Synopsis: A high-growth industrial power company is quietly powering the world’s data centres, riding the surge in global demand. With a robust international presence and a diversified product lineup, it continues to capture investor attention without revealing the full scale of its operations, making it a compelling story for those tracking the data centre boom.
The industrial power sector is witnessing renewed investor interest as companies supplying critical infrastructure for data centres report strong growth and robust order pipelines. One such stock has rewarded long-term shareholders with exceptional returns, reflecting both operational excellence and strategic positioning in high-demand segments. Rising demand from global data centre projects, combined with expanding exports, has been a key growth driver, reinforcing investor confidence in the company’s prospects.
About the Company
TD Power Systems manufactures AC generators and electric motors for a wide range of applications, custom-designed and tailored to meet the specific requirements and specifications of its customers.
TDPS maintains a significant international footprint, having supplied generators and motors to over 110 countries worldwide. The company’s current market capitalization stands at Rs. 12,268.12 crore, with its shares trading at Rs. 785.45, reflecting a remarkable five-year return of 3,349.80 percent.
Products Offered
TDPS’s core offerings include high-performance generators and motors. The company has established itself as a leader in AC generator manufacturing, delivering machines ranging from 1 to 250 MVA suitable for all prime movers, including steam, gas, hydro, and wind turbines, as well as gas and diesel engines.
In addition, TDPS manufactures synchronous and induction motors for industrial and irrigation applications, offering high reliability and efficiency. Its traction motors power sophisticated propulsion systems for freight locomotives and passenger transit vehicles, demonstrating the company’s engineering breadth.
Riding the Data Centre Boom
TDPS has installed over 7,600 generators across 111 countries, with significant market presence in North America, Europe, Asia, and Africa. The growing data centre sector has emerged as a key growth engine for the company.
In the Gas Engine Generator segment, TDPS successfully completed System Integration Testing for a 5 MW, 13.8 kV, 1800 rpm FPQ High Inertia generator at a European OEM’s facility, a notable technical milestone. Following this, a large follow-up order is expected in Q3 and Q4 from the same European client for a major U.S. data centre project. TDPS also received a repeat order for 44 units of 4.5 MW, 11 kV generators from a German gas engine OEM, underscoring strong repeat-business momentum.
In the Gas Turbine Generator segment, the company secured multiple orders from a leading U.S.-based OEM for data centre power projects. Both gas engine and gas turbine businesses are experiencing robust demand, with a healthy order pipeline anticipated for the latter half of FY26. These developments reinforce TDPS’s strategic positioning in the global data centre power segment, a core driver of its growth strategy.
Order Book Details
As of September 30, 2025, TDPS’s order book stood at Rs. 1,587 crore, predominantly export-driven, with 84 percent of orders coming from international markets. Order inflows for the quarter reached Rs. 524.1 crore, up 45 percent from Rs. 360.8 crore in Q2FY25.
TDPS’s order book reflects a diversified portfolio across geographies and sectors. Notable wins include hydroelectric projects in India, Vietnam, and Nepal; waste-to-energy projects in Japan and Italy; and steam turbine generator projects across Europe and Africa. The gas turbine and gas engine segments, which cater to data centres and oil & gas applications, continue to see robust demand and expanding pipelines, reinforcing the company’s global growth momentum.
Outlook
The company has revised its top-line guidance for FY26 to Rs. 1800 crore. Export-driven order inflows continue to be the primary growth driver, supported by a diversified product portfolio that caters to global markets, including steam turbines, gas turbines, gas engines, geothermal solutions, motors, and other specialized applications. The company serves around 45 global OEMs across all business segments.
Growth is expected to be largely fueled by exports, driven by the global energy transition towards renewables and gas-based power plants, as well as opportunities in oil and gas, grid stabilization units, hydro projects, large data centers, Ukraine-related projects, waste heat recovery plants, and railway orders from Germany and the US.
For FY26, the business plan assumes only marginal growth in the domestic market. However, there are several large tenders in the hydro refurbishment segment, and successful bids could significantly boost domestic order bookings given the size of these projects.
With the third plant partially commissioned and expected to be fully operational by early Q4 FY26, the company is well-positioned to meet any increase in orders across all sectors in which it operates.
Financial Snapshot – Q2FY26
On a quarter-on-quarter basis, TDPS reported sales of Rs. 452 crore, up from Rs. 372 crore in Q1, representing a 21.5 percent increase. Operating profit rose from Rs. 69 crore to Rs. 83 crore, a 20.3 percent jump, while operating margin slightly declined from 19 percent to 18 percent. PBT grew from Rs. 67 crore to Rs. 82 crore, marking a growth of 22.4 percent, and net profit increased from Rs. 50 crore to Rs. 60 crore, translating to an increase of 20 percent. Earnings per share rose from Rs. 3.21 to Rs. 3.85, a 19.9 percent increase.
On a year-on-year basis, sales increased from Rs. 306 crore to Rs. 452 crore, a growth of 47.7 percent. Operating profit jumped from Rs. 56 crore to Rs. 83 crore, an increase of 48.2 percent, while operating margins held steady at 18 percent. Profit before tax improved from Rs. 56 crore to Rs. 82 crore, up 46.4 percent, and net profit rose from Rs. 41 crore to Rs. 60 crore, a 46.3 percent increase. Earnings per share advanced from Rs. 2.64 to Rs. 3.85, reflecting a 45.8 percent year-on-year growth.
-Manan Gangwar
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