Synopsis:
Techno Electric & Engineering Company Ltd has announced plans for revenue growth, new orders, and margin for FY26, demonstrating confidence in future growth driven by diversification and expansion projects.
A small cap company engaged in providing EPC, asset ownership and O&M services, is in the spotlight today following the announcement of its revenue and margin guidance for FY26 in their Q1 results. The article below provides a detailed overview of the company’s performance and future outlook.
With a market capitalization of Rs. 16,307.53 crore, the shares of Techno Electric & Engineering Company Limited trading at Rs. 1,402, down by 0.11 percent from its previous closing price of Rs. 1,403.70 per equity share.
What’s the News?
Techno Electric & Engineering Company Ltd.’s management has provided a positive outlook, including revenue growth, order inflows, and margin. The company is confident in maintaining strong business momentum through strategic investments and a robust pipeline of opportunities.
Revenue & Order Guidance
The company reported consolidated Q1 FY26 revenue of Rs. 526 crore and FY25 revenue of Rs. 2,269 crore and has provided FY26 revenue guidance of Rs. 3,500–3,600 crore, projecting EPS of Rs. 50 per share in FY26 and Rs. 75 per share in FY27, targeting 40–50 percent revenue CAGR growth over the next two years.
The company’s unexecuted order book at the end of the quarter stood at Rs. 1,408 crore, with an additional Rs. 720 crore in L1 and advanced-stage orders. Management expects FY26 order intake to reach Rs. 3,500 crore, targeting a robust 40–50 percent CAGR over the next two years.
EPC Segment Guidance
Techno’s EPC (Transmission & Distribution) business has a bidding pipeline of about Rs. 40,000 crore annually, targeting Rs. 2,500 crore wins each year for the next four years. It has secured two TBCB concession projects worth Rs. 2,800 crore in total revenue and holds an FGD order book of Rs. 1,450 crore, with current projects progressing despite a sector slowdown. The company expects its EPC EBITDA margins to remain stable at 14–15 percent.
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Data Centers Segment Guidance
Techno’s Chennai Hyperscale Data Center has completed Phase 1 (5MW) and is ready for operations, with an inauguration set for 27 August. Around Rs. 500 crore has been invested, with FY26 revenue guidance of Rs. 25 crore, expected to scale up to Rs. 100–200 crore in later years as utilization increases. EBITDA margins are projected at ~80 percent for bare rental and 50–60 percent including services and power, higher than EPC margins.
Smart Metering Segment Guidance
Techno’s Smart Metering (AMI) business has secured concessions for 2.5 million meters, with 0.8 million already deployed and a target of 1.7–1.8 million by FY26-end. The company is executing at a pace of 80,000–1,00,000 meters per month, aiming for completion by September 2026. With 22.24 crore meters planned under RDSS (~Rs. 2.22 lakh crore capex), Techno is taking a cautious approach, targeting a 3–5 percent market share due to counterparty risk.
Thermal & Renewable EPC Segment Guidance
Techno’s Thermal & Renewable EPC segment is positioned for growth, with an 80 GW thermal capacity addition planned by 2030, targeting Rs. 500 crore annually from balance-of-plant and grid connectivity projects.
In renewables, with a national target of 500 GW by 2030 (up from 200 GW now), the company sees EPC opportunities in hybrid systems, wind EPC, floating solar, and pooling stations, tapping into an industry capex of Rs. 3–4 lakh crore. FGD is not a major focus (less than 5 percent of business), though ongoing projects like Kota and Jhalawar remain secure under new policy classifications.
About the Company
Techno Electric & Engineering Company Limited is an Indian power infrastructure company providing engineering, procurement, and construction (EPC) services across generation, transmission, and distribution.
It offers end-to-end solutions, including asset ownership and O&M services, and operates renewable energy projects with about 129.9 MW wind capacity in Tamil Nadu and Karnataka, focusing on EPC, PPP projects, and independent power generation.
In Q1FY26, the company posted revenue of Rs. 526 crore, up 40.3 percent YoY from Rs. 375 crore but down 35.5 percent QoQ from Rs. 816 crore. Profit came in at Rs. 136 crore, increasing 38.8 percent YoY from Rs. 98 crore and marginally up 0.7 percent QoQ from Rs. 135 crore.
At the moment, the company’s P/E stands at xxx higher than the industry average of xxx and its ROE and ROCE of 12.8 percent and 16.5 percent respectively, indicates the company’s financial performance. Its Debt to Equity ratio stands at 0.01.
Written by Akshay Sanghavi
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