TD Power Systems Ltd Q2FY26 – When an Electric Motor Company Started Running Like a Supercar (and Left Competitors in the Dust)
1. At a Glance – The Shockingly Profitable Powerhouse
If you thought generator manufacturers were boring, meet TD Power Systems Ltd (TDPS) — the Bangalore-based spark plug of the Indian engineering scene that’s quietly become a ₹10,688 crore live wire. At a current price of ₹684, this once-sleepy midcap now trades at a shocking P/E of 51.3x, and the market doesn’t even blink. Why? Because the numbers speak volts and amps:
In Q2FY26, revenue surged 47.6% YoY to ₹452 crore, while PAT charged up 45.8% YoY to ₹60 crore. Operating margins stayed strong at 18%, despite inflation and occasional union headaches. The company’s ROCE stands at a sizzling 30.4% and ROE at 22.3% — better than some FMCG players that just sell soap and nostalgia.
Debt? Practically non-existent at ₹35.7 crore. Current ratio? A healthy 2.33. TDPS is like that nerdy electrical engineer from college who turned out to be a millionaire startup founder — underestimated, efficient, and suddenly too cool for the rest of the batch.
2. Introduction – The Glow-Up Nobody Saw Coming
Once upon a fiscal year, TD Power Systems was a typical engineering firm making industrial generators, mostly for turbine OEMs. Fast forward to FY26, and this company is generating not just electricity but investor excitement.
It started as a humble manufacturer of AC generators and electric motors. Today, it’s a global player serving clients across 103 countries, with installations exceeding 6,300 generators. From steam turbines to gas, hydro, and even wind — if it spins and produces power, TDPS probably helped build it.
And the kicker? It’s still run like a family-sized business with multinational discipline — disciplined balance sheet, careful capex, and a growing global footprint. Even during the minor labour disputes last year (remember the lockout drama?), management didn’t short-circuit under pressure.
Question for readers: ever seen a “generator stock” give 100% returns in five years and 74% in one? Well, you’re looking at one.
3. Business Model – WTF Do They Even Do?
TDPS’s business is simple on paper — but deceptively powerful. It manufactures AC generators and electric motors for a wide range of applications: power plants (steam, gas, hydro), diesel engines, and renewables. These are custom-engineered machines, meaning each product is built-to-spec like a Rolls Royce, but in kilowatts.
Subsidiaries – 15% (mostly exports and specialized contracts)
Geographical Split (FY24):
India – 59%
Exports – 41% (Europe, Middle East, Asia-Pacific, Africa — basically, anyone with a turbine and ambition)
Clients include the usual suspects of global engineering royalty — Siemens, GE, Voith Hydro, Triveni Turbine, and a few top-secret foreign OEMs that sound like passwords in a sci-fi movie.
TDPS’s model works because it focuses on efficiency, customization, and reliability — three words that should be engraved on every Indian manufacturing CEO’s mug.
Commentary: Revenue growth above 40%, PAT growth above 45%, and zero borrowing — it’s the cleanest growth you’ll find outside a lab. The company’s Operating Margin of 18% shows that pricing power is holding strong despite input cost inflation. TDPS is now competing with global players, and doing it with fewer tantrums than an inverter during load-shedding.
5. Valuation Discussion – Where’s the Fair Value Spark?
a) P/E Method: Annualized EPS = ₹13.3 (TTM) Industry P/E = ~52x Fair Value Range = ₹13.3 × (40x – 55x) = ₹532 – ₹732
b) EV/EBITDA Method: EV = ₹10,531 Cr EBITDA (TTM) = ₹278 Cr Current EV/EBITDA = 37.9x Peers average ~35x (CG Power 37x, ABB 38x, Siemens 36x) Fair Value ≈ ₹640 – ₹750
c) DCF (Assuming 18% earnings CAGR, 10% WACC, 3% terminal growth): Intrinsic Value ≈ ₹700 ±10%
🎯 Fair Value Range: ₹630 – ₹770 per share (For educational purposes only. If you think this is stock advice, please go check your
