TD Power Systems Limited (TDPOWERSYS) AI Stock Analysis

• Market Cap: ₹139.37B
• Dividend Yield: 0.23%
• Average Volume (3M): 58.08K
• Price to Earnings (P/E): 48.6
• Beta (1Y): 1.92
• Revenue Growth: 40.14%
• EPS Growth: 53.51%
• Country: IN
• Employees: 705
• Sector: Energy
• Sector Strength: 52
• Industry: Industrial - Machinery
• EPS (TTM): 3.60
• Shares Outstanding: 156,214,830
• 10 Day Avg. Volume: 67,484
• 30 Day Avg. Volume: 58,078
• PEG Ratio: 0.75
• Price to Book (P/B): 7.21
• Price to Sales (P/S): 4.85
• P/FCF Ratio: -489.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 15.2
• Revenue Forecast (FY): ₹17.82B

• Rating: 70 Outperform
• Price Target: ₹994.00 ▲(45.13% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

Score is driven primarily by strong financial performance (high margins, very low leverage, solid ROE) but tempered by negative free cash flow. Technicals remain supportive with the stock well above major moving averages, though overbought signals increase near-term risk. Valuation is the key drag given the high P/E and low dividend yield.

Positive Factors

High margins and profitability

Sustained high gross and operating margins show durable pricing power and efficient production for generator systems. Strong profitability supports reinvestment and cushions cyclicality, enabling the company to fund R&D, service capabilities, and margin-preserving investments over the next several months.

Very low leverage and strong ROE

Extremely low debt and a high equity ratio provide financial flexibility and low fixed-charge risk, enabling capacity to absorb project timing shocks and pursue selective capex or strategic investments. A 20% ROE indicates efficient use of equity capital over time.

Robust revenue growth trend

Double-digit sustained revenue growth demonstrates expanding market penetration and demand for bespoke generator packages. Continued top-line momentum supports operating leverage, backlog conversion potential, and long-term margins provided execution keeps pace with order intake.

Negative Factors

Declining free cash flow

A swing to materially negative free cash flow despite profits suggests working capital or capex pressures and reduces internal funding for growth or dividends. Persisting negative FCF can force external financing or slow strategic spending over several quarters.

Weak cash conversion

Low OCF/Net Income implies earnings are not converting efficiently to cash, likely due to receivables, inventory, or project billing timing. This structural conversion gap raises liquidity risk and can exacerbate funding needs during multiquarter project cycles.

Cyclicality from project capex timing

Revenue and cash flows depend on timing of large power and industrial capex projects; backlog conversion variability can create episodic revenue swings and working-capital spikes. This structural cyclicality can stress cash flows despite strong margins.

TD Power Systems Limited Business Overview & Revenue Model

Company Description

TD Power Systems Limited, together with its subsidiaries, manufactures and sells AC generators and electric motors in India and internationally. The company operates through Manufacturing Business and Project Business segments. It offers steam turbine, hydro turbine, diesel engine, gas engine, gas turbine, and wind turbine generators. The company also engages in the business of engineering, procurement, and construction. In addition, it undertakes boiler-turbine generator island projects and balance of plant portion for steam turbine power plants. Further, the company offers support services for erection and commissioning; training for customer field technicians on commissioning, maintenance, and trouble-shooting; trouble shooting to control generation disruptions; periodic plant health check-ups; overhauling of generators; replacement of generators for existing old machines; and spares. TD Power Systems Limited was incorporated in 1999 and is headquartered in Bengaluru, India.

How the Company Makes Money

TD Power Systems Limited generates revenue primarily through the sale of its power generation equipment, including diesel and gas engines, as well as generator sets. Significant revenue streams include the manufacturing and sale of customized power solutions, maintenance services, and spare parts for their equipment. The company also earns income from long-term service agreements and operational support contracts with clients, ensuring recurring revenue. Strategic partnerships with key players in the energy sector, along with a strong focus on R&D for advanced technologies, contribute to its competitive edge and profitability.

TD Power Systems Limited Financial Statement Overview

Summary

Strong profitability and growth profile (Gross Margin 35.02%, Net Margin 13.65%) and a very low leverage balance sheet (Debt-to-Equity 0.014, Equity Ratio 63.07%, ROE 20.29%). The main offset is weaker cash generation, with Free Cash Flow turning negative in 2025 (-126.69m vs 393.16m in 2024).

Income Statement

TD Power Systems Limited demonstrates robust revenue growth with a consistent increase in total revenue over the past five years. The company achieved a Gross Profit Margin of 35.02% and a Net Profit Margin of 13.65% for 2025. EBIT and EBITDA margins also show a strong performance at 25.35% and 19.89%, respectively. This suggests effective cost management and operational efficiency, contributing to a healthy profitability trajectory.

Balance Sheet

The company's balance sheet is solid, characterized by a low Debt-to-Equity Ratio of 0.014 and a high Equity Ratio of 63.07% in 2025, indicating financial stability and low leverage. Return on Equity (ROE) stands at a commendable 20.29%, showcasing effective use of equity to generate profits. The increasing Stockholders' Equity reflects strong financial health, though the significant rise in Total Assets suggests potential risk if asset returns do not align.

Cash Flow

Cash flow analysis reveals a mixed scenario with a decline in Free Cash Flow to -126.69 million in 2025 from 393.16 million in 2024, indicating potential issues in cash generation. However, the Operating Cash Flow to Net Income Ratio remains positive at 0.23, showing some operational cash generation capacity. The company needs to address declining free cash flow to ensure long-term sustainability.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.77B	12.79B	10.01B	8.72B	7.97B	5.94B
Gross Profit	4.44B	4.48B	3.36B	2.82B	2.12B	847.36M
EBITDA	2.88B	2.54B	1.87B	1.55B	1.21B	873.22M
Net Income	1.89B	1.75B	1.18B	968.12M	704.96M	452.04M
Balance Sheet
Total Assets	0.00	13.64B	10.38B	9.03B	9.07B	7.85B
Cash, Cash Equivalents and Short-Term Investments	1.44B	1.44B	1.69B	1.19B	1.36B	1.48B
Total Debt	0.00	122.18M	95.00K	0.00	709.65M	519.96M
Total Liabilities	-8.60B	5.03B	3.33B	2.99B	3.80B	3.14B
Stockholders Equity	8.60B	8.60B	7.05B	6.05B	5.27B	4.71B
Cash Flow
Free Cash Flow	0.00	-126.69M	393.16M	678.83M	-40.72M	-179.38M
Operating Cash Flow	0.00	395.23M	840.01M	885.63M	109.07M	-28.55M
Investing Cash Flow	0.00	-336.32M	-325.95M	-104.02M	-52.41M	-82.14M
Financing Cash Flow	0.00	-67.45M	-156.94M	-891.22M	108.81M	-197.17M

TD Power Systems Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 684.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TDPOWERSYS, the sentiment is Positive. The current price of 684.9 is below the 20-day moving average (MA) of 863.57, below the 50-day MA of 760.74, and above the 200-day MA of 628.18, indicating a bullish trend. The MACD of 38.34 indicates Positive momentum. The RSI at 62.30 is Neutral, neither overbought nor oversold. The STOCH value of 75.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:TDPOWERSYS.

TD Power Systems Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TDPOWERSYS	70 Outperform	₹139.37B	48.62	―	0.23%	40.14%	53.51%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
GMRP&UI	51 Neutral	₹88.18B	10.24	―	―	18.74%	-58.19%
BORORENEW	46 Neutral	₹61.76B	18.86	―	―	7.68%	-114.23%
RTNPOWER	44 Neutral	₹42.85B	23.36	―	―	-5.68%	-99.16%
SWSOLAR	43 Neutral	₹44.32B	-446.21	―	―	112.24%	-474.43%

TD Power Systems Limited Corporate Events

TD Power Systems Starts Commercial Operations at New Tumkur Unit-3 Plant

TD Power Systems Limited has commenced commercial operations at its newly established Unit-3 factory in the Japanese Industrial Township, Vasanthanarasapura 3rd Phase Industrial Area, Tumkur district, Karnataka, set up to manufacture electrical generators, motors and related sub-assemblies and parts. The start of operations at this plant marks a significant step in the company’s capacity expansion and operational excellence agenda, aimed at better meeting customer requirements and supporting long-term sustainable growth, thereby strengthening its positioning in the power equipment manufacturing space and signaling increased production capability for stakeholders.