TD Power Systems Eyes Rs 1,500 Crore Revenue By FY26
Managing Director Nikhil Kumar explained that data centres require a lot of power, which will further boost demand in the energy segment.
TD Power Systems aims to achieve a revenue of Rs 1,275 crore in FY25 and accelerate it to Rs 1,500 crore by FY26. Speaking to NDTV Profit, the company’s Managing Director Nikhil Kumar said this growth will be driven by the rising demand for artificial intelligence data centres in the United States, Europe’s energy transition, and increased oil and gas exploration under Donald Trump's administration. Kumar explained that data centres require a lot of power, which will further boost demand in the energy segment.
“With the Trump administration, deregulation is also taking place in terms of what kind of permit is required to put up these power plants (AI data centres), required to give the electricity for these large data centres, so demand is huge and doubling down on this bet,” he said.
Kumar added that the company is seeing a very strong order book in Q4 FY25 and expects the trend to continue into Q1 FY26. The company, with 70% to 72% of its business coming from exports, is targeting Ebitda margins of 17.5% and aims to improve it gradually.
“If you look at the last 9 months of order inflow, I am talking about FY25 vs. FY24; we have some 88% increase in our export order inflow. Domestic order inflows have been muted, reflecting the state of conditions in the domestic market,” he said, adding that TD Power Systems’ outlook remains strongly export-orientated.
Responding to a question on whether the company would consider raising capital to enhance its capacity, Nikhil Kumar said that it wouldn’t be necessary.
He highlighted that the company's strong resources, now at Rs 1,800-1,900 crore, are expected to reach Rs 2,400 crore through better productivity.
TD Power Systems could use Japanese techniques like Kaizen and single-piece flow to enhance productivity, he added.
As per its website, TD Power Systems serves a wide range of sectors, such as renewable energy, marine, thermal energy, oil and gas, and railways. It has supplied over 6,300 machines to 105 countries.
Shares of the TD Power System closed 4.33% higher at Rs 335.90 on the NSE on Wednesday. Meanwhile, the Nifty 50 snapped its losing streak to end at 22,337.30, gaining 254.65 points or 1.15%.
