Techno Electric & Engineering Company Limited — Q4 FY25 earnings call

Call held 29 May 2025

Management summary

Techno Electric delivered a record-breaking FY25, characterized by a massive jump in execution pace and a historic order backlog. The company is successfully transitioning from a pure-play EPC firm to an asset-heavy player in Data Centers and Smart Metering. With a massive cash pile of ₹2,500 crores and clear visibility on ₹11,000 crores of orders, management is highly confident in sustaining high double-digit growth through FY27.

Highlights

  • Q4 Revenue reached ₹812 crores, a significant 68% YoY increase, driven by accelerated execution.

  • Full-year FY25 revenue crossed ₹2,400 crores, up 43% YoY, marking an all-time high for the company.

  • Order book stands at a robust ₹11,000 crores as of March 2025, the highest in company history.

  • PAT for Q4 surged 91% YoY to ₹132 crores; full-year PAT stood at ₹428 crores, up 59% YoY.

  • Management provided aggressive FY26 guidance: Revenue of ₹3,500-3,600 crores and EPS of at least ₹50.

  • Data Center pivot is accelerating with Chennai Phase 1 nearing completion and a 250 MW target by 2030.

  • Company remains debt-free with cash and cash equivalents exceeding ₹2,500 crores (approx. ₹220-225 per share).

  • Smart Metering segment is scaling with 7 lakh meters commissioned and a target of 1 million+ deployments in FY26.

Key financials

  1. Revenue ₹812 Cr +68%YoY
  2. EBITDA Margin 12.6%
  3. PAT ₹132 Cr +91%YoY
  4. EPS ₹11.42
  5. Order Book ₹11,000 Cr

What they filed

Q1 FY27: revenue up 24.9%, net profit down 22.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue500 676 812 514 839 +68%857 +27%1,043 +28%642 +25%
EBITDA70 99 103 79 115 +64%121 +22%132 +28%89 +13%
Net profit90 105 133 123 123 +37%152 +45%143 +8%96 −22%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue Target FY26
₹3,100 Cr Total
  • EPC (Transmission & Distribution) ₹2,500 Cr 80.6%
  • Smart Meters ₹500 Cr 16.1%
  • Data Centers ₹100 Cr 3.2%

Guidance & targets

Revenue

  • Consolidated Revenue Revenue · FY26 · High confidence ₹3,500-3,600 crores
    So overall, I would like to say that during the current year, we are targeting a top line of INR3,500 crores... And in the year '26, '27, our target will be around INR4,500 crores.

    — Padam Gupta, Chairman and Managing Director

Profitability

  • EPS Profitability · FY26 · High confidence ₹50
    we are targeting a top line of INR3,500 crores and an EPS of no less than INR50.

    — Padam Gupta, Chairman and Managing Director

  • EPS Profitability · FY27 · High confidence ₹75
    And in the year '26, '27, our target will be around INR4,500 crores with an EPS of no less than INR75.

    — Padam Gupta, Chairman and Managing Director

Capex

  • Total Investment Program Capex · next 3 years · Medium confidence ₹10,000 crores
    We have a program of about almost about INR10,000 crores in hand to be deployed in next 3 years.

    — Padam Gupta, Chairman and Managing Director

Capacity

  • Data Center Capacity Capacity · by 2030 · Medium confidence 250 MW
    And we intend completing about 250 megawatts by then [2030], including edge and hyperscale.

    — Padam Gupta, Chairman and Managing Director

Margin

  • EPC Margin Improvement Margin · FY26 · Medium confidence 100 bps
    it should be at least better by 100 notches, 100 bps over last year as commodities have been cooled down.

    — Padam Gupta, Chairman and Managing Director

Risks & concerns

  • Land Acquisition Delays

    medium

    Customers face delays in acquiring land parcels, leading to compressed execution schedules for Techno to meet original COD dates.

    Management acknowledged

  • Supply Chain and Commodity Pricing

    medium

    Supply chain remains under pressure with export prices often better than domestic, though cooling commodity prices provide some relief.

    Management acknowledged

  • Regulatory Uncertainty in FGD

    low

    Government was previously 'confused' about high capex for FGD solutions, but revised targets starting from '27 provide better clarity.

    Management acknowledged

Areas of evasion (1)

  • Specific details on 'other current assets' were deferred to the balance sheet rather than explained in detail during the call.

Q&A highlights

3 direct
Data Center Revenue and Margin Profile Direct
Generally, EBITDA is very high in these projects. I say you can take around 80%.

Confirms the highly lucrative nature of the Data Center business compared to traditional EPC, explaining the projected EPS jump.

Asked by Deepak Poddar, Sapphire Capital

Data Center Unit Economics Direct
You can take it at around INR8 crores to INR10 crores [per megawatt revenue per annum].

Provides the fundamental building block for modeling the company's long-term revenue potential as they scale to 250 MW.

Asked by Sandeep Agarwal, Naredi Investment

Funding for ₹10,000 Crore Capex Direct
Presently, we are planning to do it a lot of internal accruals and cash available with us... supplemented by monetization of the completed assets.

Reassures investors that the massive capex plan will not lead to significant equity dilution or high debt, relying instead on the existing ₹2,500 crore cash pile and asset sales.

Asked by Shrey Gandhi, CR Kothari Stock Broking

2 min read 5 chapters

Detailed narrative

Record Execution and Order Momentum

Techno Electric achieved a milestone year with revenue crossing ₹2,400 crores, a 43% YoY increase. The Q4 performance was particularly strong with ₹812 crores in revenue, up 68% YoY. This growth is backed by a record order book of ₹11,000 crores as of March 2025. Management highlighted their ability to execute complex projects like the Sikar Substation in a record 9 months, compared to the industry norm of 2 years, which has led to customers offering incentives for compressed schedules.

Strategic Pivot to Data Centers

The company is aggressively expanding its Data Center footprint, with Chennai Phase 1 (5.6 MW) nearing completion and revenue generation expected from Q2. They have a long-term target of 250 MW by 2030, with 25 MW expected by the end of the current year. Management revealed highly attractive unit economics for this segment, targeting 80% EBITDA margins and a payback period of approximately 5 years, with revenue estimated at ₹8-10 crores per MW per annum.

Smart Metering and Distribution Scaling

Techno is currently executing 2.5 million smart meters and has already commissioned 7 lakh units. They aim to deploy over 1 million meters in the current year, contributing approximately ₹500 crores to the FY26 revenue target. The company views this as an 'opex model' business with steady monthly payments over 94 months, targeting a total book size of 5 million meters by 2030.

Robust Financial Position and Capex Funding

The company remains debt-free with a massive cash and investment reserve of over ₹2,500 crores. This liquidity, combined with expected asset monetization of TBCB and Smart Meter projects, will fund a ₹10,000 crore investment program over the next three years. Management emphasized that 80% of this capex is earmarked for Data Centers, which they intend to hold as long-term assets while potentially exiting other concession projects upon completion.

Aggressive Multi-Year Guidance

Management provided high-conviction guidance for the next two fiscal years. For FY26, they target revenue of ₹3,500-3,600 crores and an EPS of ₹50. For FY27, the target scales to ₹4,500 crores in revenue and an EPS of ₹75. This growth is expected to be driven by a mix of traditional EPC (₹2,500cr), FGD (₹500cr), and Smart Meters (₹500cr), with Data Centers providing a high-margin kicker to the bottom line.

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