TD Power Systems Q2 Net Profit Jumps 105% to ₹124 Crore; Announces 65% Interim Dividend

Key numbers

P/E Ratio TTM	72.9xSector: 51.85x
Market Cap	₹20,047 CrHeavy Electricals
1-Year Return	60.35%Price Performance
Institutional Holding	51.87%Qtr Change: +1.81%

Key highlights

• Net profit doubled to ₹124 crore compared to ₹60.2 crore in the same period last year
• Revenue from operations surged 86% year-on-year to ₹841 crore in Q2-27
• Board declared an interim dividend of 65% amounting to ₹0.65 per equity share
• Operating margins expanded to 19.9% from 17.9% in the year-ago quarter
• Completed a QIP allotment of 77.41 lakh shares at an issue price of ₹775 per share
• Promoter holding stands at 26.51% with total institutional holding at 51.87%

Operational Surge and Margin Expansion

TD Power Systems recorded a significant growth trajectory in Q2 FY27, with revenue from operations hitting ₹841 crore, an 86% increase over the ₹452 crore reported in Q2 FY26. This top-line momentum translated into a 105.5% surge in net profit, which stood at ₹124 crore. The operational performance was bolstered by a refined operating margin of 19.9%, representing a 200-basis point improvement over the previous year's 17.9%.

This performance follows a strong start to the fiscal, where management previously upgraded its full-year revenue guidance to ₹2,600 crore in August 2026, supported by an order book that stood at ₹2,207.30 crore as of June 30, 2026.

Capital Infusion via QIP and Promoter Allotment

During the quarter, the company significantly strengthened its capital base through strategic equity allotments. The Fund Raising Committee approved the allotment of 77,41,935 equity shares to qualified institutional buyers at ₹775 per share, aggregating to approximately ₹600 crore. Additionally, the company allotted 12,50,000 shares to promoters on a preferential basis at ₹600 per share, totaling ₹75 crore.

These corporate actions have increased the paid-up equity share capital to ₹32.14 crore. The capital raise follows the sub-division of shares completed in August 2026, where face value was split from ₹2 to ₹1 per share to improve liquidity.

Audit Observations and Subsidiary Performance

• Auditors highlighted a material uncertainty regarding the going concern status of an Indian subsidiary
• The subsidiary's net worth is positive but faces challenges from accumulated losses and project-related claims
• Management remains confident in the subsidiary's viability due to expected market improvements
• Cumulative impairment provision against investment in the subsidiary stands at ₹2,040.75 lakh
• Total comprehensive income for the group reached ₹123.64 crore for the quarter ended September 2026

Interim Dividend Declaration

Declared the interim dividend of 65% i.e. ₹ 0.65 per equity share of face value ₹ 1/- each to equity shareholders of the company for the financial year ending March 31, 2027.

What to watch next

• Record date for interim dividend set for November 18, 2026
• Earnings conference call for Q2 FY27 results scheduled for November 13, 2026
• Dividend payment to eligible shareholders by December 12, 2026
• Resolution of material uncertainty regarding the Indian subsidiary's operations

“The payment of the interim dividend will be made within 30 days of its declaration.”

TD Power Systems · financial snapshot

Share price	₹623.65
Market capitalisation	₹20,047.15 Cr
Revenue (annual)	₹1,856.23 Cr
Net profit (annual)	₹238.77 Cr
Revenue (latest quarter)	₹640.05 Cr+8.63% vs previous quarter
Net profit (latest quarter)	₹86.29 Cr+19.53% vs previous quarter
P/E (TTM)	72.9×Sector 51.85×
Promoter holding	26.51%-0.36% QoQ
FII holding	22.66%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.