contributing 40% and H2 60%.

• EPS guidance of INR 50 for FY2026 and INR 75 for FY2027, excluding data center contributions.

• Data center expansion plan targets 250 MW capacity by 2030-32, with Chennai (36 MW) live, Noida (16 MW) and Kolkata (16 MW) under development.

• Data center vertical expected to contribute INR 125 crore to top line in FY2027.

• Tax rate expected to average 20% on pretax income.