TD Power Systems Q2 profit more than doubles on 85% revenue rise

TD Power Systems more than doubled consolidated Q2 FY27 profit after tax to Rs 123.747 crore, up 106% year on year, as total income increased 85% to Rs 841.418 crore and earnings before interest, tax, depreciation and amortisation margin reached 20.64%, from 18.83%.

How did TDPS perform in Q2 FY27?

TDPS reported Q2 FY27 total income of Rs 841.418 crore, compared with Rs 455.629 crore in Q2 FY26, while profit after tax, or PAT, rose to Rs 123.747 crore from Rs 60.193 crore. Revenue from operations was Rs 841.319 crore, up from Rs 452.465 crore, whereas other operational income fell to Rs 9.9 lakh from Rs 316.4 lakh.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 102% to Rs 173.685 crore from Rs 85.779 crore. Earnings before interest and tax rose 106% to Rs 165.935 crore, while depreciation increased to Rs 7.751 crore from Rs 5.205 crore. Profit before tax reached Rs 167.754 crore, up 105% from Rs 81.822 crore.

TDPS recorded total comprehensive income of Rs 123.644 crore in Q2 FY27, against Rs 60.741 crore a year earlier. Tax expense rose to Rs 44.008 crore from Rs 21.629 crore, while finance cost declined to Rs 28.9 lakh from Rs 68.2 lakh. Interest income increased to Rs 2.108 crore from Rs 1.930 crore.

Why did TDPS margins rise in Q2 FY27?

TDPS expanded Q2 FY27 EBITDA margin by 1.81 percentage points to 20.64% from 18.83%, while PAT margin increased to 14.7% from 13.2%. Gross profit rose 85% to Rs 281.724 crore from Rs 152.203 crore, and gross profit margin was nearly unchanged at 33.5%, compared with 33.4% in Q2 FY26.

Cost of goods sold increased to Rs 559.694 crore from Rs 303.426 crore as total income grew by Rs 385.789 crore. Employee cost rose to Rs 61.662 crore from Rs 40.988 crore, and other expenses increased to Rs 46.377 crore from Rs 25.435 crore. EBITDA grew faster than income, at 102% versus 85%, producing the reported margin expansion.

The first-half figures showed a smaller EBITDA-margin increase than the quarter. H1 FY27 total income rose 79% to Rs 1,481.521 crore from Rs 829.488 crore, while EBITDA increased 89% to Rs 295.368 crore from Rs 156.572 crore. EBITDA margin consequently reached 19.94%, compared with 18.88% in H1 FY26.

H1 FY27 PAT was Rs 210.040 crore, up 90% from Rs 110.267 crore, and PAT margin improved to 14.2% from 13.3%. H1 gross profit margin, however, declined to 34.0% from 34.3%, even as gross profit increased 77% to Rs 503.817 crore. This separates the first-half EBITDA-margin gain from the movement in gross margin.

What did TDPS report on orders and exports?

TDPS reported Q2 FY27 order inflow of Rs 824.4 crore, 57% above Rs 524.1 crore in Q2 FY26. Exports, including deemed exports, contributed Rs 722.1 crore, while domestic orders were Rs 102.3 crore. The company stated that exports accounted for 88% of quarterly order inflow.

H1 FY27 order inflow increased 70% to Rs 1,558.5 crore from Rs 915.9 crore in H1 FY26. Export and deemed-export inflow doubled to Rs 1,405.7 crore from Rs 695.1 crore, while domestic inflow declined to Rs 152.8 crore from Rs 220.8 crore. TDPS stated that exports represented 90% of first-half order inflow.

The order book was Rs 2,318.7 crore on 30 September 2026. Exports including deemed exports accounted for Rs 1,720.8 crore, or 74.2%, while domestic orders were Rs 367.3 crore, or 15.8%. Domestic railway e-locomotive orders represented Rs 137.8 crore, export railway orders Rs 31.8 crore, Turkey Rs 44.9 crore, and spares and aftermarket Rs 16.1 crore.

TDPS disclosed a 1 x 60 megawatt, 11 kilovolt steam turbine generator order for an iron and steel project and a 4 x 16 megawatt, 15 kilovolt, 60 hertz order for a barge-mounted power plant. It also cited serial-production gas-engine-generator orders for data-centre and distributed-power applications at 13.8 kilovolt, alongside gas-turbine-generator orders from global original equipment manufacturers.

How does TDPS compare with its historical margins?

TDPS increased total income from Rs 594.808 crore in FY21 to Rs 1,869.459 crore in FY26, for the 26% compound annual growth rate stated in its historical financial data. EBITDA rose from Rs 67.172 crore to Rs 342.941 crore over the same period, while PAT increased from Rs 45.204 crore to Rs 238.776 crore.

EBITDA margin rose to 18.3% in FY26 from 11.3% in FY21, an increase of 7.0 percentage points. PAT margin increased to 12.8% from 7.6%, a 5.2-percentage-point movement. The annual progression was not uniform: FY26 EBITDA margin was below FY25's 18.8%, and FY26 PAT margin was below FY25's 13.5%.

Q2 FY27 EBITDA margin of 20.64% was above the FY26 annual margin of 18.3%, while the 14.7% quarterly PAT margin was above FY26's 12.8%. Both comparisons use total income including other operational income. TDPS reported other operational income of Rs 13.225 crore in FY26 and Rs 9.9 lakh in Q2 FY27.

What changed in TDPS's balance sheet by September 2026?

TDPS reported total assets of Rs 2,501.769 crore at September 2026, compared with Rs 1,876.599 crore at March 2026. Current assets increased to Rs 2,144.752 crore from Rs 1,548.188 crore, including inventories of Rs 599.331 crore and trade receivables of Rs 952.925 crore.

Trade receivables increased from Rs 742.088 crore at March 2026, while inventories rose from Rs 503.059 crore. Cash and cash equivalents increased to Rs 288.885 crore from Rs 78.340 crore, and bank balances other than cash rose to Rs 129.636 crore from Rs 120.251 crore.

Total equity increased to Rs 1,339.604 crore from Rs 1,071.764 crore. Current borrowings, reported at Rs 18.096 crore in March 2026, were nil at September 2026. Current liabilities nevertheless increased to Rs 1,147.238 crore from Rs 793.226 crore, including trade payables of Rs 456.581 crore and other current liabilities of Rs 430.268 crore.

Conclusion

TDPS combined 85% Q2 FY27 income growth with 106% PAT growth and a 1.81-percentage-point increase in EBITDA margin. The H1 FY27 results showed the same direction, with total income of Rs 1,481.521 crore, EBITDA of Rs 295.368 crore and PAT of Rs 210.040 crore, alongside an order book of Rs 2,318.7 crore at 30 September 2026.

The next disclosed items to watch are conversion of the Rs 2,318.7 crore order book and the export mix, which represented 74.2% of that book. Management also said large vertical and horizontal hydro-generator orders are expected across multiple projects, while citing enquiry pipelines in South Asia, Europe and India, without disclosing order values or timing.