Breaking Down TD Power Systems Limited Financial Health: Key Insights for Investors

Founded on April 16, 1999 in Bengaluru, TD Power Systems Limited has grown from its first manufacturing unit in 2001 to a publicly listed engineering firm on the BSE and NSE, fortified by a 2012 Siemens license to build 2‑pole generators up to 250 MVA and a 2017 manufacturing foothold in Istanbul; today the company reports a paid‑up capital of ₹31.24 crore (15,61,83,612 equity shares of ₹2 each), operates two Bengaluru plants plus the Turkey facility and a global service network of over 57 centers, launched a motors vertical in 2021 and an ESOP in 2025 under the TDPS Employee Welfare Trust, and follows a vertically integrated production model with in‑house R&D, coil winding, machining, assembly and testing while adhering to international quality standards; commercially TDPS generates revenue from AC generators and motors, lifecycle services and exports-approximately 68% of order inflows and 64% of sales are from exports to 110 countries, backed by a multi‑year European traction motor contract worth ₹300 crore and an order book of ₹1,309 crore as of December 31, 2024, underpinning management's revenue targets of ₹1,800 crore for FY26 and a minimum of ₹2,000 crore for FY27 while reporting a 47.5% surge in net profit for the full fiscal year 2025.

TD Power Systems Limited (TDPOWERSYS.NS): Intro

• Founded: 16 April 1999, Bengaluru, Karnataka, India (public limited company).
• First manufacturing facility commissioned: 2001, Bengaluru.
• Public listing: 2011 on BSE and NSE.
• Technology license: 2012 - Siemens license to manufacture 2‑pole generators up to 250 MVA.
• Global expansion: 2017 - manufacturing facility in Istanbul, Turkey (serving Europe and adjacent markets).
• Product diversification: 2021 - launched motors vertical (synchronous and induction motors).

• Early years (1999-2005): Established engineering and manufacturing base in Bengaluru; initial focus on alternators and power generation equipment for Indian utilities and industrial customers.
• Growth & commercialization (2006-2011): Scaling of production, supply contracts to power projects and preparation for public listing.
• Public era & technology tie-ups (2011-2017): Listing opened institutional capital access; 2012 Siemens license materially enhanced capability to produce high‑end 2‑pole synchronous generators up to 250 MVA, enabling bids for larger power plants and export orders.
• Internationalization (2017 onwards): Istanbul manufacturing footprint to reduce lead times and support European customers; subsequent product verticalization into motors (2021) further broadened addressable markets.

• Promoter & promoter‑group: Longstanding promoter ownership holds controlling interest and strategic oversight (typical for mid‑cap Indian engineering firms).
• Public shareholders: Retail investors and high‑net‑worth individuals hold a material portion post‑listing.
• Institutional investors: Mutual funds, insurance and foreign institutional investors participate through listed equity on BSE/NSE.
• Subsidiaries / international entities: Manufacturing unit in Turkey and any local operating subsidiaries for international sales and service.

• Mission: To design, manufacture and supply high‑capacity rotating electrical machines and allied systems that meet global standards for reliability and efficiency.
• Strategic priorities: Technology licensing & transfer, export market penetration, vertical diversification (motors), localization of manufacturing for key regions, after‑sales service and lifecycle support.

• Product lines:
  • Large synchronous generators / alternators (including 2‑pole designs up to 250 MVA under Siemens license).
  • Induction and synchronous motors (launched 2021), covering industrial, traction and marine applications.
  • Customized rotating electrical machines for captive power, independent power producers (IPPs), rail traction and marine propulsion.
• Manufacturing footprint:
  • Bengaluru: core R&D, engineering and primary manufacturing.
  • Istanbul, Turkey: European manufacturing and assembly to serve export markets and reduce lead times.
• Technology & quality: Licensing, design transfer and adherence to international standards (e.g., IEC, ISO) for large rotating machines; capability to deliver high MVA machines enabled by the Siemens license for 2‑pole generators.
• Sales & distribution: Direct project engineering sales to utilities, EPC contractors, rail agencies and industrial OEMs; exports to Europe, Middle East and Africa via Turkey/India supply chains.
• After‑sales & services: Spares, rewinds, refurbishments, condition monitoring and field service contracts to capture lifetime revenue streams.

• Project sales: One‑time sales of large generators and motors for power plants, industrial projects, rail and marine customers - typically high‑value, milestone‑based contracts.
• Export sales: Revenue from international bids and supply via Turkey/India plants, competing on price, delivery and technology capability.
• After‑sales services: Recurring revenue from spares, maintenance contracts, retrofits and refurbishments - higher margin relative to initial equipment sale.
• Licensing & technology partnerships: Fees, joint development or margin benefits through licensed manufacturing of advanced generator designs (e.g., Siemens 2‑pole up to 250 MVA).
• Custom engineering solutions: Turnkey or semi‑turnkey solutions for OEMs and EPCs where engineering, testing and commissioning add value.

• Strengths: Ability to manufacture high‑MVA machines (250 MVA license), combined domestic manufacturing base and a European plant, and a growing motors portfolio supporting diversification.
• Revenue drivers: Large project wins (power plants, rail traction), expansion of export footprint via Turkey, aftermarket services and growth of motors sales into industrial/traction segments.
• Risks & sensitivity: Project timing and cyclicality in power/EPC spends, raw material cost volatility (steel, copper), and execution/working‑capital management typical of heavy engineering firms.

TD Power Systems Limited (TDPOWERSYS.NS): History

TD Power Systems Limited (TDPOWERSYS.NS) traces its evolution as an Indian engineering and power solutions company focusing on specialized gensets, alternators, and integrated power solutions for industrial and commercial customers. Its capital structure and governance have evolved to support growth, employee alignment and market participation.

• Paid-up capital (as of March 31, 2025): ₹31.24 crore, comprising 15,61,83,612 equity shares of ₹2 each.
• Listed on Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE), ensuring liquidity and capital market access.
• Shareholder base: a mix of institutional investors, retail shareholders and company insiders, reflecting diversification.
• 2025: Implementation of an Employee Stock Option Plan (ESOP) to align employee interests with company performance.
• ESOP administration: TDPS Employee Welfare Trust holds and manages shares allocated under the ESOP.
• Governance: Board of Directors includes Mohib Nomanbhai Khericha, Prathibha Sastry and Subramanyam Prabhamani overseeing strategy and operations.

For the company's stated purpose and guiding principles see: Mission Statement, Vision, & Core Values (2026) of TD Power Systems Limited.

TD Power Systems Limited (TDPOWERSYS.NS): Ownership Structure

• Mission and values center on delivering high-quality power solutions, prioritizing engineering excellence and customer-centric design.
• Innovation: ongoing R&D investments to improve fuel efficiency, emissions performance and hybrid/electrification capabilities.
• Sustainability: implementation of solar rooftops at facilities and adoption of energy-efficient manufacturing practices.
• Integrity and transparency: corporate governance practices aimed at building stakeholder trust.
• Diversity and inclusion: collaborative workplace culture leveraging varied technical and commercial expertise.

• Customer-centric approach: bespoke solutions for industries such as telecom, data centers, healthcare, manufacturing and infrastructure.

• Sale of gensets and hybrid power systems (standard and customized) - core product revenue stream.
• Turnkey EPC and integration contracts for captive power and industrial installations - project-based revenue with associated service margins.
• After-sales services: maintenance contracts, spares, AMC/CMC agreements providing recurring revenue and higher lifetime margins.
• Export sales: international orders add to topline and diversify customer base.
• R&D-driven product enhancements that enable premium pricing on higher-efficiency or low-emission offerings.

• Order book size and conversion velocity determine near-term revenue growth.
• Raw material and engine sourcing costs impact gross margins (engine OEM relationships are critical).
• After-sales penetration increases recurring margins and customer lifetime value.
• Adoption of hybrid/solar-integrated offerings supports growth in sustainability-driven segments.

TD Power Systems Limited (TDPOWERSYS.NS): Mission and Values

• Manufacturing footprint: TDPS operates two primary manufacturing facilities in Bengaluru, India, plus an additional plant in Istanbul, Turkey to serve regional demand and reduce lead times.
• Vertical integration: Core processes - stator/rotor building, coil winding, precision machining, impregnation, assembly, balancing and testing - are handled in-house to control quality, cost and throughput.
• Global service network: The company supports customers through a network of over 57 service centers delivering installation, preventive maintenance, spares and emergency field support.
• Research & development: A dedicated in-house R&D team focuses on product innovation (fuel-efficient gen-sets, low-emission packages, digital controls) and validation testing in accredited labs.
• Supply chain: TDPS maintains a robust procurement and vendor quality program, sourcing critical components (magnetic steel, copper windings, engines, control systems) from qualified international and domestic suppliers.
• Quality & compliance: Manufacturing and processes adhere to international standards with systematic quality control checkpoints-material inspection, process controls, end-of-line testing and type-certifications as applicable.

• Product sales: Primary revenue from sale of generator sets (open and canopy), alternators and specialized power solutions to industrial, telecom, data center and infrastructure clients.
• After-sales services: Recurring revenue from service contracts, spare parts sales, installation, and preventive maintenance via the 57+ service center network.
• Export & OEM: Sales to international markets (including through the Istanbul facility) and supply to OEMs/engineering firms for packaged solutions and projects.
• Customized solutions & projects: Higher-margin turnkey projects and packaged power solutions for C&I customers, railways, telecom towers and microgrid applications.

• In-house vertical manufacturing reduces dependence on external suppliers and shortens lead times.
• Global service footprint increases customer retention and creates steady after-sales revenue.
• Focused R&D enables product differentiation (efficiency, emissions, digital controls).
• International presence (Istanbul plant) helps localize supply and capture regional projects.

TD Power Systems Limited (TDPOWERSYS.NS): How It Works

• Founded as an engineering-centric manufacturer of rotating electrical machines and power-generation equipment, TD Power Systems has evolved from EPC-focused offerings to a diversified global supplier of generators, motors and lifecycle services.
• The company now serves heavy-industry, power plants, rail traction, oil & gas and industrial OEMs across 110 countries, with a pronounced export orientation.

• Listed on the National Stock Exchange as TDPOWERSYS.NS, the equity base includes institutional investors, promoter holdings and public shareholders (typical shareholding mix: promoters + institutional majority positions-refer to latest filings for exact percentages).
• Management is engineering-led with a focus on R&D, manufacturing scale-up and overseas business development to capture export opportunities.

• Mission: Deliver reliable rotating electrical machines and integrated lifecycle solutions that enhance asset availability and efficiency for customers worldwide.
• Strategic priorities: expand export market share, scale the motors vertical (synchronous & induction), grow service and retrofit revenues, and secure multi-year supply contracts in high-margin segments.

• Product sales: Primary revenue from manufacturing and selling AC generators and electric motors for applications including steam, gas, hydro and diesel turbines.
• Lifecycle services: Revenue from commissioning, diagnostics, overhauls, spares, refurbishment and replacement solutions that extend asset life and provide recurring income.
• Export-led sales: Approximately 68% of order inflows and 64% of sales come from exports and deemed exports, across clients in 110 countries.
• Motors vertical: Entry into synchronous and induction motors supplies creates new product revenue streams alongside traditional generator sales.
• Large contracts: Secured multi-year traction motor supply deals (example: Europe traction motor contract valued at ₹300 crore) that boost medium-term revenue visibility.
• Order-book driven growth: Strong visible orders underpin management guidance and support scale-up in manufacturing and services.

• Order acquisition: Global sales teams and OEM partnerships secure project and aftermarket orders (large capital equipment and service contracts).
• Engineering & manufacturing: In-house design, testing and production of generators and motors; capacity expansion to meet multi-year supply contracts.
• Aftermarket services: On-site commissioning, predictive diagnostics, periodic overhauls, and supply of spares/refurbished units to create recurring revenue.
• Export logistics & compliance: Export-centric operations coordinate international certifications, deemed export procedures and long-cycle deliveries to 110-country client base.

TD Power Systems Limited (TDPOWERSYS.NS): How It Makes Money

• Product portfolio: large-frame AC generators (up to 200 MW), industrial motors, alternators, and integrated generator sets.
• Geographic reach: exports to ~110 countries, diversifying revenue across developed and emerging markets.
• Order visibility: strong order book of ₹1,309 crore as of 31-Dec-2024, underpinning near- to medium-term revenue.
• Manufacturing expansion: new Tumkuru, Karnataka facility for generators, motors and sub-assemblies to boost capacity and reduce lead times.
• Energy transition positioning: products and capabilities aligned to storage, hybrid, and renewable integration opportunities.

• OEM and aftermarket sales: new generator and motor sales combined with spare parts, refurbishments and service contracts drive recurring revenue.
• Project contracts and turnkey supplies: large-scale generator orders for power plants and industrial projects provide lump-sum contract revenues.
• Export-led growth: international contracts and distributor networks convert global demand into FX-denominated sales.
• Product diversification: motor manufacturing and power-electronics broaden addressable market and margins.

• Leading player in large AC generator segment with up to 200 MW capability, capturing utility and heavy-industry demand.
• Diversified revenue base and global footprint reduce single-market risk and support scalable growth.
• Robust financial momentum-double-digit revenue and profitability improvement reflected in FY2025 net profit expansion of 47.5%-supports reinvestment and capacity scaling.
• Strong order book (₹1,309 crore) and the Tumkuru expansion increase near-term production potential and market share gains.
• Well-positioned to capitalize on energy transition, storage integration and hybrid power solutions as global markets decarbonize.