TD Power Systems Q1 FY27 Results (NSE: TDPOWERSYS)
Signal: Steady quarter
The read
Revenue surged 72% YoY to ₹640 Cr, driven by strong demand for AC generators and motors. Gross margin compressed 26bps YoY as raw material cost spiked to 70.6% of sales (vs 61.3%), but operating leverage from employee costs (down 140bps as % of sales) helped EBITDA margin hold at 19.4% (-17bps YoY). PAT grew 72% YoY to ₹86 Cr. Standalone revenue of ₹628 Cr annualizes above the ₹2,400 Cr FY27 guidance. However, auditor flagged going-concern uncertainty in subsidiary DF Power Systems.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹6.4 Cr | 72.1% | 8.6% |
| EBIT | ₹1.17 Cr | 72.7% | |
| Net profit | ₹0.86 Cr | 72.3% | |
| EPS | ₹5.52 | 72.0% | |
| EBIT margin | 19.4% |
P&L walk
Revenue surged 72% YoY on strong volume growth. Gross margin dipped 26bps YoY as raw material cost spiked to 70.6% of sales, but operating leverage from employee costs (down 140bps as % of revenue) kept EBITDA margin flat at 19.4%. PAT grew 72% YoY, tracking operating profit.
Key positives
- Revenue growth accelerated to 72% YoY, with standalone revenue of ₹628 Cr annualizing well above FY27 guidance of ₹2,400+ Cr.
- Operating leverage evident: employee cost fell 140bps as % of revenue despite 48% absolute increase, supporting EBITDA margin.
- PAT grew 72% YoY, EPS ₹5.52, both tracking operating performance.
Key concerns
- Raw material cost as % of revenue surged 930bps YoY to 70.6%, compressing gross margin by 26bps.
- Auditor's emphasis of matter on subsidiary DF Power Systems' going concern, with cumulative impairment of ₹20.4 Cr recognized.
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