1. At a Glance – Turbocharged and Slightly Arrogant
Stock Price: ₹911
Market Cap: ₹14,229 Cr
Stock P/E: 64.8
ROCE: 30.4%
ROE: 22.3%
Debt to Equity: 0.04 (translation: almost zero debt)
3-Month Return: 16%
1-Year Return: 165%
Q3 FY26 Sales: ₹443 Cr
Q3 FY26 PAT: ₹56.3 Cr
9M FY26 Revenue (Standalone): ₹11.94bn
9M FY26 PAT (Standalone): ₹1.54bn
Order Book: ₹18.45bn
This is not a sleepy capital goods stock. This is a company that quietly doubled its order backlog in 24 months, stopped hedging currency because the CFO decided the rupee would fall (bold move), and is now guiding ₹2,200+ crore revenue for FY27.
Exports? 75% of the manufacturing order book (excluding railways).
Q3 Order Inflow? ₹6.56bn. Record.
Hydro vertical? Set for best year ever.
Plant 3? Operational.
But here’s the spicy bit: It’s trading at 64.8 times earnings.
So is this a compounding machine? Or are we paying Ferrari prices for a generator company?
Let’s plug in.
2. Introduction – From Loss-Maker to Powerhouse
There was a time when TD Power Systems was flirting with losses. FY16–FY18 was not Instagram-worthy.
Now?
Operating margins at 18%.
ROCE at 30%.
Exports dominating.
Cash ₹1.93bn.
The company manufactures AC generators and motors. But don’t let that bore you. This is not just “electrical equipment.” It’s sitting at the intersection of:
- Gas turbine growth
- Data centre backup power
- Grid stabilization
- Steam turbine industrial growth
- Hydro refurbishment
- Railway traction motors
And management is unusually confident.
They’ve already crossed ₹1,800 Cr annualized run rate and are openly calling ₹2,200+ Cr for FY27 “conservative.”
Conservative? In capital goods?
Either they’re seeing something big… or they’re very brave.
So what exactly do they make that’s causing this surge?
3. Business Model – WTF Do They Even Do?
TD Power Systems manufactures AC generators from 1 MW to 250 MVA.
Where do these go?
- Gas turbines
- Steam turbines
- Hydro projects
- Diesel engines
- Data centres
- Railways
- Steel plants
- Biomass
- Waste heat recovery
Revenue Mix FY24:
