TD Power Systems Ltd

- No specific plans for new fundraising through debt or equity were mentioned in the call. - The company currently has about INR240 crores of cash on the balance sheet. - TD Power Systems is focusing on heavy investments for future growth, including filling up the third plant. - They expect to fund future capacity expansions beyond INR2,200 crores revenue target through internal accruals. - Management emphasized optimizing existing capacity and conserving financial strength for upcoming investments. - Any new capacity additions will be planned well in advance to avoid lost opportunities, but no concrete funding route was disclosed. - Dividend payouts remain modest as the focus is on reinvesting for growth.

- TD Power Systems is commissioning a new plant with multiple sheds; equipment installation and commissioning started by May, with impact expected in H2 FY '26. - The company plans to optimize existing capacity and will not add new capacity until reaching approximately INR 2,200 crores revenue. - A design center is being set up in the U.K. with 2-3 highly qualified individuals focused on developing new large generators and motors (up to 100 MW) to compete in evolving markets, especially data centers. - Post the third plant filling up, the company will build cash reserves to fund further capacity expansion, planned beyond INR 2,200-2,300 crores revenue. - Investments to improve plant efficiency are ongoing to reach higher utilization without immediate new capital expenditure. - The company is also evaluating new product lines (large generators, large motors, rail traction motors) expected to drive growth into FY '27. - No mention of imminent inorganic acquisitions but strategic internal investments prioritized for growth.

- FY '26 revenue guidance is INR 1,500 crores with strong upward potential based on order inflows. - Clear path to INR 1,900-2,000 crores revenue in FY '27 driven by new products and export railway business. - Existing capacity can be optimized to achieve up to INR 2,200-2,300 crores revenue before new capacity additions are needed. - U.S. market expected to grow to 20-25% of total business due to private sector tech investments. - Export business remains backbone with 65-70% order share expected to continue. - Growth driven by large data center and AI farm demand, grid stabilization units, and traction motors for Europe, U.S., and CIS. - New larger generators (up to 40-45 MW) and motors support expansion in global markets including Middle East and India. - Hydro refurbishment and coal generator replacement markets offer additional growth opportunities domestically and globally. - Design center in U.K. to boost technology and competitiveness for larger machines.

- TD Power Systems projects steady revenue growth with a path to INR 1,900-2,000 crores by FY '27 driven by new products and export railway business. - FY '26 guidance is INR 1,500 crores revenue with strong upward potential as new orders and products come online. - EBITDA margin is sustainable around 17.5%, with profit after tax increasing 25% YoY to INR 1,530 million in FY '25. - Operating efficiency enhancements aim to push existing plant capacity utilization to generate revenues of around INR 2,200-2,300 crores before considering new capacity expansion. - Dividend payout is gradually increasing but not the priority currently, as internal accruals support growth and capacity additions. - Expansion into large motors, gas turbines, and traction motors for Europe, U.S., and CIS will further drive earnings. - Export markets, especially U.S. data centers and grid stabilization, remain key growth drivers for future profitability.

- Current order book of the Manufacturing segment: INR 13.68 billion - INR 10.12 billion: regular manufacturing business - INR 3.16 billion: railway business - INR 0.11 billion: space and aftermarket - INR 0.29 billion: Turkey business - Current year order book: INR 14.79 billion, up from INR 10.51 billion previous year - Export and deemed export orders (excluding railway) constitute 62-68% of orders - Guidance for FY '26 revenue: INR 1,500 crores with strong upward potential - Order inflow guidance for FY '26: INR 1,600 crores to INR 1,700 crores - Execution rate historically ~110% of order book annually, expected to continue - Third plant commissioning expected in H2 FY '26 to support order execution and growth