TD Power's margin expands as sales and order inflow hit records
Revenue growth outpaced expense growth, lifting operating margin to 20.63%; management also cited a buoyant order pipeline and higher FY27 guidance.
Filed 12 Nov 2026, 17:11 IST · after market close · TD Power Systems Ltd (TDPOWERSYS)
Key takeaways
- Consolidated operating margin expanded 2.37 percentage points year on year to 20.63% as revenue grew faster than expenses.
- Consolidated net profit rose 105.60% year on year, while other income contributed only 1.32% of pre-tax profit.
- Management said Q2FY27 delivered the company's highest-ever quarterly sales and order inflow, with FY27 revenue guidance raised to Rs 2,900-3,000 cr.
Price around the results
Revenue acceleration lifted operating leverage
Consolidated revenue grew 85.94% year on year and 31.45% sequentially, while expenses rose more slowly at 80.54% and 28.80%, respectively. That gap expanded operating margin by 2.37 percentage points year on year and 1.63 percentage points sequentially. Management said Q2FY27 delivered the company's highest-ever quarterly sales and order inflow.
Profit growth was largely operational
Net profit increased 105.60% year on year, supported by the wider operating margin rather than non-operating income. Other income accounted for 1.32% of pre-tax profit, while the tax rate changed by only 0.20 percentage points year on year and 0.05 percentage points sequentially. Sequential interest expense rose 52.63%, but it did not prevent pre-tax profit from increasing 43.51%.
Margin is recovering after the FY26 decline
Operating margin fell from 18.51% in Q1FY26 to 16.61% in Q4FY26, then recovered to 19.00% in Q1FY27 and 20.63% in Q2FY27. The latest margin was 9.05 percentage points above the 11.58% median for 215 Industrials peers that had reported the same quarter. This was the second consecutive quarter of margin expansion after the FY26 trough.
Management points to execution and demand
Management said demand was very strong across all generator-business verticals and that the order-inflow run-rate had exceeded approximately Rs 750-800 cr per quarter. The company told analysts it was positioned to deliver close to that inflow rate, while also citing a 60 MW, 11 kV iron and steel order and a 4x16 MW barge-mounted power-plant order. Management said it had upgraded FY27 revenue guidance to approximately Rs 2,900-3,000 cr.
Market response is still pending
The consolidated results were filed after market close, so the current session's response is not covered here. After the previous eight results, the stock rose each time, with a median absolute move of 9.60%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹841 cr | ₹640 cr | +31.45% | +85.94% |
| Other income | ₹2 cr | ₹3 cr | -15.65% | -56.58% |
| Expenses | ₹668 cr | ₹518 cr | +28.80% | +80.54% |
| Operating profit | ₹174 cr | ₹122 cr | +42.72% | +110.11% |
| Operating margin (%) | 20.63% | 19.00% | — | — |
| Interest | ₹0 cr | ₹0 cr | +52.63% | -57.35% |
| Depreciation | ₹8 cr | ₹7 cr | +8.24% | +49.04% |
| Profit before tax | ₹168 cr | ₹117 cr | +43.51% | +105.02% |
| Tax | ₹44 cr | ₹31 cr | +43.82% | +103.47% |
| Net profit | ₹124 cr | ₹86 cr | +43.41% | +105.60% |
| EPS (₹) | ₹3.96 | ₹5.52 | -28.26% | +2.86% |
Operating margin of 20.63% compares with a Industrials sector median of 11.58% across 215 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- TDPS delivered its highest-ever quarterly order inflow and sales during Q2 FY27.
Guidance & outlook
- TDPS sees very strong demand across all generator-business verticals.
- Order inflow is very strong, with an extremely buoyant pipeline across all segments.
- The order-inflow run-rate has exceeded approximately ₹750–800 crores per quarter, and TDPS expects to deliver close to the inflow rate.
- TDPS says the FY27 and FY28 outlook is strong and upgraded its final FY27 revenue guidance to approximately ₹2,900–3,000 crores.
Expansion
- TDPS set up a larger and modern second manufacturing unit in 2011.
New orders
- TDPS won the segment's biggest 4-pole order: one 60MW, 11kV unit for an iron and steel project.
- TDPS secured a 4×16MW, 15kV, 60Hz order for a barge-mounted power plant through a leading turbine OEM.
New initiatives
- TDPS implemented advanced automation and robotics in its manufacturing processes to improve efficiency, accuracy and consistency.
What to watch
- Whether operating margin holds above 20.63% in the next quarter.
- Whether quarterly order inflow remains above the management-cited Rs 750-800 cr run-rate.
- Progress against management's Rs 2,900-3,000 cr FY27 revenue guidance.