TD Power Systems Limited (TDPOWERSYS) AI Stock Analysis

• Market Cap: ₹105.07B
• Dividend Yield: 0.23%
• Average Volume (3M): 58.08K
• Price to Earnings (P/E): 50.5
• Beta (1Y): 1.90
• Revenue Growth: 40.14%
• EPS Growth: 53.51%
• Country: IN
• Employees: 705
• Sector: Energy
• Sector Strength: 52
• Industry: Industrial - Machinery
• EPS (TTM): 3.90
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: ₹844.00 ▲(23.23% Upside)

TD Power Systems Limited has a strong financial performance with robust revenue growth and profitability. However, technical indicators suggest the stock is overbought, and the high P/E ratio indicates potential overvaluation. The decline in free cash flow is a concern that needs addressing to ensure long-term sustainability.

Positive Factors

Revenue Growth

Sustained revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion and stability.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability and provides flexibility for future investments and growth opportunities.

Profitability Margins

High profitability margins reflect efficient cost management and operational effectiveness, ensuring sustainable earnings and competitive positioning.

Negative Factors

Decline in Free Cash Flow

Decreasing free cash flow can hinder the company's ability to reinvest in growth initiatives and meet financial obligations, posing a risk to long-term sustainability.

Asset Growth Risk

Rapid asset growth without corresponding returns can strain resources and lead to inefficiencies, impacting overall financial performance.

Cash Generation Challenges

While operational cash generation is positive, declining free cash flow indicates potential liquidity issues, affecting the company's ability to fund operations and growth.

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

TD Power Systems Limited exhibits strong revenue growth and profitability, with impressive margins that underline its operational efficiency. The balance sheet is robust, with low leverage and substantial equity. However, the decline in free cash flow signals potential cash generation challenges. The company should focus on enhancing cash flow management to maintain its growth trajectory and financial stability.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Negative
• Last Price: 684.90
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:TDPOWERSYS, the sentiment is Negative. The current price of 684.9 is below the 20-day moving average (MA) of 698.79, below the 50-day MA of 735.47, and above the 200-day MA of 563.72, indicating a neutral trend. The MACD of -12.53 indicates Positive momentum. The RSI at 37.85 is Neutral, neither overbought nor oversold. The STOCH value of 19.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	68 Neutral	₹105.07B	50.45	―	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	₹72.56B	9.62	―	―	18.74%	-58.19%
BORORENEW	46 Neutral	₹69.96B	-35.17	―	―	7.68%	-114.23%
RTNPOWER	44 Neutral	₹48.49B	55.65	―	―	-5.68%	-99.16%
SWSOLAR	43 Neutral	₹46.39B	-12.36	―	―	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.