TD Power Systems FY26 profit up 41%, dividend ₹1.10

Key takeaways from FY26 results

TD Power Systems Limited announced its audited financial results for the year ended March 31, 2026, reporting higher profit and revenue. Standalone net profit rose 41% to ₹216.44 crore, alongside stronger operating performance. Standalone revenue from operations increased to ₹1,716.66 crore from ₹1,265.40 crore in the previous year. The board also recommended a final dividend of ₹1.10 per equity share (face value ₹2) for FY26, compared with ₹0.65 in the prior year. Separately, the board approved a 1:2 stock split, subject to shareholder approval. The stock split will sub-divide each equity share of face value ₹2 into two equity shares of face value ₹1 each. Together, the dividend and split announcements place focus on shareholder payouts and liquidity.

FY26 standalone performance: revenue and profit

For FY26, the company reported a significant improvement in financial performance, supported by revenue growth and operational efficiency. Revenue from operations on a standalone basis rose to ₹1,716.66 crore, up from ₹1,265.40 crore in the corresponding previous period. Standalone net profit for the year increased to ₹216.44 crore. In the earnings call transcript referenced in the material, management also described full-year standalone total income at ₹1,737 crore versus ₹1,288 crore, and profit after tax and comprehensive income at ₹218 crore versus ₹153 crore. The transcript also cited an annual EBITDA margin of 18.14% (including other income and excluding exceptional and treasury income), compared with 17.46% in the prior year. These metrics were presented as reflecting better throughput and execution, alongside higher revenue.

Consolidated results show broad-based growth

On a consolidated basis, TD Power Systems reported growth for both the quarter and the full year ended March 31, 2026. Consolidated revenue from operations rose to ₹1,856.23 crore from ₹1,278.76 crore in the previous year. Consolidated profit for the year increased to ₹238.77 crore from ₹174.58 crore. Total comprehensive income on a consolidated basis was ₹236.04 crore for the year, compared with ₹173.36 crore previously. In the referenced transcript, management also stated consolidated total income of ₹1,878 crore versus ₹1,302 crore and profit after tax and comprehensive income of ₹236 crore versus ₹173 crore. The consolidated numbers indicate that performance improved not only at the standalone level but across the group.

Dividend recommendation and stock split plan

The board recommended a final dividend of ₹1.10 per equity share of face value ₹2 for FY26, up from ₹0.65 per share in the previous year. The company also approved a stock split in a 1:2 ratio, under which each equity share of face value ₹2 will be split into two equity shares of face value ₹1 each. The stock split is subject to shareholder approval. Companies typically pursue stock splits to potentially enhance liquidity by reducing the per-share price, while keeping the underlying economic value unchanged. For investors, the immediate change is in the number of shares held and the face value, while dividend per share and market price adjust accordingly. The dividend recommendation, if approved, would reflect a higher payout per share versus the previous year.

Order inflow and export mix highlighted in the call

The earnings call transcript pointed to a stronger order environment during FY26. Management cited current year order inflow of ₹2,238 crore versus ₹1,478 crore in the previous year. It also stated full-year order inflow from direct and deemed exports of ₹1,733 crore compared to ₹985 crore previously, describing growth of 76%. The transcript added that 79% of total order inflow for the year was exports and 21% was domestic. Management also noted growth in the pending order for FY26 for generators and motors of 66% compared to FY25. These figures indicate a meaningful tilt toward export-led order booking during the year.

Market drivers management flagged

In the call transcript, management described demand drivers across multiple areas. It referenced AI data centers, grid stabilization, and power generation alongside renewables-linked demand. It also cited demand tailwinds for segments such as geothermal, hydro, and waste-to-energy. The same transcript described the steam turbine market as steady, with around 10% to 12% growth in capital power plant business, biomass, and waste heat recovery. The company also indicated that orders were coming in strong volumes, with upward growth suggested in the forecast discussed during the presentation.

Guidance, margins, and capacity expansion references

The provided material includes multiple guidance references from management commentary. It stated that FY26 revenue guidance was revised upward to ₹1,800 crore from an earlier ₹1,500 crore, and that a minimum guidance of ₹2,000 crore was set for FY27. The transcript also referred to margins being maintained at current levels plus or minus 0.5 percentage points. On capacity, the material noted a third plant was on track for progressive commissioning in Q2 and Q3, aiming to boost capacity up to ₹2,400 crore. These points collectively frame how the company discussed revenue visibility and execution readiness.

Snapshot: reported financials and key actions

Market impact: what investors track next

The FY26 result announcement combines earnings growth with capital actions that can influence trading and investor positioning. The higher final dividend recommendation provides a clear year-on-year increase in per-share payout as stated in the filing. The proposed stock split, if approved by shareholders, would increase the number of shares outstanding and can affect liquidity and trading participation. From an operations standpoint, management’s disclosure on order inflows and export share suggests that execution against the order book remains a key driver of near-term performance. Investors will likely monitor how margins track versus the stated plus or minus 0.5 percentage point range discussed in commentary, and how capacity ramp-up progresses as the company referenced progressive commissioning for its third plant.

Analysis: why the FY26 print matters

Two aspects stand out in the FY26 communication. First, the rise in standalone and consolidated revenues and profits shows improvement across the business, not just within one entity. Second, the order inflow numbers and the export-heavy mix cited in the transcript indicate that external demand contributed materially to booking momentum. The increase in dividend recommendation alongside a stock split proposal adds a corporate-actions layer that can shape near-term investor attention. At the same time, management’s guidance references around ₹1,800 crore for FY26 and a minimum ₹2,000 crore for FY27 provide an explicit framework that the market can compare against subsequent quarterly updates.

Conclusion

TD Power Systems’ FY26 audited results show higher standalone and consolidated earnings, backed by stronger revenue from operations. The board’s recommendation of a ₹1.10 final dividend and its approval of a 1:2 stock split, subject to shareholder approval, add clear shareholder-focused actions. Commentary in the referenced call also pointed to stronger order inflow, a high export share, and an intent to maintain margins within a narrow band. The next set of checkpoints for investors will be shareholder approvals for the split and dividend, and subsequent updates on order execution and commissioning timelines mentioned in management commentary.