Techno Electric & Engineering Company Limited (TECHNOE) AI Stock Analysis

• Market Cap: ₹130.60B
• Dividend Yield: 0.8%
• Average Volume (3M): 17.32K
• Price to Earnings (P/E): 26.4
• Beta (1Y): 1.26
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 360
• Sector: Services
• Sector Strength: N/A
• Industry: Engineering & Construction
• EPS (TTM): 11.22
• Shares Outstanding: 116,299,576
• 10 Day Avg. Volume: 20,450
• 30 Day Avg. Volume: 17,324
• PEG Ratio: 0.88
• Price to Book (P/B): 3.19
• Price to Sales (P/S): 5.25
• P/FCF Ratio: 33.96
• 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): 44.95
• Revenue Forecast (FY): ₹34.99B

• Rating: 66 Neutral
• Price Target: ₹1,075.00 ▼(-3.21% Downside)
• Action: N/A Date: 01/04/26
• Date: Action: N/A 01/04/26

The score is supported primarily by strong financial quality (high profitability and an exceptionally low-leverage balance sheet), but is held back by cash-flow volatility and an unfavorable technical setup (below key longer-term moving averages with negative MACD). Valuation also detracts due to a relatively high P/E alongside a low dividend yield.

Positive Factors

Balance sheet strength

Exceptionally low leverage gives the company durable financial flexibility: it can bid larger EPC projects, absorb contract delays, and self-fund capital for owned transmission assets. Low interest burden supports margin stability and reduces refinancing risk over the next 2–6 months and beyond.

Profitability and growth

Sustained high-teens margins paired with renewed revenue growth indicate resilient core earnings power. This combination supports reinvestment in capabilities and competitive bidding while providing a buffer versus cyclicality in project flows, making results structurally stronger over coming quarters.

Recurring asset income

Asset-backed transmission businesses create annuity-style revenue that diversifies cyclical EPC swings. Long-term availability/tariff arrangements enhance revenue visibility and steady cash generation, improving overall earnings quality and lowering volatility in medium-term financial performance.

Negative Factors

Cash flow volatility

Material swings in operating and free cash flow reflect typical EPC working-capital pressure and milestone timing. Inconsistent cash conversion can constrain capex, slow asset monetization, and force precautionary liquidity measures, limiting durable investment capacity despite reported profits.

Margin compression

Erosion of gross and operating margins versus prior peaks suggests structural pressure from competition, input costs, or contract mix. Persistent margin compression would erode the firm's ability to convert revenue growth into superior returns, pressuring long-term profitability and cash flow generation.

EPC execution and order-book risk

Reliance on winning and executing large EPC contracts introduces execution risk and sensitivity to project delays or cost overruns. Order-book pace and receivable timing materially affect near-term liquidity and margins, making medium-term performance hinge on consistent contract wins and disciplined project delivery.

Techno Electric & Engineering Company Limited Business Overview & Revenue Model

Company Description

Techno Electric & Engineering Company Limited provides engineering, procurement, and construction (EPC) services to the power generation, transmission, and distribution sectors in India. The company operates through EPC and Energy segments. It provides solutions for captive power plants, balance of plant for thermal and hydro power projects, utilities for power projects, and flue gas desulphurisation plants; constructs air-insulated and gas-insulated substations; and installs overhead lines. The company also undertakes industrial projects, such as plant electrical and illumination systems, oil handling plants, fire protection systems, air conditioning and ventilation systems, offsite piping systems, water and allied systems, as well as naptha and diesel based systems for turbine-based power plant; and power distribution systems to power intensive industries. In addition, it is involved in the generation of wind power in Tamil Nadu with a capacity of 129.9 MW. Further, the company engages in building transmission linkages. It serves power, steel, fertilizer, metals, petrochemicals, and other sectors. The company was founded in 1963 and is headquartered in Kolkata, India.

How the Company Makes Money

The company makes money primarily through (1) EPC/turnkey project revenue and (2) recurring income from owned transmission assets and related services. 1) EPC / turnkey execution: TECHNOE earns contract revenue by delivering end-to-end electrical infrastructure projects for utilities and other power-sector customers. Typical scope includes design/engineering, procurement of equipment, construction/erection, testing, commissioning, and project management for substations and transmission/distribution facilities. Earnings are driven by the value of projects executed, billing linked to project milestones/percentage-of-completion, and margins achieved through efficient procurement, execution, and cost control. 2) Asset-based transmission business: Through ownership/operation of transmission assets (where applicable), the company earns recurring cash flows over the operating period. Revenue is generally linked to the availability/usage of the transmission network under long-term arrangements with counterparties (exact tariff/contract structure: null). This segment contributes steadier, annuity-like income compared with project-based EPC. 3) Operations and maintenance (O&M) and related services: The company may also generate service revenue by operating and maintaining electrical infrastructure (including its own assets and potentially third-party assets) and by providing associated technical services (specific breakdown: null). Key factors influencing earnings include the order book and pace of project execution, ability to win new utility/infrastructure contracts, working-capital management in EPC projects, and the performance/availability of any owned transmission assets. Significant partnerships: null.

Techno Electric & Engineering Company Limited Financial Statement Overview

Summary

Strong fundamentals overall: profitability is resilient with FY2025 net margin ~18.6% and revenue up ~19.9% YoY, and the balance sheet is exceptionally conservative (FY2025 debt-to-equity ~0.01). The main offset is inconsistent cash conversion, with FY2024 showing negative operating/free cash flow and FY2025 FCF only ~0.68x net income.

Income Statement

Profitability is strong and resilient, with net margin holding in the high-teens in FY2025 (~18.6%) and healthy operating profitability. Growth also re-accelerated sharply in FY2025 (revenue up ~19.9% YoY) after a muted FY2024. The main weakness is margin compression versus earlier years (notably FY2020–FY2021 had materially higher gross and operating margins), indicating either mix/competition or cost pressures.

Balance Sheet

Balance sheet strength is a standout: leverage is extremely low (FY2025 debt-to-equity ~0.01) with a large equity base. Returns on equity are solid and fairly steady (roughly low-teens, ~11.3% in FY2025), supporting quality of earnings without relying on debt. A minor watch item is that returns are good but not exceptional, suggesting growth is driven more by scale and execution than high financial leverage.

Cash Flow

Cash generation is mixed. FY2025 shows a strong rebound with positive operating cash flow (~₹5.19B) and free cash flow (~₹3.51B). However, FY2024 saw materially negative operating and free cash flow, highlighting volatility in cash conversion that can occur in project-based businesses. In FY2025, free cash flow covered only about two-thirds of net income (~0.68x), which is decent but leaves room for improvement in converting reported profits into sustainable cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	28.21B	22.69B	15.02B	8.29B	9.99B	8.89B
Gross Profit	6.14B	5.01B	3.39B	2.01B	2.51B	3.20B
EBITDA	4.57B	3.39B	2.09B	871.39M	1.91B	2.16B
Net Income	4.71B	4.23B	2.68B	1.87B	2.64B	1.82B
Balance Sheet
Total Assets	54.05B	50.56B	28.34B	27.79B	25.16B	22.03B
Cash, Cash Equivalents and Short-Term Investments	26.60B	29.31B	12.79B	14.91B	10.94B	7.21B
Total Debt	612.26M	390.92M	0.00	0.00	0.00	400.03M
Total Liabilities	15.12B	13.17B	6.72B	8.39B	6.79B	5.86B
Stockholders Equity	38.93B	37.40B	21.63B	19.30B	18.37B	16.16B
Cash Flow
Free Cash Flow	-2.07B	3.51B	-3.79B	315.08M	2.25B	1.25B
Operating Cash Flow	-1.75B	5.19B	-1.98B	344.22M	2.58B	1.25B
Investing Cash Flow	2.76B	-17.07B	2.69B	714.05M	-2.24B	-542.60M
Financing Cash Flow	-919.58M	11.86B	-845.06M	-1.03B	-627.63M	-338.43M

Techno Electric & Engineering Company Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SCI	70 Outperform	₹112.02B	6.66	―	4.43%	-7.39%	-21.53%
TECHNOE	66 Neutral	₹130.60B	26.39	―	0.80%	―	―
GRINFRA	60 Neutral	₹89.71B	9.32	―	1.20%	-6.01%	-3.81%
IONEXCHANG	60 Neutral	₹49.70B	55.57	―	0.40%	11.56%	-2.78%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%

Techno Electric & Engineering Company Limited Corporate Events

Techno Electric Shareholders Clear Postal Ballot, Appoint New Independent Director

Techno Electric & Engineering Company Limited has announced the results of a postal ballot conducted entirely through remote e-voting in accordance with Companies Act provisions and securities regulations. Shareholders were able to vote electronically over a scheduled period in January and February 2026, with the process overseen and scrutinized by an independent practicing company secretary.

Based on the scrutinizer’s report, shareholders approved a special resolution appointing Mr. Shailesh Kumar Mishra as a non-executive independent director for a five-year term, effective February 19, 2026. The company has published the detailed voting results and the scrutinizer’s report on its website and the NSDL e-voting portal, underscoring transparent corporate governance and formalizing a key change in its board composition.